The Problem with the “Blame Game”
The AFR article featured CEOs from ASX-listed companies pointing fingers at things like red tape, skilled migration policies, and energy transitions. Sure, these challenges are real. But they’re not the main drivers of productivity within a business.
Professor Danny Samson from the University of Melbourne summed it up perfectly in a letter to the editor. He pointed out that productivity is mostly driven by decisions made within businesses. It comes down to how much capital and labour are required to achieve an outcome, not macroeconomic policy set by the government. In other words, the biggest levers for productivity are internal, not external.
If you own a medium-sized business, you know this all too well. Unlike larger corporations, you can’t afford to waste time or resources. You have to focus on practical solutions: streamlining workflows, improving systems, and using technology to work smarter, not harder. Maybe the AFR should’ve asked the CEOs of medium-sized businesses for their thoughts instead.
Why Medium-Sized Businesses are Driving Productivity
In my opinion, medium-sized businesses are uniquely positioned to lead the way in productivity. Why? Because they don’t have the bureaucracy of large corporations. They can make decisions quickly, implement changes immediately, and see the results firsthand.
Here’s what I’ve learned from working with medium-sized businesses across a number of different industries: Internal Investment is Crucial — Productivity improves when you invest in better systems, not just more resources. Continuous Improvement Matters — Productivity isn’t a one-time fix. It’s about consistently refining processes to increase output. Tailored Solutions Work — Off-the-shelf software can’t solve unique challenges. Tailored systems adapt to your business, rather than having to adapt your business to the software.
A Practical Example: How Tailored Systems Enable Productivity Gains
Let me share a real-world example from a custom stock feed business Nxi Solutions worked with in rural Queensland. If you don’t know what a custom stock feed business is, basically it’s a company that creates tailored feed blends for livestock. They test the grass on a farm to see what nutrients might be missing, then create a formula to make up for those deficiencies. This means the animals get the right balance of nutrients to grow and remain healthy.
The problem for this company was that inefficiencies in their batching process meant 5-10% of the feed they produced was unsafe for consumption. If any of the faulty feed made its way to customers, it could lead to serious liability issues, like sick or infertile cattle. This didn’t just mean $700,000 in lost revenue every year. It also meant a logistical nightmare of dealing with hundreds of tonnes of unusable feed.
The issue was their existing system relied on manual data entry and outdated equipment, which left plenty of room for human error. Our tailored solution integrated their approved recipes directly into the batching machine, eliminating those errors and ensuring precise measurements every time. It also checked output to ensure that all feed produced did in fact meet the precise requirements.
The result? Virtually zero waste, no more liability risks, and a leaner team that could do more with less. They went from seven or eight people in the office to just three running the entire operation – all while maintaining and even improving their output.
Why Tailored Solutions Matter
Off-the-shelf software is great for generic businesses. But if your business solves unique problems or operates in an innovative niche, you need systems that fit your specific needs.
Tailored solutions like those we offer at Nxi Solutions mean:
Scalability — Grow your business without adding unnecessary overhead.
Transparency — Get a clear view of your operations, from start to finish.
Efficiency — Automate repetitive tasks, reduce or eliminate errors, and focus on high-value work.
Risk Reduction — Minimise key-person risk and ensure continuity, even during periods of high staff turnover.
What Medium-Sized Businesses Should Do in 2025
If you’re a medium-sized business owner who wants to boost productivity, here’s my advice:
Audit Your Systems — Look at your current workflows and identify inefficiencies. Where are you losing time and money? Invest in Tailored Software — Find solutions that align with your unique needs. Don’t settle for “good enough.” Focus on Continuous Improvement — Productivity isn’t a one-off process. Keep refining and evolving your operations.
Audit Your Systems — Look at your current workflows and identify inefficiencies. Where are you losing time and money? Invest in Tailored Software — Find solutions that align with your unique needs. Don’t settle for “good enough.” Focus on Continuous Improvement — Productivity isn’t a one-off process. Keep refining and evolving your operations.
Final Thoughts: Game-Changing Productivity is Within Your Reach
The AFR article may have missed the mark, but Professor Sampson got it right: productivity is driven by the decisions we make within our businesses. Medium-sized businesses are proving every day that you don’t need to wait for government intervention to see results.
At Nxi Solutions, we’ve seen how tailored systems transform operations, reduce waste, and unlock growth. Whether it’s saving $700,000 in waste, scaling without additional staff, or reducing key-person risk, the results speak for themselves. Boosting productivity is easier than you think.
