Improving Productivity

How can I make sure my organization is getting the most out of its resources and investments?

The most consistently productive enterprises are not the sporadic cost cutters, but rather those that drive productivity standards into their ongoing resource allocation processes. Sure, they have to tighten their belts when times are tough – but they don't rely on periodic restructurings to deliver efficiency gains.

Leaders play a key role in ensuring that their organization adopts this continuous productivity growth mindset. They see the relentless pursuit of finding new and better ways to operate as a key source of funds for outinvesting the competition. Fundamental to this is making the organization understand that productivity is everyone's business, from marketing to customer service, and not just the responsibility of "someone else." To confront this challenge, leaders must:

  • Take a frank look at the productivity of an enterprise’s cost, capital and investment
  • Have the courage to reallocate resources away from "bad costs"(those that destroy value) toward "good costs"(those that provide fuel for growth)
  • Set ambitious growth targets to motivate the need for, and commitment to, growth-oriented cost management
  • Enforce a productivity mindset that relentlessly seeks the most efficient way of delivering the highest value to customers