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The Profit Equation: Prioritizing Productivity to Drive Growth, Competitiveness, and Profitability (CFO Summary)
June 2015 | Publication
The global economy appears to be sliding into a productivity crisis, but increasing productivity goes beyond simply controlling costs. Research shows the decline in productivity growth is largely due to inefficiencies in investments in things like equipment, human capital, and organizational processes.
Principle areas of focus for the finance function, therefore, are ensuring productivity is a component of the conversation about profits, driving operational excellence through intangible investment, and maximizing innovation’s effect on productivity through those investments. This report details these approaches and illustrates the relationship between productivity and profits.