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In simplest terms, productivity is the ratio of output per unit of input.

Almost every conversation about change includes a promise of greater productivity.  In simplest terms, productivity is the ratio of output per unit of input.  While the equation is for calculating productivity is straightforward, as we have discussed, deciding on which outputs from an organization or process to count is never straightforward. The decisions on the input side of the equation are often equally contentious.  Three critical decisions shape what measures will be needed to supply the inputs used to calculate productivity.   (more…)