The EY New Zealand Productivity Pulse
How can we improve productivity?
A lack of definition and understanding of productivity is a common problem in most organisations. It can mean different things depending on what part of the business someone is from. But a definition is actually simple: it is an efficiency measure.
However, it should not be used as the only measurement in an organisation.
A good balance of these measurement criteria are needed with a sharper focus on efficiency.
There are four common reasons why productivity should be measured:
- An important tool to assess the efficiency of your organisation
- An important lens on your relative competitiveness
- To assist in making investment decisions
- To help identify where to make interventions/improvements
When organisations are ready to measure productivity, they should ask:
- Is our productivity agenda bold enough given our market and competitive landscape?
- Do management dashboards effectively report our organisation’s productivity performance?
- Are we more productive than last year?
- Is executive compensation linked to specific productivity measures (ie.not just cost savings)?
- Do we know the productivity performance of our competitors or peer organisations?
- Is enough being done to remove all wasteful non-value work?
- Do we have an ambitious program for process automation?
- Are we developing and utilising the full talents of our workforce?
- Do we have a deliberate and audacious innovation agenda?
- Braden Dickson
New Zealand Performance Improvement Leader
Tel: +64 9 308 1064