Productivity in practice
As part of the Summer Budget 2015, the UK government launched a plan to increase the nation’s productivity. The report, Fixing the foundations: creating a more prosperous nation, sets out a 15-point plan that the government will put into action to boost the UK’s productivity growth over the next decade.
Despite being home to some dynamic and innovative businesses staffed by talented and hardworking individuals, Britain’s productivity – the rate of output per hour worked – is well below its potential, particularly when compared to fellow EU countries and the US.
In response, Nestlé UK held an event this week to present its insights into fixing the productivity problem.
Held in London, Productivity in Practice presented a series of observations based on the company’s experience to show deep links between productivity gains, new technology and sustained improvements by staff at all levels. Although the examples presented were specific to Nestlé, the event showed how they could be applied more widely when addressing the nation’s productivity challenge.
Nestlé’s insights included:
- A sector with its own solutions – food and drink is an important driver of competitiveness and productivity up and down the supply chain
- Winning investment to the UK – securing compound investment from existing investors is as important for productivity as chasing first time foreign direct investment
- People and technology – workforce training is essential to realising productivity gains from new technology. Investment incentives should recognise this
- The power of bottom-up improvement – 21st century management must harness the power of bottom-up improvement
- Owning the talent pipeline – businesses must take ownership of their long term talent pipleline
- Health and productivity at work – the workplace provides a crucial opportunity for preventative healthcare
- Infrastructure – reliable infrastructure for transporting goods and people can boost productivity.
Addressing attendees, Fiona Kendrick, chairman and CEO, Nestlé UK and Ireland, said, “Nestlé UK has 8,000 people working at 20 sites. Our head office is at Gatwick but the real hearts of the business are our manufacturing facilities in Derbyshire, Yorkshire and beyond – our Northern powerhouses. As an arm of a global business we have to compete for investment within the worldwide group. To succeed, we must be relentlessly productive.
“Today we are sharing our experience of productivity, of what works and what might work better. And from that experience, we draw out some wider lessons for the UK. Insights that can help all of us – from government to business, universities to councils, schools to workforces – to pull together to deliver a productivity plan of action.”
I will be including a full write up of the event in the next issue of Food & Drink Technology, including Nestlé’s approach to the above topics.
While particular to the company, the examples reflect important perspectives on the challenge of increasing UK productivity, and the event certainly made the case that such evidence can and should be adopted by fellow businesses, as well as the government, in shaping approaches to tackling the productivity problem.
