“Productivity” is meaningless until you define WHAT you’re trying to produce
After that, you can measure people, products and processes against your outcomes.
Does it produce wealth, health or happiness?
“If it doesn’t deliver, it’s got to go!”
Most of what we do doesn’t matter.
20% of anything will produce 80% of the wins.
Equally, at the other end of the scale, 20% of things will produce 80% of the downsides. Find those and eliminate them.
If a product is positioned as the market leader in a fast-growing market, it is a star product. Same with an entire business. The rule is “invest invest invest”.
However, if it is a follower in a slower growing niche, it’s a “dog”. Rule? Run for cash! Sell it out then eliminate it!
If a product (or business) is a leader in a slow-growing niche, that’s a cash cow. Rule of thumb here: take as much cash as you can afford from these cash cows and reinvest in the stars.
Another Richard Koch book.
This comes in two flavours.
The simplest version is the approach exemplified by Henry Ford.
By the early 1920s, he had boiled down his offering to one model -the Model T -in one colour. “Any colour you want as long as it’s black.”
This meant multiple cost savings in his production process and thus massive price reductions for consumers.
Often eliminating features or processes can do this.
Be warned- simplifying is not the same as “simple”!
It often takes great insight, huge amounts of work and a lot of experimenting. But it’s a proven path to success.
Alternatively, You can simplify the consumer experience -known by Koch as a “proposition simplifier”. The classic example is the iPad. It’s ay easier for consumers to use than alternative computers. By the same token, a nightmare to create. This is not realistic for most e-commerce entrepreneurs I know but is possible.