Productivity Marketing Campaign by CMmoo4ez


									                 The Productivity Challenge
                                              Productivity Alberta
                             Collaboration Innovation Transformation

                                                        Lori Schmidt
                                                  Productivity Alberta
E-Scan Summary (Global)
•   Stagnant global economy
•   Fragile state of the European debt crisis
•   Credit market tightening (globally)
•   Stable political environment (Canada/Alberta)
•   Unstable Middle East
•   Growing environmental pressures
•   Social media hottest trend
•   Productivity issue heightened in discussion in
    national agendas
At the regional/company level
 Companies are facing many challenges in their day to
 day operations:
      •    Engaging employees from a wide range of generations
      •    Shortage of skilled workers
      •    High turnover rates
      •    Too busy working in the business to focus on the
           business – margins slipping
      •    High costs of shipping goods in and out of the region
      •    Lack of resources to invest in technology
      •    Increasing competition
      •    Quality and safety concerns
             All these factors impact our ability
             to compete and to be productive
Where we started…
• Began at a local level
• Networks identified similar issues
• Explored the opportunity to collaborate on
  regional/local issues
• A key challenge of productivity and overall
  competiveness emerged as a consistent
What is productivity?
    Productivity is the measure of output for one unit of

    Productivity is about using all of our valuable resources
     in the most efficient and effective way possible – our
     people resources; our natural resources; and our
     knowledge resources

    It is a measure of a jurisdiction’s prosperity and
What is productivity?
Productivity = resourcefulness

 It’s the means to extend the resourcefulness of your
 It’s about unleashing the potential of people,
  resources, and time that are already in your control
 It’s about doing more with what you currently have
 It’s about working SMARTER – not harder
           Productivity Is NOT Necessarily About…

                    Eliminating jobs
                    Replacing people with machines
                    Short-term improvements
                    Cost-cutting initiatives

                     Productivity Is Actually About…
                       Meeting customer needs
                       Making work more satisfying for all
                       Increasing profits
                       Using less effort, space, equipment, time
                       Engaging and empowering workforce                                          8
What the experts think
“There are few issues that evoke a blank stare more than
productivity. Upon hearing the word, people either react with
lack of interest or recoil in fear that what is coming is a lecture
on working harder. The result is an absence of any serious public
discourse in Canada about productivity.”
                             Kevin Lynch, Globe and Mail – January, 26 2010

“Some of the ways to accomplish [an increase in productivity]
include employing more workers – which will be next to
impossible with an aging population – or giving the existing
workforce better tools to generate more production”
                                    Mark Carney, Governor, Bank of Canada
 Economic Well-Being and Productivity
Measures of Standard of Living and Productivity GDP/capita, GDP/employee,
GDP/hour worked.

                          International Rankings in 2010
                           GDP/capita GDP/employee            GDP/hour
            France                  9            5                   4
            Germany                 6            8                   5
            Ireland                 5            3                   3
            Italy                 10             9                   9
            Norway                  1            1                   1
            U.K.                    7            6                   6
            Canada                  4            7                   8
            U.S.A                   2            2                   2
            Australia               3            4                   7
            Japan                   8           10                  10
             Source: Groningen Growth & Development Centre and Conference Board
Ratio employment to population: lowest in France/Ireland; highest in Norway.
Hours/worker: lowest in Norway; highest in Ireland.
The US - Canada Productivity Gap
Labour Productivity
Why is it so hard to compare productivity levels?
• GDP is estimated and defined differently across jurisdictions, e.g.
  treatment of software purchases.
• Hard to estimate output/productivity in service sectors – often input
  based, especially in the public sector.
• Different industrial structures, e.g. Alberta is O&G based and Ontario
  manufacturing based.
• Methodological differences in estimation of employment, hours worked
  and physical capital.
• For international comparisons, GDP estimates have to be adjusted for
  price levels (e.g. Purchasing Power Parity) – largest problem.
• Comparison should be limited to jurisdictions with similar industrial
  Total Economy
  Productivity of Labour - 2010
              Real GDP per Hour Worked, in 2002 constant dollars


Source: Statistics Canada – GDP at basic prices
   Total Economy Labour Productivity Growth Rates
   2000 – 2010 (Based on Hours Worked)

                                                                          Annual Average
                                                                          Percent Change

Source: Statistics Canada and Alberta Treasury Board & Enterprise – basic prices
Market Economy -Multi Factor Productivity
Growth Rates 2000 – 2010

                                                        Annual Average
                                                        Percent Change

     Source: Centre for the Study of Living Standards
   Productivity conceptual policy framework

                                                           Labour Effort
      Prosperity       =         Population                Labour Force                              X       Productivity
      GDP/Capita                                                                       Intensity
                                   Profile                  Utilization

     Sources of              Value Added                                       Efficiency Gains

                             Skilled        Scientific &    Innovation   Investment    Competition   Business &
                             Workers &      Engineering                  in Capital:                 Policy Environment
      Drivers of             Management     Talent                       ICT &
     Productivity                                                        Machinery &                 Trade

‘Population profile’ is the proportion of the population which is of working age and available to contribute to the production
of goods and services.
‘Labor force utilization’ measures employment in the working age population.
‘Intensity’ looks at the hours per worker, or total hours worked by the engaged working age population.
Source: Path to the 2020 Prosperity Agenda -
Task Force on Competitiveness, Productivity and Economic Progress
Who is Productivity Alberta?
   Who we exist to serve:
   •Established small- and medium-size enterprises (SME’s) in
   •10 – 250 employees (typically) Industrial products and services
   (i.e. manufacturing, construction, mining, forestry, logistics,
   energy products and services
   •Future is beyond Alberta through collaboration and
Productivity Alberta – mission and purpose
Need: Improved productivity to enhance their competitiveness and
sustainable profitability.
Value Proposition:
• Objective, ongoing diagnosis, guidance and advice
• Client centered connections to quality resources; tools and programs
• Leading expertise in improving clients’ productivity and
• Cost effective accessible solutions
• Demonstrated return on investment
• Streamlined approach to accessing products and services
• A wide range of programs and service delivery options

Our Approach
Areas of Focus
                        Productivity Is…
            Driven by Leadership and Management

          Strong leadership and a                                     Leaders and managers visit the
          relentless commitment to                                    shop floor daily to see first hand
          continuous improvement               Leadership &           areas for improvement.
          are essential.                       Management

 Leaders and managers
 must build and nurture
 trusting relationships with
 employees, suppliers and

                   Leaders and managers must
                   inspire innovation.                                                                                 21
   Productivity Requires…Company-Wide Innovation

            Innovation generates the            Leadership &
            ideas that allow us to              Management

            continually improve.

Innovation comes from our
employees, from our                    Innovation
suppliers, and from our

                 Even small ideas can have
                 a huge impact on our
                 productivity.                                                  22
                     Six Kinds of Innovation

                                            •   Meeting a need in the marketplace
                                                where no solutions exist                Reconfigure the nature of how
                                            •   Adapting your product for use in        business is framed to serve the
   •   Product creation/development         •   a new market                            customer:
       with a new core technology                         Market                         • make it easier to do business
   •   Next/new generation,                              Extension                       • create more integrated products
       breakthrough/discontinuous                                                          and services
       technology                                                                        • devise better ways to be profitable
                                      Technology                        Business Models
                                                                                         • use resources in a new way
                                       Invention                           Re-Invent
         Improvements to products Product                                 Process
         in ways that allow                                                                Make processes:
                                   Improvement/                         Improvement        • simpler
         companies to:               Integration                                           • faster
         • be more competitive
         • create new value to the customer
                                                   System Solutions                        • more accurate
                                                                                           • more reliable
         • increase productivity
                                               • Rethinking & integrating                  • less expensive
                                                 existing systems                          • more integrated
                                               • Generating new systems to
                                                 solve existing problems                These are considered of equal value                                             23
          Productivity Is…Focused on Operations

                                      Leadership &                Our operations are the
                                                                  target for continuous

                                                                         There is non-value added
                                                                         waste everywhere in our

                                                                              Engage all employees to
                                                     Operations               find ways to improve

                                                                   experimentation and                                                                              24
                                                                   incremental change.
How we provide services
         Begin Your Productivity Journey

                                                STEP 1
                              Measure Your Organization

                             Use our Productivity Assessment
                               Tool (PAT) to critically analyze
                                                 your business
          Begin Your Productivity Journey

                                                Step 2
                             Speak with a Team Member

                             Once you’ve completed the tool,
                               PA will help with analyzing the
                                results and walk you through
                                               your next steps                                       29
           Begin Your Productivity Journey

                                                     Step 3
                                          Develop Your Plan

                             Develop an Action Plan and access
                             the programs and services specific
                                   to your organization’s needs                                        30
           Begin Your Productivity Journey

                                                       Step 4
                                     Put Your Plan in Motion

                             Now that you have developed your
                              plan, it is time to put it into action                                             31
New program initiatives
• Expand delivery options
    – Webinars
    – Online resources
         • Energy Efficiency Toolkit for example
    – Take away materials

• Expanding partnerships
For More – Visit Us
 Visit the Productivity Alberta web portal

 Call us at 780 784-6000

 Follow us on Twitter @ProductivityAB
 Join us on Linked.In

To top