Most Companies Today Are Only 80 per Cent Efficient

In the book Your Brain from 2008 is More Efficient than the One You Have Today, Swedish author Tomas Dalström notes that the potential for distraction has exploded since smartphones, mobile broadband, and social media have increased. Add to that disruptive environments, such as offices or homes. Of course, this comes at a cost.

• Overall productivity growth has weakened in the EU and the US over a long period, especially after 2007 (International Monetary Fund).
• Productivity growth has not been this low, for this long, since before the industrial revolution, over 250 years ago.
• Only one in ten workers, on average, consider themselves highly productive despite the new technologies. In Sweden, it is four out of ten. The survey was conducted in 21 European countries. According to a study by Microsoft, a central explanation is all the distractions that prevent us from getting into flow.

Why has it come to this? It’s obvious. We have brains that work and react in a predetermined way, like nature, whether we like it or not. A rule of thumb that has evolved is: If a person’s productivity decreases by six minutes per hour over ten months due to various distractions, it is equivalent to the amount an organisation pays in staff costs for one month’s work. An employee works for nine months but gets paid for ten.

To this must be added lost revenue of at least the same amount, which should have contributed to a company’s profits and overheads. Note that this does not include the breaks we take in order to be more productive. As a result, as stated by Tomas Dalström, most companies and organisations are only reaching 80 per cent of their potential economic viability today, if that even. Which explains why office workers are able to do five days’ work in four days.

Below, he shares ten examples:

1. The Workplace  A home is often compared to an office landscape, which is one of the worst kinds of office options, productivity-wise. The same goes for activity-based offices without restrictions or enforcement of restrictions. The percentages presented below may also provide an idea of what it might be like when someone works from home (unless in quiet isolation).

Helena Jahncke and David Hallman are associate professors in occupational health science affiliated with the University of Gävle, Sweden. Their groundbreaking research was quoted in The New York Times September 8, 2022. Their groundbreaking research concludes that the noisier different areas/rooms are, the worse we perform. In addition, movement also has a cost.

The professors found that when the task requires employee concentration and focus, employee productivity increased by 17 per cent when they moved their brains from an open plan/active zone to a quiet zone, and 22 per cent when they moved it from an open plan/active zone to an individual room. (How Much Worse You Perform in a Noisy Office. Interview with Helena Jahncke, Associate Professor of Occupational Health Science and Doctor of Psychology, and Tomas Dalström, published in the Swedish daily newspaper Dagens Nyheter April 16, 2023.)

The researchers note that the differences may be even more significant over a full working day, as the tests were limited to ten minutes per person. And that is a reasonable assumption given that, for example, the frontal lobe (the most intelligent part of the brain) and the prefrontal cortex (the brain’s control and decision-making centre) lose efficiency from repeated distractions. In other words, research shows that choosing different workplaces for different tasks is essential, which most people do not do enough of.

In a previous Meetings International interview Tomas Dalström did with Helena Jahncke (Meetings International #72, 2018), she stated that employees must “receive training on how to think and choose suitable workplaces for a task, and how important it is to choose.” We also need to recognise that we have very different circumstances in our homes: “I have a colleague who has a kitchen table that is too small and instead works at the table out on her glass-enclosed balcony,” says Nina Wormbs, Professor of History of Technology, KTH Royal Institute of Technology, in Stockholm, Sweden. (Meetings International #77, 2020).

2. Multitasking can reduce productivity by up to 40 per cent individually. It’s not like switching your mobile phone’s flashlight on and off. Getting back to the correct memory and processes, and getting back up to speed, always takes its time.

Morale drops when colleagues have to cover and rescue the situation and delivery times are delayed. Conflicts, spoken or unspoken, between employees and managers, and between colleagues, increase.

Those who frequently check their mobiles or computers during meetings end up having to ask about things they should know, as well as making more mistakes, because they are not cued in.

Women and people over forty are more bothered than others by anyone who can’t leave their mobiles alone during meetings. And the aversion increases the higher up the payscale you go.

Source: The University of Southern California, Marshall School of Business and Travis Bradberry, Why Successful People Never Bring Smartphones into Meetings, 2017.

3. Mobile phone use  According to a survey, the average user checks their mobile phone every five minutes. Not long ago, a person who repeated the same behaviour that often would have been diagnosed with obsessive-compulsive disorder and prescribed medication and therapy. But today, this behaviour is simply considered the new normal (Your Brain from 2008 is More Efficient than the One You Have Today, Tomas Dalström, 2017).

People check their gadgets to see if something has happened or because they want something to happen. If you check too often, the process kidnaps your brain and reprograms it, making your brain constantly demand new dopamine showers. This was explained by Lars Olson in an interview published in Meetings International. He is a professor of neurobiology at the Department of Neuroscience at Karolinska Institutet and a member of the Karolinska Institutet’s Nobel Assembly, which decides on the winners of the Nobel Prize in Physiology or Medicine. (Meetings International #66, 2016.)

During his career at the Bank of England, Dan Nixon wrote the following in one of his essays: “The world economy’s problem may, in fact, be an attention crisis. It is consistent with the global spread of the smartphone.” (Is the economy suffering from the crisis of attention? Bank Underground, 2017.)

4. “Employers in the EU reports getting skilled people, but perhaps not the most loyal ones, which suggests employers are not entirely satisfied. They think there is a little too much talking and too much focus on other things,” says Henrietta Huzell, a Swedish labour market researcher at Karlstad University in an interview in Meetings International #52, 2012. In 2017, she stated that it was still valid.

5. Other explanations  Some people enjoy working from home because it solves their life puzzles. But enjoyment is not always synonymous with efficiency. Managers need to implement performance targets, support, and follow-up. If all the pieces are not in place, remote work risks negative consequences for both parties.

Different personal characteristics affect us. Those who are good at planning their lives, continue to be goal-orientated and plan well even digitally. While those who are more anxious and impulsive prefer to gamble at online casinos, read blogs or hang out on social media. (John Magnus Roos, PhD in psychology and researcher, University of Gothenburg. Forskning.se, 23 June 2021.)

6. A person who offers online genealogy research said that he has most visitors during working hours. It is quieter on Friday afternoons, evenings and weekends, and most visitors are between 45 and 65 years old. (Source: Email conversation with Jan Granath, who has created a genealogy course. He is a Professor Emeritus of Architecture at Chalmers University of Technology, a Visiting Professor of Facilities Management at Hong Kong Polytechnic University and a Visiting Professor at the University of Michigan.)

7. Research According to research, the average worker spends more than two hours and thirty minutes daily on social platforms (Forbes, 2023). Short mental breaks during working hours are necessary for us to utilise the full potential of our brains. But this often involves hijacked reward systems and constantly demanding new dopamine doses. For many, this results in overtime and less time for recovery. And, of course, this also applies when working from home. It can mean overtime and less time for recovery (Your Brain from 2008 is More Efficient than the One You Have Today, Tomas Dalström, 2017).

8. Survey  A Netflix survey published in The New York Times 2017 showed that 37 per cent of Americans watch TV at work, while a 2019 survey showed that 42 per cent of people in the UK watch TV at work (CordCutting.com 2022).

Eighty-two per cent of people working remotely in the UK watch TV from home an average of two hours of the working day. (The Times, 2024.)

Sixty per cent of remote workers say watching TV while working helps them concentrate. Thirty-five per cent of those who work in the office say the same thing (CordCutting.com, 2022).

This claim is on par with the idea that the earth is flat. Research unequivocally shows that productivity decreases when we consciously try to achieve more than one thing simultaneously (also known as multitasking).

9. The importance of knowledge  Experience shows that employees often do not realise that they are being disrupted. They don’t understand when, where and how to work to use their brain’s full potential, or why. Nor how or why different distractions affect the outcome of what employees do.

Ulf Ziegler founded MFX, one of Sweden’s most successful animation studios with major international companies as clients, and he was the studio’s CEO for 30 years. He explains what it takes to run a business:

Running a cutting-edge company requires you to be efficient and create an attractive workplace to hire and retain the most competent people. I had conversations, time and time again, with employees who were watching films or social media while working. It resulted in lower quality and more work and affected our profitability. The conversations often ended in conflict. Other CEOs I spoke to had the same experience. You need to be able to draw on research to make your point.”

10. A Management Issue  Managing a company or an organisation today is complicated. We live daily with the disadvantages and, of course, the advantages of mobile broadband, smartphones and social media. Today, the top question on every management team’s agenda is: How should we work? In the office? Remotely? Amidst the ever-changing landscape, there’s one constant factor: the brain. It’s a critical element to consider when determining how your people will work and study, and it’s becoming increasingly crucial to achieve your goals. Only management can make things work better. It’s not simply about working more; it’s about using the brain smartly. And on a personal level, the payoff can be less stress, better grades, the job of your dreams, or a weekend away with loved ones. What you know, you can change.