Higher productivity means more things getting done, right? Not quite. It’s a subtle difference, but true productivity is about getting more of the right things done

How productive is your team? More importantly, how are you measuring that productivity? Is it based on customer or staff satisfaction? Outcomes and impact? Or simply how many emails are answered or reports submitted?

In many cases, productivity is measured by output alone – what gets done rather than how or why it gets done. That’s not unusual, but it can be misleading. You’ve heard the phrase “work smarter, not harder.” While the term has been around since before smart phones were a thing, it doesn’t quite capture what’s needed today to build stable but productive teams.

Productivity strategy isn’t about outsmarting the system or reinventing the wheel – it’s about working better. That means understanding what works best for your business and creating the conditions that allow people to perform at their best.

Using the 2% Rule

Organisations love big numbers. Headlines often celebrate dramatic gains – 100% growth, record-breaking performance – but in reality, these are unicorns. Pushing people to deliver constant, record-breaking performance is unrealistic and unsustainable.

The 2% Rule focuses on small, incremental improvements. In a small business, it could mean refining customer communication, simplifying workflows, or reducing time spent on low-value tasks. These small improvements, applied consistently, can quickly add up to noticeable gains in efficiency and service quality.

The “Own It” Culture

Another productivity strategy is to build an “own it” culture, where individuals take responsibility for outcomes rather than simply completing tasks. This approach encourages accountability and a genuine sense of ownership. At its core, it’s about developing a team that can handle both successes and setbacks, taking responsibility for results rather than relying on direction at every stage. It’s not about leaving people to their own devices, but about giving them clear accountability for their output. When implemented well, it can shift productivity from being compliance-driven to purpose-driven.

In a business setting, this might mean that if a team member manages a client project, owning it means they are responsible for the client’s experience, the quality of deliverables and meeting deadlines. This approach creates accountability: everyone knows what outcomes they are responsible for, and they are empowered to make decisions to achieve them. Leaders provide guidance and resources, but they don’t micromanage.

Carrot and Stick

There’s a reason the classics endure. The concept of carrot and stick – balancing incentive and structure – remains relevant, but it needs to be applied with more nuance than a simple reward-and-consequence model. In a modern productivity strategy, the “carrot” might be recognition, flexibility, professional development, or improved working conditions.

The “stick” is less about punishment and more about structure and consistency – ensuring expectations are understood and followed. Importantly, the “stick” often establishes the baseline – the non-negotiable tasks or compliance requirements that must be delivered. The opportunity for productivity gains lies in what happens beyond that. For example, completing a required report is the “stick,” but if a team finds a more efficient or effective way to produce it, the “carrot” becomes twofold: the task is completed to a high standard, and the improved approach can be adopted more widely across the business.

Productivity isn’t about doing more for the sake of it – it’s about doing what matters, better. By focusing on how work is done, not just what is done, businesses can build teams that are not only more productive, but more and prepared for the challenges ahead.