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Productivity Quote by Tom DeMarco

“Productivity has to be defined as benefit divided by cost. The benefit is observed dollar savings and revenue from the work performed, and cost is the total cost, including replacement of any workers used up by the effort.” quote by Tom DeMarco
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““Productivity has to be defined as benefit divided by cost. The benefit is observed dollar savings and revenue from the work performed, and cost is the total cost, including replacement of any workers used up by the effort.””

Tom DeMarco

About This Quote

Source Book: The Mythical Man-Month, 1975

Productivity equals the monetary benefit of work divided by its total cost, including labor replacement.

In simple terms: Benefit divided by cost measures productivity.

Key Takeaway

Focus on net value, not just output.

Themes

efficiency cost‑benefit management

Mood

analytical pragmatic

Type

business financial

When to use this quote

  • project planning
  • budget reviews
  • process improvement
  • performance metrics

Key Concepts

economics value measurement resource allocation

Questions to Reflect On

  • How can non‑financial gains be quantified?
  • What costs are often overlooked?
A Different Perspective

Ignores qualitative benefits like morale or learning.

4.5 out of 5 (7 ratings)

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