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.