Government sanctioned waste has a lot to answer for Ministers might bang on about the importance of productivity improvement but their thinking seems restricted to vital investment in infrastructure, R&D and skills training Drive around any town mid-afternoon and see streams of kids walking home from school – and wonder what they do when they …
Tag: Productivity
Sep 26
A National ‘Balanced Scorecard’
All nations – governments and their electorates – need a National Balanced SCorecard (NBSC) of performance measures – a set of cardinals they each can monitor which covers all important factors affecting their standard of living (SoL) and quality of lives (QoL) The NBSC would be a mix of measures – some absolute, some subjective …
Dec 20
Aggregation hides info needed
Current measures of productivity become less and less useful the higher the level they go: Aggregation increasingly blurs the performance picture Apples get mixed with pears Specific inputs used for specific outputs and outcomes get lost in the mix At national level, this aggregation problem is at its worst, compounded by much output and most …
Dec 03
Work hard or work well?
Many say the secret for a good life is ‘work hard and play hard’ Leila Hock, in an article for Career Contessa, disagrees – ‘work hard’ apparently “makes my eyes roll a little” She believes we’ve become too preoccupied with “the grind” and it’s actually bringing us down – “It has a negative effect on …
Dec 02
All nations need a National Productivity Centre
An article by Lalin Fernandopulle in Sri Lanka’s Sunday Observer, headed ‘Productivity policy vital for economic growth’, promotes the worth of all nations having a National Productivity Organisation Sri Lanka is the only APO (Asian Productivity Organisation) member country which does not have an NPO (National Productivity Organisation). Company director Sunil Wijesinghe says: “Setting up a …
Oct 29
Productivity improvement must involve all employees
The following are extracts from an article in the Huffingtom Post by Mike Clancy, General secretary of Prospect – one must involve all employees, all the time, for effective productivity improvement The UK is not productive enough and we do not share wealth widely enough: Unemployment may be historically low but public satisfaction with the economy …
Oct 25
The perfect working environment?
According to an article by Michael Odell in The Times, Basecamp is a US software/ tech company that supposedly runs without the scourge of 80 hour weeks, unrealistic deadlines, weekend emails and meetings Two American guys, Jason Fried and David Heinemeier Hansson, run Basecamp – they’re also authors of a new book called It Doesn’t have …
Oct 24
Robots at Work
The Financial Times reported on a study “Robots at Work,” written by Georg Graetz, a researcher at the Department of Economics, Uppsala University, and Guy Michaels, London School of Economics, which examines the impact of industrial robots on jobs, productivity and growth. Industrial robots are programmable and are widely used for assembly, packaging, inspection and agricultural harvesting. In …
Oct 19
Immigration pluses and minuses
The USA really should try to attract more immigrant entrepreneurs, according to Claude Barfield of the US National Venture Capital Association and Entrepreneur.com: 40% of Fortune 500 companies were founded by first or second generation immigrants, and more than half of the nation’s billion-dollar startups have an immigrant co-founder According to the National Science Foundation, only 17% of US bachelor …
Sep 29
UK manufacturing to become ‘smarter’
The UK magazine Drives & Controls has just reported that a group of UK manufacturing business leaders and academics have joined forces with the government to create the Made Smarter Commission (MSC) which aims to make UK manufacturing “smarter”. The inaugural meeting of the commission was chaired by Siemens CEO Professor Juergen Maier and Business Secretary …
Sep 15
A short history of productivity improvement
Lydia Dishman wrote an article for Fast Company outlining steps taken over time to improve productivity – it’s not comprehensive but interesting nevertheless According to her, there’s no definitive source for the start of productivity improvement efforts but there are historical mentions of it in Wealth of Nations by Adam Smith (1776). Smith contended that there were …
Sep 12
Target setting
Targets are needed to bring meaning to any performance measure They enable one to quantify scope for improvement, performance gaps to be closed and urgency for change Told your ‘bad’ cholesterol level is 8.6 and most would ask ‘so what?’ – told that good health requires the level to be below 5 and a course …
Sep 04
Waste leaves productivity dead in the water
A post by author Charles Hugh Smith hits the nail on the head about the ‘productivity puzzle’ – rising waste in all sectors, hardly mentioned by the experts, is mostly to blame Productivity in the U.S. has been declining since the early 2000s. This trend mystifies economists, as the tremendous investments in software, robotics, networks and mobile …
Sep 01
US views on employee performance measures
A sample of US managers’ views was recently published on performance measures they use In essence, they said: ‘App overload’ constantly disrupts work flows – they’re meant to streamline productivity and communications but do the opposite – most employees want a single platform for phone calls, chats, email and team messaging – so get rid …
Aug 31
Forget productivity growth in future?
The following are notes jotted down whilst reading a lecture (40 x A4 pages long) given by Adair Turner, Chair of INET (Institute for New Economic Thinking) in Washington DC in 2018 ________________________________________________________________________________________________________ Summary: The lecture covers the possible long term impact of rapid technological progress – i.e. work automation and AI – on the nature of …
Aug 29
Invest more to raise productivity
An article by John Mills, Chairman of the eponymous JM Ltd, author of economics books and major Labour party donor, claims that UK productivity is ‘so low’ partly because we spend a far lower proportion of our national income (17%) on capital investment (aka capex) than the 26% world average – and woefully less than China’s …
Aug 28
The skills delusion
Adair Turner, Chairman of INET (Institute for New Economic Thinking) and one-time Chairman of the UK’s FSA (Financial Services Authority) wrote a weighty article a year or so ago on the need for more investment in our human stock We cannot better his choice of words so, below, reproduce much of his article verbatim It …
Aug 27
AI will automate tasks, not skills
Michael Hicks, Professor of Economics at Ball State University, USA, claims productivity growth, whether through automation, plant design or better-skilled workers, doesn’t kill jobs – it eliminates tasks: First, hard, dirty and dangerous ones – think agriculture and steel-making where output continues to grow in volume but now uses a small fraction of the labour …
Aug 24
Run hospitals like Tesco stores
David Dalton is CEO of Salford Royal NHS foundation trust, the first to be rated as ‘outstanding’ by the CQC (Care Quality Commission) on two consecutive occasions, so his words carry considerable weight He has just posted an article in the Thunderer column of The Times which is a cause for alarm to many Why? …
Aug 19
NZ shows way for public sector productivity
The New Zealand Productivity Commission was asked by its Government to provide guidance and recommendations on measuring and improving productivity in public services, especially education, health, justice and social welfare which play an important role in promoting individual and community well-being The Commission interviewed multiple current and former senior state sector leaders, carried out case studies to …
Aug 10
Boeing seek at least 20% improvements, not 1-4%
Dennis Muilenberg is CEO of Boeing, the US’s leading aerospace and defence company, and the US’s biggest exporter – they employ 140,000 people in some 65 countries An article by J P Donlon says Muilenberg is ‘on a tear to find another gear to compete in an increasingly complex, global and interconnected world’ Why? Opportunity: Worldwide …
Aug 05
Hire better managers
Vipula Gandhi, a Managing Partner at Gallup, has joined in the productivity debate with a new No Recovery report seeking reasons for the growth of USA GDP per capita (a measure of prosperity) having slowed from highs of 3% in the 1960s to only 0.5% now He argues that: A lack of major technological or …
Jul 27
Cheap labour solves productivity puzzle?
Merryn Somerset Webb, editor of the magazine Moneyweek, claims to have solved the productivity puzzle afflicting the UK – actually, all other developed economies are suffering in much the same way “It’s never ever seemed like much of a puzzle to us” she says, adding: “We’ve written many times over the last decade that, if you …
Jul 19
UK – a hub with no spokes
Andy Haldane, chief economist at the BoE (Bank of England) and so one of the finest of finest economic thinkers, recently gave a speech about the UK’s productivity problem to the Academy of Social Sciences – clearly, we should treat his every word with great respect, or should we? The following is a precis of …
Jul 07
Sheffield’s answer to the puzzle
In 2015, the University of Sheffield showed Mark Carney, Governor of the Bank of England, two photographs: One of the Orgreave coking plant that closed in 1990 – ‘a brown and broken edifice dissolving like a rust stain into a post-industrial landscape’ The other, taken a decade later, of a solitary gleaming building on the …
Jun 28
Labour has a terrible productivity idea
According to an article for Bloomberg View by Ferdinando Giugliano, one-time member of the Financial Times editorial committee, the UK’s Labour Party has come up with a ‘terrible idea’ for sorting out the country’s current productivity problem John McDonnell, Shadow Chancellor, proposes giving the Bank of England (BoE) a yearly 3% productivity growth target to sit …
Jun 21
UK SMEs waste £57 bn a year
NatWest has unveiled research, conducted by the Cebr (Centre for economic and business research) which reveals UK SMEs (defined as companies with 10 – 259 employees) could add up to £57 billion a year – more than the cost of Brexit – to the UK economy if they were as productive as SMEs in Germany …
Jun 18
Help for SMEs to get practical
Under the above heading, Alison Rose, chief executive of commercial & private banking at NatWest wrote the following article which all SMEs would do well to consider As we gear up for Brexit, the UK’s flagging productivity performance is continually in the fore of media headlines and economic analysis Following a further fall in productivity …
Jun 18
Communism versus Capitalism
Communism has been defined as a system where: People work according to their ability and receive according to their needs All big decisions are made at the centre All data is processed at the centre Capitalism, on the other hand, is an alternative where: People are free to buy/ sell/ invest in whatever they like …
Jun 10
‘Silver Army’ advances
Excerpts follow from an article about the advancing ‘Silver Army’ by Gary Rotstein in the Pittsburgh post-gazette The future of older workers During a recent three-day presentation at Columbia University, a succession of speakers from academia and the business and health fields focused on the potential productivity of older workers who can help the economy and …