How to Improve Productivity

Once you've figured out how to measure your business's productivity, you need to determine whether your productivity is where it should be. This task can be tricky, especially if you're getting this information for the first time. Factors to take into consideration are:

• the cost per unit compared with price
• your competitors' productivity levels, cost per unit, and price

Some of this information may be available from your trade or industry association, or through networking with contacts in similar businesses. Once you've established a baseline measure, you can assess your productivity periodically and be able to spot trends and track your progress over time.

After you've assessed your situation, what can you do to improve your productivity? Identify potential problem areas. The quality of leadership in the business can have an effect on productivity, so make sure that you, as a leader, ensure that your business isn't suffering from:

• poor planning
• poor scheduling of work
• unclear or untimely instructions to employees
• an inability to adjust staff size and duties during light or heavy work load periods
• poor coordination of material flow
• the unavailability of needed tools
• excess travel time

Ultimately, the key to improving productivity lies with the employees themselves and the way that you use those employees. Studies have shown that it is important to a majority of workers to do their best at their jobs. Chances are that most of your employees feel that way. People want to do a good job, and you should provide them with every opportunity to do so.

It becomes your challenge to tap into that desire to perform and make it work for your business. In a word, you have to motivate your employees.