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2011-04-05

Don't get commercially "politically correct"!

Comments on Robert Gottliebsen “Australia's missing productivity link”, 5/04/2011, http://www.businessspectator.com.au/bs.nsf/Article/TLS-Telstra-Orica-productivity-survey-CEO-pd20110405-FLS68?OpenDocument&src=rot

Here there is an interesting divergence between certain economists including some commentators who focus on the theoretic concept of productivity or the improvement of it on the one hand, and business people and entrepreneurs who are focused on the real world of profit and losses.

The claim that "unless you measure it you can’t improve it" is obviously a fallacy and the wrong type of characterisation or conceptualisation of the issue. It is nonsense to say if you don't measure it, you can't improve it.

It is just like if you don't understand the complex internal mechanics of a car, you can't drive it!

For businesses, understandably profit is the key - without it or without making it business people would fail and bankrupt, irrespective how they have or have not measured and / or improved productivity.

Presumably, there are many businesses that are quite profitable and well managed among those that have not "actually measure it (productivity)". Once you are focused on the essence and the key of business, productivity and the improvement of its may naturally fall into its proper place.

Equally, there must have been some failed businesses that did "actually measure it (productivity)".

In essence, let's not be too mechanical in business and become "commercially politically correct".

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