The front page story in Tuesday's Financial Review "High cost,
low productivity nation'' hit many disturbing home truths about the
downward trend of Australia's competitiveness.
But, as always, when productivity is discussed, it essentially
relates to manufacturing, administration, or delivery of
services.
From our view of Australian companies, the problem of
productivity (ie cost effective employment, utilisation of
resources, leveraging brand assets and associated investments) is
too often found in go-to-market management.
It is the consequence of the lack of rigour in understanding
market behaviour, unrealistic or vague goal setting, short term
decisions that have a lasting impact on brands and shareholder
value, important (and indelible) communications direction being
pushed down the line (until there is a real crisis), and robotic
metrics that become box ticking games rather than measuring what
really matters.
This is also another area for silo thinking with unseen
ramifications and inefficiencies created in other parts of the
business.
So while the BCA is, thankfully, focusing on this critical issue
in its member interactions and Government dialogue, it is timely to
make sure that the scrutiny goes right across companies.
In particular, to look closely at the primary sources of revenue
and cash flow (that funds jobs and investment), and ask the
right questions about marketing effectiveness as a real influence
in productive investment.
Kevin Luscombe is Chairman of Growth Solutions
Group