Declining productivity is a major problem in the American economy. Gains in productivity, and finally, actual rates of productivity, have been declining since the late 1960s. Specific problems arising as a result of this decline in productivity are the inflationary pressures that we face as a nation, the increased regulatory environment under which we must live, and the growth in the size of the public sector that has been associated with the growth in regulatory activity. Some reasons for the decline of productivity in the United States include reduced investment, larger service sector, government regulations, environmental expenditures, labor restrictions, and work disincentives. Unless productivity improves in the U.S. in this decade, we will all suffer a decline in our standard of living. There are certain challenges that need to be considered in addressing productivity: definition and measurement, politics, planning and behavior--"What's in it for me?" Unless an organization or a nation can answer that final challenge, productivity is not going to improve. Improvement pf productivity in any organization requires a structured productivity program. One recommended program has ten elements: awareness and acceptance, organization, goals, resource effectiveness, employee involvement, incentives and gain sharing, rewards and recognition, training, measurement, and leadership. This program can bring improvements in productivity. (KC)