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.