Which decisions?

Clearly industry leaders havre difficult decisions to make at particular times and under particular circumstances.   At all times, these difficult decisions should be informed by the overarching organisational mission and strategic plan.

However, we are particularly interested in the productivity of the organisation.  So where should this figure in the decision-making?

The answer is very simple …. EVERYWHERE.

Whenever a decision is taken, those taking it should be aware of the effect of different choices or actions on organisational productivity.   Though for short periods, an organisation may prioritise another factor, such as market share, no organisation  can forget the importance of productivity for very long without heading for trouble. 

Only raising productivity leads to higher sustainable profits.   If productivity does not rise, higher output or income will be countered by rising inflation.

i.e. the rising costs will exceed the rising income.

So. the concept of productivity should be constantly at the forefront of strategic thinking.

Set Goals at the Right Level

Organisational strategies obviously work at the corporate level - they are overarching, sometimes summed up as BHAGs - Big, Hairy, Audacious Goals.

Such goals are useful in expressing the longer term direction for, and aims of, the organisation but they must be translated to make them fit for shorter term planning.  Those within the organisation must know if they are on the right track to achieve these longer-term BHAGS.

Leaders have to create action plans which  teams and individual workers can execute - and they should create short-term targets to motivate and drive action in the right direction.  These shorter-term goals also fix actions in a particular timeframe, consistent with achieving the longer term goals.

Of course if there are too many goals people can get confused - and if every goal is given a high priority, people are unsure as to where they should put the greatest effort.

So any organisation needs strategy and execution. Strategy ensures the organisation does the right things but good (effective) execution ensures those  right things actually get done. 

An organisation that also has higher productivity as part of its fabric will attempt to make execution efficient as well as effective.

So, we need strategy,’ we need effective and efficient execution - and we end up with a high performing organisation that achieves its longer term objectives.  

A key element of this process is to have a series of cascading goals that translate the overall mission (and associated BHAGs) into end points and way points that individuals and teams know they have to meet to keep the organisation on track.

Do As I Say

There is an old saying that poor leaders can be summed up with the phrase ‘Do As I Say, Not As I Do’ meaning that leaders who do not ‘walk the walk as well as ’talk the talk’ are not likely to be successful in the longer-term.

Perhaps nowhere is this more true than in the public (government) sector.

Productivity has been rising very slowly, if at all in many developed countries - almost as if there is a collective belief that productivity has plateaued, rising to a level that cannot be improved upon with current approaches and technologies.

Whether this is true or not (Spoiler: This is not true) is not then point of this post.  I have another argument to make.

The new UK government is striving for economic growth - and has made growth its main mission. There is plenty of rhetoric but, so far, little action.

They are urging companies to invest and to improve their productivity.

Meanwhile over the last 10 years, under all governments, the productivity of the public sector has plummeted. Public sector workers are now being paid at a premium over private sector employees and they have much better pension arrangements - yet they continue to respond to inducements, exhortations and rewards win lower and lower productivity.

If government cannot stop this slide and. Indeed, reverse it - the nation is doomed to lower productivity on the wider scale. More and more of the economic wealth of the nation will be used to shore up public sector pay snd pensions - with little positive impact on the economy.

So, I urge this government to DO something - to back up their avowed commitment to their mission with action that will start to turn up the dial on public sector productivity.  Lead by example, not by rhetoric - ands before its too late!