One main key of productivity is being effective, which is defined as doing the right thing by being able to produce a product or service. The company is effective when objectives and goals are identified, when the right products and services are provided to the customers, and when employees are doing the right thing to produce their product or services. As an example, a commercial cleaning company is being effective by providing cleaning service rather than offering accounting services to the customers.

Another main key of productivity is being efficient, which is identified as producing with a minimum effort and expense. The company must identify different ways to perform their duties and obtain the best way to save time and money. As an example, a commercial cleaning company provides vacuum cleaners instead of brooms to clean the carpet.

Since effectiveness and efficiency are essential to increase productivity, a company can provide incentives to employees such as bonuses, increase in salaries, and/or commission. Overall, the more effective and efficient a company is, the higher level of productivity the company will have, which leads to a continuous growth.