1. The role of management practices in closing the productivity gap
Uwe Aickelin (Nottingham)
Giuliana Battisti (Aston)
Chris Clegg (Sheffield),
Xiaolan Fu (Cambridge)
29th September 2005

2. Objectives
Assess the role of management practices in the productivity gap in selected parts of the service sector in the UK;
Identify key aspects of management activity for productivity;
Develop multi-level models of relevant variables, and use them to understand and predict practice;
Generate ideas on good practice for productivity improvements.

3. Rationale Continuing productivity gap, e.g., cf USA
Varied explanations
Emerging interest at the level of the firm
True also for service sectors
Likely to be multi-level and multi-disciplinary

4. Research stages
Stage 1 Review literatures from range of disciplines (months 0-3)
Stage 2 Examine existing databases (months 0-6)
Stage 3 Identify service sectors in which empirical work will be undertaken (months 3-6)
Stage 4 Review different modelling approaches to select the most appropriate (months 0-12)

5. Research stages – cont.
Stage 5 Use existing datasets and theory to develop first draft multi-level model (months 3-9)
Stage 6 Undertake case studies in relevant service sector companies to gain insights (months )
Stage 7 Develop and refine second draft of model (months 12-15)
Stage 8 Operationalise variables in model for survey (months 15-18)

6. Research stages – cont.
Stage 9 Collect data using large-scale survey of relevant companies in UK (months )
Stage 10 Analyse data and refine model months 21-27)
Stage 11 Identify lessons learned and good practice implications (months 24-30)

7. Outputs – Best case
An inter-disciplinary literature review of the area
An understanding of the role of management practices
A valid multi-level model for use in understanding and predicting practice
A set of lessons learned
Ideas on what represents good practice for closing the productivity gap

8. Outputs – Worst case An inter-disciplinary literature review
Better insights into, and understanding of, the role of management practices
Experience of modelling in this area including the difficulties involved
A set of comparative empirical findings
A set of lessons learned
Preliminary ideas on what represents good practice for closing the productivity gap

9. Progress Held meetings
Staff in place at three Universities from
Staff in Sheffield from
Include PhD students?
Links with Nick Bloom, CEP
Met John Lewis

10. What next Identify and discuss key issues, as raised today
Eg comparisons across companies or within companies (and across branches)

11. Literature review (1) What do we mean by productivity?
How is it currently measured?
What do we mean by management practices?
How do we measure and assess them?
Which ones to include in the study?
What evidences is there of the productivity gap? How is it measured?
What are the current explanations for this gap?

12. Literature Review (2) At which levels has the gap been investigated?
What models currently exist?
Are there any multi-level and / or multi-disciplinary models?

13. Levels Departmental (eg. Supervisory style)
Branch / store (eg. Empowerment of staff)
Firm / company (eg. Supply chain partnering)
External (eg. Availability of skilled labour)

14. Models Mathematical Model
Fix & Relax (Decision Variables vs. Constraints)
Simulation
Heuristic Optimisation
Stochastic frontier analysis
Statistical multi-level model

15. Regular meetings October 11 – Cambridge November 15 – Nottingham
December 6 – Aston
STAFF
China, Italy, Germany, UK, Nigeria, Vietnam, Australia, Mexico, Brazil, Thailand