Productivity. It’s the magic word in every boardroom today. But ask most executives what it means, and you’ll likely hear the same answer: cost reduction.
Slash budgets. Cut headcount. Do more with less.
While efficiency is important, this outdated view of productivity is limiting. In the digital age, the real winners are the companies that expand their capabilities, not just shrink their costs. Productivity is no longer just about working harder or cutting deeper — it’s about working smarter and creating more value.
So, what’s the secret to next-level productivity? It comes down to three game-changing factors: People, Technology and Organisational Agility.
1. The Human Factor: Productivity Starts with People
Here’s a surprising truth: companies with highly engaged employees are 23% more profitable than their disengaged competitors (Gallup, 2024). The biggest productivity killer isn’t inefficiency — it’s disengagement.
Think about it. If your best talent is uninspired, drowning in red tape, or stuck in a toxic culture, no amount of process improvement will help.
The solution? Invest in your people.
Take Microsoft under Satya Nadella. When he took over as CEO in 2014, Microsoft was losing relevance. Instead of slashing costs, he focused on transforming the company’s culture — from cutthroat competition to collaboration and innovation. The result? Microsoft became one of the most valuable companies in the world, with its stock price skyrocketing nearly 700% in a decade.
Then there’s Google’s Project Aristotle, a multi-year study that found psychological safety — where employees feel safe to share ideas and take risks — was the #1 driver of team performance. The best companies don’t just demand productivity; they create the conditions for it.
2. Technology: The Smart Productivity Booster
For years, businesses have used technology to cut costs. But the real game-changers use it to amplify human potential.
Take Unilever’s AI-driven talent management system. Instead of relying on traditional hiring, the company uses artificial intelligence to match employees with new opportunities based on their skills. This not only boosts internal mobility but also reduces hiring costs while keeping employees engaged.
Or look at JPMorgan Chase, which processes millions of financial transactions daily using AI-powered fraud detection. What used to take hours of manual review now happens in seconds, freeing employees to focus on higher-value tasks.
The key lesson? Technology isn’t about replacing people — it’s about enabling them to do their best work.
3. Breaking Barriers: Fix the Productivity Leaks in Your Organisation
Many companies think they have a productivity problem when they really have an organisational problem.
Too many meetings. Too much approval bureaucracy. Teams working in silos. These slow down decision-making and kill innovation.
Spotify tackled this with its “Squad” model — small, autonomous teams that move fast and make decisions without waiting for endless approvals. The result? A more agile, innovative company that constantly adapts to market shifts.
Netflix also thrives on organisational agility. Instead of strict hierarchies and rigid policies, it empowers employees with freedom and responsibility — allowing them to make big decisions without waiting for permission. This is why Netflix can rapidly test and launch new content while traditional media companies struggle to keep up.
A 2024 McKinsey Global Survey found that companies with faster decision-making and streamlined processes see 30-50% faster time-to-market for new products. That’s not just efficiency — it’s a competitive advantage.
The New Productivity Formula
So, how should today’s leaders think about productivity?
Old productivity: Cut costs, squeeze employees, drive efficiency.
New productivity: Engage your people, embrace smart technology, remove internal bottlenecks.
The companies that thrive in the future won’t be the ones that just cut their way to efficiency — they’ll be the ones that build their way to innovation.
The CEO’s Challenge: Are You Measuring the Right Productivity?
If you’re only looking at cost savings, you’re missing the bigger picture. Ask yourself:
- Are my employees engaged and motivated?
- Am I using technology to empower people, not just reduce costs?
- Is my organisation agile enough to move at the speed of change?
The leaders who answer “yes” to these questions will not only survive but thrive in the future of business.
The question is: Will you be one of them?
Arinya Talerngsri is Senior Vice President, Local Partner and Managing Director at BTS Thailand (formerly SEAC), part of the BTS Group, a leading global strategy implementation firm. She is passionate about revolutionising education and creating opportunities for Thais and people worldwide. Executives and organisations looking to collaborate or learn more about leadership development, talent development, succession planning and organisational transformation can contact her directly at arinya.talerngsri@bts.com or visit her LinkedIn profile.