Sri Lankan government productivity development seminar day1

Productivity Development
Prepared & Presented by:
William P. Kittredge, PhD
November 2014
www.cerveletconsulting.com
(c) Cervelet copyright 2014

Today's Agenda
 Understanding Productivity Management & Practices
 What is 'Productivity'?
 Why is productivity important?
 Factors influence productivity
 Productivity – a systems view
 What is 'productivity' in your context & how does it fit
into Sri Lanka's Mahinda Chintana?

What is Productivity?
 Productivity is an overall measure of the ability to produce a
good or service.
 More specifically, productivity is the measure of how specified
resources are managed to accomplish timely objectives as stated in
terms of quantity and quality.
 Productivity may also be defined as an index that measures output
(goods and services) relative to the input (labor, materials, energy,
etc., used to produce the output).

Why is Productivity Important?
 Generally speaking, the higher the productivity of a country, the
higher the living standards that it can afford and the more options
it has to choose from to improve wellbeing.
 Wellbeing can be increased by things like quality healthcare and
education; excellent roads and other infrastructure; safer
communities; stronger support for people who need it; and
improved environmental standards.

Characteristics of High
Productivity Nations
 High productivity societies are characterised by smart choices
about savings and investment versus current consumption;
dynamic and competitive markets; openness to trade and to
international connectedness; high awareness of external influences;
rapid uptake and smart application of new technologies, products
and processes; and increasing demand for highly skilled and
creative people. These are the successful societies that attract and
retain people, ideas and capital.

Why is Productivity Important?
 Generally speaking, the higher the productivity of a country, the
higher the living standards that it can afford and the more options
it has to choose from to improve well-being.
 Well-being can be increased by things like quality healthcare and
education; excellent roads and other infrastructure; safer
communities; stronger support for people who need it; and
improved environmental standards.

Best Practices
 There is no simple formula. Lifting productivity is ultimately the
product of individual and organisation decisions about how to
generate value.
 There are some general foundations for improving productivity,
such as respect for the law and property rights; effective
governance arrangements; and an attractive business environment,
including a high-quality low cost regulatory environment.

Best Practices
 the degree of openness & competition in markets, which is
important to incentivise innovation, improve allocation of
resources and achieve more dynamic performance;
 investment & other strategic choices made by organisations (e.g.,
using new and smarter technology), which depend on the quality
of governance and management;
 the attitude and effort of employees toward ongoing training,
finding business improvements and helping implement beneficial
change;

Best Practices
 the quality of education and the attitude of students toward the
value of learning;
 the quality of government decisions (at all levels), in setting policy
and shaping regulatory environments, and deciding where public
money is spent; and
 the aspirations of individuals and families.

Productivity in Sri Lanka
 Very recently the present government has established the Ministry
of Productivity Promotion, and the NPS is working under that
ministry as the implementing arm of the productivity drive in Sri
Lanka.
 Vision: “To be the center of excellence in productivity promotion
in Asia by 2016.”
 Mission: “To enable Sri Lanka to face international
competitiveness through the promotion of productivity, contribute
to national development, and assist in the enhancement of the
standard of living.”

Policy Objectives
 To formulate and reformulate policies on productivity promotion
and labour market developments.
 To generate, stimulate, and promote consciousness and actions
necessary for increasing productivity and at all levels and sectors of
the Sri Lankan economy and society and for smooth functioning
of the labour market.
 To play an oversight and coordinating role in the processes
towards implementing productivity and labour market promotion
policies, programs and projects.

Policy Objectives
 To oversee and guide the development of productivity
management systems in all aspects and at all levels of the Sri
Lankan economy.
 To establish appropriate institutional frameworks and systems for
implementing the above objectives.
 Key indicator: “Elevating all the government institutions and
schools to “A” Grade level of their performance by 2018.” (1)

 Sri Lanka joined the Asian Productivity Organization in 1966, and
the Management Development and Productivity Center under the
Ministry of Industries was established in 1968.
 In 2001 the function of the National Productivity Secretariat were
transferred to the Ministry of Employment and Labour, which
deals with the total workforce in Sri Lanka. After the transfer, the
NPS was upgraded and a new office established. From the end of
2002, the NPS has functioned as the implementing organization of
the national productivity policy.

What is Productivity from Your
Perspective?
 Divide into groups
 Education group
 Government group
 Engineering group
 Discuss in the Sri Lankan context and with reference to
your specialities' needs and contributions.
 Report back to the larger group your findings and
recommendations

References
1. “Midterm Strategy for Productivity Promotion 2013-2016”
Ministry of Productivity Promotion
2. Osada, Takashi (1995). The 5S’s: Five keys to a Total
Quality Environment. US: Asian Productivity Organization.
ISBN 9283311167.
3. “Why is productivity important?” The New Zealand
Productivity Commission

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