Tag Archive: Action

Apr 15

Passports for Productivity Improvement?

Some say the ‘Productivity Puzzle’ is the result of a storm of problems affecting both supply and demand in G7 developed nations viz: Supply: In the past, major technological advances (aka Schumpeter discontinuities) enabled quantum leaps in productivity levels – G7 nations would all adopt them and improve at about the same rate – now, without more …

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Mar 23

Pareto for Productivity

Pareto, a 19th century Italian economist, spotted that “80% of effects arise from only 20% of possible causes” – apply this rule to national productivity levels and just the top quintile of companies determine whether improvements are made – and it has been ever thus In other words, the great majority of companies are doing …

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Five steps for big improvements

Managers, whatever their level, need to take just five basic steps to make big productivity improvements – click on the link below for outline details http://www.productivityknowhow.com/?page_id=378 BUT: 1. Corporate plans – If they exist, they’re not seen or understood by most managers 2. Performance measures – Most lack 80% of the measures they need 3. Analysis …

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It’s the rest, not the best, that’s the problem

Brooking’s Martin Neil Baily and Nicholas Montalbano summarised the global productivity puzzle recently: “The most promising sign for future growth is that the most productive firms are growing faster than the rest – the frontier is still moving out – but the diffusion of best practices is not pulling the rest of industry along” Of …

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Action needed post Brexit

In the Guardian, Katie Allen  has just recommended SEVEN ways Prime Minister Theresa May could ‘lift the UK economy’s post-Brexit’ blues: Tax cuts – esp VAT More infrastructure spending Delaying the planned apprenticeship levy Boosting productivity via investment in innovation, education and infrastructure Reduced planned rises to the national living wage Helicopter money – echoing …

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Productivity and Compensation growing together

Some measured sense from James Sherk of the Heritage Organisation President John F. Kennedy believed that “a rising tide lifts all boats” but many question if that remains true today – they point to data showing that productivity has risen sharply since the 1970s whilst wages have stagnated – they conclude that productivity-driven economic growth …

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Bertrand Russell v Adam Smith – Productivity and pins

Russell wrote the following many years ago – in response to Adam Smith’s piece about productivity and a pin manufacturer                                             In praise of idleness Suppose that, at a given moment, a certain number of people are engaged in the manufacture of pins – they make as many pins as the world needs, working eight …

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Stiglitz questions labour saving innovation

Many of the innovations that led to productivity increases in manufacturing ended up playing a role in the economic downturn that began in 2008, says Nobel laureate economist Joseph Stiglitz For a long time, he said, many countries have been focusing disproportionately on innovation in the wrong areas, such as saving labour “We have a …

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Adam Smith on pin factory productivity

Adam Smith illustrated how the division of labour could improve productivity in his famous small pin factory example from his tome ‘Wealth of Nations’, 1776: 10 workers, each specialising in a different aspect of the work , could produce over 48,000 pins a day However, if each of these ten workers had made the entire pin …

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