We are being shaken up. Officially. Just recently, we published this blog about an initiative being implemented by the UK’s HMRC towards a more digitised way to reduce tax error and capital loss in the UK’s business community. And yet, there are still businesses who are on a trajectory for failure, simply because they’re not optimising the way they run their businesses.
Here’s the reality:
- Avoidable tax errors cost the Exchequer almost £9 billion every year
- Productivity loss associated with ill-health is costing the UK economy £77 billion a year.
- Unproductive workforces are costing British businesses a total of £22 billion each year
- Only 1 in 4 UK employees believe they are consistently productive at work
- Average UK worker spends 1 hour 24 minutes a day on tea breaks, chatting and on social media
- Poor customer service costs £28 billion per year in lost productivity
Paying attention yet?
There’s a grim reality that is costing us all a lot of money. It doesn’t have a flashing neon light overhead signalling where your money is flooding out from your business, or a Town Crier announcing where your teams are costing you a fortune. It’s in the smallest of detail, the slightest bottleneck of a process – and it’s a big, big problem.
Operational Productivity has been the topic of dissertations and talks, spreadsheets and analysis – and yet, with all that knowledge, the UK business industry still doesn’t appear to know where, when and how to tighten up, shape up and take notice. Because instead of getting better, these statistics are getting worse, year on year. And that’s a problem.
So, instead of driving productivity improvement from within the business community, steps are being taken (as in the case of the HMRC’s Making Tax Digital campaign) to drive this for us, and what’s happening is that businesses are now being given an ultimatum to change – and where this ultimatum should have little affect, the result is actually the opposite in that businesses are now floundering to upgrade systems, change process, adapt strategy. Not how we should be doing things.
But that’s how it is, and so change is required.
And it stems from the boardroom. In fact, no, it stems further than that. It stems from the desk of the person in charge. Change (and subsequently, and improvement on productivity) is not something that is done on the shop floor. Change, and an appetite to change, stems from the leadership team in charge. We’re not talking about coming up with a strategy and then delegating it to everyone else to achieve – we’re talking about business leaders who take an active, interested role in effecting and driving change for the sole purpose of improving productivity. Coming up with an idea is great, but unfortunately once that idea has been visualised, that idea is passed down to middle management and the rest of the organisation to roll out. The incentive? Very little.
Instilling a culture of productivity – which includes addressing a few hard-truths where you may not be performing – is critical if you hope to see any of your growth strategies successfully implemented throughout the rest of your business.
Let’s talk about workplace distractions for a minute: Workplace distractions are costing our economy £22 billion each year through unproductive workforces. And the biggest time wasters to the productivity levels in our teams? Tea and coffee breaks (13% of all distraction), disturbances from colleagues talking around them (11%), boredom (10%) and excessive meetings and emails (8% each). Shockingly, all of these self-inflicted. Not “excessive calls from customers” or “an overdrive of order fulfilment”, but things that are 100% completely within our own control. In fact, this study goes on to note that 1 in 10 employees (11%) admit to being unproductive for over four hours each day at work.
Well, you might be. Shockingly, the study also noted that despite these statistics emulating from our workforce, 9 in 10 (88%) British bosses believe their workforce is productive ‘most or all of the time’. Either delusion exists, or bad habits are being hidden.
Things are not as they seem – and that’s exactly why our economy is losing. And it’s all firmly within our ability to fix.
If you’re ready to uncover the hidden truths in your business, then talk to us. We are focussed on growth – yours. But you can’t grow unless you’re ready. And you won’t be ready unless you are 100% sure of what’s happening in your business.
Talk to us today.