The Australian economy would be $70 billion better off if Australian firms closed the productivity gap through better management, a report by Deloitte Access Economics found - this was reported in The Australian last week.
The report, commissioned by Westpac, found Australia is 23 per cent less productive than the US and a halving of that gap would raise gross domestic product by 4.33 per cent. That equates to an extra $3000 per person. David Lindberg, chief executive of Westpac’s Business Bank, said “The future of our economy has a lot to do with the success of our businesses and when businesses prosper we all prosper.”
When looking at better management, the referenced article was suggesting training and mentoring the business owners as a way to improve management. However, when we look at the founders and entrepreneurs of small and medium sized businesses, we most often see visionaries, dreamers and go-getters who don’t necessarily want to be the manager of the business.
So if you are a small business owner, what should you do?
The above article highlights two areas of discussion for me…
1] The need for better productivity and
2] The need for better management
There’s no doubt that improving the productivity of an organisation improves the bottom line. But it’s more than just systems, procedures and automation. It’s also about the people and starting with Productive people is one of the most efficient ways to improve the bottom line.
1] When you employ new people, ensure you only get productive people and that means making sure they have a clear and verifiable/provable history of adding real value in previous employment. At the same time, weed out those who are causing problems for the business.
2] Rather than trying to be the manager, when you really prefer to be the visionary who provides the drive and passion, you should hire a General Manager who will take control of the core of the business and implement all the productivity improvements - both people and systems.
Theses two actions will really help your business to Take Off and break through to the next level.
Are you ready? Do you want to know more?
If YES, then contact Performia today.