America Leads

Even though productivity has been rising slowly in the last few years, America still tops the international league table for productivity.  Why is this?

Well, possibly the most significant reasons are:

Firstly, America is a high-tech country.  It leads the way in software development , and probably still in hardware design.  America therefore implements new technologies as an early adopter and other countries have to play catch-up.  This early lead means that America gets the real first-mover advantage for most significant technologies (though countries like South Korea are fast catching up.)

Secondly, America has high quality universities which provide an effective pipeline of new talent.

Thirdly, though linked to the technological advantage, is America’s commitment to capital investment, both physical (infrastructure, equipment) and intangible (software, patents). 

This  sets it apart from, and above,  many other economies. Non-residential investment has run at about 17 percent of GDP in America since the mid-1990s, consistently higher than the share in large European economies, according to John Fernald of INSEAD, the leading French  business school.

What’s more, public and private R&D spending of 3.5 percent of GDP is surpassed only by Israel and South Korea.

Fourthly, America has a high turnover or churn rate  rate for companies, with nearly a fifth of companies being created or dissolved annually. Thus fosters innovative firms can rapidly emerge and obsolete ones can gracefully exit.   Start-ups find financing easier than do their counterparts elsewhere.

None of this is rocket science.  (Actually, some of it is ... see reason one above).  Other countries can learn the lessons but would have to invest over a number of year to reach the same point - and this would, in many countries, be mitigated by a reluctance to take risks.

No Secretto Improved Productivity

 There are thousands of articles, book - even blog posts - promising you the Top 5 (or 6 or 21) secrets to productivity.

However, I have disappointing news..  There is no one secret, no magic bullet, no productivity panacea.

Improving productivity takes real commitment - from the leaders of the organisation and infused throughout the organisation - a commitment to asking searching questions, examining systems, processes and working methods and to getting all staff to buy-in and participate in thinking up new ways to do old things.

Forget the promise of the ‘productivity revolution’.  Get the organisation thinking hard and working hard to ask - and then answer- all the difficult questions that need to be asked.

Is this the big success area for AI?

I am slightly sceptical about the great productivity gains suggested for AI.  I hope I am wrong but I think it may take quite some time before the ‘intelligence’ of AI gives solid results.  That is not to say that AI will not bring benefits, such as productivity improvements, only that we should not expect too much too soon.

There is ,though, one area/industry that seems ready for AI - healthcare.

Healthcare has a lot of bureaucracy and many medical and para-medical staff spend far too much of their time filling in forms, recording data and generally keeping the vast bureaucratic machine fed.  If we can reduce this feeding frenzy, we save time and increase job satisfaction (or at less reduce dissatisfaction and frustration).

We have also seen advances in areas such as diagnostic analysis resulting from machine learning (which is what a lot stuff we now call AI really is). Analysing large MRI and other scans is faster and more reliable using AI.  AI isn’t perfect at such analysis and subsequent diagnosis but tests suggest its success levels match or exceed those of most doctors.

The next stage is for AI to make recommendations as to further tests or even potential treatments.Such processes will improve over time as AI ‘learns from its mistakes’ and learns from actual outcomes.

AI is unlikely in the near term to take over any ‘hands on’ work of doctors and nurses.  But if it can reduce the ‘side load’ of bureaucracy and speed up diagnosis and determination of treatment, we could see quite large productivity gains in the relatively short-term future.

Healthy Employees Are Productive Employees

Many employees, when asked in job satisfaction surveys, express the view that they are constantly tired and often under stress. Even in organisations with standard work hours, employees are increasingly expected to be available during evenings, weekends, and vacations.

Now a degree of stress can be helpful in motivating and focusing employees but too much can result in tension and ill-health - both mental and physical.

Progressive employers recognise this and take measures to control stress levels, knowing it is good for the employees and good for the business. 

Workplaces should embrace a culture of self-care and relaxation, which enable employees to enjoy reduced stress, better rest, and an enhanced work-life balance, ultimately boosting overall well-being and productivity.

Of course, employees must know that any measures taken are genuine and based on appropriate values and respect for employees’ well-being.  They can recognise ‘lip service’ and inauthentic approaches and messages.

Rather than opting for time-consuming training programs on self care, leaders can benefit from training that focuses on creating an environment and culture conducive to well-being. The organisation can seek to  use technology to increase employee freedom without sacrificing productivity.

Employees can be encouraged to set realistic rest regimes both at work and at home - helped by a consistent bedtime regime.

Employees must realise that a major part of the solution to their problem lies in their own hands.  

The company helps and supports.

How Was The Pandemic for You?

It is apparent that many people gained a fresh perspective on their own lives during the pandemic.  They now want the mix of home and work life they enjoyed when forced to stay out of the office.  

I have written enough about my view of home and hybrid working - and its impact on the productivity of an organisation.   (Spoiler for those who did not read those posts : I think it is not helpful.)  

This time I want to approach the experience of the forced seclusion from a different angle.

Truly successful people constantly develop themselves alongside working for an employer - or they turn to running their own business.

How many of you during the pandemic:

- [ ] Learned a new skill

- [ ] Acquired new knowledge

- [ ] Planned a modified future for yourself and/or your family

If you did none of these, what were you doing?  Why were you wasting this glaring opportunity to improve your future? 

Of course, you can still do all of these -  but it is more difficult while holding down a full-time job.

Seize the day!

Speed Is Still Not Everything

I wrote a week ago about the danger of thinking that (productivity) improvement is always about increasing speed.

I thought this week about an example that sums this up quite nicely.

I went recently to a performance by a small group of classical musicians  - playing a variety of materials from several composers.   (This is not really my primary choice of music but it does make a refreshing change to hear top class musicians playing sophisticated, complex music.)

However, my mind can wander when the music does not contain ‘tunes’ that I know.  On one such occasion, I thought about how little the concert I was watching would have changed from a similar concept 100 or even 200 years ago.

Was it better or worse?  Possibly the most important change is that classical music is now much more accessible to all members of society, rather than being the preserve of the very rich.  Recordings exist. Concert performances are relatively common and cheap. Instruments are much cheaper - although at the top end this is not true.

However the time taken to perform a specific piece is still the same.  Speed has not changed - nor is its likely to.

Speed is not everything!

Speed is not evrything

I have talked here before about the danger in concentrating on speed of operation as the primary focus of improvement efforts.  It can, for example mean a drop in quality…. and it can mean a team or line becomes unbalanced.  

What we should try to do is to improve the speed of an entire unit or process - making sure the trees is working with s single purpose in pursuit of agreed aims and objectives.

All members of three teams should share the same mindset - we work together and we support each other.

(If mutual support cannot be provided, you may have to put in some external stimulus)but make sure this is seen as encouragement rather than as punishment.)

Team development is one key to success.