Measuring and understanding productivity
For those who missed it, Management for Design were mentioned by PSMJ in relation to the productivity insights gleaned from our Business Conditions Survey. Data shows that many firms don’t have a true understanding of what productivity means or of the most effective ways of achieving it. Getting to grips with how you define and measure productivity in your business can present real opportunities for productivity growth. What is productivity? 39% of architecture and engineering firms surveyed are not measuring productivity in line with this ratio. These businesses are either unable to define productivity or think that productivity is derived from sales and growth, but that’s putting the cart before the horse. As PSMJ point out, cost reduction (indicated by 6% of respondents) rarely increases productivity, and we think cost reduction in and of itself is not a clear way of defining productivity as cost reduction may actually be an indication of staff attrition or a number of other significant factors that have potentially contributed to a decrease of productivity within the business. How do you measure productivity?
3% 6%
More with less/same
39% 33%
Sales and growth More capability Unable to define
19%
Cost reduction
