Productivity leadership at a national level

Institute of Productivity

World Confederation of Productivity Science

Productivity Leadership at a National Level

John HeapManaging Director, Institute of Productivity, UKPresident, World Confederation of Productivity SciencePresident, European Association of National Productivity Centres,Co-editor, International Journal of Productivity & Performance Management



Is Higher Productivity Possible in Turkey?

YES Perhaps NO………. ……….



Productivity = OutputsInputs

3% p.a. rise in productivity means the standard of

living doubles every 22 years

Productivity improvement enables wage gains to occur without producing inflation. Therefore, productivity is essential to an economy’s ability to create real wealth.



pollution

environmental damage

Wealth inequality

Social damage

Productivity = Outputs

Inputs



Social

Environmental

Economic

productivity

Multiple Stakeholders

S

E

E

Stakeholder Value

Stakeholder ValuesDiscount Code DL7AGZ64



SocialProductivity

Environmental Productivity

EconomicProductivity

EquitableBearable

Viable

Sustainable

Learning to SEE ….



How does Turkey set about creating the conditions in which businesses can grow and thrive?

What are the respective roles of government, the private sector and other stakeholders in this process?

What leadership is required?



A nation (or region) simply has to (first)

establish appropriate macro-economic

policies, specifically including deregulation

and free trade.

Deceptively simple conventional wisdom



Turkey Limited



Turkey Ltd has to get

the right goods to the right markets

at the right time at the right quality

at the right price

whilst minimising any harmful environmental effects

whilst maximising the beneficial impact on society as a whole and key stakeholders in particular



Goals

Strategies

Plans

Actionsmarket research

recruitment

product design

advertising

training

operational execution

quality management

process design

distribution

Competitive strength

outsourcing

capacity building

Investment

R&D



Turkey Ltd has to find the right set of products and deliver them to markets at the right time, at the right quality and at the right price.

Turkey Ltd has to establish greater flexibility and greater innovation so that it can cope with the opportunities and threats that will come its way.

Turkey Ltd has to address the social and environmental concerns of stakeholders



Innovation

Doing new stuff

Doing old stuff in new ways

Creating new value



Agriculture

commodities price

products value

Food

Food processing



Tourism

Sun Sand Sea

Other customers need other ‘enticers’



Alternative Energy Supply Problem

Source of new technologies, new products, new services



What are the new products?

Where will they come from?



Entrepreneurship

Small business development



Ensure that education includes a focus on creative thinking and problem solving

Increase knowledge transfer from tertiary institutions (by shortening communication channels and creating new channels)

Develop innovation support processes for small enterprises

Support entrepreneurs



Making the Change to being …

More competitive

More aware of the social and environmental implications of policy and activity

More entrepreneurial

Less dependent on agricultural commodities (but no less dependent on agriculture);

Less dependent on low value tourism (but no less dependent on tourism).



Assets ?

Geographical location

Political stability

???



Determine priority areas for development (product strategy)

Determine infrastructure components required to underpin:

•those priority areas specifically

•greater flexibility and innovation more generally

Determine support processes for private-sector organisations working as part of this overall strategy



Behaviour



Changed behaviour comes about when …

•People understand the behaviours expected of them (and the behaviours not expected of them)

•They understand the reasons for those behaviours – why they are ‘good’

•They have the skills necessary for the changed behaviour•The small changes they start to make are rewarded

and reinforced



Systems Thinking

Social Thinking

Use the power of the teamUse the power of the community

Future

Crowdsourcing



Future

Productivity

… must create ‘social good’

It must offer benefits to the societies directly involved in business and working organisations … … and to society as a whole



Advice to government

National/Regional Infrastructure

Macro-economic climate

Regulatory framework

Education & Training Policy

Communications InfrastructureTransport Infrastructure

Business ownership, governance & employee participation

‘knowing stuff’ and ‘doing stuff’Integrated planning

Leadershipcreativity & problem solving

Skills Strategy

Design education linked to artisnal SME mfg



Advice to EmployersCapability Culture

Concentrate on OUTPUTS rather than INPUTS when addressing the basic productivity ratio

Create additional positive outputs – in terms of growth or added value – and remove or minimise negative outputs (such as waste, scrap, negative environmental impact, negative social impact) before attempting to reduce inputs

Understand that sometimes looking at part of ‘the pipe’ (for example, by addressing environmental issues by cleaning up at the end of the pipe) can only make marginal improvements; revolutionary improvements need an examination of the ‘whole of the pipe’

Understand that change is not easy .. but it is inevitable … therefore it has to be managed

When you say “Our people are our greatest asset” you will believe it and act accordingly



Advice to Trades UnionsCapability Culture

Think about the work … working structures … governance …. engagement …. autonomy

Understand that change is not easy .. but it is inevitable … therefore it has to be managed

Argue for skills development … that increases the value of the workers’ contribution

Recognise there is new role for TUs in a world that is moving from systems thinking to social thinking … and technology offers new forms of

establishing the ‘employee voice’ and new forms of consultationDiagnose ‘workplace ills’ –

absenteeism, presenteeism, turnover - use them as ‘warning signs’

Help drive national skills strategy



Advice to Education

Train, then Trust, the TeachersSample testing (formative) (performance)

You must value vocational AND academic education – so that students can combine and receive ‘appropriate’ education

Think as much about how you teach as about what you teach …

… and remember we are dealing with 21st century learners

AfLAssessment for Learning

… and have a combined credit accumulation system for knowledge and skills

Think about the benefits of technology

…. and think about those roles of design, delivery and support



Change Agents & Structures

How is this to be organised?

Who should drive the strategy?

Who needs to be involved?

How is this to be funded?

What might go wrong?

How can we stop it going wrong?

Who will lead?



Leadership

Vision and Values Mission and Conviction

Empathy with other stakeholders

Communication and Interpersonal Skills

Inspiring

Who amongst government, employers, trades unions, educators has these properties?



Is higher productivity possible in Turkey? YES

If processes are established which involve all key stakeholder groups in policy decision-making that creates higher productivity AND shares the fruits of that productivity

If all stakeholder groups put aside factional and sectional interests and work for the common, longer-term good

If a ‘product strategy’ is established so that infrastructure and support can be prioritised and focused

If infrastructure issues are addressed

If an environment is created which supports and rewards innovation and entrepreneurship

If appropriate support processes are put in place for private-sector organisations

If a leader emerges



Different histories

Different backgrounds

Different cultures

Different levels of expertise

Different levels of awareness

Different expectations

There are no ‘silver bullets’



We can make Turkey Ltd …

Turkey Unlimited!

If We Focus on Productivity

All



John Heap

Managing Director, Institute of Productivity

[email protected]

Twitter: @prodglobal

www.blogprod.blogspot.com

Productivity leadership at a national level

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