A survey business leaders found two-thirds agreed productivity was a national problem. Photo: 123RF
A failure to measure the right things means many businesses could be missing out on productivity gains along with bigger profits for them and the wider economy.
A survey of 397 business leaders commissioned by Spark and conducted by Clemenger Group found two-thirds agreed productivity was a national problem, yet three-quarters (75%) believed their own business was ahead of competitors in adopting efficient processes.
"This suggests we might be measuring ourselves against the wrong benchmarks, or perhaps we're not measuring the right things at all," Spark chief technology and AI officer Matt Bain said.
A third of businesses (33%) used profit and customer satisfaction as indicators of productivity, while only 24 percent linked productivity improvements to time savings and operational improvements.
Bain said adopting the right technology could help businesses work smarter.
"We've witnessed first hand how the right digital tools, properly integrated, can unlock remarkable productivity gains," he said.
"But we also know that technology alone isn't the complete answer - it needs to be paired with the right mindset, skills and expertise, and willingness to improve in the right areas."
Among the key findings was technology adoption was lagging.
While 75 percent of businesses agreed new technologies could deliver significant productivity gains, only 46 percent had fully or partially integrated cloud infrastructure, and just 29 percent were experimenting with AI tools.
The main obstacles to adopting new technologies were a lack of knowledge or expertise (42%), cost (40%), limited access to capital (38%), and resistance to change (36%).
Less than half of all businesses (45%) recognised the need for external expertise to maximise technology benefits.
"The tools exist, and the expertise is available. What's needed now is a collective shift from 'getting by' to 'getting ahead', and the courage to take concrete action," Bain said.
The study also includes a list of key actions that business leaders can take to lift productivity within their organisations, with a focus on improving connectivity alongside staff training and development.
The report, 'Lifting productivity: Moving New Zealand from getting by to getting ahead', was on Spark's website
