Rethink

Rethink... productivity

Jun 12, 2025
Margaret Heffernan, a Professor of Practice in Management and former CEO, discusses the chronic productivity issues plaguing the UK. She highlights that despite longer office hours, the UK's productivity lags behind countries like France and Germany. Heffernan explores the detrimental effects of negative management practices on employee potential and advocates for a culture that prioritizes creativity and engagement. The conversation also touches on the government's crucial role in fostering productivity through education and infrastructure reform.
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INSIGHT

Management Culture Impacts Productivity

  • UK management assumes workers will slack and thus creates costly oversight.
  • US management trusts employees to grow, fostering better productivity and innovation.
INSIGHT

Multiple Factors Drive Productivity

  • Productivity depends on effective use of technology, skills, management, capital, and infrastructure.
  • These factors combine to determine overall productivity of firms or workers.
INSIGHT

Public Sector Productivity Measurement

  • Measuring productivity in the public sector is challenging due to non-market outputs.
  • Some services like health have useful metrics; others like policy departments are much harder to measure.
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