Poor productivity drives lower revenues

19 February 2024 / Insight posted in Article

Low productivity and poor organisation design seemingly go hand in hand. 

Many businesses fail to review their organisational design, assess their people capabilities and their ability to deliver the growth and ambition of the owner or shareholder. 

Poor people management and ineffective organisational design are often the main causes of lower revenue.  HR and business leaders don’t have the time to fix the issue while focussed on the daily business operation, or sometimes even the specialist knowledge to be able to stop the leakage. 

Moore Kingston Smith HR Consultancy and People Advisory completed a project for a medium sized retail business with operations in the UK, Europe and U.S. and delivered some impressive results that transformed their revenue and employee productivity. 

Case Study  

A retail business with 2,500 employees; 200 head office staff and 2,300 full and part-time retail staff. 

They had a new CEO who was looking to optimise their organisation design as they weren’t growing as quickly as she’d liked.   

We used our performance and potential diagnostic to focus their leadership team on four areas:   

  • Productivity: where we investigated time management, goal setting and organisation development. 
  • Careers: where we interrogated leadership, professional development and job satisfaction. 
  • Business: where we reviewed their market analysis, networking and strategic thinking. 
  • Finance: where we looked at their investment, budgeting and employee incentives. 

As part of our programme, we carried out a number of workshops with their managers on performance management which included setting and reviewing objectives, encouraging motivation and driving productivity; and equipping them to hold difficult conversations which they previously shied away from. 

To encourage a higher performing team, we introduced our Insights Discovery for their head office functions which allowed their teams to be more conscious of varying communication styles and how they could motivate others when recognising the different energy colours.     

As part of the project we completed for that client, we were able to increase cross-functional working which led to higher productivity and improvement between managers and teams who were able to communicate effectively.   

The upside to the project saw improvements to their organisational design – delivered £1.5 million reduction in salary costs (which pleased their interim Chief Finance Officer) and led to a more structured growth plan that quickly started to perform. 


“Joe quickly identifies the challenges faced by leaders using his previous industry experience as a Chief People Officer.  He leads the HR Consultancy at Moore Kingston Smith and supported us to deliver significant costs savings and brought the leadership team together with laser sharp focus on delivering turnover and efficiencies.” 

Erika Vilkauls – Chief Executive Officer 

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