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By: Robert F. Abbott When Phil hires a new helper for one of his construction projects, he first watches to see whether or not the newcomer has the right attitudes and habits to keep him as an employee. And, if the newcomer meets expectations,' Phil introduces him to his philosophy about work by telling him the woodcutters story. Two woodcutters who are working together for the first time, set off in the morning to cut down trees. One woodcutter works very hard, and aside from a couple of breaks, works steadily all day. The other woodcutter, though, seems to take many more breaks, at least one every hour. So the first woodcutter expects he'll have cut down many more trees by the end of the day. But, when they quit for the day, the first woodcutter finds, to his surprise, that the second woodcutter has done more, despite taking all those breaks. And, in his frustration, the first woodcutter wonders out loud how the second woodcutter did it. The second woodcutter couldn't help but hear the first woodcutter's question, and replies, 'Yes, I take many more breaks, but every time I take one, I sharpen my axe.' Phil uses this story of the woodcutters to explain his ideas about productivity, and he doesn't relate it to the productivity which economists refer to in their statistics. Phil thinks of productivity in a very immediate way: how many nails you can drive in one hour, for example. The economists are talking about the same thing, only they're talking about it as the sum of many millions of businesses and organizations, so they're talking about productivity in an abstract way. Whatever the case, productivity simply refers to the amount of value you can get from labor, land, or capital (invested money). As we'll see in the next section, Phil's income goes up when he (and his helper’s) productivity goes up. Increasing productivity across a whole nation is also good news. It means everyone in society becomes more prosperous, that everyone (or almost everyone) will have more money to spend or save. Increased productivity can also mean lower prices. For example, if carpenters and home building companies increase their productivity, then house prices will go down. Generally speaking, though, consumers, owners of businesses, and workers in those businesses all share productivity gains. And what about people without job? Well they often gain, too, because when businesses owners and workers make more, they pay more in taxes. In turn, that makes more money available to governments for social programs. Having heard all that, you may be skeptical, thinking your prosperity hasn't gone up much, if at all. But you'd be wrong. Productivity has gone up, and gone up a lot over the past two hundred years, and especially over the past 50 years. It may be invisible to most of us, but productivity is one of the silver bullets that have given us our prosperity and so many of our choices.
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More Articles:1. Building A Practice On Purpose Series Part #1 - Blueprint For Building A Practice On Purpose By Brad Swift Have you ever seen a skyscraper being built? If so, you know that for the first several weeks or months, very little appears to be happening, at least above ground. That's because the initial work is focused on building a solid foundation. The higher the skyscraper is designed to be, the more solid the foundation needs to be to support all those stories.The foundation of a Practice On Purpose is what I refer to as "Clarity of Purpose," which includes all the components under the ==== line i… 2. The Significance of the Mundane This article begins with a tip of the hat to a scholarly publication called the Journal of Mundane Behavior. Unlike other publications, which herald important issues, this one trumpets everyday, but rarely noticed, behaviors. It sees what the rest of us overlook because that stuff is so, well, mundane (my dictionary defines 'mundane' as being ordinary or common).For example, I just read an article in the Journal about beards and shaving, one that interests me because I've had a beard for almost … 3. Character: Is It Necessary In Leadership? PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.com Word count: 1000 Character: Is It Necessary In Leadership? By Brent Filson Character plays a vital role in leadership and one's career. Yet few leaders come to grips with its cont… 4. Are You Managing to Lead? Are You Managing to Lead?By Monty J. Sharp, Certified Comprehensive Coachhttp://www.workteamcoaching.com For many people, the terms “manager” and “leader” are synonymous. In the business world, they are often used interchangeably, i.e. “team leader”, “team manager”, “project manager” - you get the idea. And why not? After all, leaders and managers do basically the same thing, right?In some instances, there do seem to be commonalities between the two and management techniques are sometimes confus… |
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