Strategies That Set Apart High-Performing Corporations from Others

Turbocharging Productivity: Lessons from Superior Companies

Boosting productivity is an often-overlooked factor that significantly contributes to corporate growth. Not only does it benefit the company, but it also aids the broader economy by utilizing resources efficiently and yielding more results. Let's gaze closer at the productivity of company resources, as analysis uncovers substantial disparities among companies in the same industry. This presents an opportunity for underperformers to streamline their processes and raise their productivity to approach the productivity indices achieved by industry leaders.

Gleaning Insights from Productivity Outliers

Businesses can gain a great deal by examining how top-tier companies manage their operations. Yet, there are recurring factors that set these companies apart across industries.

Maximizing Digital Value Extraction

The implementation of digital technology organization-wide yields substantial productivity benefits. However, few companies have enjoyed the productivity gains that leaders have achieved. The primary setback lies in not aligning the company's strategy and business model to profit from digital technologies. Outlier companies construct groundbreaking business models founded on the digital technologies they employ, reorganizing their hierarchies and processes to reap the benefits of digital technology, rather than solely using these technologies to support existing processes and systems.

Long-term Investments in Intangibles

Elite companies extend the deployment of digital technologies to every division, including R&D, IPR, and employee upskilling. They take a long-term perspective on their digital initiatives, acknowledging that early benefits may be smaller, but they multiply over time to create substantial economic benefits.

Nurturing a Future-Ready Workforce

Outlier firms invest heavily in the talented workforce required to get the most out of the technology. They recruit top talent in the market and simultaneously invest in updating and upgrading employee skills. Top talent and skilled team leaders are crucial for successfully managing the reconfiguration of the company according to digital requirements. Companies attract top talent by valuing experience, investing in training and development programs, and providing stability and additional benefits to employees' families.

Systemic Approach

Outlier companies seek opportunities across geographies and industries for new markets. They tap into global markets for valuable resources, even for ideas and talent. They construct new ecosystems with their suppliers and customers, allowing members to reap benefits and create shared pools of value. They actively seek collaborations with counterparts to manage skilled talent and infrastructure.

In the end, innovative strategic and process changes are crucial for realizing productivity gains. Leaders must think outside the box to capitalize on the potential of digital technology to benefit the organization and the economy as a whole.

What Distinguishes the Most Productive Companies by Charles Atkins, Asutosh Padhi, and Olivia White, HBR 2023/02

Additional Insights:

Enhancing Platform Strategies for Optimized Operations:

Adopting Platform Strategies: Companies often adopt specific digital platform designs, such as Platform-as-a-Service (PaaS), multisided marketplaces, internal platforms, and X-as-a-Service (XaaS). These designs help streamline operations, increase scalability, and foster innovation [1].

Driving ROI and Addressing Market Needs through Strategic Technology Innovation:

Technology Innovation Strategies: By focusing on six technology innovation strategies, companies can drive ROI and meet market needs. This includes leveraging new technologies to innovate products and services, improving processes, and enhancing customer experiences [2].

Accelerating Digital Strategies via Strategic Partnerships and M&A:

Strategic Collaborations: Companies expedite their digital strategies by engaging in strategic partnerships and M&A activities. This helps expand market reach, enhance capabilities, and increase returns on investment [3].

Quantifying AI Opportunities for Boosted Productivity:

Value Creation through AI: Tools like the EY.ai Value Accelerator help businesses identify and prioritize AI opportunities that can significantly boost productivity. By mapping business objectives to AI opportunities, companies can calculate the potential value creation across their value chain and improve financial metrics like EBITDA [5].

Structuring Risk Management Strategies for Secure Digital Transformation:

Risk Management: While leveraging digital technologies, companies must address the heightened security, resilience, and compliance risks associated with digital transformation. Implementing robust risk management strategies guarantees that digital initiatives enhance productivity without compromising security [4].

By integrating these strategies, leading companies can effectively harness the power of digital technologies to escalate productivity and fuel business development.

To maximize productivity, businesses can learn from top-tier companies by adopting platform strategies, such as Platform-as-a-Service (PaaS), for optimized operations, which help streamline processes, increase scalability, and foster innovation.
Companies can drive ROI and meet market needs through strategic technology innovation, focusing on leveraging new technologies to innovate products and services, improve processes, and enhance customer experiences.
For a successful digital transformation, it's crucial to implement robust risk management strategies that ensure security, resilience, and compliance while digital initiatives enhance productivity without compromising these elements.