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THE PRODUCTIVITY PARADOX Our lovely Admin Manager, Peggy, is taking a post-grad course on Information Systems Management.The topic is of great interest to us because we have long had concerns that our ever-increasing investment in technology, software, and information systems has not increased productivity and profitability. In fact, the average number of sales per salesperson per year has declined steadily, although profits have been maintained because our average sale price is higher. This decline in productivity is not exclusive to us. A major real estate firm who keeps impeccable statistics reports an almost 20% drop in sales per salesperson in the last 15 years. And, Tom West, the business broker?s guru, confirms similar concerns in the USA. Not only have we invested heavily in hardware and in software programs but also in support staff and consultants. Our statistics indicate that the costs have outweighed the benefits and the promises have not been achieved. IT and IS cannot take all the blame. Our clients and customers are more sophisticated, more cautious and conservative, and slower to make commitment. The product we sell has changed. Fewer ?smokestack? firms and more ?service? enterprises, fewer retailers (swamped by the malls and the ?big boxes?) and more foodservice business as lifestyles change. Most importantly our salespeople are different today. Tom West suggests they are ?more number oriented and less people oriented, ?more time is spent doing analytic work than talking with people?, and ?the various systems should make people more productive... but you can?t make money in the office?. Successful salespeople spend more time in front of buyers and sellers. Right on, Tom! Technology is a valuable tool. Great for number crunching, impressive documentation, database marketing, and as an information resource. But it is a tool ? not the answer ? and I suspect this is true for most professional service firms? |
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