To say company productivity is important to any organization, would be a wide-open door. Of course it’s an essential metric. It shows how much output an organization has, compared to its input. So when productivity is higher, that’s better for the bottom line. But how do you measure business productivity, and how can it be improved?
What does company productivity really mean?
In the corporate world, productivity is the metric that expresses how efficiently an organization transforms inputs into valuable outputs. The fundamental formula for productivity, is simply dividing output by inputs.
To say company productivity is important to any organization, would be a wide-open door. Of course it’s an essential metric. It shows how much output an organization has, compared to its input. So when productivity is higher, that’s better for the bottom line. But how do you measure business productivity, and how can it be improved?
What does company productivity really mean?
In the corporate world, productivity is the metric that expresses how efficiently an organization transforms inputs into valuable outputs. The fundamental formula for productivity, is simply dividing output by inputs.
Productivity = Input/Output
Inputs include things like labor costs, overhead (like rent, utilities, company vehicles, etc.), and raw materials. Output is mostly quantified in terms of the monetary value or units of products and services.
Productivity itself hinges on multiple factors, including
Streamlined processes
A motivated and engaged workforce
Effective communication
The strategic allocation of resources.
The underlying philosophy of productivity is not new. It has pretty much been there since the inception of civilization. At its core, productivity revolves around optimizing resources, making efficient use of time, and delivering quality results.
Within an organization, productivity can be viewed from different angles.
Labor productivity measures output per labor hour, while capital productivity assesses the effectiveness of capital investments in generating output. Multifactor productivity, a common metric, looks into a broader spectrum of inputs, providing a comprehensive measure of overall organizational efficiency. This metric plays a big role in assessing company performance, making decisions, and driving improvement in the ever-changing business landscape.
Corporate rebels and productivity
Our philosophy at Corporate Rebels happens to drive company productivity. How?
We spotlight pioneers and corporate adventurers, who do things a little different and challenge the status quo. This spirit of innovation and exploration breeds an environment that naturally enhances productivity. All the companies and pioneers we put on our bucket list have had great success with these progressive structures.
We also value happiness at work. When employees are happy, engaged, and passionate about what they do, they do their best work. This not only leads to a positive work environment but also drives productivity. Are you not more productive when you like what you do? When you feel like it makes sense?
To improve productivity, we have launched several courses to help you on your way. How much do long-winded meetings drain the life out of your team members? Probably even more than you think! So learn how to run better meetings. Or make better decisions.
The role of happiness at work
At Corporate Rebels, we believe that job satisfaction is something to put on the agenda. Happiness isn’t just a feel-good factor. It can rocket-launch productivity. Research by Oxford University’s Saïd Business School found that happy workers are 13% more productive.
So, how do we try to improve work life? We focus on learning from workspaces that inspire and motivate. To us, happiness at work comes from a deeper, more intrinsic connection to why we’re there.
We encourage a culture of autonomy, belonging, and purpose that comes from a shared vision. When employees are engaged and passionate about what they do, they’re most productive. It’s where the magic (innovation, growth) happens.
The impact of organizational structure on productivity
Organizational structure plays a significant role in shaping the productivity of a company. Different structures can either slow down or promote performance, depending on how well the leadership and workflow work.
Among the various organizational structures, flatter organizations usually have better communication between teams and team members. This is because there are fewer layers of management, from frontline employees to the C-suites. As a result, decisions can be made quicker, information is distributed faster, and employees enjoy more autonomy in their jobs.
Moreover, flatter organizations are often less costly than hierarchies with many vertical layers. By eliminating multiple layers of middle management, a flat organizational structure can quickly save a lot. And as we have seen, more output for less input equals high productivity numbers!
Challenges and solutions to build a productive team
Improving productivity is a common goal for many companies. It’s not without challenges.
Build better company productivity
You can learn from others. That’s why we love to offer real-life examples. However, in flatter organizations, enhanced productivity is almost a side effect. It is rarely a goal on its own. At least not from the start.
That’s why you can learn from all the pioneers that inspire us. A list that continues to grow.
If you’d like a more hands-on approach, our courses offer many valuable insights. We have already learned from the best organizations out there. So you can save time and get started right away.