Tuesday, 2 November 2010

Turning the economy around ... by REDUCING untapped talent!

The CIPD has today highlighted how the private sector will be hit harder by the cuts than the public sector.  Their research suggests that government's spending cuts and the rise in VAT to 20% in January will result in more than 1.6 million job losses across the public and private sectors by 2016 ...  

Spending cuts     725,000 public sector job losses
Spending cuts     650,000 private sector job losses 
VAT rise            250,000 private sector job losses
Total              1,625,000 jobs

The Chartered Institute of Personnel and Development said the impact of the Spending Review had been "understated".  John Philpott, chief economic adviser to the CIPD, said the number of public sector job losses cited in the Spending Review looked like "an underestimate, given what most public sector managers are telling us".

Some business groups, such as the CBI, have said that job creation in the private sector will be able to compensate for losses in the public sector.  Yet the CIPD said that the private sector would be hit harder than the public sector.  Can both be right ...?

If a concerted effort is made to apply 21st century management practices in both the private sector and public sector then the economy will create a tidal wave of innovation and successfully turn itself around ... if this does not happen then all the honest, hard-working people of this country will have been betrayed by their 'leaders' ... and should never be forgiven.

... and do we currently have the progressive, forward-looking 'leaders' applying 21st century management practices in charge of our largest Corporations now ...  well I'm afraid the answer to this question unfortunately in the vast majority of cases is 'no' ... as currently many only understand 19th Century practices and 'Poweromics', e.g. reducing staff and rewarding themselves with big pay rises (e.g. a phenomenal 55% increase last year)!

21st Century management practice is about trust, honor and respect for people, and releasing all their untapped talent/creativity to create growth ... whilst 19th Century practice drives self interest and head-count reduction to create short-term profit ... 

... and our economy will fail to recover in any sustainable way if levels of untapped opportunity and talent continue to be systematically wasted as much as they are now (90%+), and it'll rapidly collapse if these become even worse!