{"id":650172,"date":"2017-03-17T08:37:38","date_gmt":"2017-03-17T08:37:38","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/03\/17\/why-businesses-need-to-focus-more-on-productivity-and-less-on-efficiency\/"},"modified":"2017-03-17T08:37:38","modified_gmt":"2017-03-17T08:37:38","slug":"why-businesses-need-to-focus-more-on-productivity-and-less-on-efficiency","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/03\/17\/why-businesses-need-to-focus-more-on-productivity-and-less-on-efficiency\/","title":{"rendered":"Why businesses need to focus more on productivity and less on efficiency"},"content":{"rendered":"

The words \u201cproductivity\u201d and \u201cefficiency\u201d are often used interchangeably in business <\/strong>strategy.<\/strong> But new studies have found that businesses and business leaders must adopt a \u201cproductivity\u201d rather than \u201cefficiency\u201d mindset if they want to remain in the game, Michael Mankins argues in a piece for HBR<\/a>. \u201cContinuing to wring out greater profits through efficiency has become the managerial equivalent of attempting to squeeze blood from a stone,\u201d he says. But what exactly is the difference? <\/strong>The article defines efficiency as \u201cdoing the same with less,\u201d whereas productivity is defined as \u201cdoing more with the same,\u201d which means that where the efficiency mindset would entail reducing manpower during periods of slow growth for example, a productivity mindset demands better utilization of existing resources to propel growth.<\/p>\n

\u2026and why does productivity now have more weight? <\/strong>A good look at the S&P 500 sees earnings growth running \u201cnearly three times the rate of inflation over\u201d the 1990s and 2000s but beginning to slow as of the end of 3Q2015, suggesting that \u201ctoday\u2019s business environment requires a different worldview.\u201d HBR and the Economist Intelligence Unit\u2019s interviews with 300 senior executives from around the world complemented the findings of a comprehensiveBain & Company study into workforce productivity<\/a>, which found that there are ways to \u201cunleash\u201d a company\u2019s productive power by limiting what is known as \u201corganizational drag.\u201d In other words, removing the obstacles in the way of productivity that consume valuable time and over time \u201climit employees\u2019 ability to innovate and do deep work,\u201c according to Divinge<\/a>. Those include slow and lengthy decision making processes, drained or unenthused employees that could be toxic to others, constant interruptions during the work day, and meetings that tend to run longer than they should, to name but a few. HBR\u2019s studies found that a company loses an average 20% of its productive capacity each week \u2014 which translates into more than a whole day out of the five-day workweek.<\/p>\n

\u201cMost employees want to be productive, but the organization too often gets in their <\/strong>way\u201d<\/strong> and talented employees are too often placed in roles that limit their effectiveness, suggesting that caution must be taken to employ your \u201cstar players\u201d where they can really make an impact. That alone isn\u2019t enough though. \u201cVirtually every employee can bring more to their job, but many don\u2019t invest the additional ingenuity and creativity that they could\u201d because they are uninspired, even though an inspired employee is 125% more productive than one who is just satisfied. The best companies, according to HBR, are over 40% more productive than others and the difference is in their adherence to those \u201cfundamental tenets.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The words \u201cproductivity\u201d and \u201cefficiency\u201d are often used interchangeably in business strategy. But new studies have found that businesses and business leaders must adopt a \u201cproductivity\u201d rather than \u201cefficiency\u201d mindset if they want to remain in the game, Michael Mankins argues in a piece for HBR. \u201cContinuing to wring out greater profits through efficiency has […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12018],"tags":[72,12017],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-650172","post","type-post","status-publish","format-standard","hentry","category-something-that-made-us-think","tag-enterpriseam","tag-something-that-made-us-think","wpautop","entry"],"acf":{"mongo_id":"8150faa1-050c-4919-9956-13d7d0a847ce","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[650141],"teaser":"","voice_url":""},"yoast_head":"\nWhy businesses need to focus more on productivity and less on efficiency - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2017\/03\/17\/why-businesses-need-to-focus-more-on-productivity-and-less-on-efficiency\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why businesses need to focus more on productivity and less on efficiency\" \/>\n<meta property=\"og:description\" content=\"The words \u201cproductivity\u201d and \u201cefficiency\u201d are often used interchangeably in business strategy. 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