ABSTRACT

Productivity is critical in several ways. It is the ability to do things efficiently, and particularly more efficiently than others, that, at the end of the day, determines wealth. When productivity growth is in the red, employers are getting less than added value from their endeavour. New investment in many areas makes little sense and margins in existing businesses become increasingly difficult to achieve, as Italy, Luxembourg, Holland, Spain and Switzerland will be finding out. For management guru Peter Drucker, the urgency of the productivity challenge is great. 'The country that does this first will dominate the twenty-first century economically. Unless this challenge is met, the developed world will face increasing social tensions, increasing polarization, increasing radicalization, possibly even class war.' The noteworthy aspect about Drucker's remarks is that they were made more than a decade ago and, since then, progress in the productivity stakes has earned only slim pickings.