UK’s productivity lags behind Germany, France, Italy (and is the worst in G7) – why you should care, and what to do about it
28th November 2016
UK’s employees are the least productive of all the G7 economies. This has been known for a long time from the Office for National Statistics (ONS) reports, which quantify the gap at 20% below the G7 average. This is quite shocking, and frankly speaking intimidating. Psychology says that in such circumstances we would be very tempted to ignore it, keep calm, and carry on.
This is where the Chancellor deserves a large credit for taking the risk of being the least liked guy in the room, and – as painful as it is – bringing it to our attention. Which can be only good, as it forces us to confront the problem and – hopefully – find the ways of making it less severe.
The practical implications of low productivity for British businesses are severe. If our employees produce 20% less every hour than their colleagues in other G7 countries (and 30% less than the Germans) the real comparative cost of their salaries is significantly higher than we would have thought if we looked at the annual salary levels alone. Furthermore, to generate the same output being 20% less productive we have to work 25% longer, or have a 25% larger workforce.
This poses a serious threat and impediment to our ability to compete in the global markets. We will fall behind the competitors who manage to achieve better productivity in global, but also in our local markets.
This calls for a serious consideration and action. There are many ways forward including government’s investments in infrastructure, etc. However, there is one way that you have an immediate control of – and which you can deploy at your own discretion – to differentiate yourself and raise your chances in local and global competition.
What I am talking about is smart and original innovation.
In response to the problem IGTS.uk decided to launch a new service dedicated to helping UK businesses raise their productivity and improve their competitiveness in a way that involves low risk, limited cost and opens up a blue ocean of opportunities for improvement.
The service focuses on a wide and deep analysis of your processes and operational performance, and provides you with a deep understanding of where you are compared to the rest of your industry (and especially to its best players). It then suggests possible ways forward to improvements, in the form of a Road Map, or a Menu, of actionable options for targeted, focused and well-designed innovation.
What you get at the end of this process is not only a far better understanding of your business’ comparative competitive and technological standing, but also a report full of actionable and doable steps that you can implement to reach more customers, reduce your costs, improve margins, scale up and – more than anything else – smarten up your operations.
The analysis is based on our unique process of combining the expertise that you and your team have in your specific markets and industry, with our unmatched knowledge of IT and software, and the entrepreneurial ‘blue-sky’ discovery experience and methodology.
This is offered as a fixed cost package, and the first consultation is free of charge, and offered with no obligation to continue.
Get in touch with us to discuss your ambitions, needs and challenges, or keep browsing our site to see how we can help you achieve more in a smarter way. To raise your productivity and chances of successfully competing in the local and global markets.
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