Manager's Output

Andy S. Grove’s formula of managers’ output:

$Manage{r}^{\prime }sOutput=L_1\times A_1+L_2\times A_2+\dots =OutputoftheOrganisation$

Where

• $L_1$: Leverage 1
• $A_1$: Activity 1

Based on the formula, to increase the output of managers, we need to:

• increase the speed - more activities per unit of time worked
• increase the leverage associated with each activity
• shift from low-leverage activities to high-leverage activities