GUEST COLUMN:
Tom Wilkinson
Group Operations Director
Barcud Shared Services
Productivity is something we think about in very practical terms. We specialise in internal audit and procurement shared services, largely for the social housing sector in Wales, as well as for charities, government-related bodies and organisations such as national parks. We are set up as a non-profit group, so productivity is not about maximising returns for shareholders. It is about delivering the best possible value to our clients and, ultimately, to tenants.
That means productivity has to be balanced carefully with quality and cost. There is little point producing more work if standards slip or if the service no longer represents value.
For us, productivity is driven overwhelmingly by our people. Our output depends on how our staff perform, how well they feel, and whether they are able to work effectively and sustainably.
We measure productivity primarily on an output basis. On the internal audit side, that means the number of reports delivered and audit days completed. On procurement, it is about how many procurements we support and whether they are delivered in a timely way. We also link this back to the savings generated for clients, because improved productivity should translate into tangible benefits. Alongside this, we look at indicators such as sickness absence. Reducing sickness days has a direct impact on productivity and is closely tied to wellbeing.
Over time, this focus has led us to make some significant changes. One of the most notable has been the adoption of a four-day working week. This was introduced initially as a pilot, influenced by seeing one of our clients trial it successfully. We adopted what is often described as the 100-80-100 model: 100 per cent pay for 80 per cent of the time, with 100 per cent commitment.
The results have been striking. Productivity has increased, despite a reduction in working time. Quality has remained consistent and, in some areas, improved. Staff engagement has strengthened, and colleagues are understandably protective of the four-day week now it is embedded.
What made the difference was not simply reducing hours, but how people responded to the change. Teams began to look much more closely at how they worked. Meetings were an obvious example. Staff identified that too much time was being lost, so they became more disciplined. Conversations still happened, but meetings became more focused, with clearer outcomes and fewer repeats. One meeting, one resolution, rather than several covering the same ground.
There have been wider benefits too. Staff turnover has reduced, and our ability to attract new people has improved. The four-day week has increased our appeal as an employer, and we are seeing higher-calibre applicants as a result. That, in turn, reduces the time and cost associated with recruitment and retraining, which feeds back into productivity again.
Tools such as the Wales Productivity Forum’s Toolkit have been helpful in giving structure to this thinking. We used it as a sense check and a starting point, to ask where we were as a business and where change might have the greatest impact. Because of how we are structured, we reinvest rather than extract value, so the question is always where time and resources will be best spent.
For us, that has often pointed towards training. Investing in people can feel challenging in the short term, because time spent learning is time away from delivery. But the longer-term benefits are clear. Staff return with updated skills, new ideas and fresh perspectives, whether around technology, regulation or ways of working. That investment becomes a catalyst for improvement across the organisation.
Beyond our own business, I think productivity gains in Wales are closely linked to how willing organisations are to learn from one another. Some of the most valuable insights we have gained have come from conversations with businesses in entirely different sectors. There is a strong culture in Wales of openness and collaboration, and that is something we should protect and build on.
Peer networks matter. Courses such as Help to Grow at Cardiff University gave me access to a group of people from a wide range of organisations, and those relationships have lasted well beyond the programme itself. Even now, years later, that group shares experiences and problems. That kind of informal support can be just as valuable as formal advice.
Since the pandemic, there have been fewer opportunities for face-to-face interaction, and I think that has been a loss. Sitting down with people, sharing experiences and learning how others operate often sparks ideas that would not emerge in isolation. Investment, in that sense, is not only about technology or equipment. It is also about investing time in exploration, collaboration and skills.
My advice to other businesses is straightforward. Be open rather than closed. Do not be afraid to reinvest in yourself and your organisation. Accept that you do not have all the answers, and that support is available if you are willing to look for it. Productivity growth is rarely about a single big change. More often, it comes from a series of considered decisions, rooted in people, culture and a willingness to learn.
Find the Wales Productivity Forum’s business toolkit here: https://www.productivity.ac.uk/regions-nations/wales-regional-forum/toolkit/
Tom Wilkinson talks about this and more in the Unlocking Wales' Productivity Potential podcast episode Unlocking Hidden Business Productivity Potential. Listen to the podcast here.
