Getting the most output from the least input? Or using existing resources as effectively as possible to achieve the highest possible benefit, result or performance?
I am sure every one of us in working life has heard these definitions. If you are using a great deal of resources but still cannot reach the results you want, or if you are struggling to pinpoint what is holding you back, the right key to unlock the door for you may be “productivity.”
So in this week’s article, let’s take a brief introductory look at “productivity.” Enjoy the read.
Why does productivity matter to companies?
The answer is actually one we all know. Companies want high profitability, and they want to achieve it by using the resources at their disposal as optimally as possible. A company’s profitability depends on how productive it is and how efficiently it achieves that productivity. At the same time, to the extent that companies get this right, they perform at a high level and gain a strong position in the competition. In short, the more productive they are, the more successful and profitable they become, and they can turn this into a sustainable cycle.
So what is the most valuable resource companies have in this story?
If you ask me, I would say: human resources. All resources are valuable, of course (money, time, technology, knowledge, data, machinery, methods, methodologies, fixed assets and so on), but when the principle of productivity is applied correctly, the resource that can create the greatest added value is undoubtedly human resources.
If I had to offer a formula, mine would be less about the ratio of input to output and more about a results-producing relationship between effective resource management, the use of new technology and the right management of the right human resources. I believe these three very important inputs must be managed very effectively to achieve productivity.
Never lose sight of quality!
Debates about productivity have long revolved around the quantity versus quality axis.
If you ask whether it is the quantity or the quality of what is achieved that matters, I am one of those who believe that an output or result of acceptable quantity but higher quality is far more valuable than a large volume of poor-quality output.
The “Plan Smart, Execute Effectively” principle
Although productivity may look like a mechanical, mathematical process on paper, for companies it is in fact a holistic concept in which the technological, cultural and human dimensions are far more prominent. It can also be seen as an attitude or mindset that needs to be put into practice in every area of the organization. Just as productivity cannot be achieved by having a single department or team work or be managed according to the principle of productivity, the first step should be to act with a holistic perspective that encompasses the entire organization.
Second, in order to reach the real goal and manage all available resources in the best possible way, you need to act according to the principle of “Smart Planning.” Productivity is very largely about “planning correctly.” Poor planning, insufficient resourcing, being slow to take action or failing to make decisions at the right time are just a few of the roadblocks that can arise if the second step is not put into practice.
The third step is entirely about putting what we have planned into practice, again within a strategic plan.
While we are on the subject, there is one point that must be underlined.
Productivity is often confused with “the workforce working (or even being made to work) harder.” Some people even define it that way. But especially in the period we have just lived through and beyond, productivity will not be about “the workforce working harder,” but about “working more effectively.”
Because, as we have all experienced, employee productivity will not be about loading more work onto people, but about creating jobs and working conditions that allow them to use their skills and competencies as effectively as possible and to turn them into high performance.
Companies will succeed to the extent that they can do this. All the innovations and changes organizations make in this regard, and all the improvements to employees’ working conditions, will have a direct positive effect on performance and an indirect positive effect on productivity. In short, increasing productivity will be possible not by increasing employees’ workload, but through smart planning and executing those plans as effectively as possible.
What are the key factors that affect productivity in an organization?
Let’s list three very important factors.
- Happy employees
- Delegation
- Leaders
The 3M Rule: “Happy, satisfied and motivated employees” are the golden key to productivity
As we said at the very beginning, our most vital resource is people, and if this resource does not lend a hand to productivity, the organization cannot succeed no matter what it does.
That is why human resources must be the focal point of every move made to increase productivity in the organization.
What needs to be done here is clear.
First, employees must be happy. An employee who is dissatisfied with certain things in the organization, indifferent to their surroundings and discontented can never give their best. Because their priority will be their own worries and problems. Such an employee also has a demoralizing effect on the rest of the workforce.
At this point, you need to identify what the problem is and be able to take steps to solve it. This is the only way to create a “happy employee experience.” Making employees feel that you are on their side and that they are valued by the organization is extremely important.
The problem could be anything, by the way. It could be the job, the team, a teammate, the manager, the organization itself or the meaning the person does or does not find in their work, or it could be an issue with an emotional or psychological dimension related entirely to the employee themselves. If the problems are work-related, solutions may include redefining the job, a change of role, job enrichment or rotation. If they relate to the team, the manager or the organization in general, external support, coaching, consulting and similar solutions may come to the fore. What matters here is that, whatever the problem, the priority should be taking correct, results-oriented steps towards a solution and making sure the employee feels valued.
After happy and satisfied employees, the third step is about motivation. Although it is a somewhat more intrinsic factor than happiness and satisfaction, there are still actions companies can take to create “motivated” employees.
A person’s motivational needs include physical and financial well-being, self-actualization (and the ability to achieve it), self-respect, a sense of achievement, autonomy and their expectations. Moreover, employees’ motivation patterns do not stay fixed; they are dynamic. Motivation changes with time, setting and people. That is why companies should always make it a priority to prevent loss of motivation as far as possible, especially by creating environments that help employees realize their potential and find meaning in their work.
Delegation
Another area that managers must address, and one that contributes greatly to productivity, is “delegating responsibility.” Delegation means handing work over to an employee together with all the necessary information so that they can manage and control it. Unfortunately, in Turkey, “handing over with all the necessary information” does not happen very often, but this is how it should be.
Why is delegation important? It is important because it creates a full sense of belonging and ownership in the employee. We are also talking about a process that brings with it a sense of self-confidence and morale. Aware that they are responsible for that task or process in every sense, the employee not only commits more fully to the work, but also becomes more eager to do their best, thanks to the confidence that comes from having wide latitude to take the initiative and make decisions.
Leaders must instill a productivity mindset across the entire ecosystem.
If there is the right leadership approach in an organization, that approach inspires and guides employees. From this perspective, management teams must instill a dynamic spirit of productivity in employees and give them the opportunity to make full use of their talents and skills.
We should also always underline the fact that productivity is not a concept that serves only companies’ interests; it is a very important improvement tool that employees can use to take their own circumstances, potential and productivity to a higher level.
As we come to the end of this article:
Productivity is a journey, both for employees and, in the bigger picture, for companies, through which they can turn their potential into effective, high performance. On the other hand, evaluating it only in its corporate dimension, that is, in terms of its impact on and contribution to working life, can be an extremely specific and relatively narrow perspective.
Productivity should not be a concept that only has meaning within the boundaries of working life. That is why I believe each of us should think more, discuss more and look for new ways to answer the question “How can we make more effective use of productivity?” in our own personal development journeys and our private lives as well. Especially now that all our resources have dwindled and our planet is so depleted… Don’t you agree?
Until the next article,
Wishing you productive and healthy days.
