McKinsey defines productivity as the amount of value created for each hour that is worked in a company/country. The question is only what do you call value in your company. In other words productivity is amount of work your employee can get done in one day/hour and it can determine whether company can afford to increase wages for its employees or even if it can continue operating. 

There is also capital productivity that you need to consider and it is a measure of how well physical capital—such as real estate, equipment, and inventory—is used to generate output such as goods and services.

After revenue growth, profit is one of the favorite toys of every entrepreneur, manager and owner. Profit is actually the essence of a whole entrepreneurial endeavor. If there is no profit then the entrepreneur cannot execute his mission, no matter if it is selfish or generous; no matter if it refers to private wealth or to the welfare of the community and society. The task of every enterprise as a profit organization is to make a profit so that it can achieve its higher goal. How to achieve profitability? There are several ways and they depend on the type of business and industry. Two of the resources that stand out today as crucial to increase efficiency are people and materials.


Everybody swears that people are the most valuable resource, they call it human capital and that is what it really is. The new economy in the 21st century is really based on people or what Peter Drucker called the knowledge workers. However, there are also jobs that still have a certain manual component and these jobs need to be organized in a way that is as efficient as possible. In that sense, human work should be viewed in combination with another element – a process.

Increasing efficiency through process improvement and optimization. Efficiency is the ratio of output to input. More efficient companies produce more products or services with fewer resources.

Optimization is the process of enhancing efficiency in businesses and can be achieved by improving processes, investing in technology, and enhancing employees’ skills.



We all know that customers love it when their order arrives in the shortest possible time, even before they expected it. We also know that we are satisfied when we complete all orders during regular working hours. However, we also know that sometimes it is not possible because there are seasons when the number of orders and transactions in the warehouse increases by more than three times compared to the average.

So, how to speed up warehouse operations to ensure timely deliveries even during the peak season and keep customers satisfied?

In order for your warehouse to be fast, it must be FAST!


Manufacturing companies face new challenges posed by the market environment, such as: global instability; demand for goods in limited batches or for an increasing number of different models; very rapid changes in the market; incredible competition from cheap products from the East and luxurious ones from the West. In order to respond to these challenges, we must maximize profits from each product and minimize costs to the lowest possible level.

Do we know what our production costs are? Which costs need to be cut, and which NOT? What are the optimal production batches? What is the optimal assortment?


Increasing employee productivity and motivation. Productivity is a measure of how efficiently resources are utilized to create products or services. Improving productivity can lead to cost reduction, increased profits, and enhanced competitiveness.

Larry Bossidy and Ram Charan, in their book “Execution – The Discipline of Getting Things Done,” wrote that there is one task no leader should delegate – and that is putting the RIGHT PEOPLE IN THE RIGHT PLACES.

When we realize that the productivity of our employees is the driving force that affects the cash formula of our company, then we are only at the beginning. Because the awareness that something is needed is the first or zeroth step in the process of making something happen, creating, or initiating some action.

However, this is where the frustration of managers begins because even though they know what they need, they do not know or do not have the resources to structure and design a system in a way that it becomes the engine of the company’s growth, rather than just another set of reports.

There is one job that no leader should ever delegate – and that is to put the right people in the right places.

Larry Bossidy i Ram Charan u knjizi Execution – The Discipline of Getting Things Done

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