It might be time for a stiff drink, or a rethink on leadership
- Phil D'Adamo
- Dec 2, 2025
- 2 min read
I’m seeing a lot of commentary across business and government news about low productivity, financial strain, cost overruns and the real risk of slipping living standards in Australia.
I’ve been thinking about the leadership implications — and why coaching and training for increased productivity has become essential.
If productivity is about creating more value without more hours, more people, or more cost, then yes — Australia has a problem.
CBA is sounding the alarm: we’re heading into a productivity crisis that could drag down wages, living standards and our economic trajectory. The Productivity Commission reminds us that productivity is living standards - more output from the same inputs equals a better life for everyone.
CBA economist Harry Ottley puts it bluntly: potential growth has been sliding for decades, and there’s no quick rebound coming. So, what’s really going on with declining productivity?
• Are we running out of ideas?
• Are employees exhausted and burnt out from the constant squeeze to do more with less?
• Are rigid operating models making change too painful or risky?
• Are leaders simply not equipped to deliver more without more?
In my leadership experience, productivity never stagnates because people suddenly forget how to work or give up. It drops because costs continue to rise at a greater pace to any increase in outputs. This becomes too hard to change.
And when budgets tighten, the classic cry is: “Back to core business!”
Which always makes me wonder: what kind of business were you doing the rest of the time?
Some leaders are exceptional at driving productivity. Others are struggling. But you can’t push your way out of a productivity slump.
𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐯𝐢𝐭𝐲 𝐢𝐬 𝐚 𝐬𝐲𝐬𝐭𝐞𝐦 𝐨𝐮𝐭𝐜𝐨𝐦𝐞.
When the system is cluttered, outdated or misaligned, pressure and pep talks won’t help. Clear the clutter. Streamline the processes. Fix the bottlenecks. Then equip your people and invest in the tools that let productivity thrive.
𝐓𝐡𝐚𝐭’𝐬 𝐰𝐡𝐞𝐫𝐞 𝐭𝐡𝐞 𝐫𝐞𝐚𝐥 𝐬𝐡𝐢𝐟𝐭 𝐬𝐭𝐚𝐫𝐭𝐬. Good luck.
