Every ambitious business craves success. You've got the vision, the team, and the drive. But raw effort alone isn't enough – productivity is the fuel that turns potential into tangible results. And a strategic approach to productivity increases the chances your team's hard work translates into reaching goals. It's about working smarter, not just harder.

So what can a business do to improve its productivity?

Now there are countless ways to improve business productivity, but which one is right for your team? We've compiled the 12 best strategies from proven and effective business use cases to help you take action on your own work processes and operations. Let's explore what makes a productive workplace tick.

What is business productivity?

Business productivity is a measure of how effectively a company uses its resources to produce goods or services. The key resources involved in business productivity usually include:

• Capital resources: The tools, technology, machinery, buildings, and financial assets that a business uses to operate.
• Labor resources: The workforce – their skills, knowledge, time, and effort.

Ultimately, a company with high business productivity can create more output (products or services) with the same amount of input (resources), or the same output with fewer resources. This can lead to increased profitability, and give the business a competitive advantage.

Key business productivity metrics

So what’s most important to measure in terms of productivity? Before a business can start making decisions and identify areas where they can improve – they need to look at their existing productivity metrics at their company. 

And this goes beyond simply tracking labor costs. It requires a multi-factor approach that incorporates various inputs such as materials, overhead, capital equipment, and time. Business metrics should be clear enough for managers and employees to easily understand and apply to their daily operations.

Here are the most common examples of business productivity metrics:

• Output per labor hour: Measures how much product or service is created per hour of work.
• Revenue per employee: Tracks the revenue generated relative to the size of the workforce.
• Inventory turnover: How often a company sells and replaces its inventory, revealing efficiency in supply chain management
• Customer satisfaction scores: While not a direct production metric, a strong indicator of overall effectiveness.
• Production downtime: Tracking production interruptions due to equipment issues or process bottlenecks.

Ultimately, no matter which metrics are relevant to your business, they should focus on maximizing outputs while reducing inputs – not simply fixating on labor costs. Multifactor indexes, in particular, which incorporate various inputs (materials, overhead, capital) alongside labor hours can provide a more comprehensive view of a business's true productivity.

Why is business productivity important?

When a business gets better at producing more goods or services using the same amount of resources, amazing things happen. Profits increase, allowing businesses to invest in expansion, research, and creating new jobs. This promotes a healthy and growing economy for everyone.

The best part? Highly productive companies create a ripple effect throughout the entire economy. They generate more money, which leads to new jobs and better paychecks for everyday people. All that extra cash flow means people have more to spend, which helps other businesses thrive too. Basically, increased productivity is a total win-win situation, fueling a healthy, booming economy for everyone.

"At Milengo, we’ve learned that improving productivity isn’t just about streamlining our own processes—it’s about creating value across the whole industry. When companies get more efficient, it benefits everyone. For example, after optimizing our workflows, we saw a 60% increase in project turnaround time, which allowed us to take on more client projects. This not only boosted our revenue but also helped drive innovation in our industry. From our experience, the ripple effect of increased productivity leads to more opportunities and a stronger, more competitive economy."

— Roman Kotzsch, CEO at Milengo

Top 12 ways businesses can improve productivity

1. Take a close look at your current processes

Boosting productivity in your business is a lot like a grand renovation project – you wouldn't start swinging hammers without first understanding the existing structure. That's why the first step is all about taking a long, hard look at how things currently work within your organization. Analyze your processes, procedures, and the systems that support everything.

There is an old logging aphorism, oft-attributed (incorrectly) to Abraham Lincoln, that says "Give me six hours to chop down a tree and I will spend the first four sharpening the axe." 

Here's a breakdown of some key processes to evaluate for productivity: 

1. Core Operational Processes: The backbone of your business. 

• Production or service delivery methods
• Sales and marketing processes
• Customer support workflows

2. Administrative Processes: The behind-the-scenes work that keeps things running. 

• Financial management and accounting
• Human Resources processes (hiring, onboarding, payroll, etc.)
• IT infrastructure and support

3. Communication & Collaboration Processes: How does information flow within your organization? 

• Team communication methods (email, messaging tools)
• Client communication protocols
• File sharing and collaboration platforms

4. Decision-Making Processes: Who makes decisions, and how? 

• The flow of information for decision-making
• How decisions are communicated across teams.
• Whether decision-making is centralized or distributed.

This first step, then, is like sharpening your axe — it may be rather time-consuming, but once it's all done, you can identify bottlenecks, inefficiencies, and areas ripe for improvement. This sets you up for targeted, effective changes that truly transform your business's productivity.

2. Invest in your people

Your workforce is the heart of your business. It's your people who transform ideas into action, who drive those processes, and who ultimately achieve those all-important goals. So, one of the most impactful ways to boost productivity is by investing in employee well-being and engagement.

When employees feel valued, supported, and genuinely happy in their work, they naturally perform at their best. Ditch the old-school mentality that equates long hours with maximum employee productivity. Overworked, burned-out employees are far from a recipe for success. That kind of environment breeds resentment, not results.

Instead, consider offering perks like flexible schedules, generous PTO policies ( encouraging people to actually take time off!), and remote/hybrid work options wherever possible. 

These gestures demonstrate that you care about your team's well-being, not just the bottom line. When a business makes its commitment to its people (and their physical and mental health) clear, those employees are far more likely to be loyal, dedicated, and productive in return.

3. Motivate your team

Perks and well-being are amazing, but to truly unlock your team's potential (and the potential of your business at large), your employees need to feel motivated and inspired. 

But truth be told, this is not an easy thing to pull off. Even so, one of the best people to outline a blueprint for doing so was Simon Sinek in his now very famous TED talk "Start with Why."

Sinek argues that most businesses focus on the "What" – their products or services. Some even go into the "How" – their processes or strategies. But what sets truly inspiring companies and leaders apart is their unwavering focus on the "Why." This is their purpose, their reason for being – and it extends far beyond simply making a profit.

When you lead with your "Why," it connects with people on a deep, emotional level. Think of Apple; they're not just about computers, they're about challenging the status quo and empowering creativity. Martin Luther King Jr. didn't lead with tactics, but with an unshakeable belief in justice and equality. This kind of purpose creates loyalty, drives innovation, and inspires both employees and customers alike.

4. Get your meeting culture squared away

Revamping your meeting culture isn't just about making people less grumpy – it's a direct path to supercharging your business's productivity. 

By reducing time spent in unproductive meetings by just 1 hour/week, a 5,000 employee company could save $9,835,500 in lost productivity every year.

And well-run meetings are serious time-savers. Sharp agendas, focused discussions, and on-point decision-making prevent you from ending up in another never-ending meeting going nowhere. This helps your people limit their time in meetings that would otherwise be keeping them from their corework. 

And the best thing you can do? Cut out pointless meetings altogether. This restores big chunks of uninterrupted time so your team can get back to solving problems and creative thinking.

When meetings feel productive and valuable, people are more likely to tune in, not zone out. They feel respected and know that their ideas actually matter. This boost in engagement translates into motivated employees who go above and beyond – and that means better results for your business.

5. Discourage multitasking

If you still think of multitasking as an impressive quality – think again. Science has spoken: multitasking is our brain rapidly switching between tasks, not doing them simultaneously. 

This constant context-switching is a productivity nightmare. It leads to decreased focus, more errors, and the illusion of working hard while accomplishing very little.

If your brain is a highway with multiple lanes, when you focus on a single task, your thoughts flow smoothly down one lane. Now could you imagine being behind the wheel of four vehicles at once? Multitasking clogs your mental traffic flow, slows you down, and increases the risk of mistakes.

To maximize productivity and implement a focus-driven culture, start by educating employees on the pitfalls of multitasking and the benefits of deep work and single-tasking. Encourage them to dedicate designated blocks of focus time centered on a single task at a time. Provide tools and training on time management and distraction-minimizing techniques. Most importantly, leadership should champion focused work by example, and establish a culture that rewards quality output over constant busyness.

6. Leverage technology & automation

From scheduling and communication tools to specialized software, the right tech stack can revolutionize how productively you and your teamwork. Of course, many tasks are essential for the smooth operation of your business, but they can also eat up valuable employee time. 

These tasks are often repetitive, rule-based, and don't require significant creative input. This is where automation comes in. By automating these time-consuming activities, you can free up your employees to focus on more strategic work, improve efficiency, and boost overall productivity.

Take scheduling and time blocking, for example. Manual time management is a notorious battle that usually results in your team spending more time playing calendar tetris than regaining time. But AI tools like Reclaim.ai offer intelligent scheduling automation and advanced time-tracking analytics to help your employees. It analyzes each team members’ priorities and preferences, seamlessly booking meetings, focus time, and even personal tasks and habits into their calendars. 

You can also take a look at your project management software to ensure it’s streamlining collaboration the way you need it to, as well as cloud document sharing for real-time updates, and specialized software tailored to your industry's specific needs. The key is to choose technology that reduces errors, simplifies processes, and gives employees more time to focus on their work. Remember, it's not about tech for tech's sake, but about tools that truly empower your team to work smarter.

7. Support professional growth

Employees who feel stagnant in their roles are more likely to disengage and seek opportunities elsewhere. And if you’re not enabling your employees to grow and learn the latest tech and industry advances, they’re not going to be in the best position to innovate for your company.

Investing in professional development for employees demonstrates a commitment to their growth, and keeps them feeling valued. This can take many forms, such as providing access to training programs, conferences, and mentorship opportunities. 

Tuition reimbursement plans can also be a game-changer, allowing employees to pursue certifications or degrees relevant to their field. And by supporting employees as they upskill, you create a sense of loyalty and boost their overall productivity. Employees who feel they have opportunities to learn and grow are more likely to be engaged, motivated, and contribute their best work.

8. Re-evaluate your business goals

Even established businesses can fall into the trap of misaligned goals. Departments and individuals might have their own targets, but if they aren't contributing to the bigger picture, you're wasting time and resources. 

So take time to reassess your company's priorities. Have there been any recent shifts in the market or your industry? Do your current goals still reflect these changes? If not, redefine your main objectives as needed. Once you have a clear picture of your overarching goals, clearly communicate them to your entire team.

Large, unwieldy goals can feel overwhelming and stall progress. Instead, translate these large goals into smaller, more manageable targets for teams and individual employees. Having clear, actionable milestones helps maintain focus and motivation.

Still, don't set your goals and forget them! Track progress towards your objectives at regular intervals. Identify any roadblocks that may be hindering your progress and adjust your strategies as needed. This ongoing evaluation keeps your team's efforts aligned with your desired outcomes.

9. Improve company culture

Don't underestimate the power of a positive, supportive company culture. When employees feel valued, connected to the company's purpose, and genuinely respected, their engagement skyrockets. And that's not just feel-good stuff – it can directly improve productivity.

Engaged employees aren't just punching the clock; they take ownership of their work. This translates into increased motivation, a drive to excel, and a willingness to go above and beyond. When a work environment enables effective collaboration, open communication, and a sense of safety, teams brainstorm more effectively, problem-solving becomes a collective effort, and those inefficient roadblocks melt away.

A positive culture isn't just about work output. When well-being is prioritized, employees feel supported both mentally and physically. This leads to less stress, fewer missed workdays due to burnout, and a genuinely energized workforce. Let's face it, healthy and happy people quite simply do better work. Investing in your company culture isn't a "nice-to-have," it's a powerful driver of productivity and overall business success.

10. Encourage autonomy vs. micromanaging

It's a temptation that many leaders feel – the desire to micromanage. Especially when things aren’t progressing as perfectly as they’d life. But this approach can actually stifle productivity instead of increase it. Micromanaging can demoralize employees, erode their confidence, and leave them feeling untrusted. Meanwhile, both your managers and their team members can waste valuable time on excessive oversight and revisions. Not to mention, it prevents your employees from developing new skills and taking ownership of their work.

To break this cycle and increase productivity, organizations need to take a two-pronged approach:

First and foremost, leadership training must go beyond management basics and focus on encouraging autonomy. Teach managers how to delegate effectively, set clear expectations and goals, and provide the necessary resources without dictating every step. Emphasize that part of their success is measured by their team's ability to work independently and take ownership.

But that's just one piece of the puzzle. Employees need to be able to handle the autonomy their managers are giving them, without falling off track. This might look like employee training and support program on how to manage your workload more independently, and how to provide updates to managers so they’re not always forced to track them down. And by managers investing time into skills development and mentorship, team members will be more likely to seek guidance and share ideas to help boost overall team productivity. 

11. Minimize time-wasting activities

This might seem obvious, but it bears repeating: if you want to increase employee productivity, you've got to hunt down time-wasters and show them no mercy. This is where analytics come into play. 

Take a close look at which work activities occupy employees' time:

• How many hours/week do employees spend in meetings?
• What percentage of meetings are redundant or unproductive?
• How many hours/week do employees spend doing manual work that could be automated?
• How many hours/week do employees spend traveling?
• How many hours/week do employees spend in email?
• How many hours/week do employees spend in chat (Slack, Teams, etc.)?

These are just a few examples, but the list of insights you look at will depend on your unique business operations. And by analyzing where employees spend their time, you can identify time-wasters and explore how to prevent them from eating away at your teams productivity.

Encourage employees to schedule blocks of uninterrupted time for high-value tasks during employees' peak productivity hours. Push low-priority tasks to less optimal times or consider whether they could be simplified with automation or delegation.

Nevertheless, this isn't about surveillance (don't be weird) but about empowering everyone to work smarter. Check out employee-friendly Time Tracking apps that give you data without betraying employee trust. Share the data with your team and collaborate on ways to optimize their schedules for peak focus and productivity gains.

12. Protect employees from distractions

Consider this: the average worker gets interrupted every 5-15 minutes, and 80% of these interruptions are pointless. Even worse, when employees are jolted out of focus, it takes a whopping 23 minutes (on average) to get back into the groove because of context switching.

To promote true focus and productivity in your business, you'll need to give employees the tools they need to prevent the non-stop flood of distractions and interruptions.

And considering the biggest employee distractions are caused by email and chat messaging platforms, this is the best place to start. Instead of letting employees' inboxes pull them away from their focus work every 5 minutes, encourage them to block time for catch-up in the mornings and afternoons. And employees can also prevent interruptions via Slack and Teams through the use of statuses. Check out apps like Reclaim.ai to give employees the tools to flexibly block time for catch-up, and automatically sync their Slack status to their calendars.

You can also promote the use of website blockers, distraction-minimizing apps, and scheduled notification control (though you should let employees use their own, you’ll have the opposite effect if you suddenly block YouTube across all employees' computers).  Encourage employees to be mindful of their own tech habits and to take short breaks away from screens for mental resets.

Improve workplace productivity for your business 📈

Improving business productivity isn't a one-time fix; it's an ongoing journey. The strategies outlined in this article provide a strong foundation but remember to assess, adapt, and evolve your approach along the way. Stay curious, seek out new ideas, and encourage continuous improvement throughout your organization. By embracing productivity as a core value, you'll create a workplace that's not only efficient but also fulfilling and primed for continued success.