Worker Productivity It is difficult to deny that New Zealand’s productivity is lagging, and you’ve dived into an important question
@KeithH.
Routinely it is referred to as ‘worker productivity’ which I believe is disingenuous to the workers: daily I see people working hard for long hours across New Zealand. This language may have a (small) part in our inability to shift the numbers by placing the responsibility on the individual rather than on business.
Many years ago I was taught an axiom that I believe has been forgotten: ‘You can stipulate the process or the output. Not both’.
Put another way, if the task is to fell trees and the worker is given an axe they’ll get beaten by the company with a chainsaw.
Aside from wondering if a misunderstanding of productivity is at influence, I see two drivers:
1. The economy is orientated to low value commodities – Two of our biggest overseas earners are being exported for others to add the value: raw logs and milk powder.
2. Businesses have not invested in production capability – we continue to give the worker an axe and expect them to swing it harder.
There are several stand out exceptions to this (our machinery manufacturers are revered globally, and our software and gaming industry continues to amaze). I believe there are four steps to lifting our performance:
1. Commit to the creation of higher value add products – take the raw materials and turn it into the highest quality finished item.
2. Train and educate workers to think and have vision, then
3. Liberate workers by setting an expectation of outcome. Get out of their way and let them find the best way to deliver.
4. Invest in technology and production capacity. Any repetitive task can be automated, whether it be filling in a form or moving an object from point A to point B.