How do we enhance productivity?


We have discussed productivity, and what is recognised as the scope to improve. This includes improving output relative to inputs.

What are the things we a business owners can do to develop a strategy that will improve productivity.

If the initial strategy is to utilise the easiest data to assess productivity (your financial statements), then you will need to do two things:

  1. Convert your cost of goods sold and each operational expenses to a ratio of sales, and
  2. Then benchmark this data against your peers or over time (timeseries ideally 5 years).

The peer-to-peer data will identify specific areas within your business that are not performing in the top 10% of business performance best practice. The timeseries data will show how your business is trending over a period of time and if it is improving or declining over this period.

Depending on what the information provides, the business can identify in the problem is a material resource use efficiency problem, a labour productivity or capital productivity problem (contact me if you have a problem analysing the data or if you have questions on )

Once the performance problem area has been defined, then a strategy to address and resolve the issues can be developed. We can assist the business if you contact us.


Depending on the area and scope of the productivity constraints, different techniques can be used to improve productivity and business resource efficiency. The techniques can include further efficiency diagnostics, process mapping, and material waste improvement strategies.


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Have a great week.

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