``American Businesses Lead in Employee Productivity'' says Global Productivity Survey Sponsored by Proudfoot Consulting

Business Wire, Nov 30, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 30, 2001

Proudfoot Consulting:

Complementary Opinion Survey of 2700 CEOs Finds Productivity

Levels Unlikely to Change

Highlights:

-- 2001 US productivity levels at 61 percent compared to global averages
between 50-60 percent

-- Inadequate management and low morale cited as US productivity inhibitors

-- Global businesses lose 97 working days per year; US loses 88 working days
per year

A study released today of 1500 employees within the world's top companies revealed that the USA, along with Germany, had the greatest levels of employee productivity as compared to the UK, Austria, France and Hungary. Fueling American productivity are high marks given by employees for the qualification of staff and information technology-related issues within their organizations - rankings that outpaced all other regions in the study. The first annual survey entitled "Lost Time: the Global Productivity Survey" was conducted by publicly traded Proudfoot Consulting (LSE:MMC.L) who have provided global management consultancy services for more than 50 years.

Possibly the first productivity-related study conducted on a global scale since the tragic events of September 11, the Proudfoot study revealed that American employees still lead in overall productivity, generating levels of 61 percent compared to an average of 50 to 60 percent by the majority of businesses in other regions of the world. Even though the USA leads, the study revealed that based on 225 working days, 88 days in American businesses are being lost due to lack of productivity, costing businesses $2375.1 billion a year. Proudfoot findings estimate that the optimal productivity level could be near 85 percent -- the delta representing a potential gain of $1461.6 billion per year for American businesses alone.

In line with findings from other regions, insufficient planning and control and inadequate management and supervision were key drivers of non-productivity in America. Interestingly, apart from the UK, American businesses suffered more from poor working morale than businesses in any other country studied. Commenting on the downside of American productivity, Proudfoot Consulting President of the Americas Luiz Carvalho added, "The high marks from technology investments and training coupled with low indicators for planning, management and supervision tell us that American businesses could realize the benefits of increased productivity without making additional capital investments. US levels will rise dramatically if steps are taken to improve management and supervisory roles, ensuring that managers tackle problems before they occur; spend time on managerial activity rather than administrative and manual tasks; and communicate effectively to employees."

Survey Methodology

The productivity report sampled 1568 employees across seven global regions about planning and control, management and supervision, morale, IT-related issues, communication and qualifications across a representative sample of businesses in the finance, automotive, retail, natural resources and telecoms sectors. Employees spanned several different areas within companies including administration, indirect production, warehouse, production and sales/marketing. Proudfoot studies are conducted by a Proudfoot consultant who observes individuals within the company as they perform their daily tasks. Each study typically lasts 4-8 hours. Proudfoot's Productivity Study includes a minimum of 15,900 hours with management and sales staff, conducting an in-depth analysis of the company's processes and approach. Proudfoot plans to commission and implement this study on an annual basis, providing statistics that can be used as a benchmark over time.

Additional CEO Survey Reveals No Predicted Change in Productivity

Levels

To complement the productivity study, Proudfoot also commissioned the OGM Institute in Vienna, a leading Market Research specialist, to interview 2700 CEOs from private companies across the globe to gauge their current perceptions of productivity within their organizations and predictions for the future. Just over two-thirds of American CEOs surveyed believed that productivity within their companies increased in 2000 an average of 4.5 percent. Apart from Hungary, this was the largest increase across the regions surveyed. Outlook for 2001 is not as favorable. The surveyed American CEOs were the most pessimistic when it comes to predicting productivity levels for 2001, with only 50 percent believing there will be an increase. Those American CEOs who believe that the productivity of their companies will increase estimate this at 2.7 percent. Although this seems low, the percentage of productivity increases predicted by American business leaders is higher than the growth predictions by most European countries. Case in point, 1.4 percent in the UK and 1.2 percent in France.

For copies of the survey and other data regarding productivity, please submit a request online at http://www.Proudfootconsulting.com.