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> is that one of the goals of every executive is to maximize headcount should/do they consider other metrics: revenue, active users, etc under management?
by riku_iki 4y ago
> is that one of the goals of every executive is to maximize headcount
should/do they consider other metrics: revenue, active users, etc under management?
- blagie 4y agoKinda. Here's the problem. Let's say I'm managing a business with $1B in revenues and $1.1B in expenses. Am I doing well? On one hand, those are astronomically high revenues. Great! On the other hand, I'm losing $100M per year. Suck! But I was brought in to fix things up after some idiot who ran things into the ground. I'm doing great! But it's a growth market; maybe it's because of that? Suck! But in fact, I'm bleeding money for growth. Great! ... and so on. So all those other things can be spun. It's nearly impossible to objectively evaluate executive performance. They definitely show up on OKRs and similar, which can be managed by setting low objectives.
- riku_iki 4y agoYes, but revenue will be better proxy than head-count. Once you are not satisfied by revenue, you can start calculating operational profit next.