EDITORIAI

The Problem of Productivity

I I NTIL recent years, America was the lJ shining example of productive output. Our rates of productivity led the world. American farmers produced more bushels per acre, while our factories produced more units per hour and per worker than virtually any other nation on earth.

Sadly, this is no longer true. Productivity, that unforgiving indicator of output per hour worked, fell last year, for only the second time in 32 years. Of perhaps greater concern is that it is only eight years ago that we had the first national slip in this important index of how hard and efficiently we all work; and that includes everyone, from boss on down.

While it might be a comfort to think that all those numbers the economists have gathered relate to someone else, the hard truth may be that you, your fellow workers, management, or even the machines of production, may simply not be turning out the goods and/or services required. Antiquated machinery, for example, has long been recognized as a prime suspect when a firm discovers it is not functioning efficiently.

DAVID CUTLER editor- publ i s her

When it comes to a company increasing its productivity, it takes a lot more than to have the boss charge out of his office and scream that, "we've all got to work a lot harder around here." Like involved problems in any area, there just aren't simple answers.

Which is not to say that the situation defies solution. Far from it. What a company often needs to do is to follow the textbook approch of identifying the problems, finding solutions to them and then implement the solutions.

While it can be said that all the above advice falls into the category of easier said than done (which is perfectly true) that doesn't address the problem or move a company and its employees any closer to an increase in productivity.

These indexes of productivity aren't based on smoke, hunches or witchcraft, but rather the unpleasant fact that, averaged out, every business in America declined in productivity last year.

Now, where do we start to do something to correct it?