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Describes the future of productivity development, the role of various stakeholders and the need for leadership.
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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
Institute of Productivity
World Confederation of Productivity Science
Is Higher Productivity Possible in Turkey?
YES Perhaps NO………. ……….
Institute of Productivity
World Confederation of Productivity Science
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.
Institute of Productivity
World Confederation of Productivity Science
pollution
environmental damage
Wealth inequality
Social damage
Productivity = Outputs
Inputs
Institute of Productivity
World Confederation of Productivity Science
Social
Environmental
Economic
productivity
Multiple Stakeholders
S
E
E
Stakeholder Value
Stakeholder ValuesDiscount Code DL7AGZ64
Institute of Productivity
World Confederation of Productivity Science
SocialProductivity
Environmental Productivity
EconomicProductivity
EquitableBearable
Viable
Sustainable
Learning to SEE ….
Institute of Productivity
World Confederation of Productivity Science
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?
Institute of Productivity
World Confederation of Productivity Science
A nation (or region) simply has to (first)
establish appropriate macro-economic
policies, specifically including deregulation
and free trade.
Deceptively simple conventional wisdom
Institute of Productivity
World Confederation of Productivity Science
Turkey Limited
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
Innovation
Doing new stuff
Doing old stuff in new ways
Creating new value
Institute of Productivity
World Confederation of Productivity Science
Agriculture
commodities price
products value
Food
Food processing
Institute of Productivity
World Confederation of Productivity Science
Tourism
Sun Sand Sea
Other customers need other ‘enticers’
Institute of Productivity
World Confederation of Productivity Science
Alternative Energy Supply Problem
Source of new technologies, new products, new services
Institute of Productivity
World Confederation of Productivity Science
What are the new products?
Where will they come from?
Institute of Productivity
World Confederation of Productivity Science
Entrepreneurship
Small business development
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
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).
Institute of Productivity
World Confederation of Productivity Science
Assets ?
Geographical location
Political stability
???
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
Behaviour
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
Systems Thinking
Social Thinking
Use the power of the teamUse the power of the community
Future
Crowdsourcing
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
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?
Institute of Productivity
World Confederation of Productivity Science
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?
Institute of Productivity
World Confederation of Productivity Science
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
Institute of Productivity
World Confederation of Productivity Science
Different histories
Different backgrounds
Different cultures
Different levels of expertise
Different levels of awareness
Different expectations
There are no ‘silver bullets’
Institute of Productivity
World Confederation of Productivity Science
We can make Turkey Ltd …
Turkey Unlimited!
If We Focus on Productivity
All
Institute of Productivity
World Confederation of Productivity Science
Institute of Productivity
World Confederation of Productivity Science
John Heap
Managing Director, Institute of Productivity
Twitter: @prodglobal
www.blogprod.blogspot.com