Saturday, 19 May 2018

India's difficult task

India is often cited as the next major economic powerhouse - perhaps even overtaking China.  This is based on India's recent record in moving up the international GDP league.

However, look just below the surface and you will see that this impressive growth has largely been fuelled by widening employment participation.  India has been very good at creating jobs.  It has been significantly less successful in creating productivity.  India's GDP per worker is very low. This is OK for growth in certain sectors but limits India's ability to compete in some sectors - and in overall terms.

India knows it has to improve and increase skills - and is trying to find ways of doing just that.  But this is much trickier than simply employing more workers.  It is, however, essential to securing and sustaining long-term growth in productivity.

Saturday, 12 May 2018

Start (real) coaching

Coaching has become 'fashionable - the number of business coaches has multiplied dramatically over the last 10 years.

However many of thee coaches are 'consultants' under a different name.

What is the difference?

Well, a consultant attempts to improve your business.

A coach, on the other hand, is trying to improve you - so  that you can improve, and continue to improve, your business. The focus, the approach is quite different - as are the skills required.

So, if you need coaching, make sure you employ a coach with the right (personal ) skills and the right focus.

Saturday, 5 May 2018

Get them on board - quickly

Careers have been changing for some time. More and more people have portfolio careers, switching industries, roles and employers frequently to fit in with a more flexible lifestyle and give a better work-life balance.

This means most firms have higher labour turnover and greater recruitment costs.

It also means it becomes necessary to improve the effectiveness and efficiency of recruitment and induction processes - what is often called 'onboarding' these days - so that shorter tenure employees get up to speed quickly.

It can take months to get an employee fully up to speed in a skilled job - every week saved is worth money.


Saturday, 28 April 2018

Not exactly taffiff-ic!

The US is imposing tariffs on a number of imports - notably steel and aluminium.  The aim is to protect US manufacturing by making foreign goods more expensive - thus making domestic products more competitive.  Now I haven't seen the details of the tariffs - but I do know that this is an area in which there are often unintended consequences - and my experience also tells me that the 'pain' from unintended consequences often outweighs the 'pleasure' from the intended consequences.

I hope President Trump's advisors have remembered that US auto manufacturers import steel and aluminium parts from around the world.

There is evidence that - mot surprisingly - countries like China will respond in kind, imposing tariffs on goods most likely to come form the US.

There is other evidence that Modi, in India, is also looking towards forms of protectionism - it seems to becoming into fashion as politicians become more populist - looking for short-term vote grabbers rather than long-term economic success.
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The rest of the world needs to avoid getting sucked in - no long-term good will come of it.

Saturday, 21 April 2018

Give them a jolt!

Sometimes, well-performing organisations move into 'coasting' mode - they know they are good, so they keep doing what they are doing, perhaps taking advantages of new technologies or 'obvious' improvements when they come along, but not actively striving for change and improvement.

in such cases, the leaders of the organisation have to find some way of providing a stimulus - forcing them to think more deeply about improvement opportunities.

One such stimulus can come from zero-based budgeting where the organisation makes departments bid for all the funds they need rather than taking last year's budget and adjusting it to reflect changes.

If the leadership at the same time suggests that the total budget allocation will be no more than, say, last year minus 5%, then departmental managers have to think more deeply about how they can run their departments and achieve agreed outcomes.  Those departmental managers  might think such an approach is 'unfair' - but if it unleashes creativity and higher productivity, perhaps a bit of unfairness is what is needed.

Saturday, 14 April 2018

Control finance or process?

Business people who come from the product, manufacturing or engineering disciplines have a natural instinct to try to exercise process control to improve efficiency and profits.

Those without such a background often aim at controlling costs.

Some take one or other of these approaches to extremes. (Think Six Sigma.)

The great advantage of the former (exercising process control) is that it involves the establishment of useful metrics and experimentation to see what makes those metrics move in the right direction.

The problem with he latter approach (exercising financial control) is that this measurement/experimentation process becomes much more difficult as the linkages between actions and financial consequences are often either too indirect or occur over too long a time. By the time the results are in, it is too late to change the parameters that have resulted in poor results.

So though financial control might be the ultimate aim, something more direct is needed to give you useful levers to pull (or push).  You need some intermediate, relatively direct measures that will tell you promptly what is happening when you make changes.

Control the process properly - and the finances will take caee of themselves.

Saturday, 7 April 2018

Creativity underpins productivity

There is some debate about whether a concentration on productivity is bad for creativity.  However this is a fallacy. Over-concentration on quality - and especially compliance - can be bad for productivity, but productivity and creativity are natural bedfellows. 

So it depends on how broadly or narrowly you interpret productivity.  Rigid compliance to standard operating procedures (SOPs) in the name of productivity might stifle productivity unless you give your employees another avenue where they can exercise invention and innovation.

My old friend, Tor Dahl, always used to say that a natural approach to improving productivity is to:
(a) unfreeze the organisation - allow staff the time and opportunity to contribute ideas as to how what they do might be improved
(b) experiment with those ideas to arrive at new ways of working
(c) re-freeze the organisation by creating new SOPs to reflect the new ways of working and lock in the productivity gains.

Some time later, repeat the cycle. 
Then we ensure that creativity is encouraged and that it underpins higher productivity.


Saturday, 31 March 2018

Multitasking drains productivity

Being able to do two things at once might seem like the epitome of efficiency - why waste time doing just one task when you can complete two simultaneously?
However, famously there is a belief (myth?) that women can mulitask but men cannot - hampered by having a 'one track mind'.
In the real world, rather than the world of gender politics, multitasking seems to be unfruitful, since in practice the work style is not multitasking but micro-sequencing of two parallel tasks.  The problem is that the brain switches so often between the two tasks and focus is lost on each switch and there is a delay each time the switch occurs.
So, stick to one task, focus and concentrate, complete it - and then move on to the next task. You will be more productive.


Saturday, 24 March 2018

Look for achievement

We give ourselves a metaphorical 'pat on the back' when we complete another item on our 'to do' list ... and we do the same with our employees. We congratulate them for completing a task or project.

What we should congratulate them for is their achievement - or the impact they have made.

A teacher, for example, who complete a professional development course, has only achieved something if the course results in impact on the learning of students.

The problem is that in recent years we have become more and more compliance oriented - and we have come to delight in tick boxes and 'sign offs'.

Its time to shift the focus - to achievement and impact.  Much harder - but it is what matters!

Saturday, 17 March 2018

Ride the wave of confidence

McKinsey is suggesting that the recent sluggish productivity performance in the developed world might be coming to an end.  We might soon see productivity rises like we did before the economic downturn - of the order of 2% per year.

Are they right?

Only time will tell.  The time is right - but are the conditions right?  Has all that quantitative easing improved the productivity infrastructure and prepared businesses for an upturn?  Have we been developing skills? Are there technological breakthroughs in the pipeline?

(The answers are maybe, maybe and maybe - but, as we know from history, cycles occur for no good reason - ups and downs .... so perhaps the time is right and enough has been done to ride a wave.  So much of economics is down to confidence anyway that if McKinsey can convince enough people they are right, it will probably become a self-fulfilling prophecy.

So good for McKinsey.  I'm with them.  Let's all talk higher productivity - and then deliver what measures we can in our own sphere to make it happen.

See you in the boom times.

Saturday, 10 March 2018

Act in the spirit of the times.

The world of employment has been changing for some time - especially in developed nations.  More people work part-time, change jobs frequently and have multiple jobs and 'portfolio' careers.

What are the implications for productivity?

One obvious point is that it becomes more important to get people 'up to speed' very quickly - what is often these days termed the 'onboarding process'.  It is imperative that organisations take this process seriously and do all they can to engage employees early and often, giving them the knowledge and skills they need to fill any gaps - but also to motivate them to add maximum value.

Another implication is that retaining knowledge and talent is important - so if the job market is changing, perhaps organisations need to change their practices to reflect this. One approach is to offer employees a 'tour of duty' rather than a job - agree with them the outcomes they are to produce over a given project/timescale.  When the tour of duty is complete, they either move on -or agree another tour.  This retains their talent but still gives them the benefits of a portfolio career -  variety of work and experience, and a degree of freedom.

It is possible to move with the times - and win .... but only when you recognise the 'spirit of the times'  and act accordingly.

Saturday, 3 March 2018

Chicken or egg?

Do motivated employees create good work and higher productivity?  Yes!

But this is a 'What came first? Chicken or egg?' scenario.

I would argue that giving employees good work motivates them and leads to higher productivity. 

An effective business leader creates good jobs - and engages employees with regard to their role in the organisation.  The engaged employee now works for an organisation that seems to value them - and they respond by engaging more fully with their role.

The organisation (via higher productivity) and the employee (via greater job satisfaction) both win.

Saturday, 24 February 2018

Just do it!

Recently I was writing some course material on improving innovation and I suggested there that to make people more innovative, you need them engaged and you need to give them freedom to explore.

Then I came across Gallup's new State of the Global Workplace report which suggests that only 15% of employees worldwide are engaged in their jobs.

If both of these are correct, then it is not surprising that the world is struggling to improve innovation and productivity.


Developing our people (human capital?) is the single most important thing we can do. Yet, many do not do it.  

Please explain!

Saturday, 17 February 2018

Well-being is good for productivity

In the UK, much attention has been focused recently on mental health issues - with a dawning of understanding of the sheer scale - and the growing impact - of various mental health conditions ... including the impact on workplace productivity.

Now research by Curaiink Healthcare suggest that properly constructed and focused  Employee Assistance Programmes can result in meaningful and lasting behaviour change that decreases absenteeism, increases productivity and improves healthcare outcomes for employees who present with depression and alcohol abuse.

Many of us have known for some time that well-being is an important productivity factor and that programmes that improve employee well-being are an investment rather than a cost.   Evidence which corroberates this view is welcome.


Saturday, 10 February 2018

Peru shows the way

As Peru prepares to celebrate the 2021 bicentenary of its independence, the government has set itself one major goal: to make Peru a full member of the Organisation for Economic Cooperation and Development (OECD).
The aim is to adopt public policies that meet established OECD standards and provide Peru with an important opportunity to strengthen its institutions and consolidate the country’s development.  But in order to do so, there remain important industrial gaps that will have need be bridged, especially in terms of productivity.
The most important part of this is the fact that Peru has set a goal and an aim that should motivate the country to perform.
If more countries adopted an aim based on productivity development, we might see some dramatic changes to global productivity - and to the global economy.

Saturday, 3 February 2018

Are workers to blame?

There has been a debate in Trinidad yesterday about whether workers (and especially their poor attendance) is to blame for low productivity. Trades unions say 'No'.

I agree with the unions.

In my experience, poor productivity within an organisation is almost always a 'system or culture failure'. Either work is badly organised or the culture of the organisation mitigates against high engagement and high performance by workers.

Managers also, of course, hold the levers for change.  If they cannot improve productivity, they are not managing effectively.

Saturday, 27 January 2018

Listen ....

I often say that I have built my career on asking stupid questions. Improving productivity is all about asking questions.  Why do we do it like that?  Who is responsible for this?  Why do it that way? Where should this be done?  Why do we do this at all?

however, I have come to realise that asking questions is not the answer.  The real secret is listening to the answers you are given and sorting out the valid answers from the questionable.  In lean terms it is also necessary to 'go to Gemba' - find out for yourself what is happening.  Observe as well as listen.

None of this is difficult.  But is is amazing how many people don't do it.  They listen to what the manager tells them - and accept it without checking with the guys (snd girls) who actually do it 'on the ground'.

So listen, ask questions and observe reality. Then you might understand.  If you understand, you have the chance to improve.

Saturday, 20 January 2018

More to come from India?

India's economic performance over the last 15 years has been exceptional - matched only by China.

But history is not what matters - how is India going to maintain, or even increase- growth over the next 10-15 years.

Well, it currently performs well in quite a few areas - but not in innovation. its  R&D spend is low - it does not have great technology transfer from academia, and though it has a highly educated workforce, its record on skills development is also poor.

India needs fewer MBAs and more technicians.  The problem is that everyone wants an MBA - and everyone's Mom & Dad wants their child to have an MBA.  India thus needs a shift in education and training policy - but this has to be matched with a shift in culture - so that high level technical skills are valued and coveted.

Saturday, 13 January 2018

Growth goes where the skills are

Supercar manufacturer McClaren is to create almost 200 jobs in South Yorkshire, UK manufacturing chassis which are currently made in Europe and sent to the UK to form the basis of the assembly process.  Why did McClaren choose South Yorkshire?  Because South Yorkshire (and Sheffield in particular) has a history of investing in Advanced Manufacturing techniques and skills.

My colleague Tom Tuttle, a board member of the World Confederation of Productivity Science, in his recent book looked at the reasons why some areas in America were more successful in securing inward investment than others - and one key point to emerge was that manufacturers take factories (and jobs) to where the skills are.

So Sheffield snd South Yorkshire are getting a return on their investment and securing a manufacturing future for the region.

It is good to see their long-term commitment bearing fruit.

Saturday, 6 January 2018

Public sector unproductive?

Australia's Productivity commission has slated the public sector for its poor productivity. Yet when you read the report what it is really saying is that the public sector, unlike the private sector, fails to measure productivity - and therefore is unable to know whether it is moving in the right direction.

This seems a little harsh.

How does the Australian public sector compare to the US, the UK, Canada or Denmark?

I don't know - but I suspect neither does the Productivity Commission.  Making conclusions on the basis of insufficient information is not what we expect form a body charged with promoting productivity.

So give the public sector a chance. Give them some targets to achieve - and chastise them if they fail to meet them.  But don't criticise them for not achieving unknown targets.