Home > Uncategorized > Productivity growth and management practices

Productivity growth and management practices

S+B has a thought proving article about management practices and its ties to productivity by a MIT professor. It’s hard to summarize this article – it covers productivity, general prosperity and management practices through the years – but it definitely made me stop to think (always good). Some tidbits:

  • The companies that have made the highest gains in productivity have also improved the quality of their work and management processes. They have what we now call organizational capital. In fact, in a typical company, for every dollar of technology assets, we found that there’s about US$10 worth of computer-enabled organizational capital
  • Companies that combined the seven management practices (digital instead of analog processes, open information access, decentralization of authority, performance based incentives, a corporate culture, recruiting great people and a good training program ) of the digital organization with IT were much more productive — they achieved better results with less investment
  • When engineers design bridges, they’ve got software tools that allow them to visualize exactly where the stresses will be and how to put the beams together. When you design an organizational process, it’s much more abstract; there are fewer tools to help you visualize what you’re doing, and the effects are much more uncertain

Intrigued? More on the S+B site (registration required)

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