The Power of Productivity report, a new study written by, Dr. Alexander Grous from the London School of Economics and Political Science, identifies management best practice, technology and flexible working as three key levers which, when combined, have the power to unlock business productivity by as much as 20 per cent.
The report, commissioned by Vodafone UK and undertaken by LSE, explores the UK’s productivity picture and draws upon a range of industry research as well as LSE interviews conducted with more than 20,000 businesses worldwide in 35 countries.
The report also highlights that while an organisation’s location can have an influence on business performance, a more granular assessment of the organisation itself can unlock productivity gains regardless of where it is based;
Many SME’s are unaware of the options available or where to go for support to help them unlock productivity; and the ability of firms to periodically re-structure and re-align to respond to market changes is critical in order to survive future scenarios – an assessment of current practices is key to understanding where more agility is needed and where it can be achieved.
The research comes at a time when recent Office for National Statistics (ONS) figures show low productivity rates across the UK and the continuing struggle to match the productivity levels of G7 counterparts – the UK is currently in 6th place
The UK government also recently announced that raising productivity by just one per cent every year would add £250 billion to the size of the economy within a decade
Dr Alexander Grous from LSE, said:
“This study highlights the steps that organisations of all sizes in every corner of the UK can take to not only supercharge their productivity but also help improve the strength of the UK economy. From our findings, the best performing companies show that by combining good management thinking, technology and flexible working practices you can boost performance significantly.
“Taking this approach is also easier than many businesses think because the capabilities to move forward often already exist within the company. The first step is making the time to assess your business and identify where you can make improvements, with full support from the management team and organisation. The report provides some initial guidance on the questions that business leaders should ask.”
Phil Mottram, Enterprise Director at Vodafone UK, added:
“There are levers that businesses can use to increase productivity in their organisation which give them the ability to be better prepared for the future. We have taken our own steps to transform the way we work, through our ‘Better Ways of Working’ initiative. We are also working closely with businesses and public services across the UK to support how they transform the way their people, processes and operations work through new thinking and productive technologies. However, there is clearly more to be done to help more businesses understand the options that are available to them. The findings of the report highlight the need for greater collaboration and sharing of best practice across industry and the public sector, to help organisations make faster gains. UK business will face opportunity and uncertainty over the coming years. It’s important that improving productivity is top of the agenda to make sure the UK is ‘ready for anything.”