I am often asked: In what areas of an organization can productivity improvements make the most positive impact? There is no one correct answer to this question, but here are some things to consider.
Productivity improvement is a broad field and can include anything from looking at how to increase organizational capital for better innovation, to effects of government policy on an organization’s productivity, to organizational design and how that impacts productivity, and to how to use technology to improve an organization’s competitiveness.
Where productivity improvement can make the most positive impact in an organization depends on what area of the organization is performing most poorly. The way to determine which area is performing poorly is to assess each organizational area and determine where outputs are weak. There are two ways to do this.