Application of Productivity in a Business Case
Conclusion:The analysis and discussion in the paper, The Role of Productivity (July05), examined how the productivity equation measures economic output. This paper extends that analysis to examine how productivity can and should be utilised in a business case.
Managers who use productivity as an objective in a business case would be advised to measure the current operational situation within their organisation. At first glance this may appear a difficult task but the reason is straightforward: any claim for a productivity gain will not mean what it declares unless an established benchmark is categorically defined. Moreover it will be useful in dealing with the aggressive productivity claims by vendors for their products when they can be judged in the context of an organisation’s operations.
In so doing managers who define their terms and the input criteria for productivity will be in a stronger position to make business cases and advocate investments in place of assertions.