When we talk about economic and business success, we tend to refer to concepts that people readily understand—return on investment, growth, profits, etc. Productivity is another factor that impacts success in a hugely significant way, but it can be difficult to measure and challenging to understand. Thankfully, we live in a world in which data is king, and it is no longer as difficult as it once was to understand and improve individual and overall team productivity.

What we’re realizing about productivity growth, however, is that it has been in decline for several years after booming in the 1990s. Productivity is growing, but the rate of growth is not nearly as healthy as it was 15-20 years ago. For example, productivity growth dropped to a rate of just 0.5 percent from 2010 through 2014. A decade prior, it was growing at a robust rate of 2.4 percent.

The decline in productivity is something you have no doubt noticed within your organization, and you may or perhaps might not be puzzled as to why it seems so stagnant. We have astounding technology that, in theory, should boost productivity considerably. We are also many years removed from the financial crisis that shook the economy during the previous decade—companies are investing in themselves and hiring well-educated employees after earlier years of layoffs and cautionary approaches to staffing.

As a leader within your organization, it is your job to motivate productivity. You can’t do much to improve the economy or productivity globally, but you do have control over what happens in your specific workplace. Clearly, the landscape is radically different now than ever before, so we need to consider new strategies. It’s also important for leaders like you to be aware of the misconceptions about productivity so you can focus on what really works in the today's business world.

Don’t Believe these Productivity Myths!

“Productivity is improved by working longer hours.”
According to the Harvard Business Review individuals often feel the need to respond to work-related communications after hours due to ambition, pride, and proving that we’re valuable to the company we work for. Think about it—is all this after-hours work really helping to increase productivity and ultimately bottom line results? Do you value your employees more because working more extended hours makes them appear to be more productive?

Companies like KPMG, Basecamp and almost every organization in Sweden (including Toyota) are making moves to reduce employee work hours. Working more leads to decreases in concentration and declining overall wellness. If you measure the habits of employees with the highest levels of productivity, what you find is that they do not work longer hours than anyone else. The difference between the most productive people and everyone else is that they take breaks to refresh and renew themselves. It’s not about the hours people put in; it’s about being more efficient, focused, and avoiding burnout.

“Messiness and disorganization are signs of high productivity.”
This is a controversial myth as there is research that shows messiness equates to being more creative and genius. Here is the brutal reality, from a young age we are taught to clean up our rooms and to always clean up after ourselves. When we grow up, society tells us a cluttered desk is a sign of a cluttered mind. We are made to feel bad about ourselves for being disorganized or messy.

According to the National Association of Professional Organizations, paper clutter is the number one problem for most businesses. Studies show the average person wastes 4.3 hours per week searching for papers, which adds stress and frustration to the workplace while reducing concentration and creative thinking. The average executive loses one hour of productivity per day searching for missing information. Being disorganized has a direct bottom-line impact to your business and the overall health and well-being of your employees.

“Working from home decreases productivity.”
These days, people lead lives that do not require them to be based in a specific office location, yet organizations stubbornly insist on making sure employees spend as much time in the office as possible. The truth is that allowing the flexibility to work from home increases productivity. Unquestionably, working from home isn't ideal for everyone. But the assumption that you need employees to share the same physical space to improve productivity is not necessarily valid.

Organizations that do not allow employees to work from home are missing out on a strategic business advantage. A research study by Stanford shows that employees who work from home have 50 percent less turnover and are 17 percent more productive (almost a full day per week).

The study shows that instead of employees slacking off their responsibilities, they actually worked harder and were happier overall.

“Working faster increases productivity.”

It’s easy to understand why people would assume that speeding through tasks would lead to productivity improvements. But the truth is that rushing through work and relying too heavily on multitasking decreases the quality of work and has a negative impact on productivity. Productivity is enhanced by focused, methodical, and deliberate action. Racing through tasks only leads to stress, poor performance, and a negative impact on the collective mood in the workplace.

Boosting Productivity — What Actually Works?

Now that you know the conventional wisdom about productivity isn’t all that wise, it’s time to learn some techniques and leadership approaches that will improve productivity within your organization. How can you use the insights of science and data to your advantage as a leader?

Here is some advice:

• Happy employees are productive employees — The University of Warwick in Great Britain performed several studies recently to determine the relationship between happiness and productivity. What researchers found was that happier people are about 12 percent more productive. The lesson here is that instead of working to keep people busy, you should focus on keeping them happy and experiencing high levels of well-being. Doing so creates a positive spiral, as well—happiness increases productivity, and when productivity is high, happiness increases inside and outside of the office. It's not just good for business; it's good for society.
• Circle back to the reason for doing things — When employees start taking on more work by increasing specific tasks, they tend to lose the motivation that initially inspired them to put forth their best efforts. You can motivate your people and inspire greater productivity by taking the time to remind them how their jobs connect with the bigger picture. Explain the value they bring in their respective role and how that contributes to the company's goals, objectives, and bottom line. Create "emotional connectedness" for your people as I have written about in previous blogs.
• Encourage the creation of “15-minute” lists — To-do lists often contain items that never get addressed and this fact is stifling for productivity. The solution is to transform the to-do list. Productivity expert Carson Tate suggests creating to-do lists that contain tasks that can be completed in 15 minutes or less. It’s all about building confidence and reducing the impact of procrastination. Employees who are feeling unmotivated and lacking in confidence can quickly knock out a few items on this type of list, leaving them inspired to take on those nagging tasks.
• Use the realities of biology to enhance productivity — The ability to be productive is influenced mainly by the chemistry of the human body. The presence of dopamine, according to researchers, is strongly related to productivity. It is possible to increase dopamine levels thanks to the brain's "reward circuit." Rewarding employees for productivity trains their minds to remember positive experiences, which, in turn, causes them to perform more productively.

How Are You Solving the Productivity Puzzle?

Productivity growth doesn’t have to remain stagnant in our economy and the business world at large. But improvement will require leaders like you to challenge assumptions and employ new techniques. The advice I outlined here works, but I am only just scratching the surface.

I'd love to hear your thoughts regarding productivity: What have you done that motivates your people? Are there any pieces of productivity conventional wisdom that you've been able to debunk? What about how your organization uses technology—does it seem to help or hinder productivity?

Let me know your thoughts by leaving a comment below or by emailing me at joanne.trotta@leadersedgeinc.ca.

Let me know what you think by sending me an email at joanne.trotta@leadersedgeinc.ca. I would love to hear your perspective on this subject.

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