What IS Productivity, Anyway?

Of course, you endlessly hear that word, but what does it really mean?
We'll refer to the dictionary to start:

productivity
       n 1: the quality of being productive or having the power to
            produce [syn: productiveness] [ant: unproductiveness]
       2: (economics) the ratio of the quantity and quality of units
          produced to the labor per unit of time

We will deal here with the second definition, the ratio of the quantity of work (given a certain level of quality) relative to the amount of time spent on that work. Why do we care about that? Well, because the more productivity one has, the less time required to perform a task. The more efficient one is, the more work one can do. And, more importantly, the more productive one is: THE BETTER ONE CAN BE PAID FOR THAT WORK! That is why we are have the highest standard of living in the world, even though our cost of living is higher than many other countries. We do have the highest productivity of any workers in the world, partly because we are well-educated, though maybe not best-educated, and partly because of our innovation and technology.
Now, let's discuss innovation for a second...what IS innovation?

innovation
       n 1: a new device or process created by study and experimentation
            [syn: invention]
       2: the creation of something in the mind [syn: invention, excogitation,
           conception, design]

So, as one can see, innovation is NOT just technology (device), but is also process, and it's NOT productivity, either, but can benefit from it. In fact, innovation of device (technology) does NOT guarantee productivity. But innovation of process does. Why? Because each time one performs a task, one is following a process -- a set of steps. Here is yet another definition:

process
       n 1: a particular course of action intended to achieve a result;
       "the procedure of obtaining a driver's license"; "it was a process 
       of trial and error" [syn: procedure]

So a process is also a procedure. And that procedure or process can be made productive by innovation. We are all very familiar with the productivity of devices: a manufacturing line can benefit from both fast machinery that makes precise items in great quantities, and from studying the flow of the process, the steps it takes to make those items, and making them as efficient as possible. Sometimes, especially in services, the efficiency is not gained with "fast machinery" so much as "efficient flow." So in a service-based industry, which is a very large part of our economy these days, the most productivity to be gained is from the process and not the device. Therefore, the computer becomes a tool for process efficiency and not Because It Is.

Well, fine, you say--so what? Why are you telling me this? Because in the service industry your productivity is dominated by the efficiency of your PEOPLE, and not the computers themselves. The computers are tools, like pencils, or more likely, like desks. They have piles of work (represented by icons) laid out on the desk in the order one wishes them for one's own way of working. They contain built-in "file cabinets" to hold the important data one needs to use to conduct the processes of daily work. They also contain things like electronic rolodexes and other work-organizing tools. But these tools are just tools--they do not bring productivity of themselves. It's how one uses them that counts.

So your computer network is very much like the machines on the manufacturing line, and like the manufacturing line, the machines can play a big part in providing intelligent infrastructure...but the real productivity comes from the study and improvement of your business practices and procedures.
Small businesses can learn a lesson from their big brother manufacturers in continually reviewing and honing their procedures, and making sure that the intelligent infrastructure is doing all it can.

Here is where your use of computers in your business can really leverage your people's productivity;
instead of divorcing the procedures and practices from the machines, integrate them! Work with your
"intelligent infrastructure provider" to make these systems really work for you and make the most of your productivity, so your people can do the jobs in the least possible time with the best use of the resources. This is a lesson that still has to be learned in the most hallowed halls of the largest businesses, because size goes against productivity as businesses grow. The economies of scale apply most easily to a process flow that has been homed to its highest efficiency, which is why large manufacturers of commodity items can get the individual costs down so well.

In the service sector, there are many exceptions to the rule, because service requires individualism as the First Rule. Each customer must feel he or she is individually important and his or her case has been individually satisfied. To assure that is true without long waiting times and disgruntled customers is the Holy Grail. And in this new Service Economy, horror stories abound. Just go to the DMV to renew your license and you will see the ultimate in horror. They have computers, don't they? But it doesn't lessen the interminable waiting, even if one makes an appointment. The nightmare of a lack of proper procedures designed to handle special problems, language barriers, and taking tests is the most obvious case of a complete failure in customer service. (My apologies to the State of California, with a recommendation that they hire us to help them out!) All the computer systems do is store the data. The use of the data to help citizens of the State to conduct their necessary business in the timeliest manner is the most complete failure and obvious to anyone who walks into the door. In spite of an attempt at signage, there is no place where the procedures are spelled out in the language of the customer so he or she knows where to go first or what to do, so many times the customer has to repeat a step or go to the back of the line again and again (or another and another). Many of the stations are not set up for most efficient operation and routine, quick tasks are interruptible by longer, complicated tasks. Had the Devil Himself designed a bureaucratic hell it could not be more complete. Well, if this is the way you wish to conduct your business so your customers hate the thought of even having to contact you, then study the DMV. If not, then we can help you be the anti-DMV!

However, it takes a willingess on the part of you, the business owner, to seriously consider your procedures and practices and alter them to maximize efficiency. It will make a great deal of difference to your customers' satisfaction, your employees' well-being and attitude towards their work, and your own piece of mind.