Embrace GenAI: Productivity Leaders are adopting 5 key behaviors to drive growth rather than just cutting costs!
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? Despite major advances in technology over the past decade, global productivity remains flat with 40% of large companies analyzed reporting negative growth.
?? The gap between high and low productivity growth companies has doubled over the past eight years—and quadrupled in the last four
??Researchers identified 5 behaviors that set productivity leaders apart, yet only 36% of executives use quality improvements as a measure of their productivity programs’ success.
?? On average, companies reinvest only one-third of their productivity programs’ gains into fueling growth and emerging businesses, according to a new interesting research published by 埃森哲 using data ?? from a survey of more than 2,000 senior executives, whose companies operate in 18 industries and are headquartered in 11 countries, to understand. their views on productivity.
?Productivity growth leaders gain a competitive edge
Researchers noticed that the gap in annual productivity growth rates has increased from 6.3 percentage points (pp) in 2016 to 11.8pp in 2023.
?More on focus on growth than on cutting costs
Researchers revealed that companies with high productivity growth aren't cutting costs; instead, they grow revenues faster than their spend and invest strategically in key areas—maintaining a healthier output/ input ratio.
For instance, they:
?? Achieve cost efficiency ratios (revenue/ cost) that are ~4.5% higher than peers
?? Increase revenues by ~1.3% for every 1% increase in total costs
?? Grow revenues per employee by 7% annually, while total costs per employee rise by ~6%
?? Invest more in cultivating complementary skills across the organization and demonstrate a stronger strategic commitment to adopting data and AI
?The new equation of productivity-driven performance
Researchers uncovered the new equation of productivity-driven performance, generative AI serves as a multiplier to cost inputs and organizational effectiveness.
Productivity Growth =Cost Inputs X Effectiveness X GenAI Multiplier
Researchers also discovered that by addressing the three equation factors simultaneously, the median company can boost its long-term productivity growth more than fivefold, from 3% annually to 16% annually.
?The 5 behaviors of productivity leaders
Researchers revealed also the five behaviors of productivity leaders and how they gain a competitive edge:
1?? Redefine productivity and how it's measured
Organizations are boosting productivity by reducing business model complexity, simplifying the organization and its processes, leveraging value chain partners for speed and outcome quality and impact, and building technology capabilities to continually strengthen their business and operating models. A growing number of business leaders are adopting these productivity performance measures.
2?? Invest deliberately in productivity for growth and competitiveness
3?? Super Charge productivity with Generative AI
4?? Empower talent with human-centered strategy
5?? Embrace change, break through barriers
?A new framework that focuses on productivity’s future value
Researchers found a new framework that focuses on productivity’s future value, as well as a new definition of productivity — one that measures quality across a range of inputs and outputs to achieve new levels of performance.
?? Using this process value alignment approach helps organizations understand and quantify the relationships between people, efficiency, effectiveness, the systems involved, and the value created.
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This fascinating research unveils new insights into productivity, highlighting the necessity for organizations to embrace GenAI for growth. As researchers highlighted, the outdated notion of productivity solely based on cost savings is obsolete. To stay competitive, companies must now prioritize growth. To lead effectively, organizations must fully implement the new productivity formula and adopt the five key behaviors.
??Thank you 埃森哲 researchers team for sharing these insightful findings:
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1 周Nicolas BEHBAHANI, interesting research, and it highlights two things for me: 1) If you want to achieve high productivity, focus on growth rather than cost-cutting. 2) There is a persistent hype around the impact of Generative AI, along with a growing tendency to make simple things complicated. As we now see, Generative AI is emerging as one of the accelerators in the "new equation" for productivity-driven performance. Profitability and effectiveness come from a simple calculation: total revenue minus total cost. The key factor in achieving that revenue lies in human performance -the degree to which employees can fully leverage their talents. This means their skills, commitment, and contributions. Here lies the crux: Gen AI and all other tools only reach their potential when used effectively. In my daily experience, I see hundreds of employees with access to tools like Slack and other productivity enhancers, yet lacking the motivation to use them to their full potential. My call to organizations is this: invest in leadership development so that employees and teams can perform at their best ?? .
A Human and NOT a Resource | Certified HR Analyst | ESTJ |People and culture | Start up mindset |Data Analytics | Views and Opinions expressed are of my own|
1 周Nicolas BEHBAHANI - Brilliant topic and thanks for sharing this research! Undoubtedly, Gen AI can help accelerating productivity by automizing the mundane and repetitive activities and people capability can be used to improve the process and adding more value. As in personal finance often advised to increase earning (by increasing stream of income)to create wealth and seldom by cutting cost, same goes true for any organisation. Instead of cutting cost, companies should enable employees (through learning and development) to use Gen AI so that they can reduce the burden of repetitive works and invest time to improvise product, process, service so that productivity increases, which automatically increase the revenue, the numerator!
LinkedIn Top Voices in Company Culture USA & Canada I Executive Advisor | HR Leader (CHRO) | Leadership Coach | Talent Strategy | Change Leadership | Innovation Culture | Healthcare | Higher Education
1 周Thank you for sharing Nicolas BEHBAHANI
Senior HR Expert - Managing Consultant
1 周Creating the right culture is essential to get both productivity and innovation going. Fear and know it all type cultures will prevent growth and learning as well as the sharing needed in innovation and in improvements be it growth or processes.
?? I advocate for a higher employee productivity & empowerment | Founder @AlbiCoins | 15+ Projects for Global Corp ?? Team Project contests, Incentive programs, Rewards -- ?? DM for demo.
1 周Insightful analysis!?The question now is how many companies will adopt these key behaviors and commit to a long-term growth approach. Exciting times ahead for those who do ??