HM Treasury News Release

125/98                                               28 July 1998
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                    WORLD CLASS MANAGEMENT 
                                
              THE KEY TO IMPROVING UK PRODUCTIVITY


"Britain needs more world-class management." This was the message
from the fifth in the series of seminars aimed at boosting UK
productivity hosted by the Chancellor, Gordon Brown, and the
Secretary of State for Trade and Industry, Peter Mandelson. The
seminar was addressed by CK Chow and Sir Christopher Hogg.

Setting out the agenda for today's meeting, Gordon Brown said : 

     "Improving the quality, drive, and ambition of British
     management lies at the heart of meeting the national
     challenge we have set ourselves - to raise the productivity
     of the British economy. Without outstanding management at
     every level and in every sector of the economy then we will
     struggle to invest, we will struggle to innovate, and we
     will struggle to compete internationally.

     "Too many of our brightest and best choose to avoid
     management as a career. We need to ask ourselves why
     industry fails to attract them.

     "British industry has recognised the challenge. Throughout
     this series of high-level seminars their representatives
     have consistently highlighted the critical role of
     management. Today's seminar therefore addresses the subject
     directly and represents a first step towards taking up the
     challenge."

Mr Mandelson said:

     "Management has a vital role to play in raising Britain's
     competitiveness. Spreading best practice is a challenge for
     large and small firms, and is a key element of my
     Department's work. Together with partners such as the CBI,
     TEC/Business Links and the Management and Enterprise NTO,
     we shall continue to seek to improve practices and business
     performance.

     "But we must also look to the managers of tomorrow. Schools
     and business have a responsibility to foster the spirit of
     enterprise in our young people. They hold the key to
     building the world class management this country needs."

NOTES FOR EDITORS

1.   The seminars in this series focus on how to bridge the
     productivity gap between Britain and our main competitors,
     up to 40 per cent behind the US and around 20 per cent
     behind Germany and France. The seminars will inform the
     Competitiveness White Paper, Pre-Budget Report and the 1999
     Budget.

2.   The fifth seminar was held today at 11 Downing Street. It
     included a presentation based on independent work on the
     sector from McKinsey, the management consultants. CK Chow,
     Chief Executive of GKN, and Sir Christopher Hogg, Chairman
     of Reuters, responded. 

3.   This work is being conducted jointly by the Treasury and 
     DTI. Press enquiries should be directed to the Treasury
     (0171 270 5188) or DTI (0171 215 5981) press offices.

4.   Non-press enquiries should be directed to Richard Thomas in
     the Treasury (0171 270 4465) or to Tony Pedrotti in the DTI
     (0171 215 6350).

5.   If you have access to the Internet you can find this
     information and material on other Treasury matters at
      http://www.hm-treasury.gov.uk.  



# = pounds sterling