Productivity Improvement – is it Complicated or Complex?
November 29, 2021
Incentives
Incentives: how to drive the right behaviour… and how not
January 25, 2022
Productivity Improvement – is it Complicated or Complex?
November 29, 2021
Incentives
Incentives: how to drive the right behaviour… and how not
January 25, 2022
Show all

2022 is the Year of Productivity Improvement: 6 Reasons why

Productivity Improvement approach

As we crossed the start line of the year 2022, you surely will have thought about new years’ resolutions and business goals. Here are six reasons why Productivity Improvement should be high on your list.

  1. Covid will not be all-consuming. It is a big statement and partially inspired by hope, but we now have high vaccination rates and a new Omicron variant that is more contagious but less impactful on the carriers’ health. Even experts at the WHO are changing the narrative from ‘it will get worse before it gets better’ to ‘it will get better’. This will not mean we will get back to normal, but it will mean shifting consumer and market demand. Better be as competitive as possible to be able to get the biggest slice of the upcoming opportunities.
  2. Inflation is forecast to rise. A Productivity Improvement approach allows businesses to off-set rising inflation and maintain and sustain margins; better start now to see the improved performance from better practices flow through to your bottom line.
  3. Ongoing supply chain disruption. Not only the after-effects of the 2021 supply chain crisis, caused by Covid or Suez/Ever Given. But expect the current geopolitical unrest to have a further impact on export and import organisations, which would be the bulk of this readership. Better be as agile as possible in your supply chain to prevent stocking out or overstocking. Both are painful and last year we saw businesses go under or lose 75% of their market capitalisation.
  4. Access to skilled and motivated personnel. Labour shortages, both in skilled and (middle) management positions are heavily impacting firms in New Zealand to fulfil demand. A Productivity Improvement approach creates a workplace where every contributor is valued – and every non-contributor held to account. Owners and leaders create the environment for people to thrive, and the right investment in your people is an investment in your productivity.
  5. Climate change and sustainability. Even during Covid times, consumers are more and more turning to sustainable or lower emission intensive goods and services. The pursuit to eliminate the inefficient use of our planet’s resources is central to a Productivity Improvement approach, and we have previously stated that Productivity Improvement is saving our planet, not destroying it. Better start and be on the front foot leading your industry in sustainability, than fight the rising tide and be seen as a laggard.
  6. I almost started with this one as it is the most important one, but thought it was it bit lame to state – first up – that EVERY year needs to be about Productivity Improvement. Better never stops and your competitors never sleep. Productivity Improvement is not a project or a goal, it is a life-long mission that your business should aspire to. Line up on that start line of Productivity Improvement, as there is no time to start like now.

 

About the author: Geerten Lengkeek is the Managing Director of Productivity People