Not only is increased productivity essential to the ongoing success of most organizations, it’s also crucial to overall economic growth. On a macro-economic level, improvements in productivity make it possible for workers to earn more money without the need to increase the price of products. Let productivity suffer, and workers may get increases, but prices must also rise, which can ignite inflation.

Productivity improvements are fundamental to financial growth, and there have been volumes written on how to measure it, how to accelerate it, and how to sustain it. It often seems that there are as many ways to measure and manage productivity as there are companies producing goods and services.

However, the remarkable gains the U.S. has seen in productivity since the mid-1990s have begun to slow. Economists may debate the reasons and make predictions, but you have a business to run. As the economy slows, now is an ideal time to take a good, hard look at improving productivity in your operations.

Raising the dividend

Technically, productivity is output divided by input. Increasing productivity means providing more goods and services without expending additional resources – for example, by generating more product or service revenue without increasing the number of employees. Put another way, increased productivity simply means getting more with less. Raise the dividend, and you increase productivity.

All organizations must minimize waste and downtime while ensuring that the cost of providing their products remains competitive. Within this framework, there are many factors that can impact productivity. Sometimes these factors are outside an organization’s control, such as when shortages prevent key materials from being available, or when suppliers fail to deliver. Yet more often than not, elements that affect productivity are manageable, and measurable, and well within reach.

Even small gains in productivity can yield large benefits. Here are some of the most common productivity-enhancing tools available to today’s organizations.

Technology. In many industries, the most powerful strategy for raising productivity is the intelligent use of technology. When carefully planned and properly implemented, computers and software can make work move faster and help employees become more efficient at all levels of an operation. As new technology becomes more affordable and therefore more accessible, even the smallest of companies can reap the benefits.

Review your technology needs, develop a sound technology plan, and take advantage of the productivity gains technology offers. Be sure that any new technology is also implemented effectively.

Information. Technology can further support a better flow of information, a key to making employees more productive. As information is collected and shared in a timely manner, employees are able to make swift adjustments that foster efficiencies.

Examine the flow of information in your organization. Can your employees make sound decisions based on real-time and relevant information? Enabling them to do so will boost productivity.

Communication. Productivity thrives when employees know what’s expected of them. By understanding the overall direction of the company and how they contribute to success, employees can converge their individual efforts toward shared goals. The result is that everyone efficiently pulls in the same direction.

Ensure that the channels of communication are open and that productivity standards are explicit. Give employees regular feedback on their productivity performance. Successful communication requires effective management styles and ongoing training—two areas that typically require frequent evaluation.

Metrics. In order to increase productivity, organizations must measure operational efficiencies on an ongoing basis. They must identify the critical factors that matter most (key productivity indicators), and establish correlated performance measures. Even better, metrics that are visible in real time can influence on-the-spot operational behaviors and decisions. And because of such measures, employees will perform at higher levels knowing the score and expectations.

Process optimization. There are always more efficient ways to “do the job,” as well as many proven principles for streamlining processes. Whatever improvement program or system you choose to adopt (lean, value streams, standardization of work, etc.) effective implementation is vital. Additionally, your processes must be aligned with your people and technology. Achieve alignment, and your organization’s productivity gains will come faster.

Benchmarking. It’s always useful to know how other businesses approach their productivity challenges. Comparing your operations to others can provide a valuable perspective and new ideas to make your organization more efficient.

A never-ending process

Productivity requires regular adjustments. By reviewing operations and continually fine-tuning the above factors, you can generate productivity gains across two critical spectrums: increased capacity and availability, and increased employee engagement.