The document outlines Alberta's Productivity Action Plan to make Alberta a regional leader in productivity and innovation. It discusses the need to improve productivity given Alberta's lagging productivity growth rate. Key reasons for the lag include capital investment not being fully productive yet, labor challenges, and low adoption of new technologies. The plan establishes "Productivity Inc" as an umbrella program to raise awareness and application of productivity and innovation. Productivity Inc will provide industry with tools, programs, policies to improve productivity across key pillars of action, clients, and current/planned activities.

1. Alberta’s PRODUCTIVITY Action Plan Alberta Finance and Enterprise “ Creating Alberta as the Regional Leader in Productivity and Innovation” THE NEED FOR AUTOMATION

2. Finance and Enterprise Minister’s Mandate Develop and implement policies, initiatives and tools to help Alberta businesses to improve their productivity and global competitiveness

3. What is Productivity? Working smarter not harder! The value of what we create in an economy (GDP) per unit of resources – whether the resources are an hour of labour, an hour of machine time or a barrel of oil Labour productivity is defined as: GDP per number of hours worked Annual change in real output per hour worked

4. Alberta Labour Productivity Growth Total Economy Labour Productivity Growth Rates 1997 – 2007 (Based on Hours Worked) High overall productivity - yet - Reveals the lowest average growth rate amongst the provinces

5. Why Is Alberta’s Productivity Lagging? Significant capital investment in the energy sector not yet ‘productive’ Worker “tool time” and productivity in major projects is problematic Persistent labour challenges Pressures on other economic sectors from capital flows to oil sands related projects and competition for labour Low investment in new equipment and technology slow adoption of new processes Lagging workplace training

6. There’s Something About Productivity Efficiency vs. Effectiveness Efficiency = doing things right Effectiveness = doing the right things Peter Drucker: “One without the other is not worth a damn!” Constraints in the Global Economy Resources Outsourcing Supply/Demand Balances

7. It’s Also About INNOVATION 80% of innovation is non-technical Must capture multiple forms and sources of innovation to be highly competitive Innovation Engine Market Extension Technology Invention Product Improvement Integration System Solutions Business Models Re-Invent Process Improvement

8. Our Vision Our Mission “ Alberta is known as the most productive and innovative region in the world” “ Create a globally competitive environment for Albertans to prosper and thrive through collaborative innovation” Purpose “ To establish “Productivity Inc” as Alberta’s umbrella program whose purpose is to take productivity, innovation, and strategic competitiveness to new levels of awareness and application”

9. Productivity Inc. Connection point for all industry - immediate access to information, tools and programs and assistance in productivity improvement. Formation based on drivers of productivity: Investment in capital - machinery and equipment Technology adoption Competition Clusters of people and businesses Innovation Skilled workers and capable management Business policy and regulatory environment Scientific and engineering talent Pillars of Action: Education and Awareness Enhancement Tools, and Policies

10. Productivity Inc. Primary clients include: Alberta-based industry (manufacturers, processors, and service providers) Institutions, post secondary education centers, government, health organizations, and relevant industry associations Community-based economic development agencies

11. Productivity Alberta Web Portal

12. Current Activities & Tools Lean Manufacturing Assessments Management Capability and Capacity Benchmarking Tool Pressure Vessel Competitiveness Benchmarking Study Construction Mega Projects Automation Seminars

13. Policy Part of an overall productivity policy framework A broad review of policy from a standpoint of conduciveness to productivity growth including undertaking of a competitive gap analysis We will review and compare other jurisdictions' productivity and tax policies

14. Next Steps for 2008 Department will forward Minister's Report (MR) through government's decision making process - Fall Begin Building and Connecting Networks - Summer Leadership Team in place by August Business Plan submitted in October Coordinated productivity policy framework Launch Productivity Inc in November Incorporate productivity into labor force strategy (BETW) Developing business productivity toolkit