VeraSage

Is RPE Important?

Ed Kless - 07/03/2008

Under the heading of Ask VeraSage comes the following:

Over a year ago I posted on the difference profit per employee (PPE) and revenue per employee (RPE). Tonight, my wife, Christine and I had a dialogue about a case study she had written earlier in the day for a customer of hers.

The customer had stated, “RPE is my ultimate measure and all I can tell you is that since implementing the new system, it is up.” Christine then asked, “Is RPE a good measure of effectiveness or efficency?”

My gut reaction was effectiveness, but I am not so sure. Perhaps it is both, but here is where you, our loyal VeraSage readers, come in. What do you think?