Executive Edge Episode 2 - Overcoming Productivity Challenges in Your Business

In the second episode of our “Executive Edge” series, Marcus Tateishi dives straight into the challenges businesses face when trying to improve productivity. If you haven’t caught our first episode yet, where we break down why productivity is such a big deal, check it out here: Why Productivity Matters for You. 

Even though most of us know what drives productivity, many businesses still struggle to actually achieve it. In this episode, Marcus doesn’t just explain the "why," but more importantly, the "how" of overcoming these hurdles—and makes a convincing case for why productivity should be a top priority for every business leader. 

Why Focus on Productivity as a Canadian? 

Here’s the hard truth: Canada’s labor productivity has been on the decline. From 1981 to 2021, productivity dropped from 88% to just 71% of the US levels. This steep decline is a wake-up call for Canadian businesses to start making productivity a priority if we want to stay competitive on the global stage ​(Productivity episode 2). 

The Three Key Drivers of Productivity 

Marcus lays out three crucial factors for boosting productivity: 

1. Capital Intensity: The tools your team uses matter. The better the tools, the better the output. Investing in the right technology can make a world of difference. 
2. Labor Composition: This one’s all about your workforce. The more skilled and well-trained your employees are, the faster and better their work will be.
3. Multi-Factor Productivity: This focuses on how effectively you’re using your capital and labor together. Are your people and tools being used in the best possible way? This is where management practices, competition, and smart decision-making come into play​ (Productivity episode 2).

Why Productivity Pays Off 

1. Boosting Profit Margins: More output from the same resources means higher profit margins—it’s that simple. 

1. Staying Competitive: Productivity is your secret weapon for staying ahead in a global market. The businesses that focus on it will outshine their competitors. 

1. Sustainability and Growth: Efficient resource use doesn’t just help you survive—it helps you thrive. It builds a foundation for long-term success​ (Productivity episode 2). 

Departmental Contributions 

Here’s the big takeaway: every department in your organization can and should contribute to boosting productivity. Equip your team with the best tools and provide them with top-notch training. It’s not just about cutting costs; it’s about empowering your people to work smarter and more efficiently. As leaders, it’s our job to evaluate our productivity metrics and make informed decisions that drive improvements across the board. 

Want to learn more about how you can sustain productivity in your business? Watch the next installment, where valuable insights and practical tips that every business leader can benefit from.