Leading global consultancy McKinsey defines productivity as Gross Value Added (GVA) per work-person and reports that the world needs productivity growth on top of balance sheet profitability.
McKinsey still doesn’t get it. The world doesn’t need labour productivity, it needs supply chain productivity, which is how fast and how much organisations sell merchandise and collect revenue vis-à-vis utilisation of resources & assets.
Limiting productivity to labour alone is narrow-minded. It propels bias towards reducing headcount and adding workloads to employees.
Focus should be on performance of operations, not just people.
Ellery's Essays 