productivity drop

Faced with the news published about the drop in Productivity of the Chilean economy for the second year, with 0.7% in 2020 due to the effect of the pandemic, we can only insist on the need for solutions and put aside diagnoses, that are already clear. We must first understand that the main problem is not the drop in this indicator, but rather that the greatest risk is not considering productivity as a national strategic response, of organizations and companies to face the challenges we are facing.

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Next, we need to accelerate execution across industries, acknowledging incapacities, shouldering pains, and leveraging team experiences. Although – by the way, there must have been gigantic efforts in small, medium and large companies – it has not been operated correctly. As the National Productivity Commission says, "we are not capable of resuming reasonably rapid growth, which must be above 2%."

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However, in our experience we have seen that there is capacity to resume growth. To do this, the gaze must focus on business processes, considering the system and people at the same time. By listening to internal actors, outdated procedures can be visualized and resources can be optimized. That risk must be managed. The experience is available in our country, now it is necessary for those who make decisions to start accelerating execution, without fear of failure, with innovation and diversity of views to improve results and counteract, for example, the drop in sales on the one hand and cost increases on the other, which have hit various sectors.

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Francisco Ortuzar

Orca Business Consulting Partner

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Original Text in Radio Cooperativa