Saturday, 9 June 2018

Not whether, but how?

All nations want to increase their productivity.  This makes them more competitive, brings rewards for citizens and allows society to develop.

The problem is that no-one is quite sure how it can be achieved.

There seem to be as many solutions (or strategies) as there are nations.

Is there a simple answer?

No!  It is right that each nation tackles the problem from their own context and their own starting point.

Beyond that there will be obvious similarities - build a macroeconomic environment that supports small businesses, build transport and technology infrastructure, educate and train the workforce, support innovation - all simple in principle but not quite a simple in practice, especially when scaled up to national level.

However, at least (and at last) we are seeing positive efforts to address the issue of productivity.

Let's hope at least some of them work - for all our sakes.


Saturday, 2 June 2018

Employ a questioner

Several years ago, Peter Drucker noted that if most organisations increased their productivity by 10% it would double their profits.   At that time, 10% seemed achievable.  Now, firms are lucky to achieve 5% - and nations feel good if they move into positive figures.

What has changed?

Not a lot, actually - but firms seem to have lost the 'secret' to improving productivity.

By 'secret', of course I mean adopting a consistent, structured approach to planning and executing productivity improvement projects.  Where are the industrial engineers and work study engineers of yesteryear?  Gone!  Managers are expected to improve productivity as part of the day job.  But they are busy people - and they are too immersed in what is going on.  They cannot stand back and take a dispassionate view.  They cannot ask themselves the hard questions.

We need independent experts who have the skills and the time to take the hard view, to ask the questions, to think about solutions, to evaluate those solutions and to draw up implementation plans.  This cannot be done in spare time - it is too important.