Productivity Improvement - What A Manager Can Do
Dr. Ben A. Carlsen, MBA

Getting the job done with fewer resources improves organizational performance and
profitability. Productivity is a simple ratio of output to input. (i.e., P= O/I) The higher
the ratio, the better the productivity.
The manager can have a profound impact on productivity by implementing a few
simple practices. The following is a useful process, along with tips to improve
productivity.
1. Develop some basic measures of baseline performance. The old axiom- "You can't
improve what you can't measure" - holds true here. Establish baselines for output
such as: Number of "widgets" produced, reports completed, sales closed, revenue,
etc.
2. Perform a similar process for inputs: E.g., raw material consumed, dollars spent,
time expended, etc.
3. Be sure to measure what is truly important to the success and profitability of your
organization (e.g., the "critical few."). Measuring performance which is not critical
(e.g., reports and analyses) wastes time and money and can deceive the manager
about the real performance of the organization.
4. Begin recording the numbers from steps 1 and 2. Your first month, week, hour,
quarter, will be your "baseline". Then you can track improvement (or deterioration)
from there by comparing like periods to your baseline.
5. Examine methods and procedures to ascertain where improvements can be made.
Be sure to involve the people actually doing the work as they will understand the
process better than anyone else. Frequently the same employees who have been
underperforming because of outmoded or inefficient procedures and processes, will
welcome the opportunity to make recommendations. Often, they have never been
asked.
6. Although the process doesn't require a Consultant, oftentimes dramatic and
lasting improvements can be effected through the use of an outside analyst. There is
value to someone's opinion who is not immersed in the day-to-day process.
Consultants or facilitators have an advantage of perspective, as they operate from
the "catbird seat of objectivity".
7. Provide incentives for improved performance. These do not necessarily have to be
monetary, but need to be valued by the employee, such as: Recognition, increased
responsibility, variation in routine, time off, flextime, etc.
8. Involve the entire organization in the process. Show how improvements will
benefit the employees. Celebrate success.9. Continuous improvement is another consideration. Obviously, if you're content to
"rest on your laurels" your organization will not achieve its full potential. Examine
and reexamine your performance and processes to gain ongoing performance
improvement.
10. Make productivity improvement a personal and organizational priority.
Demonstrate your interest, concern, and willingness to invest the time, energy and
resources to accomplish productivity goals.
About the author:
Ben A. Carlsen, Ed.D, MBA, is an experienced CEO and manager. Dr. Carlsen has
over 30 years experience in management, consulting, and teaching. Currently the
Head of the Business Department at Everest Institute, Hialeah, FL., he was the
Chairman of the Los Angeles County Productivity Managers Network.