Although the Netherlands is a highly productive country, the recent trends indicate a need for renewed focus on innovation and efficiency improvements.
This is illustrated by the productivity development of Dutch companies over the last few years:
For decades, labor productivity in the Netherlands grew by an average of 1.5% per year. However, since 2014, this growth has slowed significantly to just 0.4% per year.
In 2023, labor productivity actually fell by 1.3%, marking one of the largest declines in the past 50 years.
Therefore, Productivity Management, or the ability to transfer increased costs into a higher sales price is becoming more and more a key business competence.
How to do this?
At Argon & Co, we support our customers in driving business productivity through these guiding principles:
- Measure business productivity Outside-In® to be able to detect the key cost drivers that impact productivity
- Understand the underlying business processes of these cost drivers
- Use data to truly understand these business processes and structurally improve them and thus drive business productivity
By engraining this in your organisation, realising even relatively small productivity improvements year-on-year result in a substantial business margin impact.
Ultimately, effective productivity management can help organizations to achieve more in less time, improving overall performance and competitiveness.
While there may not be a magic pill for business success, productivity comes pretty close. Studies show that companies with highly engaged, productive employees are 21% more profitable. They also have better retention, more customer satisfaction and exceptional health outcomes.
In other words: business productivity management is paramount for of all companies.
Contact details can be found below in case of interest in learning more about how Argon & Co can help you to measure your Outside-In® productivity and how to use that to improve your business productivity.
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