1. E-Skills Summit - 29 May 2002

2. HOW SHOULD WE MEASURE SUCCESS? MICHAEL SANDERSON Chief Executive EMTA E-Skills Summit - 29 May 2002

3. HOW DO WE MEASURE IMPROVEMENTS IN BUSINESS PERFORMANCE? Productivity? Sales growth? Improved sales per employee? Employee turnover? Improved added value per employee? E-Skills Summit - 29 May 2002

4. UK’S RELATIVE PRODUCTIVITY POSITION (1999) E-Skills Summit - 29 May 2002 Source: EEF “Catching up with with Uncle Sam” 2002

5. PRODUCTIVITY Sunday Times – 23 December 2001 GDP per head UK $23,712 GDP per head Germany $22,590 GDP per head France $22,156 E-Skills Summit - 29 May 2002 Source: Oxford Economic Forecasting

6. PRODUCTIVITY (HOW DO WE MEASURE IT?) At broad macro level GDP per person (GDP/population) GDP per person employed (GDP/employment) GDP per hour worked (GDP/hours worked) E-Skills Summit - 29 May 2002

7. UK’S RELATIVE PRODUCTIVITY POSITION E-Skills Summit - 29 May 2002

8. MANUFACTURING PRODUCTIVITY GAP The Productivity Gap E-Skills Summit - 29 May 2002 Source: EEF “Catching up with with Uncle Sam” 2002

9. PRODUCTIVITY GAP E-Skills Summit - 29 May 2002 Source: EEF “Catching up with with Uncle Sam” 2002 What are the most significant actions that can be taken to close the productivity gap? Stimulate manufacturing investment Encourage greater uptake of lean manufacturing Deliver improvements in the infrastructure Reduce the burdens on business Encourage innovation Tackle skills shortages

10. PRODUCTIVITY (HOW DO WE MEASURE IT?) At company level Output per head Output per hour worked Sales or turnover per head Standard hours E-Skills Summit - 29 May 2002

11. HOW MIGHT WE HELP COMPANIES E-Skills Summit - 29 May 2002 People Skills Scoreboard Records: Off-the-job training investment in monetary terms Commitment to investment in training Output indicators

12. ICT LABOUR MARKET E-Skills Summit - 29 May 2002

13. SECTORS V. OCCUPATIONAL GROUPINGS E-Skills Summit - 29 May 2002

14. HOW MIGHT THE NEW SSCs MEASURE THEMSELVES? E-Skills Summit - 29 May 2002 Number of apprentices in training? Number of undergraduates in training? Adult workforce in training? Skills shortages reported by employers? Adequacy of training provision? Image of the industry?

15. CONCLUSIONS E-Skills Summit - 29 May 2002