Politicians and policy‑makers rightly pay significant attention to the macro‑levers of productivity, such as investment and institutional structures. However, a complementary approach is to consider what an evidence‑informed, bottom‑up model for disseminating good productivity management practices across businesses might look like – particularly for SMEs, which make up the vast majority of the UK business stock.
Since early 2023, Exemplas, in partnership with Leeds Beckett University, has delivered precisely this bottom‑up approach to improving SME productivity. This has been achieved through a unique, research‑informed model delivered on behalf of the West Yorkshire Combined Authority through its Business Productivity Service. To date, this approach has supported over 300 SMEs across all sectors to improve their productivity and has demonstrated strong indicators of impact and effectiveness.
At the heart of this collaboration is the deployment of a research‑validated Productivity Improvement Framework with SMEs. The framework was developed through a partnership between academics, productivity consultants, and finance and accounting professionals. It was tested and evaluated through a rigorous academic study as part of the former Department for Business, Energy & Industrial Strategy (BEIS) Business Basics programme, led by Dr Ollie Jones at Leeds Beckett University.
The Productivity Improvement Framework provides a structured set of tools and methodologies that enable businesses to understand and diagnose their productivity challenges. This is followed by the development of a tailored Productivity Improvement Plan (PIP), incorporating measurable productivity improvement indicators to help focus activity, drive action, and support sustained productivity growth. Working alongside an Exemplas Productivity Manager, each business is supported through a structured advisory journey, overseen by university‑based technical experts.
The outcomes from the programme have been highly encouraging:
- Participating businesses increased labour productivity by an average of 12%
- 100% of businesses followed up reported that productivity had improved following their participation. On average, participants estimated this to represent a 25% qualitative improvement in productivity
- 98% of participants stated that, as a result of the programme, they are now considering productivity improvements in other areas of their business- indicating strong internalisation of productivity management practices and the potential for sustained future impact
- Businesses particularly valued the increased confidence gained in managing and understanding their operations, setting KPIs and monitoring performance. Many highlighted the positive impact this has already had on business performance.
- For those businesses that did not record measurable productivity improvements during the programme period, the primary reason cited was the failure to meet sales targets – often linked to challenging trading conditions. However, in all cases, qualitative feedback indicated that these businesses felt more confident and optimistic about future trading prospects due to the productivity management practices they had learnt through the service.
If you would like to learn more about our work to improve business productivity, please contact Rob Sale at business@exemplas.com.