In a highly competitive labour market, money always talks. This makes productivity a
key factor because, ultimately, it dictates the remuneration that can be sustained.
As this chart illustrates (click here), SMEs can achieve significant productivity by
making marginal improvements at each of the four levels of the business hierarchy.
Learning from the world of sport
In the last two decades, sport has demonstrated the impact of marginal improvement.
Small improvements in diet, process, equipment and mindset have transformed performance. Access to data, often never previously measured, played a vital part.
The shift in Team GB’s approach was motivated by the need to confront and excel in an increasingly competitive world. Lottery funding helped, for sure, but it was the change in mindset that drove success.
Applying the lessons to business
The exact same principles apply to UK business today. After two decades of cheap capital and huge advances in technology, GB’s business leaders face a tsunami of competition. Where, in sport, the vital benchmarks are speed and accuracy for business they are productivity and profitability. In both worlds, process and mindset are key.