Let’s take some time to truly explore what areas your business can look at to achieve the productivity improvements you’ve been talking about.
While inevitably the outcome of increased productivity is a dollar figure, you must ensure that not only have you explored productivity improvements in your labour, but also among the myriad of other aspects of your business. A simplistic definition of productivity is ratio of output to input. The key drivers of productivity are: efficiency of people, processes and equipment:
- Improved skills and training – remember an investment in employees is an investment in your business
- Improved communication processes – many hands make light work, but mis-communication can cost you work
- Better job design and structure – Do you have the right people in the right jobs, the right jobs in the right departments etc.
- Response to customer needs – Do you miss out on jobs because of bad communication?
- Delivery schedules – If you deliver a product or service do you do that efficiently?
- Rostering – Are you using the provisions in your award or enterprise agreement effectively to ensure your employees are efficient?
- Quality of product and service
- Reliability of your product and service
- Accessibility to your products and services – Are you using your website efficiently?
- Innovation – Is your product and service cutting edge or unique to others in your market?
- Overheads – Comes back to my point about job design and structure. Is it right for your business?
- Cost of rework – Cutting down on returns and multiple handling
- Wastage – Very important for hospitality employers.
- Equipment breakdowns – Is the equipment right for you and your business?
- Downtime – make use of downtime efficiently. Staff training, mentoring and coaching. Downtime can be incredibly useful.
While this is not an exhaustive list, or one that’s set in stone, it’s a good starting off point to look at where productivity can be improved in your business.
Take proactive steps that suit your business and you will improve productivity….and you may just find the flexibility and efficiency you desire also.
Got you thinking now?