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Published on: 17 Apr 2017 by securityspecialist1

How to Improve Business Productivity

Key ways 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 being able to provide products or services which 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 key approach to helping improve productivity levels of an organisation is identified as ensuring the effective use of capital remains high one the business agenda.

For example in the case of machinery breaking down on a regular basis 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. This will then save essential capital which could be better spent elsewhere within the business.

Particularly given today's difficult economic climate, finding areas where capital could be more efficiently spent is crucial not only to productivity but also in terms of being as transparent as possible to clients or those investing in the organisation.

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 have a big influence.

The Kaizen method is useful to many aspects of life and is becoming increasingly popular within the forms of therapy for mental health problems such as within Cognitive Analytic Therapy. The idea is that those on the production line through making small improvements will eventually combine such changes to result in a boost in productivity.

In order to make employees more focused and less stressed resulting in less absenteeism (thus saving money), it is well worth considering getting an expert in to explain the key principles and practical implications associated with applying Kaizen to all aspects on one's life.

Investment and Motivation Affect Productivity

Through companies investing capital into purchasing new machinery and making good use of modern technology money may be saved as less workers would likely be required.

Motivation is increasingly more important in the current climate and this may be increased through ensuring employees have regular incentives, acceptable working conditions and are made to feel valued within the organization. This is going to 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.


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