How to measure (and improve) productivity

Without measurement, a business cannot improve. Learn how you can empower your customer-facing teams to optimize their productivity.

Business leaders and experts have been obsessed with productivity since at least the Industrial Revolution.

Over the past few hundred years, the study of how we can accomplish more work in the same 24 hours has consumed countless executives, writers, self-help gurus and ambitious employees.

There is even a thriving ecosystem of influencers who do the hard work of reading hundreds of productivity books and share the main learnings with their followers.

According to Howard Moodycliffe, CEO at email performance optimization solution timetoreply, the rise of the digital age and the hyper-connectivity introduced by the internet and smartphones has raised the profile of the 'productive employee'.

?“Modern employees are under constant pressure to remain connected to work, with their smartphones feeding them an endless stream of emails, Slack messages, notifications and alerts. And yet, a high rate of productivity remains elusive to many companies, who seek to optimize their time and performance through a range of methods, strategies, apps and tools, all just to squeeze one more drop of output from their workdays.”

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What is Productivity in Business?

?At its core, productivity is a measure of efficiency—how effectively resources such as time, capital, and labor are being used to achieve desired outcomes.

?“In business terms, productivity can be defined as the ratio of output (goods or services) produced to the input (resources) used. The more you can produce with fewer resources, the more productive your business is.

?“Productivity isn't just about doing more in less time; it's about optimizing processes to get the most value from your efforts,” says Moodycliffe. “High productivity leads to a streamlined workflow, better use of resources, and a more satisfied team and customer base.”

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Why is Productivity Important to Businesses?

Productivity isn't just a buzzword; it plays a crucial role in the health and success of any business. Moodycliffe explains why it matters:

Greater revenue: “Increased productivity means that your business can generate more output with the same level of input, translating directly into higher revenue. Efficient use of resources allows businesses to scale more easily and support sustained growth over

Happier customers: “A productive business is more likely to meet customer expectations by delivering services or products quickly and efficiently. Satisfied customers become repeat customers, which is crucial for long-term business

More effective employees: “Productivity benefits not only your bottom line but also your employees. When teams are able to work efficiently, their stress levels drop and morale improves. Motivated employees are more engaged and can bring that same energy and motivation to their interactions with customers.”

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How to Measure Productivity

Knowing the importance of productivity is one thing, but understanding how to measure it is key to improvement. As the old saying goes: “If you can measure it, you can manage it.”

?According to Moodycliffe, thre are various methods to measuring productivity in business, from traditional approaches like tracking output per hour to using modern software tools.

?A few common ways to measure productivity include:

Output vs Input: The most basic way to measure productivity, this formula simply compares the amount of output - goods produced, services delivered - to the input (hours worked, materials used).?

Revenue per employee: This widely used measure evaluates the amount of revenue generated by each employee, and gives insight into overall worker productivity.

?Customer response time: “In customer-facing teams, the speed at which teams can respond to and resolve customer queries is a key performance metric,” notes Moodycliffe. “Measuring response times can help customer-facing teams set benchmarks to drive ongoing improvements in customer service levels.”

?Utilization rate: This method is popular in service industries such as consulting, and measures the number of billable hours worked compared to the total work hours available. Utilization rate reveals how effectively employees are using their time.

?Email reply time: Moodycliffe says that, considering the central role that email plays in any modern professional’s day-to-day work, the use of email analytics tools are essential to measuring productivity. “Most native email platforms such as Outlook and Gmail offer little to no data into the email performance of individuals or teams. Specialised software tools can help teams and individuals track and measure various aspects of their email performance, driving higher overall rates of productivity.”

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How to Improve Productivity in Your Business?

While it would be impossible to summarize the sum total of all productivity knowledge in a single article, Moodycliffe does propose some tried-and-tested methods of boosting productivity. These include:?

Using the right tools: “Part of any business' digitalisation efforts should include deploying tools that can boost productivity. For example, if you're in a customer-facing role with high expectations for response times, an email performance optimization tool is essential.”?

Prioritize better: Moodycliffe says one of the common barriers to productivity is poor task management. “Ensure that your team is clear on priorities and deadlines, and encourage the use of productivity apps and tools to help them stay on track.”?

Take breaks: While it might sound counterintuitive, regular breaks are essential for maintaining high productivity levels. “Burnout can have a devastating effect on the productivity of individuals and teams, so ensuring everyone works at a sustainable pace is essential,” notes Moodycliffe.

Fine-tune: Productivity is not a one-time achievement but an ongoing process. Set measurable goals, use specialized tools to track and measure progress toward those goals, and encourage a culture of continuous learning and improvement.?

Excel at email: One of the most effective ways for customer-facing teams to boost their productivity is to optimize their email performance. “Software tools like timetoreply Optimizer acts as a copilot for high-performance customer-facing teams. Optimizer sits in your team's inboxes and provides live performance stats, smart recommendations based on SLAs, and continuously drives quicker email reply times,” says Moodycliffe.

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Closing

?Improving productivity is not a one-size-fits-all solution. Every business has unique challenges and opportunities, but the key is to continually measure and refine how resources are used.?

Moodycliffe adds: “By adopting the right tools, setting clear goals, and fostering a culture of continuous improvement, businesses can achieve higher productivity—and in turn, boost revenue, growth, and customer satisfaction.

Tools like timetoreply Optimizer make the process of measurement and improvement that much easier, allowing businesses to optimize their workflows and focus on what really matters: delivering value and growing their business.”

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