Going for growth in National Productivity Week

Mark Wilson at Node4 explores some new approaches to achieving and measuring productivity

 

Productivity is regularly in the headlines as a key driver for economic growth and prosperity. According to The Productivity Institute, increased productivity can lead to “higher wages and household incomes, stronger businesses, better public services and a higher standard of living.”

 

In basic terms, productivity is an indicator of how efficiently a business or economy is producing output from a given set of inputs. On a national level, OECD data currently puts Ireland at the top of the global labour productivity performance table, with the UK further down the list beneath the G7 average and other comparable economies. For governments focused on growth – i.e., all of them – improving productivity is high on their list of priorities.

 

This is just one of the many reasons why National Productivity Week – taking place at the moment – is such a useful reminder of the importance of driving efficiency and output.

 

Productivity in 2025

Productivity is no longer just a matter of working harder – it is about working smarter to deliver inclusive growth where gains are shared equitably across society.

 

The traditional method of measuring productivity was to compare the labour and material inputs into a project to its outputs. The more that was taken out, relative to what was put in, the more productive the process was considered to be. Yet, this approach focuses solely on quantity, rather than quality. In today’s highly competitive market, quality is a key differentiator. As such, the concept of productivity has evolved to include the effectiveness of the process, service, or product. 

 

This more holistic view takes factors such as technology, employee skills and innovation into account to provide a comprehensive overview of the use of all resources. By monitoring all of these aspects, businesses can achieve higher productivity levels and better overall performance.

 

Improving productivity today

In difficult economic times, when all businesses are tightening their belts, productivity improvements can often be overlooked in favour of cost reductions. But the fact of the matter is that cutting costs is a short-term approach, whilst focusing on sustainable productivity gains will reap dividends in the long term. 

 

Technology is a fitting example of a long-term solution for improving productivity within your organisation. Businesses that make good use of cloud computing technologies, ERP systems, project management and collaboration tools, among others, report significant performance advantages compared to legacy approaches and processes.

 

Then there is the question of process improvement, which can help organisations boost productivity factors, ranging from the levels of waste and inefficiency, output quality and resource management to business agility and the scope for maximising growth. By streamlining workflows, for example, businesses can reduce costs, improve employee satisfaction and the customer experience.

 

Additionally, better processes support other relevant productivity issues, such as regulatory compliance and risk mitigation. Effective processes can also make a major contribution towards continuous improvement and innovation initiatives, which play a key role in long-term productivity performance.

 

Crucially, at a time when labour markets across developed economies are impacted by employee availability and retention, training has become even more important for organisations focused on minimising staff turnover and building the skill sets required to improve output where it is most in demand. Getting this right means organisations can build smart productivity strategies.

 

The point is that every organisation has a productivity sweet spot where people, technologies and processes combine to deliver maximum efficiency and output. In each case, finding and optimising this balance is key to sustaining growth, staying competitive, and ensuring long-term success.

 

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Mark Wilson is Technology and Innovation Director at Node4

 

Main image courtesy of iStockPhoto.com and olm26250