We need to talk about productivity

Productivity is about using resources optimally to realize the best outcomes. However, each function and even individual executives define and measure productivity differently. Therefore, firms find it difficult to manage a common narrative and take the necessary next steps based on this narrative.

Firms can develop a more meaningful firm-wide narrative and improve common measurement by focusing on five drivers of productivity: 1) innovation and digital adoption, 2) worker skills, engagement, and well-being, 3) management competencies, 4) access to finance and cost savings, and 5) marketing and communications. These drivers cut across different company functions and thus require cross-functional collaboration to drive a coordinated approach. For example, the chief human resources officer (CHRO) needs to work with the chief technology officer (CTO) to ensure the firm is optimizing productivity through both technical and workforce development. The CEO should be the champion for better introspection about an enterprise-wide approach to productivity to generate continuous improvement across the organization.

For more details, see How Businesses Can Leverage Productivity to Generate Strategic Alignment Behind a Common Language and Drive Performance.