Why we must change, who’s responsible and what’s at stake
Britain has been struggling with productivity for over a decade (perhaps longer), it’s costing us dearly. Despite technological advancements, a highly skilled workforce and a history of innovation, the UK lags behind its global counterparts in output per worker. This isn’t a new problem. Productivity growth has been sluggish since the 2008 financial crash, and while other nations have rebounded, we’ve been stuck in the slow lane. If we don’t fix this, the consequences will be severe, such as lower wages, weaker businesses and a declining economy which we seeing signs of now. If we do fix this need, the rewards are enormous.
The reasons for our productivity crisis are many, but let’s cut through the noise. A toxic combination of underinvestment, outdated business practices and leadership inertia is holding us back. UK businesses invest less in capital, technology and infrastructure compared to our global competitors. We’re not equipping our workforce with the right tools to succeed. While Germany and the US invest heavily in automation and AI, we’re stuck – generally - debating whether we should or not. I’m hoping this changes as Kier Starmer wants us to be a world leader in AI will therefore support appropriately.
At the same time, there’s a major mismatch between the skills people have and the skills businesses need. Our education system is producing smart people, but are they learning what’s required for the future? Too many businesses complain they can’t find talent, yet we have graduates struggling to get meaningful jobs. Something isn’t adding up.
Leadership and management failures are another big issue in my view. Productivity isn’t just about working harder, we ‘know’ it’s about working smarter. Yet too many British businesses suffer from poor leadership, meaning decision-making is slow, accountability is lacking and leaders avoid tough calls and conversations. On top of that, bureaucracy and regulation seem to be strangling innovation. Businesses spend more time ticking boxes than driving value, while larger corporations find ways to navigate the system and smaller ones get buried under compliance costs.
We also need to face the fact that our workplace culture and attitudes need to change. Long hours do not equal high performance. If businesses don’t create environments where people can thrive and be at their best, more often, we’ll continue to see disengaged employees and lacklustre results. The way we think about work has to evolve.
If we don’t act, Britain will fall further behind. The consequences will hit every level of society. Stagnant productivity means stagnant pay, leaving workers struggling as living costs rise but salaries don’t. Businesses that fail to modernise will lose to international competitors, leading to closures, job losses and economic downturns. Public services will suffer too, because productivity drives tax revenues and without growth, funding for the NHS, education and infrastructure will weaken. And let’s not ignore the bigger picture, and that's Britain’s economic power depends on its ability to compete. If we don’t fix this, we risk becoming irrelevant on the world stage.
But there’s an upside, and a damn big one, too! If we lead the charge in fixing productivity, the benefits are simply enormous. Economic growth will surge, bringing more jobs and higher living standards. Businesses that embrace change will become more competitive, more profitable and better places to work. A smarter approach to work will improve work-life balance, making people more effective without burning out. And a productive economy is one that can weather storms, from financial crises to global pandemics.
So, who’s responsible for making this happen?
The government has a role to play in creating policies that encourage investment, reduce bureaucracy and modernise education, for sure. But let’s not wait for politicians to get their act together - change must happen at all levels, and I believe it starts with us. Business leaders hold the real power, they (we) must embrace innovation, upskill their workforce and rethink and rework outdated ways of working. Poor leadership is a productivity killer, and leaders who refuse to evolve will find themselves left behind.
This isn’t just a challenge for CEOs and politicians; communities and individuals have a role too. Productivity isn’t just about boardrooms, it’s as much, if not more, about attitudes towards work and value creation. If employees, educators and communities push for change, businesses and governments will have no choice but to follow.
Britain has no choice but to improve productivity. The world won’t wait for us to catch up. Leaders at every level need to take action, stop the excuses, invest in people and technology, and lead from the front. The cost of failure is too high, and the rewards for success are too great to ignore. The question is, who’s willing to step up and make the change happen?
The challenge of leading change, improving productivity, and fixing what isn’t quite right in business is tough, its emotional and failure intensive —but it doesn’t have to be done alone. This is where I come in. My MAE diagnostic and EXACT process provide clarity, certainty and focus to leaders who are serious about getting results. Businesses struggle because they often don’t know where to start, or they keep repeating the same patterns expecting different outcomes. I help leaders see the real issues, align their teams and drive meaningful change that boosts performance, productivity and profitability.
Yet asking for help remains one of the biggest hurdles in business. Leaders may fear it’s a sign of weakness, when in reality, it’s a mark of strength. The most successful leaders in the world don’t go it alone, they surround themselves with experts, coaches and people who challenge them to be better. If more businesses recognised that seeking help is not an admission of failure but a step towards success, we’d see a fundamental shift in performance across the UK.
I want to help. I see it as my legacy to help businesses build better, not just for profit, but for good. The UK needs stronger, smarter businesses that contribute positively to people, communities and the economy. It’s not about fixing things for the short term, it’s about building a foundation for sustainable success.
The opportunity is there for those bold enough to take it.
Let’s build better businesses, together.
Comments