Dave Coplin: We must all change our ways or lose out to nimble rivals

BRITAIN'S economy is in a terrible state. Our situation is manageable – but only if government and business take decisive action now.

Without it, we will fail to create the jobs and growth so desperately needed – and Britain will become a far less important economic power.

Any long-term economic recovery will be private-sector led, primarily by the small- and medium-sized businesses that drive our economy. We should be downsizing the state, simplifying government and stimulating private enterprises.

That means government should take a smaller proportion of national income – and give the rest back in the form of cuts to business rates and general taxation. Presently, the UK government accounts for half of our national income. We should aim to cut this back to 30 per cent.

While government sets business free, businesses also need to adapt and change. It's a clich to say that global competition is rife – yet it remains glaringly true.

Indeed, a recent report released by Microsoft and a number of experts in the fields of social change, technology and organisational structure, including Graeme Leach, chief economist at the Institute of Directors, encapsulates this point exactly, arguing UK organisations must radically change their thinking, structures and operations or they will be constrained in their ability to respond to change and lose out to more nimble competitors.

The report, Creating a Hybrid Organisation: Making public and private sector organisations relevant in the New Economy, argues we are faced with a number of different challenges in the UK – the economy, the changing political landscape, the technology environment. Equally important is the whole consumerisation of IT. For a limited time only, those four events intersect. We have a limited time to take advantage of it and move towards being hybrid.

But what does this mean for businesses? The report provides a 20-point plan that can be encapsulated under three key areas. Firstly, considering people, the physical workplace and IT together and not as separate silos.

In the typical office, at best office space is 55 per cent used at any one time, leaving 45 per cent of the cost of your offices unused.

There is now more sharing of office space, lighting, power and even coffee . Some go even further and go so far as to predict the "death of the desk" as workers increasingly work on the go, at home and in common places as much as they work in a predefined office.

Secondly, recognising and responding effectively to the blurring demarcation between work and home life. Organisations need to give greater freedom to their employees, allowing them to have access to the internet to access Facebook or do their grocery shopping online. Organisations will be increasingly be rewarded with employee loyalty based on the culture and working ethos that employers offer.

Thirdly, we must recognise differing requirements and needs across the generations and empower the potential of the individual while harnessing the opportunity presented by the generational mix. Those leaving university today see social media as the norm for communicating on both a personal and professional level and so companies need to allow staff to make use of social media and collaboration tools and not bar access.

These are not "nice to haves" for the twentysomethings, they are key. Indeed, many public-sector organisations are beginning to take advantage of these technologies, not only to save money, but also to deliver better services.

Recognising and making structural changes like these have huge benefits including increased profitability, greater responsiveness to shifting demand and more intense collaboration between workers.

Employees are likely to be far happier, allowing companies to retain talent. At Microsoft we believe adopting a "hybrid" model can result in huge benefits.

No single action is a panacea to all our economic problems. Yet businesses and government can still do so much. Less government and more agile businesses are the starting point for an economic renewal that can create the jobs necessary for everyone.

• Dave Coplin is national technology officer at Microsoft UK.