Martin Coats, Chief Operating Officer at Exemplas, which delivers the West Yorkshire Business Boost (WYBB) and Business Productivity Services with Leeds Beckett University and West Yorkshire Combined Authority, explains how West Yorkshire businesses are driving productivity by understanding blockers and increasing outputs to safeguard the Government’s economic goals.

While Chancellor Rachel Reeves declares economic growth as the Government's "number one mission," West Yorkshire's SMEs are quietly demonstrating that tackling the UK's stubborn productivity challenges doesn't rely on macro-economic levers to take effect. They're proving that targeted, research-backed business support can deliver measurable results right now.

The UK's so-called 'productivity puzzle' - sluggish growth particularly since the 2007 recession - has become one of the defining economic challenges of our time. Economist John Van Reenen, a key government adviser, points to SME management practices as responsible for almost half of the troubling productivity gap between the UK and America. The problem is clear - while macro-economic policies create the climate for growth, it's the millions of individual businesses, the vast majority being SMEs, that actually drive productivity at ground level.

This is where West Yorkshire is charting a different course. Since February 2023, the West Yorkshire Business Productivity Service has supported over 300 SMEs with a fundamentally different approach to business support. Rather than offering generic advice, this programme, delivered by Exemplas in partnership with Leeds Beckett University on behalf of West Yorkshire Combined Authority deploys research-validated diagnostics and frameworks specifically designed to help firms develop the management capabilities that underpin productivity growth.

The results speak volumes. An impressive 98% of participating businesses have applied their learning to implement productivity improvements across their operations. Programme satisfaction ratings average 4.7 out of 5. But more importantly, early follow-up studies are showing measurable quantitative improvements in the productivity indicators that businesses baselined in their Productivity Improvement Plans.

What makes this approach different? At its heart is a unique 'triple-loop' of learning that translates academic research into pragmatic programme design, ongoing delivery, and continuous evaluation. Leeds Beckett University's Productivity Improvement Framework developed through government-funded research provides businesses with tools to diagnose productivity needs, then develop structured improvement plans with clear, measurable actions.

This isn't about theoretical frameworks gathering dust. It's about practical application. Through the conversations that the diagnostic starts, and the expert coaching, businesses engage in relatively intensive support that helps them understand their specific productivity blockers, and work towards addressing them. Contrary to common assumptions, improving productivity doesn't always require major capital investment.

The programme research shows that most businesses' primary route to improving productivity is by increasing outputs, indicating a strong growth focus rather than simply cutting costs. However, many SMEs hesitate to pursue growth because they're concerned about meeting increased demand. This suggests business support needs to help firms balance the equation: increasing throughput at a greater rate than inputs while simultaneously building market demand.

This dual focus on productivity and growth is particularly timely. With the employers' National Insurance rise, firms need productivity gains more than ever to maintain growth ambitions rather than simply retrenching. At this economically challenging moment, helping businesses become more productive could provide a crucial safeguard for government economic goals.

The West Yorkshire model demonstrates that when academic rigour meets practical delivery expertise, supported by committed regional funders, the results can be transformative. Over 800 SMEs across both the productivity and growth programmes have received substantive support that's generating not just satisfaction scores but actual behavioural change and measurable impact.

Perhaps most significantly, this approach offers something macro-economic interventions cannot - speed. While infrastructure upgrades and pension reforms create long-term conditions for growth, evidence-based business support interventions can generate productivity improvements in modest timeframes. Scale this to a critical mass of businesses across regions, and the cumulative economic benefits become substantial.

As government searches for practical routes to economic growth, West Yorkshire's businesses are showing the way. The productivity puzzle may be complex, but the solution starts with helping individual firms develop the capabilities to work smarter, grow faster, and compete better. That's not just good for business, it's essential for regional prosperity and national economic health.

The question isn't whether this approach works. The evidence from West Yorkshire proves it does.


About the Author: Exemplas has over 30 years' experience delivering business support programmes in partnership with Combined Authorities and universities. The West Yorkshire Business Productivity Service is delivered in partnership with Leeds Beckett University on behalf of West Yorkshire Combined Authority.