Britain Appoints HBS Expert To Investigate Productivity

The British government has commissioned Michael E. Porter, a leading management expert at Harvard Business School, to analyze whether inefficiency in British management is responsible for the country’s lagging productivity and competitiveness.

According to a press release from the British Department of Trade and Industry, Porter has been invited to lead the $75,000 study, which is due at the end of January.

Several British newspapers, including the Independent and the Financial Times, picked up the story earlier this week.

But assistants in Porter’s office said he has not yet made a definite commitment to the project. They said he could not be reached and declined to comment on his behalf.

Porter, who is Lawrence University professor, has led major studies of national economies in India, New Zealand, Canada and Portugal, and has also worked with leaders in other countries on efficiency issues.

In announcing the new project, the trade and industry department cited a study by the International Institute for Management Development that showed standards of management and efficiency in British business pale in comparison to those of its economic competitors—Germany, the U.S., Canada and France.

“When you look at the gap in productivity between Britain and the rest of the world, too often it’s poor management of production processes and poor management of people that accounts for the gap,” Secretary of State for Trade and Industry Patricia Hewitt told the Financial Times.

Recent government studies have indicated that weak management skills contribute to Britain’s poor productivity. But some management groups have said the government is blaming managers for problems that are actually caused by increased regulations and taxes.

The new management study would be the first step in a $26 million project investigating the downfalls of managers and suggesting methods for improvement.