Productivity, Australia’s and the world’s
Cause celebre
Definition: “A controversial issue that attracts a great deal of publication attention”.
Sadly, the attraction, attention, discussions, recognition, hopes for and aspirations about productivity are seldom matched by actions, commitments, beliefs and purpose.
Everyone, and most things, are resultant losers. Enhanced and optimised productivity can be, and when properly applied is the cause of greater efficiency, effectiveness, customer satisfaction, revered valued, loyalty, heightened morale and employment fulfilment.
Productivity need not and should not be a consequential effect.
When the relationship is understood and respected there is a balanced comprehension of the:
Cause: Effect equation
Impacts on productivity are multi-factored, often extending well beyond personal endeavours, choice, plans and endeavours.
The official and unofficial holidays on the first Tuesday of November, for the running of the “race that stops the nation”, The Melbourne Cup, is a case in point. Consider, quantifying and monetarising the total loss of productivity. Ouch! That loss cannot be recovered and has a cascading set of consequences, multiplying the direct and indirect costs for a race with a record time of three minutes 16.30 seconds, and a 2023 prize pool of $8 million (Aud), of which $4.4 million goes to the connections of the winner. Pittance figures when compared to the costs borne by the national economy.
Unintended consequences are omnipotent. The last Saturday in September, with the conduct of the AFL Grand Final, and the Melbourne-wide holiday on the preceding day have similar implications and consequences. Good on you, sport.
IMPOSTS
Government outlays in the forms of wage subsidies, grants and investments in multiple infrastructure projects saved countless Australian entities, communities and individuals from the ravages of the COVID19 pandemic. Railway, highway, freeway upgrades and bridge constructions were conspicuous nationwide. Numerous contracts were lifelines for teetering construction, supply and consulting companies.
Noticeable were numbers of plant and equipment which sat idle on sites up to 16 hours a day and on weekends. Lanes were closed, traffic slowed and often brought to grinding halts. Commute times were lengthened and impacts on unintended corporations, sectors and individuals were incalculable. No one it seemed, had considered the cost of the consequences. Slowdowns incurred innate costs.
Fears about cost overruns, overtime and penalty rates were false economies. Contract managers, Ministers of the Crown, governments and treasuries did not seem to appreciate the importance of productivity, time and timing. Countless unsuspecting “stakeholders” were bearing an enormous burden, over which they had little or no control.
Long weekends and extended summer vacation periods would not be denied. That’s obviously part of “the Australian way”.
THE CONVERSATION WE NEED TO HAVE
Australia’s global productivity ranking is appalling and falling. The nation is considered to have a high-cost economy. In short, it is not internationally competitive and finds it cheaper to source many products, services and applications from overseas.
This is a topic which needs both macro- and micro-management. Fashionable concepts like ESG (Ecology, Social, Governance) are, in many instances, and to some considerable degree expensive distractions. Zero-emissions are laudable but expensive, often impacting productivity sustainability in the immediate, short and intermediate terms. Ideals come with costs. Value judgements will be made. But, just how many evaluations contemplate and quantify the costs to productivity, is not declared or shared.
Local and state government departments and regulators have much to answer for with the costs and lack of availability of housing and residential lots. Approval times, covenants, fees and other imposts are estimated to contribute up to (and sometimes beyond) 35% of retail prices.
Slow Engineering Department approval cycles impact on the efficiency and effectiveness of the sector. Few if any seem to be held accountable. Records, and the monitoring of absolute and comparative productivity are scant. Some would and could, justifiably be aggrieved with such circumstances.
Cause celebre indeed… controversial, attention, issues.
Understandable.
Productivity can be and should be an expression of intent and purpose. It is simply a matter of putting the right emPHASis on the right sylLABLE.
NEW WAYS
Technology, innovations, artificial intelligence and yes, COVID have been instrumental in effecting substandard and significant changes in the way that we live, work, commute and do business.
Work:life balances are often reported to have improved. So too productivity. But, by what measure? Such headline claims generally are deficient in data that substantiate such propositions.
WFM (working from home) has, and continues to create tensions between business owners, managers and team-members. Reluctance to return to working from offices is common, notwithstanding the impacts on corporate cultures, cohesion, integration, morale, velocity, volume and seamless efficiency.
Culture may well eat strategy for breakfast. Productivity can devour, accelerate and enhance both, if given due and proper attention.
With the actions apparent in leading high-profile Australian and global corporations of late, salaries could and arguably should be better determined by and aligned to short, intermediate and long-term productivity.
One suspects the number of airline flight cancellations, delays, long book-in queues, lost baggage incidents and wait-times online and on the phone could and would be resolved if appropriate and sufficient attention was given to productivity.
This is an issue which is pertinent to all entities, regardless of size or sector. Franchisors, manufacturers, distributors, network managers and supply-chain facilitators have roles to play in the design, implementation and maintenance of productivity initiatives.
The strategic implications and benefits have the potential to outperform short-term oriented price discounting, cooperative advertising, merchandising and promotional endeavours. It is a compelling conference theme and a captivating topic for a business breakfast meeting.
It requires reassignments of priorities.
Let me finish there, because productivity matters. Share this text. One cannot do it alone.
Barry Urquhart
Business Strategist
Marketing Focus
M: 041 983 5555
E: Urquhart@marketingfocus.net.au
ACKNOWLEDGMENT:
Thank you, Ross Neumann, property developer and lifetime entrepreneur for the encouragement and input for this timely missive, the fruit of a highly productive discussion over lunch.