What is productivity, really? And how do we measure it in this new world? Is the A.I. revolution a threat or a catalyst? In this episode of «It’s not that simple», British economist Nicholas Bloom explores the new frontiers of productivity and the challenges facing modern management today.
In 1911, it was enough to «count how many shovels of coal a worker moved per hour». But today, productivity metrics are far less tangible. A Google programmer, for instance, might be more productive by writing fewer lines of code.
But the reason some countries are less productive than others is clear. According to Bloom, it’s not about working hours or remote work. The real issue lies in management.
Having studied management practices and worked at McKinsey & Company, Bloom highlights the strategic intensity of American firms: «They measure everything, set tough targets, and reward quickly». In Portugal, that doesn’t happen.
But there are solutions. Bloom offers several strategies for business leaders, yet emphasizes one that goes beyond company walls: lighter market regulation. As he puts it, «the government should be like a football referee, set the rules, but stay off the pitch».
In this open-market logic, competition is, for the Frisch medal winner, the true engine of productivity. «The US remains the most productive country in the world because it has highly competitive markets».
And what about the future? Though it raises concerns for younger generations and their career prospects, Bloom believes artificial intelligence could spark a new leap in productivity.
«Productivity has been slowing down for the past 50 years. It’s like an apple tree where we’ve already picked all the low-hanging fruit, only the hardest ones remain at the top». But could AI be the new orchard?
More on the topic:
Nicholas Bloom's work
Nicholas Bloom's X account
«Go ahead, tell your boss you're working from home», TedXStanford by Nicholas Bloom
Only in portuguese:
«Como será o futuro do teletrabalho?», Da Capa à Contracapa (FFMS)
«O que é a produtividade?», [IN]Pertinente podcast (FFMS)
«Os mitos da produtividade», [IN]Pertinente podcast (FFMS)
Infografia: «Onde pára a produtividade?» (FFMS)
«Sobre o Futuro do Trabalho», de Pedro Portugal (FFMS)