Productivity experts warn chancellor's economic goals..

Productivity experts warn chancellor's economic goals are doomed without 'back-to-basics' approach from senior management. Unlocking hidden productivity reserves and an end to unambitious improvement targets are key to strong economic growth. April 9, 2002. Proudfoot Consulting, the productivity improvement consultancy, says it has detailed evidence that the government will fail to meet its desired economic growth targets unless company boards pay attention to basic employee efficiency. The firm says its recent study on the subject provides strong evidence that firms have hidden productivity reserves of up to thirty percent and that British chief executives significantly underestimate the extent by which matters could be improved. Proudfoot Consulting's UK executive vice president Edward Cory says: "In his pre-budget speech, chancellor Gordon Brown said that the challenge for Britain is to accelerate the productivity improvements that will increase output, jobs and wealth, and that we must achieve faster productivity growth than our main economic rivals of France, Germany and the US. Our study has shown that British productivity is not only lower than these nations but also that many British firms have up to thirty percent of untapped productivity reserves. "The big challenge for company management and the government is how to unlock those reserves so that British firms can be more ambitious in setting their productivity improvement targets. Too often, we are finding that responsibility for this issue is delegated below boardroom level where it belongs. What's needed is a strong CEO focus on a 'back- to-basics' approach to efficiency. Without this, the government's wider economic goals will be placed in jeopardy." Proudfoot Consulting advises CEOs to focus on five basic areas that, for minimal investment, will achieve substantial increases in productivity: 1. Planning (% Loss 10 - 40) Emphasis needs to be on pre-empting problems downstream. Many companies reviewed spend a disproportionate amount of time on administration and manual tasks rather than managerial and problem solving. The balance needs to shift. 2. Management information systems (% Loss 3 - 27) Management needs to ensure the effective use of information systems. The priority for productivity improvement is the setting of goals. Goals will only be realised by establishing a proper management operating system, ensuring the effective use of resources and the proper management and supervision of staff 3. Processes (% Loss 5 - 25) All processes need to be reviewed - even the most basic level - to identify areas where productivity might be improved. Having identified the optimal level of productivity, existing process deficiencies need to be found and eliminated. 4. Training and education (% Loss 0 - 10) Training and education needs to take place across the board on the practical implementation of any new processes as well as training on the implementation of change. All too often companies provide one-off training sessions believing this is sufficient. More follow up or practical hands-on training on the ground is often necessary. 5. Communication (% Loss 0 - 4 ) Effective communication is key and its absence affects productivity. Companies frequently implement new plans but are not always effective at communicating them. Internal communication needs to be reviewed so that everyone is clear what is expected of them. Proudfoot's unique study is conducted annually. Entitled 'Lost Time - the global productivity study', it is based on proprietary research conducted by its own consultants assigned to actual consulting engagements. It comprises over 1500 in-depth studies on worker productivity covering all levels of employee in six countries: France; Germany; UK; Hungary; USA; and Austria. It also includes a separate opinion survey of three hundred CEOs in these countries, plus Japan, Australia and South Africa. Its next study will be released in the autumn of 2002. Those wishing to express early interest can email Ruth Lanham at Proudfoot Consulting at this address: rlanham@proudfootconsulting.com For further information, please contact: Ruth Lanham, European marketing manager, Proudfoot Consulting, Tel. +44 (0)20 7832 3600, email: rlanham@proudfootconsulting.com Andy Turner, Six Sigma PR, Tel. +44 (0)77 1188 7234, email: turnera@blueyonder.co.uk About Proudfoot Consulting Proudfoot Consulting is a specialist firm of consultants that implements change to achieve measurable and sustainable performance improvements at no net annualised cost to its clients. The firm was established in Chicago in 1946 by Alexander Proudfoot and is now part of the Management Consulting Group Plc, a group of consulting firms operating globally. For more information, visit www.proudfootconsulting.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/09/20020409BIT00930/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/09/20020409BIT00930/wkr0002.pdf