How to Improve Business Productivity? Top 7 Strategies
 Back Office

How to Improve Business Productivity? Top 7 Strategies

Ryan Thompson
Ryan Thompson
April 25, 2024
Last updated on:

April 25, 2024


Read time: 8 mins

Business productivity is the overall capability of a business to generate output from its available resources. It involves optimizing the utilization of labor, capital, technology, and time to efficiently and effectively produce goods or services. Productivity measures the relationship between inputs (labor hours, materials, and capital investments) and outputs (goods produced or services rendered).

Businesses continually seek to improve productivity as it is a fundamental aspect of success and sustainability in today's competitive landscape. Enhanced productivity enables businesses to achieve more with less and drive efficiency, cost-effectiveness, and profitability. Moreover, heightened productivity fosters innovation and agility.

However, many businesses struggle to improve productivity due to various underlying factors. This includes resistance to change among employees and management, lack of investment in technology or training, lack of clear goals, metrics, accountability mechanisms, etc. 

This blog aims to provide knowledge on how to improve business productivity by underlying proven strategies and driving success in today’s competitive marketplace. 

7 Effective Ways to Improve Business Productivity 

Here are the seven key strategies to improve business productivity:

1. Set Clear Goals and Priorities

The absence of clear goals and priorities can significantly hinder efforts to improve business productivity. Without clear direction and focus, employees may lack a sense of purpose and struggle to prioritize their tasks effectively. This results in confusion, inefficiency, and wasted time and resources as individuals may work on tasks not aligned with the organization's strategic objectives.

In contrast, setting clear goals and priorities is crucial for aligning efforts, focusing resources, and driving productivity improvement initiatives. Establishing SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals that are aligned with the business's key objectives and communicate them effectively to employees at all levels. Break down goals into actionable tasks, prioritize them based on their significance and urgency, and regularly track progress to ensure that efforts are directed toward achieving key outcomes. Additionally, celebrate milestones and successes to maintain motivation and momentum.

Tips to Set Clear Goals and Priorities for Higher Productivity

  • Align Goals with Business Objectives: Ensure that goals are aligned with the organization's overall objectives.
  • Make Goals Specific and Measurable: Clearly define goals in terms of specific outcomes and measurable metrics.
  • Prioritize Goals Based on Impact and Urgency: Identify the most critical goals that will impact business success.
  • Regularly Review and Adjust Goals as Needed: Review progress toward goals regularly and be prepared to adjust them as circumstances change.

2. Streamline Processes and Workflows

Irregularities often manifest as inefficiencies, inconsistencies, and bottlenecks within organizational operations, hindering the smooth flow of work and impeding productivity at every turn. For instance, irregular processes may lack clear guidelines or standardized procedures, leading to confusion among employees about how tasks should be completed or who is responsible for specific actions. This ambiguity can result in wasted time and effort as individuals attempt to decipher complex workflows or navigate around obstacles.

However, when businesses streamline their processes and workflows, it helps them Identify inefficiencies, bottlenecks, and redundancies in existing processes and eliminate or optimize them wherever possible. This may involve automating repetitive tasks, standardizing procedures, and establishing lean methodologies such as Six Sigma or Kaizen. Additionally, standardizing procedures ensures consistency and clarity in how tasks are performed, reducing errors and confusion among employees. Furthermore, adopting lean methodologies such as Six Sigma or Kaizen enables businesses to strive for perfection by systematically identifying and addressing inefficiencies in their workflows.

Tips to Streamline Business Processes & Workflows for Improved Productivity

  • Identify Process bottlenecks: Conduct a thorough analysis to identify bottlenecks and inefficiencies in current processes.
  • Automate repetitive tasks: Implement automation tools to streamline and reduce manual intervention in repetitive tasks such as data entry, scheduling, and document processing.
  • Standardize procedures: Develop standardized procedures and protocols to ensure task consistency and clarity and promote collaboration while fostering a culture of continuous improvement within the organization.
  • Implement workflow management software: Utilize workflow management software to streamline processes, track progress, and allocate resources efficiently.

3. Leverage Technology and Automation

The absence of technology and automation in business often results in manual, time-consuming processes prone to errors and inefficiencies. Tasks that could be automated, such as data entry, reporting, and repetitive administrative functions, consume valuable resources and detract from more strategic activities. Without automated systems to handle these routine tasks, employees are forced to spend precious time on mundane activities, limiting their capacity to focus on high-value tasks that contribute to business growth. Furthermore, the lack of technology and automation inhibits scalability and agility within the organization.

On the contrary, By embracing modern tools and digital solutions, businesses can revolutionize their operations, streamline processes, and unlock new levels of previously unattainable productivity. It offers the ability to eliminate manual, repetitive tasks that consume valuable time and resources. For instance, automated systems handle routine activities such as data entry, document processing, and inventory management with unprecedented speed and accuracy. This frees up employees to emphasize more on strategic endeavors that add value to the organization. Moreover, technology and automation enable businesses to achieve greater operational scalability and agility. 

Tips to Utilize Technology & Automation for Improved Productivity

  • Invest in the right tools: Conduct thorough research to identify technology solutions that align with your business needs and objectives to work more efficiently.
  • Integrate systems: Integrate disparate software systems to enable seamless data flow and create a unified ecosystem where information flows smoothly across departments.
  • Provide training and support: Offer training and support to employees to guarantee that they can effectively utilize technology tools and maximize their productivity.
  • Continuously evaluate and update: Review your technology stack and processes regularly to identify opportunities for optimization and stay current with technological advancements.
Common Metrics of Business Productivity
Image 1 - Common Metrics of Business Productivity

4. Foster Collaboration and Communication

When collaboration and communication are lacking, businesses face many challenges that impede productivity at every turn. The lack of collaboration often leads to duplication of efforts and inefficiencies as teams work in silos, unaware of each other's activities and initiatives. Without open channels for sharing information and coordinating efforts, employees may inadvertently duplicate tasks or overlook opportunities to leverage each other's expertise, resulting in wasted time and resources. Moreover, inadequate communication leads to misunderstandings, errors, and delays in task completion. 

However, when businesses prioritize collaboration and open communication, it helps them create an environment where teams can collaborate seamlessly, share knowledge and ideas, and collectively make informed decisions. This collaborative approach leads to several tangible benefits that drive productivity. Collaboration facilitates diverse perspectives and expertise pooling, resulting in innovative solutions and creative problem-solving. By leveraging the team's collective intelligence, businesses can tackle complex challenges more effectively and identify opportunities for improvement that may have gone unnoticed otherwise. Moreover, effective communication ensures that information flows freely within the organization.

Tips to Foster Collaboration and Communication

  • Establish clear communication channels: For effective communication, create accessible channels such as chat platforms, email, and video conferencing.
  • Encourage open dialogue: Foster a culture where employees openly share ideas, feedback, and concerns.
  • Promote teamwork: Assign tasks that need complete collaboration and teamwork, encouraging employees to work towards common business goals.
  • Utilize collaboration tools: Implement collaboration tools such as project management software or shared document platforms to facilitate teamwork and document sharing.

5. Implement Performance Measurement and Feedback Systems

When a business lacks performance measurement and feedback systems, it operates in a state of uncertainty and inefficiency. In the absence of well-defined metrics and feedback loops, evaluating process efficiency, pinpointing areas needing enhancement, and monitoring goal achievement becomes challenging. This lack of transparency hampers employees' understanding of their impact on overall performance and hinders the organization's capacity for informed decision-making. As a result, productivity may suffer, as employees may continue engaging in activities not aligned with strategic objectives or fail to recognize and address performance gaps.

On the other hand, implementing performance measurement and feedback systems empowers businesses to track progress, identify areas for improvement, and offer employees constructive feedback to enhance their performance. Likewise, establishing key performance indicators (KPIs) aligned with business objectives helps them create a clear roadmap for success. Similarly, monitoring and analyzing performance metrics allow businesses to assess productivity levels, identify trends, and spot potential bottlenecks before they escalate. Moreover, offering employees regular performance reviews, coaching sessions, and recognition programs plays a significant role in addressing performance issues and fostering continuous improvement

Tips to Implement Performance Measurement & Feedback Systems

  • Define clear objectives: Clearly define performance objectives and key performance indicators (KPIs) aligned with business goals.
  • Implement Periodic Performance reviews: Streamline procurement by consolidating purchases with fewer suppliers to increase negotiating power for volume discounts.
  • Utilize performance management software: Implement performance management software to streamline the process of setting goals, tracking progress, and providing feedback.
  • Encourage two-way communication: Foster open communication between managers and employees, allowing for constructive feedback and discussion of performance goals.
Common Myths Surrounding Productivity & Facts
Image 2 - Common Myths Surrounding Productivity & Facts

6. Implement Flexible Work Policies

When work policies lack flexibility, employees may find balancing work and personal commitments challenging, leading to increased stress, burnout, and decreased morale. For instance, rigid schedules may not accommodate employees' diverse needs, such as caregiving responsibilities, further exacerbating work-life conflicts. This can result in absenteeism, presenteeism, and decreased engagement, ultimately impacting productivity levels. Moreover, inflexible policies can impede innovation and hinder organizational problem-solving efforts.

However, flexible work policies, such as telecommuting, flexible hours, or compressed workweeks, can significantly enhance employee productivity and satisfaction. Such work arrangements empower employees to manage their work schedules more effectively, accommodate personal commitments, and achieve a better work-life balance. This flexibility also boosts morale, reduces stress, and increases engagement, leading to higher levels of productivity and performance. Additionally, remote work options enable businesses to attract and retain top talent, regardless of geographical location, further supporting productivity improvement efforts.

Tips to Implement Flexible Work Policies

  • Define clear objectives: Establish guidelines outlining expectations, boundaries, and procedures for flexible work arrangements.
  • Offer remote work options: Provide employees the flexibility to work remotely, either full-time or part-time.
  • Implement flexible scheduling: Allow employees to adjust their work hours to accommodate personal commitments or preferences.
  • Provide technology support: Ensure employees can access the necessary technology and tools to effectively work remotely.

7. Outsource Non-Core Functions

Businesses relying solely on an in-house team without diversifying their resources or leveraging external expertise risk productivity and hinder growth. An over-reliance on internal talent can lead to limited perspectives and skill sets within the organization. While in-house teams may possess deep knowledge of the company's operations, they may lack the diverse perspectives and specialized expertise that external professionals can offer. This can result in a lack of innovation and creativity, as the organization may struggle to adapt to changing market dynamics or implement new strategies.

On the other hand, outsourcing non-core functions enables businesses to emphasize their internal resources and expertise on core activities while leveraging external specialists to handle peripheral tasks. Identify processes or tasks that can be outsourced to third-party service providers, such as IT support, accounting, customer service, or human resources. Outsourcing allows businesses to access specialized skills, reduce operational costs, and improve efficiency, ultimately freeing up valuable time and resources to meet strategic priorities and core business activities.

Tips to Outsource Non-core Business Functions for Improved Productivity 

  • Identify non-core functions: Determine which tasks or processes are not central to your core business objectives.
  • Assess outsourcing opportunities: Evaluate outsourcing providers to find the right fit for your needs, considering factors such as expertise, cost, and reliability.
  • Define clear expectations: Clearly communicate your expectations, goals, and requirements to the outsourcing provider to ensure alignment.
  • Monitor performance: Regularly monitor the outsourcing partner's performance to ensure they are meeting agreed-upon standards and objectives.


Business productivity will be more critical than ever before as organizations navigate a rapidly evolving and increasingly competitive global landscape. With technological advancements driving unprecedented innovation and disruption, businesses face mounting pressure to deliver more with less, optimize their operations, and stay ahead of the curve. Also, they must adapt to rapidly changing market dynamics and consumer preferences. As markets become more saturated and the expectations and needs of customers continue to rise, businesses must remain agile and responsive to changes in demand, emerging trends, and competitive pressures. This requires a constant focus on improving efficiency, streamlining processes, and maximizing output while minimizing costs. Therefore, businesses can turn to third-party service providers as a strategic solution to overcome these difficulties and enhance productivity. 

At Invensis, we excel in equipping businesses across diverse sectors with tailored solutions to enhance productivity and operational efficiency. Our comprehensive suite of services encompasses advanced technologies, specialized expertise, and scalable resources, enabling businesses to thrive in competitive landscapes. Through meticulous data-driven analysis and optimization tools, we streamline processes and drive cost efficiencies. By taking charge of non-core functions such as IT support, finance, and customer service, our experts liberate businesses to focus on their core competencies, fostering innovation and growth. Moreover, they offer strategic guidance and best practices to empower businesses to navigate market complexities and seize growth opportunities effectively.

Contact us to enhance your business productivity and achieve sustainable growth with our back office services.

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