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Improving Productivity: Cost Reduction

Australia’s productivity performance is a recurring topic on the national agenda. The discussion ranges across a multitude of different industry, business and political perspectives, with particular interest points around different industries’ contribution to the overall productivity levels, Australia’s standing among its global peers, and the extent to which Australia’s low productivity cripples its ability to compete convincingly in the international market.

Although productivity is an issue at these macroeconomic levels, it also represents a challenge to the Australian business community. International research shows Australian businesses rank poorly in commercial capabilities when compared to international equivalents. This gap offers Australian businesses a number of opportunities to improve and leverage the learning from high-performing organisations locally and internationally.

This series of Litmus white papers on productivity will cover a variety of approaches that organisations can use to improve productivity. The focus of this white paper is on cost reduction, and how businesses can increase productivity through a multi-stream, concentrated, and sustainable approach to minimising costs.

 

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