Knowing Your Worth - MAC027

When most people think about providing a status on their work, they usually think in terms of completed tasks.  At some level, this is relevant to ensure that projects remain on time.  But if you'd like to set yourself apart from others, consider framing that status in terms of value provided.  Obviously, not every task is going to provide easily measured value in terms of dollars or time savings, but there should be some identifiable value to the company……otherwise, why are you asked to do it?

Most companies are for-profit entities, so the true measure of value is ultimately going to be how much profit is generated.  Since profit is revenue minus costs, you will need to evaluate how your work relates to at least one of those two factors.

For some people, there is a direct, one-to-one correspondence from the job they perform to the profit of the company.  For others, you'll have to take a deeper look to understand how your work relates to the revenue or costs of the company.  If there is no direct relationship, your role is often classified as overhead and your primary statement of value will be focused on how the results of your work has saved the company time or money.

Let's take a look at a few of these roles and how you could frame the results of your work in terms of value to the company.

If your roles is in sales, it should be easy to detail the value of your work.  You're very likely already measured by how much revenue you generate because your compensation is tied to your quota.  If you don't already report your status in terms of revenue generated, I would be surprised.  If you also have authority to negotiate deals, you can also impact profit based on how those deals are structured.

For someone who creates the product sold -- for example manufacturing for physical products or  programming for software products -- the faster or more efficiently you create the product, the more you contribute to the profit of the company.  When reporting the status of your efforts, instead of just listing the number of widgets produced, report on how that compares to average production rates and report how much additional profit can be generated by those production levels.

Documenting your value when there is a direct connection to revenue or profit is easier and more straightforward, but what if your role is less direct -- more traditionally overhead?

If you work in a department such as accounting or finance, speedy and accurate results can allow operations to better manage inventory or understand when to discount certain products.  Finding opportunities to reduce costs or to spend more efficiently can further increase profits.  These are the types of activities that you will want to highlight in your status reporting.

Working in information technology, your tie to profit and revenue is through the business unit that you support.  Providing software that allows that business unit to perform their tasks more efficiently can be calculated in terms of hours saved times average salary.  Software that implements new processes could facilitate expanding product offerings or new markets.  As you give status on your tasks, be sure to emphasize these impacts to your leaders.

These are just a few examples of how ones work can be tracked back to either revenue or profit, but if you apply the same lens to your work, you should be able to find similar connections.  As you focus on documenting your value in these terms, it becomes easier to justify your advancement.

How has your value increased by listening to Managing A Career?  Access the Community and let me know!

Are you looking for a career coach? If you reach out to me via the contact form, I will arrange an introductory session where we can talk about your career goals and how I can help. If we're a good fit, we can schedule regular coaching sessions.