Navigating Productivity Challenges in the Modern Business Landscape
Is your business throwing People at problems or are you hoarding staff without seeing the growth?
Recently, the AFR published an article with a click-baiting headline: "Firms hoarding staff blamed for low productivity". This provocative title introduced a piece that made several intriguing claims.
First, the article highlighted economists attributing Australia's lacklustre productivity performance to the expansion in low-productivity service sectors and businesses holding on to more workers than required. This practice, possibly stemming from uncertainty about future economic conditions, is referred to as labour hoarding, and is identified as a particular factor in the recent productivity slowdown.
Philip Lowe, the Reserve Bank of Australia's former governor, weighed in as well. He observed that although productivity had been declining even before the pandemic, the disruptions caused by COVID-19 might have intensified the problem. Challenges such as interrupted supply chains, labour shortages, postponed investment, and tightened finances compelled many companies to shift their focus from growth to survival.
Lastly, the article posited that the recent productivity deceleration might also be rooted in a generalised labour shortage in the post-pandemic environment and shifts in labour demand brought about by AI and technological advancements. Some economists and scholars emphasised the difficulties in hiring and a hesitancy among businesses to release workers as contributing factors.
I have had several recent conversations with CEOs who believe their people numbers have swelled over the last few years. They were all yet to see a proportional growth in outcomes—leaving them questioning their business' focus and productivity. Whether it impacts inflation or not, it is an issue that every business and leader needs to put some weight into. The productivity of their people!
It is clear that businesses are currently facing difficulties in finding great talent and grappling with leadership capability issues. Additionally, industry dynamics are transforming at a pace faster than ever before. These contributing factors lead to organisational "productivity" being well under what is deemed acceptable.
Even if, as a business, you believe you are operating at full productivity, the fundamental principle is that there's always room for improvement. Engaging in continuous improvement and analysing minor areas for further productivity and efficiency can lead businesses to discover significant underutilised resource hours.
A prominent area to minimise team stagnation and loss of productivity within a business is to enhance team cohesion and focus. While this might seem like a straightforward solution, companies often find it challenging to implement.
Why is team cohesion important, and how do I get my team on the same page?
As humans, our desire to feel connected is primal, and it extends far beyond our personal lives, reaching into our work through what we do and the people we collaborate with. When a team is connected and achieving things together, it instils a sense of purpose within their roles and within the business. This connection not only boosts overall morale but creates a positive ripple effect across the business – it's a contagious energy.
If having all your team on the same page has such positive effects, you can likely imagine the negatives of not having them aligned. In fact, you may already be witnessing these issues within your business: wasting time and money, missing opportunities, and confusing your people. These are just a few things that could happen if your team is not 100% on the same page.
In addition to having a Strategic Plan on a Page, if you already have one, that's great. If not, we have a version of a Strategic Plan on a Page that we use with our clients. we suggest four areas to deploy as active steps in the approach to creating team cohesion.
Increase clarity for your people by helping them understand how their role and what they do impacts the company. While their tasks may appear (to themselves) as though they don't contribute much, they will find that the little things (and their contribution) add up and affect all areas of the business in a big way.
Be a more engaged leader by listening to your people and making time for them. Job satisfaction and an employee's feelings towards their leader have a direct correlation.
Cultivate collaboration by bringing the team together to achieve business goals, establishing this culture, and allotting appropriate time to foster teamwork that becomes commonplace.
Know Your Team and understand if your people are passionate about their role, if they are the right fit for their position, and if it aligns with what they genuinely want to do. Ask, listen, and observe your team to truly uncover what is suitable for their growth within the business or if they have perhaps outgrown their current role within the organisation.
Embrace curiosity and engagement as a leader and take a step forward in creating a more aligned team. Witness the productivity of your team and observe the positive shift in the overall culture.
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