Company productivity:
how to improve it on an organizational level

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?

Let's dive into company productivity

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.

How to increase company productivity

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 do 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!

The impact of company culture on productivity

Company culture is a game-changer when it comes to boosting productivity. A positive and inclusive culture makes employees feel engaged, motivated, and ready to collaborate, all of which are key to getting things done efficiently. When team members feel valued and supported, they're more likely to be dedicated to their work, leading to increased innovation and efficiency. On the flip side, a toxic culture can cause disengagement, high turnover, and low morale, dragging productivity down. Knowing how company culture affects productivity is vital for any organization looking to improve performance and grow. By fostering a healthy work environment, companies can truly unleash their potential and achieve amazing results.