What is Economic Productivity?

A mathematical model that  captures how productivity improvements is  reflected, where it matters: the financial bottom-line.

A method that uses enterprise financial data to relate the contribution of each rupee of input towards the production of each rupee of output or value added.

The financial bottom-line of enterprises depends on enterprise Economic Productivity performance. Enterprises underperform when they are not productive and are not able to generate sufficient value added to cover internal and external costs. Economic Productivity is a unique and practical methodology that links productivity to profitability. ​ 

Economic Productivity provides:

• Simple and effective indicators to monitor enterprise performance
• Early warning signals to identify enterprises that are at risk
• Directions on where is investment required for enterprises to be more efficient
• Set targets for performance improvements
• Forecast enterprise results (impact of productivity gains on future growth of the enterprise

Economic Productivity benchmarking can help managers to:

• Benchmark themselves against competitors​
• Be proactive and prioritise actions
• Provide objective measurements of departmental contribution to overall enterprise performance (which should help to break down the silo mentality)
• Help management and workers to agree on gainsharing schemes (the model can be used to forecast the impact of gainsharing schemes on future growth of the enterprise)

Contact Us for a Free Economic Productivity Assessment of your enterprise!

Download and complete the Excel Sheet below with your enterprise data and send same to ntreebhoohun@oxfordmu.com or rjutliah@upstagemu.com. All information exchanged will be treated confidentially.

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