Why are Productivity Gains Shrinking?
Sage Founder Tom Doorley writes, "Stroud is a highly analytic team of operations and productivity consultants. This article by Taylor Milner takes aim at the current productivity malaise. Or, is it a metrics issue? In any case Stroud has productivity squarely on its agenda."
DOES BEING MORE PRODUCTIVE SEEM HARDER TO YOU TOO?
If being more productive, or getting your team, group, company, or organization to be more productive seems harder these days, you are not alone. Annual productivity improvement has slowed to about 1% from its most recent peak of almost 6% in the early 2000’s.
Minus a spike in 2010, the last decade’s improvement has been pretty dismal at well less than 2%.This is particularly evident in the manufacturing sector summarized in the graph below
In the next few pages, we are going to explore two questions:
Why should you care about productivity growth?
What are the causes for the slow down?
In a subsequent article, we will explore what you can do to increase the rate of productivity growth within your organization.