Clearly industry leaders havre difficult decisions to make at particular times and under particular circumstances. At all times, these difficult decisions should be informed by the overarching organisational mission and strategic plan.
However, we are particularly interested in the productivity of the organisation. So where should this figure in the decision-making?
The answer is very simple …. EVERYWHERE.
Whenever a decision is taken, those taking it should be aware of the effect of different choices or actions on organisational productivity. Though for short periods, an organisation may prioritise another factor, such as market share, no organisation can forget the importance of productivity for very long without heading for trouble.
Only raising productivity leads to higher sustainable profits. If productivity does not rise, higher output or income will be countered by rising inflation.
i.e. the rising costs will exceed the rising income.
So. the concept of productivity should be constantly at the forefront of strategic thinking.