Deep Dive Definitions: dWAE and cWAE

Direct Worker Actualization Efficiency (dWAE).

For those not in the know, dWAE is calculated with a simple formula:

$$\text{dWAE} = \frac{\text{Gross Margin}}{\text{Direct Worker Costs}}$$

Direct Worker Costs is how much you have to compensate your employees. Gross margin is:

$$\text{Gross margin} = \frac{\text{Gross Profits}}{\text{Net Sales}}$$

At first you may notice only growth slowly; do not underestimate the power of growth. Small values over time compound into larger values.

Final dWAE formula via substitution:

$$\text{dWAE} = \frac{\frac{\text{Gross Profits}}{\text{Net Sales}}}{\text{Direct Worker Costs}}$$

Chief Worker Actualization Efficiency (cWAE).

$$\text{cWAE} = \frac{\text{dWAE}}{\text{Corporate Fulfillment}}$$

Corporate Fulfillment is shorthand for a simple query: “is your company moving in the right direction?”. If, after RCE-1 implementation, you notice a slight downturn in this figure: be not afraid! What matters is that you are positive. Let’s take a look at the Corporate Fullfillment formula:

$$\text{Corporate Fulfillment} = {\text{Corporate Alignment}}*{\text{Executive Goals}}$$

Both Corporate Alignment and Executive Goals in this case can be interpreted as a boolean: $\text{true}$ or $\text{false}$. You can also think of it whether it $\exists$ (exists) or $\nexists$ (does not exist). As long as both values remain $\text{true}$ or $\exists$, Corporate Fulfillment is positive.

Final cWAE formula via substitution:

$$\text{cWAE} = \frac{\frac{\frac{\text{Gross Profits}}{\text{Net Sales}}}{\text{Direct Worker Costs}}}{\text{{\text{Corporate Alignment}}*{\text{Executive Goals}}}}$$

Helpful memory device.

For those who struggle with math: we’re not here to judge. Sometimes a helpful mnemonic device encapsulates it perfectly: