Keyways to increase business productivity include using capital more efficiently, the Kaizen method, investment, and providing work incentives.
Especially in the current financial climate, establishing and maintaining an effective workforce is crucial to providing products or services that may be sold at a competitive price, thus ensuring the business survives and is as profitable as possible.
There are four main ways to improve business productivity, including:
- Using capital more effectively
- Kaizen method
- Sensible investment
- Work incentives to increase motivation
Effective use of Capital Affects Productivity.
One fundamental approach to helping improve an organization’s productivity levels is identified as ensuring the effective use of capital remains high on the business plan. For example, in the case of machinery breaking down regularly, leading to decreased productivity, which may be tackled through carrying out more frequent maintenance of such equipment to ensure it is working at optimal performance levels. It will then save essential capital, which could be better spent elsewhere within the business.
Particularly given today’s challenging economic climate, finding areas where capital could be more efficiently spent is crucial not only to productivity but also to be as transparent as possible to clients or those investing in the organization.
What is the Kaizen Method?
Kaizen originates from Japanese and is translated to mean ‘continuous improvement’ with the core philosophy being the recognition that small changes can significantly influence. The Kaizen method is useful to many aspects of life and is becoming increasingly popular within therapy for mental health problems such as within Cognitive Analytic Therapy. The idea is that those on the production line by making small improvements will eventually combine such changes to result in a boost in productivity.
To make employees more focused and less stressed, resulting in less absenteeism (thus saving money), it is well worth considering getting an expert to explain the fundamental principles and practical implications of applying Kaizen to all aspects of one’s life.
Investment and Motivation Affect Productivity
Through companies investing capital into purchasing new machinery and making fair use of modern technology, money may be saved as fewer workers would likely be required. Motivation is increasingly more critical in the current climate. It may be increased by ensuring employees have regular incentives, acceptable working conditions, and are made to feel valued within the organization. It will save the expense of having to spend time training as a result of high staff turnover, and creating a positive work environment will also reduce the amount of office politics.