What is productivity?
Productivity is about the effective and efficient use of all the resources in a business or organisation.
What are the resources of a business?
The resources of any business or organisation can be considered in three categories:
- time, people, talent, knowledge
- information, systems, finance, energy
- land, buildings, equipment, space, materials
Productivity improves when you get more out of your existing resources or the same out of fewer resources, so increasing capacity, reducing cost, improving response, eliminating waste.
What’s the difference between effective and efficient?
Being effective = doing the right things
Being efficient = doing things right
Being productive = doing the right things well – all the time
Measuring how long something takes (time) and the activity involved (motion)
Productivity is often thought to be about working harder or faster and historically was linked with time and motion. In reality, productivity is about making the work easier, quicker; it’s about finding better and more consistent methods that will reduce work content. In so many cases it’s about better organisation.
Productivity is about making better use of resources and, at many different levels, compares output/input. When using time measures, output is the work content. and input is attendance hours.
Our key productivity pointer
The real responsibility for productivity or performance improvement should be largely in the hands of those organising the work rather than an individual worker.