Improvements in labor productivity have been the engine of U.S. economic power and prosperity since World War II. But in the past 15 years, productivity growth has faltered averaging just 1.4% annually, compared to long-term rates of 2.2% since 1948.
What the Most Productive Companies Do Differently
New research from McKinsey finds they have four strategies in common.
February 16, 2023
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Summary.
A new report from McKinsey Global Institute finds that U.S. productivity growth has slowed in the last 15 years to 1.4% annual growth (as compared to long-term rates of 2.2% since 1948). It also found striking variations in productivity among leading and lagging firms within each sector — a gap that is only widening. Across sectors and geographies, the most productive companies follow a playbook with these four elements: 1) They capture value from digitization; 2) They invest in intangibles (such as R&D or workforce capabilities); 3) They build a future-ready workforce; and 4) They take a systems approach. If more firms followed this playbook and brought the U.S. closer to 2.2% growth, it could be worth $10 trillion in cumulative GDP by 2030.
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