Investing in productivity improvements in times of market uncertainty
Productivity is defined as a measure of output from a process, per unit of input. As implementation consultants, our primary function is to help companies improve their productivity by either increasing revenue or reducing cost.
Companies tend to invest in productivity improvements when the economy is either heading downward or upward. However, if the economy stays depressed for too long, lack of cash and general uncertainty cause a reluctance to invest in anything with risk attached. On the flip side, if the economy grows for a long enough period, over-confidence can cause executives to start to think they don’t need to focus on productivity.
The smartest and best run companies never lose sight of the need to continually drive productivity up in their business. Whether good times or bad, increasing customer value and reducing your cost-to-deliver is a competitive imperative.