Unlocking productivity

Productivity in Canada has evolved into a boardroom, C-Suite and nationwide priority. Productivity takes on diverse meanings depending on the organization and its goals. Ultimately, it can be understood as improving the ratio between inputs —such as time, money, resources — and outputs, such as revenue, customer satisfaction, or innovation.

For many, productivity centres on cost savings and efficiency; however, it can manifest in other ways such as improved customer experience or operational compliance.

While productivity improvement can and should underpin long-term growth, resilience, and competitiveness, Canada continues to lag behind its global peers in productivity gains.

The challenge is both operational and strategic. Productivity in Canada must be reframed as a multifaceted investment in innovation, talent, and technology. It’s about maximizing the spread between inputs and outputs and translating every incremental dollar spent into measurable impact.

We can help you create a tailored productivity blueprint that integrates operational efficiency, financial imperatives, and strategic priorities to enhance competitiveness and build a sustainable foundation for long-term success.

Strategic levers for executive action

To shift from stagnation to transformation, Canadian leaders must embrace a productivity-first mindset. Here’s how:

1. Ensure alignment from planning to execution: Aligning productivity initiatives with overarching business objectives is crucial for achieving desired outcomes, sustainable growth and competitiveness. When productivity improvements are integrated with clearly defined business goals and metrics, organizations are better positioned to optimize resources, increase operational efficiency, and strengthen financial performance.
   
2. Reframe return on capital: Move beyond traditional ROI and adopt a Return on Invested Capital (ROIC) lens. This approach involves intentionally allocating spending toward initiatives that drive long-term value, such as automation, AI, and workforce transformation. By focusing on ROIC, businesses can ensure that every dollar spent is optimized for maximum impact, aligning with the broader goals such as financial performance, innovation, and regulatory compliance. Whether investing in making infrastructure more efficient or reducing operational risks, ROIC can serve as a universal metric for assessing productivity improvements.
3. Invest in technology ecosystems: Canadian organizations must go beyond technology adoption and focus on their full utilization. Integrating the right advanced technologies with existing infrastructure unlocks efficiencies and enables scalable innovation.
4. Prioritize talent and upskilling: Productivity is people-powered. Investing in digital literacy, change management, and cross-functional collaboration ensures that your workforce is equipped to deliver on strategic goals.
5. Align with national objectives: Productivity is not just a corporate concern—it’s a national imperative. Aligning business strategies with broader goals like economic reconciliation, infrastructure development, and climate resilience amplifies impact.¹

From productivity insights to tangible improvements

As a full-service firm, our teams specialize in helping organizations bridge the gap between aspiration and execution. Whether it’s defining productivity metrics, optimizing capital allocation, or designing tech-enabled transformation programs, we bring clarity and momentum to your business strategy.

Navigate the content below for the latest research, actionable insights, and ways KPMG can help your business thrive.

1. OECD Economic Surveys: Canada 2025, OECD, May 26, 2025