When productivity is problematic
I’ll take effectiveness any day
Productivity has long been the holy grail of the business world. But I’d argue any leader coming into 2022 focused on making their team more productive is just not paying attention. Here are three ways I see productivity as a problematic business driver.
But first, a definition. Productivity is calculated in terms of quantity: output (what is produced) divided by input (resources invested in production). In manufacturing, this may be the widgets made each minute. For a software engineer, it may be lines of code per day, whereas for a lawyer, it might be billable hours. Productivity is about volume. The goal is to produce more at less cost.
Problem 1: “More” doesn’t always mean better, and often they are inversely related. Quality (the elegance of the engineer’s code, the cleverness of the lawyer’s strategy), innovation (the spark of a truly creative, differentiating idea) and more generally, effectiveness (the right work done well) may be harder to measure but they are the foundation of value creation. When the pressure is on to produce a quantifiable “more,” actual value takes a hit.
Problem 2: Just how are we measuring “cost”? Productivity rates tend to factor in costs that can show up on a spreadsheet (time, headcount, compensation, etc.), with the aim of keeping them as low as possible. This is why any business model that depends on maximum output with minimal investment of resources is ultimately unsustainable. Even after exhausting and dehumanizing their workforce, productivity-hungry execs will still be scratching their heads over their diminishing returns. The true costs of maximizing output (low morale, mental and physical health issues, turnover and recruitment costs, for starters) are immense, and too often ignored.
Problem 3: Productivity is a metric, not a method and not a particularly good motivator. You can’t drive sustained productivity by telling people to do more work any more than you can increase employee engagement by telling people to be happier. (Though research tells us happier workers are more productive.) And, as with engagement, efforts to drive productivity this directly can easily backfire. Instead of pushing them to be more productive, ask how you can help them be more effective.
There’s nothing wrong with wanting yourself or your people to be productive as long as you recognize 1) it’s not your only growth driver, 2) the costs are more complex than you think, and 3) effectiveness—which includes productivity—is a smarter bet.
This week
Help yourself and your team be not only more productive but also more effective by working to balance the following five scales. Start with one (let us know in the comments which you choose!) and watch it make the others easier to balance as well.
Quantity vs Quality - Are you defining value in terms of more or better? Maybe both! For example, if your team has sales or fundraising targets, consider also tracking metrics like % of returning customers/donors as an indicator of relationship quality, which is likely to generate additional value in the future.
Outputs vs Outcomes - Are you defining success in terms of activity or impact? Maybe your team is checking all the boxes on their list of deliverables, but is all that activity yielding the desired impact? It might be time to take a step back to refocus on the strategic outcomes you’re aiming for instead of the outputs on the team’s to-do list.
Expertise vs Experience - Is the right person doing the right work? Sure, it’s faster and easier for the expert (e.g. law firm partner) to bang out a deliverable they’ve done a million times. But there’s more value in someone with less experience (e.g. associate) getting the opportunity to sharpen their skills, which will allow them to be more effective in the future. Plus, the expert gets to focus on the work that is more appropriate, challenging and meaningful to them.
Speed vs Space - Are you giving yourself the time and space to think? You can get an awful lot done when you’re moving at the speed of light, but you’re also going to miss opportunities to connect with others, create deeper value and innovate new solutions. Slow down just a bit, even if it terrifies you. Especially if it terrifies you. How does having a bit more space make your work a lot more strategic?
Work Hard vs Work Smart - Are you balancing effort with efficiency? If you are still replying to “how are you?” with “busy!” or wearing that busyness as a badge of honor, it might be time to take a look at your priorities and time management systems. The questions above can help, but we also need to reckon with the busy=important scam, which far too many of us have bought into for far too long. Make choices about where you exert yourself and why. Rest like it’s your job. Because it is.
In the comments…
How has your relationship to productivity shifted over the past two years? How do you think about the difference between productivity and effectiveness? Which of the approaches above will you be playing with this week?