One goal of the REDI project is assisting Kootenay based businesses to improve their competitive position through increased productivity. A key step in this assistance is to foster a strong commitment to improved competitiveness and thus to innovation. Part 1 of this report offers a summary of the research on productivity drivers and of the most successful operational improvement philosophies developed in the field of business and administration. Part 2 offers an overview of selected online productivity improvement tools that could be used as models for the current project. Part 3 offers some recommendations for successful application of these concepts in the REDI Project. A treatment of technical productivity measurement is offered as an appendix to the paper.