People are the most important asset
It is often said that people are the most important assets of a business. Many organisations repeat this mantra but few take it seriously enough. The truth is that organisations can only achieve their goals if the people within them have the right knowledge, skills and attitudes.
Business is change
No organisation operates in static environment and the pace of change is increasing with globalisation and modern communications.
Change comes from external sources such as the actions of competitors or the needs of customers. It also comes internally as a result of a need to improve a process or respond to individuals expectations and desires.
For businesses to be successful they must constantly assess the knowledge, skills and attitudes their people require both now and in the future and have robust processes to ensure those plans are implemented in the workplace.
Poor skills contribute to productivity gap
In December 2006 Lord Leitch published his final report ‘Prosperity for all in the global economy- world class skills” Here are some conclusions!
Productivity - The French worker produces 20 per cent more per hour than the average UK worker, the German worker 13 per cent more and the US worker 18 per cent more.
Skills - one fifth or more of the UK’s productivity gap with countries such as France and Germany results from the UK’s relatively poor skills.
- Management - Differences in management practice between the UK & USA explain 10 to 15 per cent of the productivity gap
- UK has some serious problems with management, and overall the UK was ranked behind the USA, Germany and France.
in addition:
- A recent study showed that the UK spent €1,600 per manager on management development, less than any other country in Europe and compared to €4,400 in Germany.
- The CBI describes Improving management and leadership as one of their most important priorities.
- The Small Business Service (SBS) states ‘leadership and management capability is a key determinant of business success’.
