Best of: How Scandinavia cracked the productivity puzzle
Jun 4, 2024
auto_awesome
Exploring productivity challenges in the UK and learning from Scandinavian and Japanese economies. Contrasting work cultures, communication dynamics, and the impact of external advice on productivity. Insights on stagnant wages, work-life balance, and consensus-building in decision-making processes.
UK managers reluctant to seek outside help impact productivity.
Cultural factors affect productivity, highlighting the importance of clear communication and adaptability.
Deep dives
Productivity Challenges in the UK
The UK faces productivity challenges compared to countries like Norway and the US. Despite efforts to boost productivity, the UK lags behind its peers. Andrew Hill highlights the UK's struggle with productivity, especially since the financial crisis. One issue identified is the reluctance of corporate leaders to seek outside help, impacting the country's performance and predictive abilities.
Cultural Factors and Communication
Cultural factors play a role in productivity, with differences in how productivity is perceived across functions within companies. The narrative of productivity is often not well communicated in businesses, leading to varying perspectives on efficiency. British managers may struggle with clear communication and accepting outside assistance, affecting their ability to improve productivity.
Lessons from Nordic and Japanese Productivity Models
Nordic countries emphasize productivity through compressed workdays and a focus on efficiency. In Japan, long hours and hierarchical structures historically impacted productivity. Recent shifts towards remote work have challenged traditional work norms, highlighting the importance of efficient communication and adaptability for enhanced productivity.
The UK has a well-reported productivity problem, with mediocre managers, poor communication and chronic underinvestment all hampering growth. What can Britain glean from Norway, Sweden and Denmark, all of which have more productive economies? And what lessons can be learned from Japan, the only major developed economy that is less productive than the UK? Host Isabel Berwick speaks to FT senior business writer Andrew Hill to find out what ails Britain. Later, she chats to Leo Lewis, the FT’s Asia business editor, and Richard Milne, Nordic and Baltic bureau chief, to learn how the UK could perform better (or worse…) This is a repeat of an episode published at the end of October, 2023.
FT subscriber? Sign up to get Isabel’s Working It newsletter in your inbox every Wednesday: ft.com/newsletters
Presented by Isabel Berwick, produced by Mischa Frankl-Duval, mixed by Simon Panayi. The executive producer is Manuela Saragosa. Cheryl Brumley is the FT’s head of audio.