8/11/2019 1325217 Productivity Pulse Wave 4 Summary Print

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The Ernst & Young Australian Productivity Pulse

Wave 4 May 2013

Findings andrecommendations

8/11/2019 1325217 Productivity Pulse Wave 4 Summary Print

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3 4Findings and recommendations

The Ernst & Young Australian Productivity Pulse

Wave 4 May 2013

How does your organisation rate; Productivity Scorecard

Productivity focus areas Description of good productivity practice

Organisation architecture(Effective organisationalmodel, structure andprocesses)

Productivity goals that are aligned to individual workers

Productivity goals throughout the organisation

Optimal organisational structure with clear denition ofemployee roles

Improving process efciency

The presence of policies and guidelines that are relevantto my role and match the aims of the organisation

Clear communication of the elements that driveperformance so that I know exactly what to do

People management

(Developing and utilising thefull talents and capabilities ofthe workforce)

A culture of valuing staff wellbeing and engagement

Provide effective constructi ve feedback on myperformance and development

Ensure peoples skills are matched to their job and thatthey arepaid appropriately

The workplace reects a mixture of skills, backgroundsand competencies

Ensuring the best people for the job are attracted to andretained within the organisation

Technology and capital

(Being more ambitiousand effective in processautomation andtechnology change)

Making sure systems are standard and simple to ensurean efcient workplace

Making particular activities automated

Availability of good data and information to helpmake decisions

Effective training to allow staff to get the most from newtechnology and tools

Innovation

(Being deliberate andaudacious with an innovationagenda and enablement)

A culture of continuou s improvement and collaboration

Constant generation and review of new ideas to improvethe organisation

The organisation striving to be the best in industry

or class

Innovation in all areas of the organisation

$305b productivitypotential revealed

Australia has a $305 billion

productivity potential On average, people could be 21% more

productive every day ($26,300 per

worker)

Growing divide between most and least

productive workers, who waste 1.5

hours more per day than their most

productive peers

Workers with a greater than 50%

productivity potential are more likely to

be junior employees who have been

with their company for fewer than

three years

Rosy employment gures mask

falling job security and hiddenunder-employment

Signicant fall in job security less thana quarter of workers feel secure in their

current role

Under-employment in the part-time

workforce 37% want to work

more hours

Measuring productivity vital toun-tapping potential

In organisations that measure

productivity, 88% of workers strive to

increase it

Only 39% workers are aware their

organisation measures productivity

78% of workers dont know what

elements drive performance

Workers top ve reasons

for productivity decline

1.Poor management

2.Lack of motivation

3.Lack of incentives/rewards

4.Staff treated poorly

5.Poor communication

To un-tap their productivity

potential, organisations need

to get clarity around what

constitutes genuinely competitive

work, declare a war on waste

and engage their workforces

to motivate people to make adiscretionary effort. These efforts

will require changes by:

Boards should be asking the right

questions, including what has been

the impact of our productivity

improvement initiatives over the past

2 years (not just cost reduction)?

What is our productivity potential over

the next 2-5 years? What productivity

levers are we using to achieve our

potential and how much value could

be created if we invested more or less

in each one?

C-Suite should be putting in place

the right productivity measures and

improvement programs, and seeing

that productivity is embedded andintegrated into the overall strategy of

the organisation. Having a clear line of

sight on what the organisations

productivity potential is over the next

2-5 years should be well known,

agreed and owned by the C-suite.

Managers should be lifting their

level of engagement with their staff,

creating workplaces that inspire and

motivate their teams, linking

organisational productivity measures

to individual performance metrics,

driving waste out of processes and

policies, ensuring the right mix andunit costs of resources are deployed

that match the outcomes demanded

of their departments, functions, or

divisions, and deploying the right

technology to automate transactional

work volumes and improve quality to

customers. Similarly, Managers should

also have a clear view of what

productivity potential exists in their

areas of responsibility and how they

will achieve it.

Government needs to take a

leadership role in promoting national

productivity. As an employer of over

16% of the workforce, government

needs to take ambitious steps to boost

public sector productivity, including

measuring and reporting annually onthe performance of agencies at local,

state and federal levels. It also needs to

stop adding to the uncertainty that

undermines business condence and

use policy levers to remove productivity

hurdles in the rest of the economy.

More work needed around

productivitydenition and metrics

At an industry level, common

productivity denitions and measures

would enable cross-industry

benchmarking. At an individual level, organisations

also need to establish a common

understanding of productivity, so the

Board doesnt view it differently from

the shop oor.

The Ernst & Young Australian Productivity PulseWave 4 May 2013

The answer lies in having the right culture, the right people in the right

jobs, and the right systems.

We need to drive higher employee engagement and participation,

greater efciencies around technology deployment and innovation, and

we need to understand the demand for quality jobs in the Asian century.

Neil PlumridgeOceania Advisory Leader

Issues Solutions