The Productivity Zoo: A Framework for Understanding Business Growth and Efficiency
What drives sustainable business growth? It is not just about adding more staff or resources to produce more, but making better use of the resources you already have. This balance between growth and efficiency is often elusive but essential for long-term success. While increasing turnover and profit are the ultimate goal, the efficiency with which they […]
Unlocking Growth Through Firm-Level TFP
What truly drives sustainable growth for a business? While increasing sales or profits is often celebrated, these metrics alone fail to provide a complete picture of a company’s long-term potential. Traditional financial accounting primarily focuses on the size of inputs or outputs but overlooks a fundamental question: how well does a company transform its resources into […]
Profitability is not productive. Productivity brings profits.
Many companies make a fatal mistake: they focus too much on short-term profitability. The easiest way to boost profits is to cut costs—research and development, investments, and employee training. For a while, it may seem like productivity metrics improve, and investors smile with satisfaction. But what happens in the long run? The company’s technology becomes […]
