There are widespread weaknesses apparent in the FIVE basic steps needed for any organisation to improve its productivity big-time:
- Corporate planning – Most such plans are glossy reports produced once a year, and then ignored – objectives are unclear and unquantified – action for productivity improvement is rarely mentioned – ‘steady as you go’ is the norm – nothing exciting is on the cards
- Productivity measurement – There are plenty of measures available but few that put managers in good control
- Productivity analysis – Lacking good measures and training, if financial results are ‘going south’ managers don’t know where best to act, and when
- Productivity projects – Most managers are not trained in how to run such projects so consultants are often employed to do so – hence the consultants, not employees, learn from the exercise
- Continuous improvement – Most managers ignore the huge benefits on offer if they incentivised their workforce to look for ways to improve ‘anytime, anywhere, at any level’ – the cumulative gain from making many small improvements can often far exceed those from taking occasional major initiatives.
All of the above are the responsibility of managers in charge, whatever the level – and therein lies the problem
Time and time again, we read headlines of major new initiatives in response to apparent ‘sclerotic ‘ productivity results – for example:
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- In the UK, millions are to be saved by the surprise announcement that NHS England, a super-quango, is to be closed down so many will lose their jobs – and this follows a further £22bn injection of tax-payers’ money said to be urgently needed by the NHS (to do what?)
- In the USA, billions are to be saved by Elon Musk, his chainsaw and DOGE, by firing large percentages of whole workforces, thereby losing muscle mixed with fat and demotivating all those ‘lucky’ enough to be left behind.
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At the same time, one struggles to find any mention of any drive by any organisation, big or small, to cut the huge waste and inefficient use of existing resources which most employees know exists within their walls.
Everyone seems to assume such initiatives are already ongoing everywhere – but they’re not.
Hence this post concentrates on the waste of opportunities which result from either ignoring or not nurturing the talents of employees within most organisations.
First, a scene-setter from Gallup on workforce motivation levels – then extracts from an article in raconteur.com by Jeremy Campbell about Elon Musk and his ‘chainsaw’ approach to cost-cutting.
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‘The UK’s workforce is one of the most dissatisfied in Europe’
A recent Gallup study found a staggering 90% of UK employees lack enthusiasm for their jobs – urgent measures are needed if organisations are to reignite employee motivation.
In particular:
- Nearly every UK worker (90%) is unhappy at work, according to Gallup’s State of the Global Workplace 2023 report.
- The UK rate of engagement at work (10%) remains one of the lowest in Europe, ranking near the bottom among peer countries (33 out of 38), with countries such as the US reporting triple the number of engaged employees (31%).
- The dissatisfied feeling among workers is not unique to the UK, with just 13% across Europe feeling engaged at work, with the lowest rates of engagement reported in France (7%) and Italy (5%).
- Despite this, most UK workers are not planning on leaving their unfulfilling jobs.
- The findings reveal that the confidence in the UK’s current job market has declined, with just 36% of people believing that now is a good time to find a job.
- To tackle widespread disengagement, businesses need to be championing employees and giving them the right tools and resources to be productive and purposeful.
- Additionally, it’s important for employees to spend time together,” said Anna Sawyer, Gallup Partner (giving some food for thought to all WFH devotees)
- Also, according to Gallup: “Companies with engaged and supported employees see 23% higher profitability, 18% higher productivity and 43% lower turnover compared to those that rely on fear tactics”.
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Elon Musk’s fear-based management doesn’t work – here are three alternatives:
- Fear might make people work harder in the short term, but it never makes them work smarter.
- So why do so many leaders still rely on it?
- Elon Musk’s latest directive, requiring federal employees to submit weekly work summaries or risk termination, sparked debate about the effectiveness of fear-based management.
- While Musk’s methods may drive short-term compliance, research and real-world examples show that leading with fear ultimately backfires, reducing morale, fostering resentment and leading to high turnover.
- Great leaders don’t demand productivity, they inspire it by fostering trust, empowerment and a sense of purpose.
- Fear-based leadership stifles the three intrinsic drivers of motivation – autonomy, mastery and purpose:
- Without autonomy, employees feel micromanaged and lack the freedom to make meaningful contributions.
- Without mastery, they are unable to develop their skills and take pride in their work.
- And without purpose, they struggle to see how their efforts contribute to a greater goal.
- Instead of inspiring teams, fear-based tactics create a workforce focused on survival rather than success.
- Musk’s command-and-control tactics have played out before with similar consequences.
- When he took over Twitter (now X), he implemented harsh productivity expectations, leading to mass resignations and low morale. Employees were reportedly sleeping in the office to meet unrealistic deadlines and a culture of stress replaced innovation. While some argued that his aggressive style streamlined operations, it also led to instability and a significant talent drain.
- Fear-driven workplaces push employees into survival mode, making them become defensive rather than allowing them to innovate and excel.
- Studies show that when people feel threatened at work, their creativity, collaboration and problem-solving abilities suffer.
1 comment
A great article that “hits the nail on the head.” Building a “people-centric” workplace is key to unlocking a continual commitment and drive to find better ways to do things. Sadly it’s not “rocket science” but basic, effective leadership. In my early working years in the UK (I left in the 1970’s) I found one of the greatest problems was the credibility gap between employees as a whole and management. I am not sure that this is the case but a lack of business experience and knowing the business cannot be achieved solely through an MBA, but requires listening to and seeking to understand what goes on at the front lines. North American engagement runs a bit higher but here in Canada it’s still pretty pathetic. Part of the problem is internal but one must also remember that there is a growing pessimism with “the system” at a higher level, that is also contributing to a general feeling of malaise. A lot of people have lost hope.