Study: Organizational Multitasking Costs Global Businesses $450 Billion Each
Realization's Report Examines How the Elimination of Multitasking in 45 Large
Organizations Affects Productivity
SAN JOSE, Calif., Aug. 26, 2013
SAN JOSE, Calif., Aug. 26, 2013 /PRNewswire/ --Realization, the leading
provider of Flow-based Planning and Execution solutions that help
organizations complete projects 20 to 50 percent faster, has released a
report, "The Effects of Multitasking on Organizations" which reveals that
organizational multitasking, a problem that typically goes unnoticed within
large companies, annually costs the global economy more than $450 billion in
(Logo: http://photos.prnewswire.com/prnh/20120402/NE80724LOGO )
Job seekers around the world still tout their ability to multitask as a
desirable skill, and in many organizations, multitasking is worn as a badge of
honor; however, research consistently shows that people who attempt to
multitask suffer a wide array of negative effects, from wasting 40 percent of
their productive time switching tasks to experiencing a heightened
susceptibility to distraction.
The new report from Realization examines a problem that previous researchers
have paid little attention to: the effects of multitasking at the
organizational level. Just as individual multitasking occurs when a person's
time is split between too many tasks, organizational multitasking occurs when
a group is focused on too many things and its overall capacity is adversely
affected. The end results are delays and interruptions, reduced quality and
rework, peaks and valleys in workflow, and lack of proper preparation before
tasks and projects.
To examine the effects of organizational multitasking more rigorously,
Realization, a provider of Flow-based Planning and Execution systems for
engineering and projects, studied 45 organizations with between 1,000 and
50,000 employees with an average annual revenue of more than $1 billion from a
diverse range of industries – including automotive, aerospace and defense,
aviation, energy, semiconductors, software and pharmaceuticals – that
consciously implemented measures to reduce multitasking in their
The results speak for themselves. The organizations were much more productive.
The mean increase in throughput was 59.8 percent, while the median increase
was 38.2 percent. In addition, organizations finished projects faster after
organizational multitasking had been reduced. The mean cycle-time reduction
was 35.5 percent, while the median cycle-time reduction was 31 percent.
Globally, the study estimates that the economy annually loses $450 billion in
productivity due to organizational multitasking.
"Our study clearly demonstrates the massive impact that organizational
multitasking is having in many different industries, and the real tragedy is
that most of the organizations that suffer from it don't even realize that
it's happening," said Sanjeev Gupta, CEO of Realization. "Everyone appears to
be working very hard, but in fact, they are spending a lot of their time
simply spinning their wheels, switching from task to task, without ever having
the time to finish something before another 'urgent' item is put on their
plate. Organizational multitasking can be addressed, but first, managers have
to recognize the problem."
For a copy of "The Effects of Multitasking on Organizations" please visit:
Realization is the leading provider of Flow-based Planning and Execution
solutions for engineering and projects. It helps organizations complete
projects 20 to 50 percent faster and 10-30 percent more efficiently by
reducing multitasking and exposing true bottlenecks. Realization's more than
200 clients include organizations like ABB, Amdocs, BHP Billiton, Dr. Reddy's
Laboratories, L&T, Medtronic, NASA and the U.S. Air Force. Collectively
Realization's clients have realized $4 billion in additional cash and profits
by completing projects faster and more efficiently. Realization is
headquartered in San Jose, California, with offices in India, France, Japan,
and South Africa. For more information, visit www.realization.com.
Davies Murphy Group
(541) 207-3461 (o)
(541) 207-6413 (m)
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