Productivity in Czech industry
Productivity is currently on top of the agenda of business leaders from all sectors. A recent productivity study showed that the majority of businesses across the world were only operating at productivity levels of between 50 and 60 percent. In this week's edition of Economics Report, we take a look at how Czech companies are doing in this respect.
In the current economic and political climate, business leaders from all sectors are under huge pressure to perform and achieve results in the most cost-effective manner. However, a recent global study conducted by the agency Czipin&Proudfoot Consulting showed that the majority of businesses across the world are only operating at productivity levels of between 50 and 60 per cent. In real terms, a 1 billion-dollar company is squandering a theoretical 400 million dollars of profit annually which equals 97 working days a year for which a typical company achieves nothing of value.
The study reveals that insufficient planning and inadequate management account for around two-thirds of this lack of productivity. This is followed by poor working morale. Other significant problems are to be found in IT-related issues, ineffective communication and inappropriate qualification.
I spoke to Mr. Klaus Harrer, managing director of Czipin&Partner about the situation in the Czech Republic. The full text of the productivity study is available at www.proudfootconsulting.com