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Whilst some arbitrarily debate whether recovery is already on its way (e.g. based on outdated & flawed GDP measures) ... and others debate what more Quantatitive Easing actually means ... real insights about our 'economy', and some of the additional challenges/chasms ahead, slip out ... almost unnoticed !
With Government debt continuing to grow, with more businesses collapsing and with tax revenues falling rapidly, it doesn't take a rocket scientist to work out that the day of reckoning is not far away. The current Government have simply chosen to defer it - i.e. until after the general election next year - so they can avoid any blame and pass the problem onto someone else (Trust, Honor, Responsibility, Respect - I think not!)
After the general election, the delayed/stored up reality check will hit (like a tsunami), with unprecedented tax hikes and the slashing of public sector jobs (in a desperate attempt to balance the books). Unemployment will continue to rise and the systematic spiral of failure will continue to grow. Unions leaders are already predicting this and are preparing for battle - blaming politicians policies (and bankers greed) for the mess the UK economy is in.
Enough to cause a 'double-dip' recession? The unions certainly think so and so do I. What's more, what they've been referring to so far is arguably just the tip of the iceberg ... so let me explain ... and refer to more insightful news stories published today too ...
Outdated leadership and management practices (19th/20th century), demonstrated by most UK leaders/managers today (including politicians, civil servants etc), primarily focus upon extrinsic motivation, self interest & personal gain ... with managers in offices (remote from the work) making all the decisions, telling people what to do and driving them to hit arbitrary targets in order to get a bonus ... rather than going to the front line, listening to customers/staff and supporting front-line staff in their quest to continually improve how value can be provided to customers (nb this is what 21st century leadership and management practice is all about - take a look at my book for instance) ...
The former systematically generates frustration and stress, for customers and front line staff alike. It also drives people to manipulate 'the system' in order to meet their targets & goals; deflecting people away from the real purpose of the enterprise (i.e. to create value for customers) which destroys teamwork, morale, and the future of the enterprise too. Such practices have also been shown to systematically generate between 40-90% waste in terms of both time and resources as well - i.e. traditional enterprises spend most of their time (and resources) wasting time, effort and money, for their customers ... whilst stressing them out in the process too ...
... and a traditional manager's response to this ... "it's just the way work is" ... and "let's send everyone on a 'stress management' course - to help them to process stress" (and to also reduce the risk of being sued!) ...
The problem with the traditional management statements above is that they are both wrong - and flawed. 21st century management practices do not involve helping people to 'process stress' - they focus on systematically 'eliminating stress'! ... so there is no need for stress management courses at all ... (i.e. such courses are a 'cost of failure', and they do not reduce the risk of leaders/managers being sued either).
Enterprises applying 21st century leadership and management practices do not just transform the performance of the enterprise, they transform the lives of people - forever, and for the better. Most enterprises applying such practices quickly transform their capability (e.g. improvements of between 40-1000%) and change out of all recognition. Staff moral is positively transformed and stress is systematically reduced. People are naturally motivated to innovate, to add value and to help others. They are also more than capable of finding new ways to improve current products/services and to find new products/services that would allow even more value to be created too (given the opportunity). All they need is clear direction, as well as trustworthy leaders & managers who support them on the front line, who listen, learn, and help them to systematically improve how value is provided. Again not rocket science - just rarely practiced in traditional enterprises.
Stress, and the impact of stress, on people is heavily responsible for the 'eighth waste' in 21st century management practice ('untapped talent') - as it destroys people's desire/ability to contribute, to be creative or to think rationally (e.g. take a look at Ch. 8 of my book). It also impacts on people's overall well-being, as well as the well-being of those around them ... which impacts on communities/nations as a whole too (NB hence it's inclusion in the 'BUTS' test).
The National Institute for Health and Clinical Excellence (NICE) today said the cost of work related mental illness was £28bn - a quarter of the UK's total sick bill, and it also made clear that the stress created as a result of bad management/managers was the single biggest cause of problem. The 'economic loss' of stress goes way beyond the £28bn referred to here too ... this is literally just the tip of the iceberg.
Those leaders who believe stress management courses will 'protect them' from 'being sued' are I'm afraid also sadly wrong ... as 'ignorance' is 'not bliss' (or a defence - nb landmark cases are already occurring - but are mostly settled out of court to avoid publicity). The writing is on the wall now that 21st century leaders & managers have demonstrated the capability/outcomes created from applying 21st century practices ... which highlight the way forward, as well as the fundamental flaws in traditional practices ...
21st century leadership/management practice and examples will no doubt be used in evidence against those continuing to apply outdated traditional 19th/20th century practices ... and as millions of law suits start to get filed, yet more traditional private enterprises will go bankrupt ... and yet more taxpayers money will be diverted away from providing front line services (to pay for millions of out-of-court settlements) ... joining all the taxpayers money already being diverted to service Government debt, as well as the colossal (and unfunded) civil service pension liability ...
Double dip, absolutely ... a 'triple dip', and a 'quadruple dip' to follow, very likely too I'm afraid ... unless current leaders/managers change course dramatically, and quickly ...
The UK could successfully turn itself around (nb Singapore did it), but it will require very different political leaders to the ones we have now ... and things are going to have to get much worse before the level of Ignoromics reduces sufficiently for Poweromics to be effectively challenged ...
Referred to in Stephanie Flanders blog "Is Britain growing yet"? (post 64).
