Productivity

HOW TO BOOST YOUR COMPANY’S PRODUCTIVITY

What is productivity?

Why should you improve your workplace productivity?

How do you improve your company’s productivity?

Productivity Drivers

In 2004, after consulting with a number of NZ businesses and examining international research, the Workplace Productivity Working Group identified seven key drivers of workplace productivity:

• Building Leadership and Management.
• Creating Productive Workplace Cultures.
• Encouraging Innovation and the Use of Technology.
• Investing in People and Skills.
• Organising Work.
• Networking and Collaboration.
• Measuring What Matters.

For more information about the productivity drivers, read the Department of Labour’s Workplace Productivity Challenge report.

2005 Productivity Survey:

In August 2005, the Auckland Chamber of Commerce, anxious to see an action driven approach, conducted an on-line survey of its members on what issues are important to them in relation to productivity and what actions they have taken to increase productivity in their own businesses.

Results showed that there are dozens of common sense measures a business can take to boost its productivity and improve performance. Over 1500 small and medium sized businesses responded to the survey and of the businesses surveyed who were achieving improved productivity, nearly all indicated their bottom line benefited from staff loyalty, the fostering of innovation and the effective use of technology.

“People, processes and technology seem to be the three key components”, said Chief Executive Michael Barnett, “and good leadership was a pre-requisite.”

Click here to read the Chamber’s media release on the survey results.

Implementing Productivity

The focus in 2006 is on the implementation of these 7 drivers into New Zealand workplaces. The Department of Labour has introduced the resources such as the Workplace Productivity Starter Kit which included the Snapshot questionnaire and an Action Plan to help businesses create an action plan for increasing productivity in their own workplaces. The resources have been developed based on actual experiences, and as shown by the case study companies presented in the Toolbox, each workplace has its own way to do this.

Click here to download an electronic version of the Workplace Productivity Starter Kit

Case Studies

COLL ELECTRICAL (Leadership and Management Driver)

This company, based in Auckland, has been specialising in electrical engineering contracting work since it was established in 1986. Since this time this company has grown to where it now employs 60 staff. The challenge faced by Coll Electrical was largely based on management and sustaining rapid expansion. This was accompanied by issues regarding recruitment and retention of skilled workers in a tight labour market, managing people effectively and increased compliance costs. Four barriers to increased productivity were also identified:

• poor quality of workmanship and materials;
• wastage; and the availability and
• rising costs of goods and services and
• the growing competition from other sub-contractors who undercut their tenders by using inferior components and employing cheaper labour.

Key Outcomes:

• Delegating work and investing strongly in skills training for its staff has resulted in improvement in the delivery of innovative services, increased job satisfaction and company profits.
• Increased employment opportunities through development and detailed career structures has led to greater autonomy and responsibility within staff.

ROTAFORM PLASTICS (People and Skills Driver)

Overview:
International research shows that around 300,000 New Zealanders in the workforce have very low numeracy and literacy skills. For a further 600,000 these skills are inadequate for our knowledge society. The next case study did something to address this issue.

Rotaform is an Auckland based plastics manufacturer, they specialise in the manufacture of large items, such as water tanks, bins, road barriers, spa pools and a wide range of plastic packaging. It is a 25 year-old family-owned company and employs about 30 people.

They had communication problems because English is a second language for most of their staff, who were struggling with language and math's literacy. This resulted in difficulties following instructions which of course led to a high number of production rejects. Poor reporting and record-keeping, low morale and productivity were also an issue, along with inadequate quality assurance systems, and high absenteeism.

Workbase, a comprehensive workplace literacy programme was introduced to address this problem. All employees were assessed and people were grouped according to their literacy skills. Staff received tuition for one hour a week with a tutor and they were also given homework.

Key outcomes:

• Improving literacy levels saw a sharp rise in employee skills, confidence and morale.
• Product reject rates on the factory floor dropped by 55%, the number of late deliveries dramatically fell.
• With staff input Rotaform is producing new, higher quality, more sophisticated products.
• Sales rose 34 percent and profits rose 31% and in the last 3 years turnover has doubled.

OUTWARD BOUND (Workplace Culture Driver)

Overview:
This provider of life changing personal development programmes and self-discovery experiences utilising New Zealand's outdoor environment has been going since 1962. It has 40 employees located at the school in Anakiwa and 10 employees at corporate headquarters in Wellington and a Board mainly based in Auckland. More than 45,000 New Zealanders have completed Outward Bound courses since its inception and each course has 90 to 150 students.

In the late 1990s Outward Bound was faced with a number of financial difficulties. Management needed to make a number of critical decisions very quickly to ensure ongoing survival of the organisation and took a much more directive approach than would usually have been the case. While the organisation survived as a result of the decisions taken, the management style utilised was highly detrimental to the culture of productivity. Divisions between offices decreased communication and employees' resisted change, thus impacting on the quality of the courses delivered. By using management and staff expertise they addressed these issues.

Key outcomes:

• Rigorous and comprehensive training resulting in a highly up-skilled and trained group of staff.
• Input by staff members to address policy issues leads to staff having a real stake in the processes and the job.
• Investing in high quality training leading to staff loyalty, a willingness to work for the company and increased professional and skills development opportunities.
   

Productivity through technology

There is huge ability to improve productivity simply by identifying the right technology to meet your needs, understanding its full capabilities and using it better. Solutions to reducing cost but increasing revenue, customer satisfaction and competitive advantage include:

• Smart mobile connected devices
• Wireless and broadband connectivity
• More effective use of Microsoft Office
• Customer Relationship Management solutions
• Intranet
• Recording of meetings management
• Marketing solutions
• Network security

The following websites have resources, advice, tips and tricks for increasing productivity through technology.

http://www.hp.co.nz/smb

http://www.hp.co.nz/smb/resource

http://www.microsoft.com/nz/smallbusiness 
 
http://www.it-vital.com

How to boost your productivity through work-life balance

Equal Employment Opportunities strategies and sound HR practices enable employers to recruit the very best people from the diverse population, making the most of their skills, creativity and energy.

Initiatives that encourage work-life balance are an important part of EEO as they enable people to perform to their full potential while still accommodating their commitments outside of work. Visit the EEO Trust’s website to:

• Find out what work-life balance has got to do with productivity
• Why is flexibility so important
• Find out easy ways to enhance performance without inflating salaries
• Build a loyal team of people who want to work hard

Bottom-line business benefits of work-life balance include:

• Improved recruitment
• Greater business productivity
• Increased staff retention
• Reduced absenteeism
• Attracting new customers
• Better customer service
• Enhanced company image
• Reduced risk of claims
• Better health and safety

Click here to read more about EEO ideas and case studies and how the EEO Trust can assist your business in implementing EEO strategies and policies in to your business.