Alex RaineyAlex is an experienced CTO and founder who largely focuses on all the technical areas of My AskAI, from AI Engineering, Technical Product Management and overall Platform Development.
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Jul 15, 2024 11:44 AM
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Dec 6, 2023
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Back in 2017
@Lemonade_Inc were wayyy ahead of the curve supercharging employee efficiency. They created the 'Automation Index'.
An Automation Example
An automation example was a Slack bot they built (pre-ChatGPT) that finds docs, shares assets & deploys code.
Why is an Automation Index Useful?
Firstly, it can quickly be calculated by any company:
- Formula:
- 1 - (number of employees / number of customers)
- e.g. Stripe = 1 - (8,000 / 2,000,000) = 0.99
- 8,000 employees service 2,000,000 customers!
- Tip:
- You can only compare your score with a similar business in your industry.
- You can also switch the 'number of customers' metric to revenue or some other key traction metric.
Internal Use of the Index Metric
But the important thing is using the index metric INTERNALLY, to measure your own performance.
This can help with a mindset shift at companies towards being more efficient.
- "What can I build internally that can help us service more customers with less or the same staff?".
I can't think of many SaaS companies that aren't trying to get more out of their existing resources.
Consider Tracking This for Your Startup
Consider tracking this for your startup to jumpstart the mindset of "how can we do more with less".
Lemonade did this in 2017, imagine what you can do now with the latest AI models and tools that leverage AI?
Written by
Alex Rainey
Alex is an experienced CTO and founder who largely focuses on all the technical areas of My AskAI, from AI Engineering, Technical Product Management and overall Platform Development.
