When the economic outlook locally, nationally, and internationally is dismal, we must find ways to do more with the resources we have.
How do companies provide value?
Businesses are created to provide value to stakeholders, primarily customers. Value is created when we produce and sell products and services that people are willing and able to pay for. The buyers receive value in what they purcheds, the seller receives value based on the profit they make, suppliers receive value for their inputs, and the community receives value from the jobs created by the company. But when costs go up, it becomes harder to create value.
What are companies currently doing to provide value to stakeholders?
Today’s (early 2022) economic uncertainties and rising prices present additional challenges to the organization. To continue to provide value, we can increase the price, reduce costs, or a combination of both. Increasing productivity leads to reducing costs, allowing the company to continue to create value for all stakeholders. If the company is unable to create value for itself in the form of profit, all stakeholders will suffer.
Why is it important for teams to be more productive?
When our teams are more productive, they are using fewer resources to produce whatever it is they are creating, be it a product, a report, or the completion of a project. Productivity is critical because our organizations have limited resources: human resources, raw materials, finances, and time. Therefore, the more efficiently we use resources, the greater the value created for society as a whole.
Read more on the subject in Mariposa’s Transformation. Start today with your 30-day free trial.