What is the Real Meaning of Productivity

What is the real meaning of productivity? One of the most cited definitions of productivity is the amount of output as results per unit of input as labor, equipment, and capital.

It is the total output from one unit of a total input. For example, it is the number of hours as the input you need to produce a product as output or result from the factory.

Historically, it was and still is one of the most critical economic measurements or indicators of the success of economic systems. But, today, it is something that we all need everything around us.

We need it in our personal life. We need it in our business life. Also, we need it in our business. We need it in our team working. We need it for our family. And we need it when we work on our computers. The need is everywhere.

I will talk about different meanings here, but one of the most important subjects will be the work done in a certain period.

The Purpose of Productivity

Because we talk about the ratio between output and input, we know that the purpose is to have a larger number mathematically from that equation.

For example, if we need three hours to produce ten products, the productivity will be 3,33 expressed in numbers. However, if we can increase that number to 5, we will need only two hours to produce ten products. For an additional hour of our work, we will have five products more produced. If you improve that number to be 10, we can produce 30 products for three hours. You can see the impact of productivity and these three examples in the graphic below.

productivity

As we can see from the graphic, our purpose or the purpose of every system where we measure productivity is to make it much better.

How We Can Improve the Productivity

Because it is a measurement received from the output and input of the system, we can focus on the following possible improvements:

  • Improvements of the input of the system. Many times increasing of the productivity can be part of the improvements of the inputs. For example, better suppliers can bring the decreased time of processing the parts.
  • Improvements in the subsystems of the system. The efficiency of the system will depend on the organization of different subsystems in the main system.
  • Results and the real meaning. Do we really need such a result? Do we really need all of that features? Or, do our customers need all of that features?

Many improvement aspects will depend on these measurements. If we want to make more results but spend a small amount of time or effort, we need to be more organized. We need to use better tools that will improve our work. Also, we need to be more focused on our work. And we need to know what we want to achieve.

The System That Can Change Your Life

An entrepreneur needs to be more productive, and one of the things that he needs continuously to do is find different ways to become more productive.

Productivity is more things done at the same time. But, what needs to be done? How can we do what we need to do?

The answers are simple. Everything starts with the wish list. What do you as an entrepreneur wish to accomplish?

If you succeed in implementing your wishes, then you will be the happiest person in the world. That is a wish, will and start doing productivity system.

productivity system - wish, will, do
Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan