The Productivity Puzzle
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How can we achieve productivity, innovation and creativity in our organisations? Why does buying the latest exciting DevOps tool not always lead to the increases in productivity which should be achievable? How do we measure productivity and does it always make sense? This talk delves into the world of motivation and culture to look at what we need to do to develop a highly productive work environment and the common mistakes which we make along the way.
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The Productivity Puzzle
- 3. 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 UK Productivity - Index : 2008 = 100 (Source ONS) @IvanaTerrorBull
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- 15. efficiency of obtaining outcomes How good is the team at estimating? @IvanaTerrorBull
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- 19. ? What value is delivered in each release? @IvanaTerrorBull
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- 21. Revenue Customer Satisfaction Number of Customers Avoiding Reputational Damage Shareholder Satisfaction… @IvanaTerrorBull
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- 28. 0 50 100 150 200 250 Inspired Engaged Satisfied Dissatisfied Productivity (Index : Satisfied=100) @IvanaTerrorBull
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Editor's Notes
- QUESTION - Who in the room likes puzzles? Statistics Politics Puzzles
- Output per Hour for the whole economy. Created from https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/datasets/productivityjobsproductivityhoursmarketsectorworkersmarketsectorhours
- Why do we care? GDP growth Income growth
- Please imagine a ladder with steps numbered from zero at the bottom to 10 at the top. The top of the ladder represents the best possible life for you and the bottom of the ladder represents the worst possible life for you. On which step of the ladder would you say you personally feel you stand at this time? - Cantril Ladder (Gallup World Happiness Survey)
- Problems Part time workers
- QUESTION - Problems Problems Self employed Estimates of hours worked Offshoring Is GDP really output? Services Healthcare Causes Lack of investment? Why invest in machinery when labour is cheap? Reaching end of productivity improvements from computing? As we move to a more service based economy can we expect increases in productivity?
- Overall, how satisfied are you with your life nowadays? (ONS)
- QUESTION – what agile productivity measures do people use?
- Overall, how happy did you feel yesterday? (ONS)
- Align to feature goals
- Overall, to what extent do you feel the things you do in your life are worthwhile? (ONS)
- Innovation drives productivity (OECD) (OECD) The Future of Productivity
- (Baas 2008) – A Meta Analysis of 25 years of mood-creativity research: hedonic tone, activation, or regulatory focus? Baas M, De Drew CK, Nijstad BA. Psychological Bulletin, Nov 2008, 134(6), 779-806.
- Gallup – top quartile compared to bottom quartile for engagement (Oswald 2015) – Happiness and Productivity, Andrew J Oswald, Eugenio Proto, Daniel Sgroi, Journal of Labor Ecenomics, 2015, 33(4), 789-822 (Gallup 2016) – The Relationship Between Engagement at Work and Organisational Outcomes. J K Harter, F L Schmit, S Agrawal, S K Plowman, A Blue. Gallup. Apr 2016. 9th Ed. – top quartile verses bottom quartile
- Edmans 2014 – compared ‘Best Companies to Work For’ to stock price in 14 countries. Gallup – top quartile compared to bottom quartile for engagement (Edmans 2014) – Employee Satisfaction, Labor Market Flexibility and Stock Returns Around the World. Alex Edmans, Lucius Li, Chendi Zhang. National Bureau of Economic Research, Jul 2014. (Gallup 2016) – The Relationship Between Engagement at Work and Organisational Outcomes. J K Harter, F L Schmit, S Agrawal, S K Plowman, A Blue. Gallup. Apr 2016. 9th Ed.
- (Harvard Business Review 2015) – Engaging Employees is Good but Don’t Stop There - https://hbr.org/2015/12/engaging-your-employees-is-good-but-dont-stop-there
- Inspired employees – meaning and inspiration from company’s mission / inspirational leadership (HBR 2015) Engaged employees – making a difference / having an impact (HBR 2015) Sense of achievement (CMI 2016) Making a difference (Herzberg) Fulfilling (NHS) (HBR 2015) – Engaging Employees is Good but Don’t Stop There - https://hbr.org/2015/12/engaging-your-employees-is-good-but-dont-stop-there (CMI 2016) – The Quality of Working Life, CMI Jan 2016 Two Factor Theory. Frederick Herzberg. (NHS) - Employee engagement, sickness absence and agency spend in NHS trusts. Jeremy Dawson and Michael West. 07 March 2018.
- Open, empowering management style -> 2x productivity (CMI 2016) Engaged employees – autonomy (HBR 2015) (CMI 2016) – The Quality of Working Life, CMI Jan 2016 (HBR 2015) – Engaging Employees is Good but Don’t Stop There - https://hbr.org/2015/12/engaging-your-employees-is-good-but-dont-stop-there
- Challenge / In the zone / lose sense of time and space Intrinsically rewarding Two Factor Theory – motivator Variety and learning (Gallup) Engaged employees - Learn and grow every day (HBR 2015) Generating Eustress by Challenging Employees: Helping people savor their work. M B Hargrave, DL Nelson, CL Cooper. Organisational Dynamics 42(1) 61-69 Two Factor Theory. Frederick Herzberg. (Gallup 2017) – State of the Global Workplace 2017. Gallup. (HBR 2015) – Engaging Employees is Good but Don’t Stop There - https://hbr.org/2015/12/engaging-your-employees-is-good-but-dont-stop-there
- Workplace relationships increase engagement (Gallup 2017) Team cohesion increases performance (Yang 2004) Feeling part of a team (CMI 2016) Engaged employees - Part of an extraordinary team (HBR 2015) (Gallup 2017) – State of the Global Workplace 2017. Gallup. (Yang 2004) – Team Structure and Team Performance in IS Development: a Social Network Perspective. Information and Management 41(3) Jan 2004. 335-349. Heng-Li Yang, Jih-Hsin Tang (CMI 2016) – The Quality of Working Life, CMI Jan 2016 (HBR 2015) – Engaging Employees is Good but Don’t Stop There - https://hbr.org/2015/12/engaging-your-employees-is-good-but-dont-stop-there
- Working from home +13% on performance, 9% from working longer and 4% from fewer interruptions Higher satisfaction and attrition halved Does Working from Home Work? Evidence from a Chinese Experiment. N Bloom, J Liang, J Roberts, Z J Ying. 130(1). Feb 2015. Quarterly Journal of Economics. 165-218
- Frequent recognition (Gallup) and reward (Friedman) Vary the rewards / make them unexpected (Friedman) Experiences are better rewards than items (Friedman) Think about how you recognise – make it appropriate to the person (story) (Gallup 2017) – State of the Global Workplace 2017. Gallup. (Friedman) – Ron Friedman. The Best Place to Work.
- - early, often feedback on productivity Two Factor Theory. Frederick Herzberg.
- Happiness also gives us health Longevity (Deiner 2011) Reduced risk of cardiovascular disease (Boehm 2012) Reduced risk of viral infection (Cohen 2006) Why does this matter to an organisation? NHS Example 1 standard deviation increase in engagement -> reduction in sickness leave of around 2000 days pa / trust. £365k 1 standard deviation increase in engagement -> reduction in spend on agency workers of around £1.7m / trust (Diener 2011) Happy People Live Longer: Subjective Well-Being Contributes to Health and Longevity. Applied Psychology: Health and Well-Being 2011. Ed Diener, MY Chen. (Boehm 2012) The Heart’s Context: The Association Between Positive Psychological Well-Being and Cardiovascular Health. JK Boehm, LD Kubzansky. Psychological Bulletin. Apr 2012. (Cohen 2006) Positive Emotional Style Predicts Resistence to Illness After Experimental Exposure tp Rhinovirus or Influenza A Virus. S Cohen, C Alpler, WJ Doyle, JJ Treaner, RB Turner. Psychosomatic Medicine. Nov-Dec 2006 68(6) 899-815 (NHS) Employee engagement, sickness absence and agency spend in NHS trusts. Jeremy Dawson and Michael West. 07 March 2018.
- How do we measure happiness? Gallup World Happiness Survey - ladder Overall, how satisfied are you with your life nowadays? (ONS) Overall, to what extent do you feel the things you do in your life are worthwhile? (ONS) Overall, how happy did you feel yesterday? (ONS) Overall, how anxious did you feel yesterday? (ONS)
- Overall, how satisfied are you with your life nowadays? (ONS) Overall, to what extent do you feel the things you do in your life are worthwhile? (ONS) Overall, how happy did you feel yesterday? (ONS) Overall, how anxious did you feel yesterday? (ONS)
- QUESTION – happiest country? QUESTION – where is UK? Country Happiness score Finland 7.632 - Norway 7.594 - Denmark 7.555 - Iceland 7.495 Switzerland 7.487 Netherlands 7.441 Canada 7.328 New Zealand 7.324 Sweden 7.314 Australia 7.272 Israel 7.190 Austria 7.139 Costa Rica 7.072 Ireland 6.977 Germany 6.965 Belgium 6.927 Luxembourg 6.910 United States 6.886 19 - United Kingdom 6.814 (out of 156) United Arab Emirates 6.774 Gallup – World Happiness Report 2018