• 10 Jul 2015 7:44 PM | John Heap (Administrator)

    If Greece is forced out of either the Euro, the EU or both - there are clear implications for the Greek economy. But will there be any implications for underlying productivity.


    Well, there is some evidence - ironically from Greece itself - that national confidence and national pride do have a significant impact on the productivity of workers.


    When Athens hosted the Olympics in 2004, there was a surge of national pride and of 'engagement' of the workforce with their country.   This resulted in both a sense of well-being for the workers and in a boost to the economy.


    This suggests, unfortunately, that  exit from the Euro might have a negative effect on productivity and the economy - perhaps resulting in a kind of 'vicious spiral' of decline in the economy and national confidence.


  • 03 Jul 2015 8:23 PM | John Heap (Administrator)

    When I was a teenager (warning - ancient history lesson coming up!), we were regaled with promises of the paperless office and factory automation - leading to a life of leisure (and luxury).  Now people work longer hours than ever before - and many are never really off duty - being permanently connected to the office network.


    Where did it all go wrong?


    This is one of life's great productivity paradoxes - increasing automation results in more work for people, not less.


  • 26 Jun 2015 7:11 PM | John Heap (Administrator)

    In the UK, the Confederation of British Industry (CBI - which represents British business organisations - especially larger ones) is asking the government for tax changes in the forthcoming budget to allow further investment in machinery/equipment and in skills development.


    Whilst accepting that one of the roles of government is to create the right macro-economic climate to support rising productivity, I am not sure that I accept this 'special pleading'.


    UK industry has seen a rise in the number of jobs over the last couple of years - but not a corresponding rise in output .... Productivity appears to have been falling. (It is difficult to be too precise since there is often a lag before employment and output 'catch up' with one another.)


    If employment is rising but not output, it suggests that those new jobs are not being used productively - either because the people being employed do not have the right skills to perform productively ... or because the systems and processes in which those people are operating are not designed and operated to be optimally productive.


    Even if it is a skills problem, it may be a basic skills problem - requiring fundamental change in the underlying nationals skills infrastructure - or it might be a more temporary problem of 'right skills in wrong places'.


    Before asking for 'more money the CBI needs to find the 'root cause' of the skills problem ... and urge the government to address this as part of a longer-term strategy.  A 'quick fix' in an annual budget is either not needed or is not enough.


  • 19 Jun 2015 8:04 PM | John Heap (Administrator)

    There are often 'quick fixes' we can apply to problems. There are also often improvements we can make to get yield up or improve throughput.  The problem is that some of these can have negative impact over the longer-term.


    Global agriculture seems to be caught in this trap.  Yields per hectare are rising.  Good!  With a growing global population, this is not only desirable - but essential.


    However, there is increasing evidence that underlying soil performance is falling.  This means we need more and more 'treatments' to maintain yields (putting costs up) - but it also means that there might come a time when the soil refuses to support effective growth.


    So, though we might want to improve agricultural productivity, we need to be wary of the timescale over which we expect improvement to occur - and be sustained. Traditional agricultural practices managed to maintain soil quantity and slowly improving yields over centuries; our need for rapid growth has resulted in massively increased yields - but for how long?



  • 12 Jun 2015 6:01 PM | John Heap (Administrator)

    Total factor productivity around the globe seems to be slowing.  This is a major problem.


    Rising productivity is what fuels increased wealth and well-being - it is what allows poorer nations to catch up to richer nations ... a basic requirement of longer-term political stability.


    In developed nations, it is what allows a falling population to afford the pensions of a growing retired class.


    If TFP is falling, then - collectively - we are doing something wring .. or not doing something right.


    One thing we do is to continually increase regulatory burdens - with the best of intentions, but resulting in smaller firms in particular finding it hard to navigate the bureaucratic minefield.


    We also - especially when times are hard - seem to forget to educate, train and develop the workforce ... increasing their capacity and capability.


    Governments work in fits and starts on infrastructure - but often more on 'vanity' projects and 'note grabbers' rather than concentrating on productivity infrastructures.


    We need to do more - more consistently.


    Now, when I rule the world ...


  • 05 Jun 2015 7:38 PM | John Heap (Administrator)

    We are all good at starting new initiatives, new ventures - and creating new teams or even new departments.  Of course, it is good that can do this speedily and (hopefully) effectively.


    The problem is that most of us are not very good at closing down those initiatives, those teams when the job is done - or has proved to be ineffective.


    Many organisations thus have the remnants and rumps of what were once effective projects, effective teams - even, of course, effective products ..... things that should have been positively closed down but have been left to 'wither on the vine'.


    So, take a look around and see what you should stop doing.


  • 29 May 2015 6:12 PM | John Heap (Administrator)

    I have been doing some training this week - on Change Management. Both the group I was with - and myself - exhibited all the signs of a comfortable regularity - staying at the same hotel we always stay at, dining in the same restaurant, eating (broadly) the same lunch - and so on.  Its very good when you can use yourself as the role model/case study.


    Of course I think of myself as a flexible innovator - but 'behind the scenes' I am as resistant to change as anybody else.  This doesn't make me odd, or staid, or old-fashioned or curmudgeonly - though I might be those things as well.... it just makes me normal.  It is my little routines that make the day go more easily.  No need to think; just do what you've always done.


    ... and hope that when its needed, you can switch into 'change' mode - and become that flexible innovator.


  • 22 May 2015 6:42 PM | John Heap (Administrator)

    In the UK, we have a new government ... similar to the last one... but without the need for a coalition.  I make no political comment on the government we have ... only that I am glad we have a single-party government that should be capable of directing its own strategy.


    In another context, wearing another hat, I have been ruminating on the degree to which governments influence productivity.  My starting point was that governments have little long-term effect on productivity, though they can have an impact in the short-term.  Long-term trends though tend to proceed irrespective of government intervention until there is some revolutionary event that triggers a 'great leap forward'.


    However, as I started to think - and to draft the paper I am working on - I started to change my mind.


    I started thinking about the infrastructure elements that underpin high productivity - health, education, skills, transport, communications ..... in addition to the macroeconomic and research/innovation culture.  Clearly these are all factors where government has a major role to play ... and major influence to bear.


    So, perhaps governments do have a major role to play ... in creating the potential for high productivity that industrial and commercial organisations can build on.


    So, if you are in the UK, I hope you voted - for the greater productivity good - and not personal economic well-being.  Only the former can deliver the latter in the longer-term


  • 15 May 2015 6:41 PM | John Heap (Administrator)

    Some firms like to link pay explicitly to performance - with a direct link (the 'carrot approach').


    Some like to rely on post-poor-performance sanctions ( the 'stick' approach).


    Those who think of themselves as enlightened pay good basic pay and expect good performance (the 'faith') approach).


    Others pay poor wages but still expect good performance (the 'miserable fools' approach)


    ....  but the majority have never thought about it (the 'ignorant fools' approach)


    Which one(s) do you think work?


  • 08 May 2015 7:28 PM | John Heap (Administrator)

    I am a governor of a secondary school in the UK.  We are preparing our pupils for a world of work in which many of the jobs do not yet exist ... and even many of those that do now exist will have changed substantially.


    Our pupils will go through 'portfolio careers' in which they will have several jobs - often multiple part-time jobs at the same time.


    This means we are trying to instil flexibility and resilience into our pupils - alongside knowledge, understanding and core skills, of course.


    What does all this mean for the future productivity of the UK?  Well, knowledgeable, flexible, resilient workers should form a good basis for a high productivity organisation - if that organisation is willing and ready to work with that flexibility, exploit it and allow it to underpin organisational flexibility and innovation.


    My fear is that managers who are of a previous generation will continue to create inflexible, rigid structures that fail to exploit these new skills and attributes.


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