Reading documents and even blog posts about productivity would lead one to believe that the only purpose of improving productivity is to raise profits.
That is true at the level of the firm … but sometimes we need to take a wider view.
At the national level, raising economic performance by improving national productivity is clearly important but only, fundamentally, because its allows a government to improve the social well -being and quality of life of its citizens.
The productivity improvements should also be in sustainable directions so that those changes in well-being and quality of life move only in one direction - upwards.
So let’s place less emphasis on profitability, on GDP, and start to work out a well-being index that more clearly reflects our longer-term aspirations and societal goals. Then we can know if we are being successful.
Such an index has even discussed in the past but further work is necessary on an international basis to try to reach a consensus that allows international comparison and benchmarking.
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