Global productivity is under pressure and Australia is no exception. According to the OECD’s 2025 Compendium of Productivity Indicators, labour productivity growth in 2023 was flat or negative in many countries. Here at home, the Productivity Commission reported a 1.2% decline in labour productivity in the year to December 2024. With hours worked rising faster than output, we are working harder but not smarter, and that is with AI supposedly delivering us all huge efficiency gains.
In this context, traditional productivity views of doing more, faster is no longer viable. To lift performance in a meaningful and sustainable way, organisations must embrace strategic productivity.
Strategic productivity means challenging both the inputs and outputs of your operations. It’s not about major restructures or sweeping reforms. It’s about identifying and implementing small, high-impact changes — the elusive ‘one-percenters’ that, when applied consistently, compound over time.
Scope creep and under-pricing are silent profit killers. Whether it’s doing more than was agreed or failing to charge appropriately for the value you deliver, both result in leaving money on the table. Clear boundaries, strong pricing discipline, and regular reviews are essential to protect margins and sustain profitability.
And ask yourself: where could each person in your organisation reclaim just one hour a day? Could you eliminate a recurring meeting, automate a manual task, streamline a clunky approval process or finally tackle the never-ending inbox deluge? In a team of 50, saving one hour per person each day adds up to more than 10,000 hours a year. Multiply that by your average hourly cost or charge-out rate, and the hidden profit potential becomes impossible to ignore. Small, strategic shifts like these can unlock big returns.
These small changes rarely make headlines, but they quietly transform how a business performs. It’s about tightening execution, eliminating time-wasters, simplifying decisions, improving handovers, and reducing friction between teams. These are the tweaks that reduce frustration and free up time for higher-value activities, whether that’s serving customers better, developing your people, or growing your business.
Strategic productivity also requires a mindset shift. Leaders must look beyond ‘busy’ and start asking: Is this the best use of my time and my team’s time? Are we solving the right problems, in the right way, at the right time? Is this activity truly moving the dial?
For private and family-owned businesses, this approach is especially powerful. With leaner teams and limited resources, the opportunity to extract value from small improvements can make a significant difference. These businesses don’t need massive disruption, they need focus, rhythm, and discipline in execution.
Small wins, when pursued deliberately, deliver big results.
Let’s stop trying to do more for the sake of it, and instead focus on doing the right things, better. That’s how we unlock performance. Not through burnout, but through strategic effort and finding the BEST way for your organisation.
Looking to uncover hidden inefficiencies and missed opportunities in your business? This quick diagnostic helps you identify where time is being wasted, where profit is leaking, and what to prioritise next to improve performance, without overhauling your entire operation.
Angela Grogan
Business Advisor to privately owned and family businesses
Best Business Results
References:
OECD Compendium of Productivity Indicators 2025: Productivity and economic growth | OECD
Chart: OECD Cuts Global Growth Forecast in Light of Tariff Threat | Statista
TUAC-reaction-to-EO-June-2025-ASSESSMENT‑3.6.25.pdf
Sluggish growth threatens global economy, warns IMF
Quarterly productivity bulletin – March 2025 — PC productivity insights — Productivity Commission
