u003cpu003eu003cstrongu003eInnovation, productivity, u003c/strongu003eu003cstrongu003ecompetitiveness… These are the trending terms among stakeholders of the business community nowadays, in order to achieve efficiency. We bring to you the outlook of Kevin Chuttur, Chairman of the National Productivity and Competitiveness Council (NPCC), who demystifies these terms in the interview below.u003c/strongu003eu003c/pu003eu003cpu003eu003cstrongu003eu003cspan style=color:#ff8c00;\u003eBUSINESSMAG.u003c/spanu003e Productivity is often synonymous with better output. However, the countryu0026rsquo;s annual growth rate is stagnating. Could this mean that our strategy for growth is not fully optimal?u003c/strongu003eu003c/pu003eu003cpu003eBased on the latest IMF report, our economic growth has been resilient in an adverse external environment, but the countryu0026rsquo;s growth has also slowed in 2012. There have been some signs of recovery, especially after the global financial crisis and the stimulus policies by the government. However, the Mauritian economy is still not operating at full capacity, although the output gap is small. Our major sources of risk factors have been the heavy dependence on demand from Europe for key services exports and our declining competitiveness in the world market.u003c/pu003eu003cpu003eThe strategy of the government is to achieve higher productivity for improving growth rate and it has invested for pushing concepts of productivity at a national level through the productivity campaign launched last year and which is still ongoing. Productivity is the key to competitiveness. Tor Dahl, a productivity guru, has rightly said that only productivity has three simultaneous effects. It increases wages, so demand goes up. It reduces prices, so demand goes up further and it increases profits so wealth is increased. However, higher productivity growth requires educating our people, getting them to work in teams and above all engaging them in a long-term vision. We have to keep in mind that productivity achievement is a marathon without a finishing line.u003c/pu003eu003cpu003eu003cstrongu003eu003cspan style=color:#ff8c00;\u003eBUSINESSMAG.u003c/spanu003e The NPCC organized the Mauritius Innovatorsu0026rsquo; Award from 2004 to 2008, which was then discontinued. Are we in dearth of innovators in the country?u003c/strongu003eu003c/pu003eu003cpu003eInnovation is a major determinant of productivity growth and sustained international competitiveness. The u003cemu003eInnovators Mauritius Awardu003c/emu003e was launched with a view of developing a culture of innovation in all walks of Mauritian life. The u003cemu003eInnovators Mauritius Awardu003c/emu003e was launched in April 2004. The theme was u003cemu003eSweet Mauritiusu003c/emu003e. The following edition was in 2006 u0026ndash; u003cemu003eGreen M: reduce, reuse, recycle wasteu003c/emu003e. In 2008, u003cemu003eEco-living pour une île Maurice durable : Everyone can make a difference u003c/emu003ewas released. We registered an increase in terms of participation in the Award over the three editions.u003c/pu003eu003cpu003eI do not believe that there is a lack of innovators and innovation in Mauritius but there is still much to do in that field. I must point out that some issues discussed earlier by the NPCC have been taken up later on by the Mauritius Research Council, namely the need to have a Mauritian Innovation System. I recall a pilot initiative by the MRC in 2010 with other national innovation stakeholders, including the NPCC which is the u0026lsquo;Collaborative Mauritiusu0026rsquo; project aiming at building a stronger capacity for innovation within the Mauritian economy.u003c/pu003eu003cpu003eSince the NPCCu0026rsquo;s agenda is to promote productivity at national level and based on our experience with many institutions and organizations, we have realised that there is a need to demystify the term u0026lsquo;productivityu0026rsquo;. It is for that reason that we have started a national productivity campaign in 2012 and we are working on au003cemu003e Productivity Awardu003c/emu003e which encompasses innovation by public and private enterprises.u003c/pu003eu003cpu003eu003cstrongu003eu003cspan style=color:#ff8c00;\u003eBUSINESSMAG.u003c/spanu003e Are you satisfied with the measures taken so far to maintain the competitiveness of the country on the regional sphere?u003c/strongu003eu003c/pu003eu003cpu003eMauritius is a key player in the region and remains among the top performers in the region. Mauritius is ranked 45u003csupu003ethu003c/supu003e according to the u003cemu003eGlobal Competitiveness Index 2013-2014u003c/emu003e and is also the second highest ranked country in the region after South Africa. Moreover, according to the u003cemu003eAfrica Competitiveness Report 2013u003c/emu003e, Mauritius is ranked among the first three best performers in the African region in the following pillars: infrastructure, health, primary education, higher education and training, goods market efficiency, financial market development, technological readiness and business sophistication.u003c/pu003eu003cpu003eThe way Mauritius continues to position itself in the region indicates that we have been relatively successful in putting in place the fundamentals for improved competitiveness. However, we cannot sit on our laurels and pretend that we have achieved our limits, especially at a time when there is a growing international attention focused on Africa as an investment location and talks about an African renaissance.u003c/pu003eu003cpu003eFor Mauritius to remain ahead of its competitors in the region and at global level, we need to strengthen existing pillars where we fare well and further improve in the areas where we are underperforming.u003c/pu003eu003cpu003eu003cstrongu003eu003cspan style=color:#ff8c00;\u003eBUSINESSMAG.u003c/spanu003e Mauritius has lost four places this year in the u003cemu003eGlobal Innovation Indexu003c/emu003e. What are the reasons behind this performance and what can be done to boost innovation?u003c/strongu003eu003c/pu003eu003cpu003eThe innovative capacity of a country is determined by a number of factors, which is quite complex. Hence, in order to understand why Mauritius has regressed in the u003cemu003eGlobal Innovation Indexu003c/emu003e, and how we can boost our innovative capacity, it is important to analyse all the factors that are contributing to our underperformance. A glance at the u003cemu003eGlobal Innovation Index 2013u003c/emu003e shows that our main weaknesses lie in the following pillars: human capital and research, business sophistication and knowledge, and technology outputs.u003c/pu003eu003cpu003eThere is no one-size-fits-all approach and no tailor-made solution to boost our innovative capacity. We need to apply a multi-pronged approach to make a difference. This will not happen overnight.u0026nbsp;u003c/pu003eu003cpu003eInvesting in our human capital is a key strategy to be adopted. We need to be able to groom and produce a population which can think, which can create and most importantly which can take risks and venture in new avenues which have so far remained unexploited and under-explored. The way we educate our students in schools and universities, and the way we educate our workers needs to be revisited.u003c/pu003eu003cpu003eReinforcing the linkage between academia and the industry, which we have pondered over for quite some time, is another priority. Another weakness which needs to be addressed is in terms of the types of businesses we operate. We need businesses which can create high value added products and services, those which can move up the value chain. We need to build in a new entrepreneurial culture able to capture the market through their innovative ingenuity.u003c/pu003eu003cpu003eu003cstrongu003eu003cspan style=color:#ff8c00;\u003eBUSINESSMAG.u003c/spanu003e The government is considering the implementation of a performance management system (PMS) for employees of the public sector. What is your take on this?u003c/strongu003eu003c/pu003eu003cpu003eThere is a rising demand in organisations for improved performance and results. Organisations in all sectors, including the government, are similarly challenged to operate more efficiently and effectively. It is important that the PMS results from a joint process through dialogue and undergoes continuous reviews if deemed necessary. Employees of the public sector should feel included and involved. In a way, the PMS should ensure it continually engages employees and keeps them motivated to improve their personal performance so that they are encouraged to participate on an individual basis to the improvement of the services of the public sector.u003c/pu003eu003cpu003eu003cstrongu003eu003cspan style=color:#ff8c00;\u003eBUSINESSMAG.u003c/spanu003e How do you perceive the 24/7 concept the sugar industry is planning to introduce? Would it really prove to be synonymous with productivity?u003c/strongu003eu003c/pu003eu003cpu003eAny project that aims to optimise the use of resources will surely improve productivity. Adjusting the work life balance, giving more flexible hours of work or increasing the weekly working hours will contribute to growth. However, productivity should not and cannot be imposed. There is a need to build consensus and once people are convinced, they will cooperate.u003c/pu003eu003cpu003eu003cstrongu003eu003cspan style=color:#ff8c00;\u003eBUSINESSMAG. u003c/spanu003eThe u003cemu003eGlobal Competitiveness Index 2013-2014u003c/emu003e pinpoints Mauritiusu0026rsquo; inefficient government bureaucracy as the most problematic factor for doing business. How can the NPCC assist in improving this area?u003c/strongu003eu003c/pu003eu003cpu003eBureaucracy is an overused term. Have we ever questioned how a bureaucratic system operates and how it hampers progress? This is the basis of the NPCCu0026rsquo;s productivity improvement programme. The approach we use raises lots of questions, stirs people to think differently to solve problems they face and challenges existing systems in place. The NPCC, through its Muda Free Public Service programme has in fact been assisting the government to reduce bureaucracy. It is however important to time and again revive this process.u003c/pu003eu003cpu003eThe NPCC continues to have an important role in reducing government bureaucracy. One-off interventions will not reap the maximum benefit. It is in this spirit in fact that, through our productivity academy, one of our important target groups has so far been public officers. We are grooming them to be productivity champions in their organisations so that work is performed in an effective and efficient manner.u003c/pu003e
Kevin Chuttur: «Mauritius cannot sit on its laurels and pretend it has achieved its limits»
