The UK government recently established the Productivity Leadership Group (PLG) to try and boost the nation’s productivity.
The PLG says that if all except our most competitive businesses were able to improve their productivity to match the companies ranked 10 per cent above them, an additional £130bn Gross Value Added (GVA) would be unlocked every year – certainly a boost to business confidence and national productivity.
The power of benchmarking of this kind is that when organisations see that others (and especially others in the same sector) are already achieving such results, it shows the ‘art of the possible’. “If they can do it, we can too.”
This is why we always suggest that governments should carry out sector benchmarking – and show organisations what is achievable – preferably against a number of productivity variables…. so that any one organisation might find its performs well against some of these variables but poorly against others. If it could raise performance to be among the top performers against all variables, it gains a significant productivity increase.