September 14, 2022

Productivity Defined

What is productivity?

In a service business context, I would define productivity thusly:

Productivity—the ratio of the seller’s labor to the buyer’s results.

In other words, if you are doing less labor and delivering bigger results to your clients, then your productivity is increasing.

Here’s the thing…

IF you bill yourself out by the hour

AND you increase your productivity

THEN you lose money

SO if you feel compelled to increase your productivity, then you should probably first find a way to stop trading time for money.

Yours,

—J

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