From the course: Financial Analysis: Making Business Projections

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Adjusting for changes in productivity

Adjusting for changes in productivity - Microsoft Excel Tutorial

From the course: Financial Analysis: Making Business Projections

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Adjusting for changes in productivity

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Voiceover: Up until now we have looked at our current resources and at adding or removing resources, but there is one assumption we have kept the same all along which is that the productivity of our resources remains the same overtime. This of course can be true, but in some occasions we could want to push the productivity of our resources to increase in the future and account for it in our financial plan. For example, you could be unsatisfied with the level of productivity of your resources and believe it should be higher. That of course would affect only your current resources since any new resource could be accounted at that desired level from the start. The logic would then be the following: you need to look at the current productivity of your resources and define what would be the level they need to attain in the coming year. Whether that desired productivity is reached right away or overtime during the year would be entirely up to you to define. Maybe you could change some…

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