Spend wisely

A recent report from IDC Manufacturing Insights suggests that the IT spend in Indian manufacturing organisations will double by 2016.

Will this give them a rise in productivity?

Almost certainly.  Not necessarily as a direct result …. but anyone making big investments in IT is likely to be looking at other aspects of the business.  Focusing on a business – for any reason – tends to show up what is wrong.

Of course Indian manufacturers could just expect IT to do their job for them. If they do, they will be very disappointed with the results.

They’re not to blame

I’m writing this in Pakistan … whilst taking a look at some aspects of Pakistan’s horticultural sector.

If you take a look at ‘the figures’ they suggest that this sector is quite ‘inefficient’, yet when I walk round farms, farmers and their labourers are working very hard.

Of course – I hear you shout – these observations are not incompatible. We should not confuse hard work with effectiveness.

Often people have to work (over) hard because what they do is badly organised. But don’t blame the people .. blame ‘the system’ (and, especially, the lack of training).

… and Jerk

Did you see what I did there.  Possibly too clever for my own good but I carried on the title of this post from the title of my last one.

How often have you felt like a jerk … in your professional life I mean.

If you reply ‘never’, then firstly I probably wouldn’t believe you … and secondly I would probably ask you why not … because it might mean you are not taking enough risks.

So, you are allowed to look like a jerk occasionally … but never twice on the same issue or with the same customer!

Clean!

Anyone who has practiced 5S will know the value of tidiness and cleanliness.

Yet, all too often we see dirty, untidy workplaces … creating inefficiency.

Wherever you see untidiness, think “This is costing me money” and you might start to think differently.

Are You Listening, Government

The Australian Productivity Commission has made some recommendations for a National Disability Insurance Scheme.

The government is (probably) going to partially meet the funding requirements.

This process is fairly typical. A government funded body makes recommendations to government who accept the recommendations in principle but fail to implement or fund them completely.

I understand that governments have many calls on their funds and have to make difficult discussions on priorities … but this does seem at best an imperfect process.

Any suggestions for improvement?

Where are you?

Imagine for a moment that you are in charge of the country.

Your country needs you to increase its competitiveness… you know the best way to do this is to improve its productivity.

Of course, what you might do will depend very much on the country you are in charge of … its current economy, its current industrial strengths, the skill levels of the workforce, the nature of the infrastructure, etc.

So what you do depends on where you are.

The same is obviously true when improving organisational productivity. You need to know where the organisation is in terms of its development, in terms of its aspirations and aims, in terms of its progress towards meeting those aims, etc.

So, whenever you need to move forward, you first need to know where you are.

Less is sometimes more

Sometimes we want output to go down .. sometimes we even want people doing as little work as possible.

Think of maintenance engineers … we want them efficiently and effectively involved in preventative maintenance. We want them sat down the rest of the time (if there is any ‘rest of the time’) .. we don’t want them fixing breakdowns … because we don’t want breakdowns.

Governments too sometimes work too hard. Many of them seem to think their role is to pass legislation … so they are relentless in passing legislation. But we want fewer laws, not more.

So, let’s start a campaign … to identify those jobs and roles where the preferred slogan is “Be more productive – do less work!”.

Italy Flags

Italy’s productivity is on the decline. This is bad news for Italy and for the EU (and especially the Eurozone countries).

Italy seems to have a whole bureaucracy of regulation that keeps Italian companies small ….. making it difficult to secure economies of scale … and stops them doing lots of things that would improve their productivity.

Of course this is unsustainable in the longer-term … but Italy is a conservative country … not really open to change.

I fear things have to get worse before they get better.

More food, please

Food inflation combined with inadequate gains in productivity are clear indicators that our ability to feed a rapidly growing population is at serious risk without swift action.

Example 1
Eggs are one of the most basic, affordable protein sources that people around the world depend upon. But, in recent years, production has been declining by one egg per chicken per year.

Example 2
Global milk production has almost doubled in the past 50 years. Yet, fewer people have access to milk today because populations are growing faster than production gains,

Unintended consequences

Governments (bless them!) often do things with good intentions.. but often fail to think through the unintended consequences of their actions.

Take energy subsidies as an example. Quite a few governments subsidise energy prices … to help businesses be more competitive, perhaps.

However, business will only take a cold, hard look at energy usage when prices are high … so keeping prices artificially low means more energy is used than should be – with consequences for both energy stocks and for the environment.

Good intention. Bad result.