Harriet Robinson, ONS, OECD Productivity Workshop, UK, 14 October 2016

1. Management Practices Survey:
Pilot development and initial results
Harriet Robinson, ONS
Friday 14 October 2016
1

2. Overview
• Motivation
• Manufacturing Pilot Design
• Manufacturing Results
• Next steps - Services
2

3. Motivation
3

4. Current Price GDP per hour worked, G7
80
90
100
110
120
130
140
Japan Canada UK(=100) Italy G7 ex.UK France US Germany
2014 2015
4
Source: ONS

5. Management and Performance - USA
Source: Bloom et al, 2013,“Management in America”, Center for Economic
Studies Working Paper, US Census Bureau 5
Productivity Operating Profit Output Growth
Decile of Management Practice Score
Low High Low High Low High

6. Manufacturing Pilot
6

7. Purpose of MPS pilot
• Feasibility
Are UK businesses willing to answer these
questions in a voluntary survey?
Can we find a long term approach for collecting data
on management practices?
• Results
How much do responses vary?
Do we see an association between management
practices and productivity?
7

8. Survey Design - Sample
• 1,026 businesses from the Annual Business
Survey’s sample for 2015.
• Coverage:
• Great Britain
• Reporting Units (businesses) with employment of at least
10, where employment is employees plus working
proprietors
• Manufacturing (SIC 2007 section C, divisions 10-33)
• Stratified using employment and industry
• Employment bands of 10-49, 50-99, 100-249 and 250+
• Industry at division level (two digit SIC code)
• Final response rate of 68% (702 businesses)

9. Average score by business type
0.0 0.2 0.4 0.6 0.8 1.0
All manufacturing
Not family-owned
Family-owned
Family-owned
and managed
Family-owned,
not family-managed
Domestic
Multinationals
UK Multinationals
Non-UK Multinationals
Management Score (2015)
9
All manufacturing includes all manufacturing businesses with employment of
at least 10 in Great Britain
Source: ONS

10. Average score by employment size band
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
All
manufacturing
Family owned Family owned
and managed
Family owned,
not family
managed
Multinationals
10 to 49 employment 50 to 99 employment 100 to 249 employment 250+ employment
Management Score (2015)
10
All manufacturing includes all manufacturing businesses with employment of
at least 10 in Great Britain
Source: ONS

11. Average score by quintile and size band
11
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1 2 3 4 5
All manufacturing 10-49 employment 50-99 employment
100-249 employment 250+ employment
Management Score (2015)
Quintile
All manufacturing includes all manufacturing businesses with employment of
at least 10 in Great Britain
Source: ONS

12. Average score by quintile and type
12
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1 2 3 4 5
All manufacturing Multinationals
Family owned Family owned and managed
Family owned and non-family managed
Management Score (2015)
Quintile
All manufacturing includes all manufacturing businesses with employment of
at least 10 in Great Britain
Source: ONS

13. Correlation between Score and
Productivity by industry grouping
£0
£10
£20
£30
£40
£50
0.40 0.45 0.50 0.55 0.60 0.65 0.70
Average management score, 2015
Textiles, wearing
apparel & leather
Output per hour, 2015, current prices
Chemicals, Pharmaceuticals,
rubber, plastics & non-metallic
minerals
13
All manufacturing includes all manufacturing businesses with employment of
at least 10 in Great Britain
Source: ONS

14. Next Steps
14

15. Services Pilot - Aims
• An expanded set of questions on
management practices
• Wide coverage of Services
• Sample size of 15,000 respondents
• Response rate of at least 50%
• Data collected at Reporting Unit level,
consistent with existing ONS business
surveys
• Survey despatch in February 2017, closing
data collection in August 2017
15

16. • Any questions?
• Contact details
Harriet Robinson
Office of the Chief Economic Adviser, ONS
Email: harriet.robinson@ons.gov.uk
Tel: 01633 45 6209
16