Since integrating AI, our delivery team can complete work in a fraction of the time, making our old billable hours and activity-based Scorecard metrics meaningless. How do we design new strategic metrics to track productivity?

Question

Tyler Smith · Accepted Answer

Tracking billable hours or activity-based metrics when AI is doing the heavy lifting is a recipe for operational failure. If employees are penalized for working faster, they will simply slow down. You must shift your Scorecard from tracking inputs to tracking outcomes.

To design new metrics, look at how AI changes your operational dynamics. Prioritize using AI to increase employee productivity as a starting point, as employees are a major P&L item and much time is spent on low-value tasks. When those low-value tasks are automated, your human capital is freed up for high-value strategic work.

Your new Scorecard metrics must reflect this shift. Instead of measuring hours worked, measure client retention, project outcomes, or output volume per employee. For example, track the number of strategic client sessions completed or the total value delivered.

As economic thinkers like Erik Brynjolfsson and Andrew McAfee state, the firms that thrive in the AI era are those that measure the value of complementary human assets. Bring this metric redesign to your weekly Level 10 Meeting™.

Task your Integrator with updating the Scorecard to reflect these value-based metrics. Gradually evolve roles within the organization so employees invest more time in high-impact priorities, augmented by AI. This ensures your team remains highly productive, highly motivated, and aligned with the long-term growth goals defined on your V/TO®.