In an environment where more and more companies are competing in a global market, improving productivity is a key factor for the survival of our businesses. The ability to produce efficiently offers various competitive advantages related to cost savings, profitability, and quality.

Improving productivity is a goal that requires the involvement of everyone within the company, and to some extent, also includes suppliers or other related professionals and organizations. That’s why achieving meaningful improvements is often difficult—though that shouldn’t stop us from pursuing the ultimate goal.

There are many approaches and actions aimed at gradually improving a company’s productivity. These depend on tangible factors like available resources and the market, as well as more abstract elements such as company philosophy. While labor productivity depends on habits that can be implemented in employees’ daily routines, today we’re focusing on overall company-wide productivity.

Ideas to Improve Productivity in Small and Medium-Sized Businesses (SMBs)

Depending on your specific situation, these ideas—or a combination of them—could help you meet your productivity goals.

Modernizing the Business

The phrase “modernizing the business” often brings to mind increasing spending on new machinery, hiring new talent, investing in innovation, adopting new technologies, or exploring new business models through side projects.

While it’s true that increasing investment in research and development can be a long-term competitive advantage (though it requires significant effort), modernizing a business is not only about spending money.

This is where creativity comes into play—finding new ways to do what we already do well, but even better, or taking small steps toward a deeper transformation over time. A good example is the emergence of social media in the professional world—communication tools that can be leveraged at relatively low cost.

Training and Personal Motivation

One of the most effective and lasting ways to create real change within organizations is by taking care of the people who make the business run. Employees are a company’s most valuable asset and should be treated as such.

Human resources management should focus on staff development, continuous training, and giving individuals the freedom to bring out the best in themselves. When combined with strong teamwork and workplace well-being policies, these efforts can lead to more efficient and even more enjoyable work.

In recent years, flexible hours, remote work, and BYOD (Bring Your Own Device) policies have gained relevance. These strategies must be implemented thoughtfully, with proper controls in place, to be truly effective.

Strategic Planning

Knowing where you want to go is the first step on the journey. That’s why it’s essential to assess your company’s current situation and define a vision of where you want it to be in the future. Since change doesn’t happen overnight, once that vision is clear and shared by key stakeholders, it’s important to outline a sequence of actions to help reach each milestone along the way.

From the starting point, it’s crucial to communicate decisions clearly and encourage participation across departments, so that everyone embraces the goals as their own. This planning process should also consider potential changes to internal organization, how productivity will be measured, and even non-monetary incentives for employees.

In all these areas, business management software can play a key role—not just as a productivity tool but as a game-changer. The right combination of ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and BI (Business Intelligence) systems can help streamline workflows, improve decision-making, and reduce costs.