It’s helpful to know metrics like these to help you make decisions on projects, priorities, and trends:
Your “per hour” and “per month” salary and benefits cost to the organization
The salary and benefits cost for your working teams (and subteams if you have a larger group) per month
Profit margin of your key products / services
Your organization’s revenue in a quarter, or for a particular region
These become proxy values in making estimates. For example, I recall a VP who listened to a proposal for a big initiative, and thoughtfully asked aloud, “This investment is equal to all our sales in northern Illinois for two years. What’s the minimal payoff over 3-5 years?” Several times I had internal clients who wanted “just a few enhancements” to software they only used occasionally. “Would you pay $12,000 out of your budget for that?” I asked – because I could ballpark the salary estimate of the developer time. (They wouldn’t. End of request.) And you can think about the value of your time when considering how to prioritize your work. What’s going to be worth 3-10x your salary to your organization? Do that.
You should also practice valuing your contributions, especially the indirect but real contributions as a leader. Consider your long-term influence on the people, rituals, processes, and working culture (the default behaviors and practices) of your organization.
A useful question to ask:
“What would not have happened without your contribution?” Follow this with “How do I know?”
