Workplace Playbook
The first universal model for how to think and accomplish any task in any workplace. The model applies to everyone and anyone in the workplace - senior executives, middle managers, or entry level employees.
The playbook delivers the first system for applying the scientific method to accomplishing anything and everything in any workplace anywhere.
Resources
4/29/09
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Resources
Copyright 2009, Ara Bouloutian. All rights reserved. No part of this document may be photocopied, reproduced, or translated into another language without the prior written consent of the author.
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RULE #3: RESOURCES Resources are all those things needed to help people and teams do what is required to attain or exceed the objective(s).
THINK 1. EXPECTATIONS Objectives Sub objectives Job description
2. PROCESSES 3. RESOURCES Equipment Tools People Space/Environment Budget
4. INCENTIVES Compensation Communications Recognition Objectives Control
5. SKILLS-TRAINING 6. FEEDBACK 7. MOTIVATION
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Resources RESOURCES
QUESTIONS TO ASK
1. Are the best resources in place for working the processes effectively?
Y-N-?-N/A
2. Is the equipment adequate for optimizing productivity of the processes?
Y-N-?-N/A
3. Do the people have the right tools for optimizing performance?
Y-N-?-N/A
4. Is there an easy to understand tool for guiding people through doing their job?
Y-N-?-N/A
5. Does an organization’s product pass the feature/price test?
Y-N-?-N/A
6. Are the people adequate in number and qualification?
Y-N-?-N/A
7. Are people with unique talents needed in job? Does the job require special physical talents? Do people have the right academic /intellectual capabilities? Do the people have the right interpersonal / emotional make-up?
Y-N-?-N/A Y-N-?-N/A Y-N-?-N/A
8. Is there an adequate system for assessing talents and skills of potential employees?
Y-N-?-N/A
9. Are the interviewing procedures effective?
Y-N-?-N/A
10. Is work environment adequate and productive?
Y-N-?-N/A
11. Is budget adequate for managing function?
Y-N-?-N/A
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RESOURCES The objectives and processes may be perfect, but if workers are not given the best RESOURCES, chances are, there will be performance problems.
Are the best resources in place for executing the processes? EQUIPMENT Equipment and systems are longer term investments used to optimize productivity of the processes. TOOLS Tools are those things people need to do their jobs in the most productive manner possible. PEOPLE An optimum number of qualified people with the right mind sets and talents will influence quantity and quality output. SPACE/ENVIRONMENT Well planned space and environment optimizes incentive and productivity. BUDGET The budget is the mechanism for controlling how much various parts of a business can spend during any operating period so that the total expenditures of the business will allow for healthy profitability.
There is a very close relationship between Resources and Processes. The better the resources the more efficiently the processes will be executed toward attaining the objective(s).
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Resources EQUIPMENT
Is equipment adequate for optimizing quality and productivity? In sports, equipment is necessary for games to be played at a high level. In golf, equipment is necessary to keep the course in playable condition. In ice hockey a machine is used for smoothing and preparing the ice to produce a safe surface. In professional sports there are computerized ticket, accounting, scorekeeping, and digital displays which make for an exciting experience for the fans and greater productivity and profits for the organization.
Once processes are in place, cost effective equipment is needed to complete the processes efficiently. Having the right equipment provides increased quality and productivity. This applies to producing product, completing paperwork, providing service, and other tasks. If systems and equipment are not up to date, competitors may acquire the best and gain a productivity advantage. The result, lesser sales, profits, and market share. Equipment can include computers, robotics, printers, telecommunications, production systems, vehicles, office equipment, and so on. The features making equipment and systems productive include durability, speed, reliability, consistency, mobility, ease of repair, ease of adding features, etc. Equipment contributes to improved productivity because more can be produced at a low unit cost per labor hour. The advantage lies in spreading a relatively high investment over the useful life of the equipment, resulting in a favorable annual and unit cost. The benefit, better quality, productivity, and return on investment (ROI). Total Investment -------------------------------------- = Useful Life Of Equip (Years)
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Cost Per Year (Month, Week, Unit)
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TOOLS
Do people have the right tools for optimizing performance.
In golf each of the clubs play a different role and help execute shots from a wide variety of situations. Every year new and better clubs are designed making the game even more efficient. Most games in the world include tools in order to play the game. In monopoly and backgammon you need dice; in handball a ball and gloves; in tennis a racquet and balls; in baseball, gloves, balls, and bats, etc.; and of course, in spin the bottle, a bottle.
When equipment/systems are in place, tools may be needed to maintain the equipment and/or perform a process effectively. There are a host of tools such as hammers, screwdrivers, measuring instruments, pencils, calculators, checklists appointment diaries, note pads, reference guides, forms, interactive software, organization charts, flow charts, and so on. A thorough job description includes tools for optimizing productivity.
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TOOLS (continued)
Is there an easy to understand tool for guiding people through doing their job? *
An efficient process is designed and a computer (equipment) with software (tools) is used to execute the process efficiently.
*
An easy to use troubleshooting guide to help service people solve problems quickly with minimal outside assistance, increasing productivity and reducing cost of operations.
*
Electrical multiple-head screwdrivers.
*
Sales tools can include product, presentation media, interactive data collection & reporting tools, forms, reference guides, etc.
*
A software based process management system to ensure processes are executed with 100% accuracy.
*
An interactive web based system for keeping track of appointments and important contacts.
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TOOLS (continued) There is no need for people to memorize procedures, when all they need is a simple, step-by-step memory jogger or checklist, reducing mistakes and improving productivity. Probably the single largest opportunity for improved productivity is in interactive digital tools which reduce the time to complete complex processes. Tools have been used since prehistoric times to help man perform tasks with greater ease and efficiency. For example, the “Counting Table”, or the “Chinese Abacus”, is one of the world’s earliest tools for automating calculations.
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TOOLS (continued)
Does an organization’s product pass the feature/price test? Though there is a long list of resources available for helping people perform, probably the single most important resource of any company is its product or service. An expression holds up rather well with respect to product; “Nothing happens until a sale is made.” We know from the model that people are also one of the resources. Their occupation, the work they perform, is also a product or service they perform in support of the organization’s efforts in selling its products. Because this is the case it’s important to recognize what needs to be known at the highest levels with respect to products and markets. To understand the basics that ensure the marketability of a product or th service we need go no further than an economist from the 18 Century who wrote “Wealth of Nations”… Adam Smith. Here is his rather simple model that governs the workings of the marketplace, and it’s based on two simple rules any elementary school student can grasp. If a company wants to attain or exceed its share of the marketplace when competing against the leader, it needs to adhere to one or both of these two rules:
Rule #1: Lower Price, Same Features A company’s product needs to be PRICED significantly lower than the market leader, and its FEATURES at least equal to the leader. and/or
Rule #2: Same Price, Better Features A company’s product needs to have FEATURES significantly better than the market leader, and PRICED about the same as the market leader.
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PEOPLE
Are the people adequate in number and qualification? Once equipment and tools are planned, the number of qualified people can be determined for performing the job. There are two types of capabilities people deliver: *
TALENT - Capabilities where training Is not generally effective in helping people perform
*
SKILLS – Capabilities where training is effective in helping people perform.
The difference in the two is that talent is something that cannot in any reasonable way be gained through a training effort. For example attempting to train someone to play chess like Gary Kasparov, or lift weights and match the physique and skills of Arnold Schwarzenegger in his prime, would be a bit more than anyone in any reasonable way could accomplish through training over some relatively short period of time. People learn a range of skills in college, however organizations provide skills training in specific occupational areas that can be learned in relatively shorter periods of time. More specifics on skills will be discussed in the Skills-Training segment of the model.
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TALENT
Are there people with unique talents necessary to the job? There are three kinds of talent where training is generally not economical and therefore not useful. *
Physical capabilities
*
Intellectual capabilities
*
Emotional / interpersonal capabilities
"It is a fine thing to have ability, but the greatest ability is to discover ability in others." --Elbert Hubbard--
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PHYSICAL CAPABILITIES
Does the job require special physical talents? When a job demands physical capabilities, such as muscle, agility, etc., it’s in the interest of quality, safety and productivity to be certain the new hire has and can bring those capabilities to the job. Clearly it would be entirely unreasonable to think that one could be trained in the workplace to be muscular. It would take years for someone to develop that kind of physical capability, which of course would not be economically feasible for any organization.
In sports learning the game and its skills may not be enough. The center on a basketball team needs to be tall with good leaping ability. The guard needs to be swift, a good thinker, and a passer. It’s known that an offensive lineman in football needs to be very heavy, strong and quick. In weight lifting the requirement is enormous strength and good balance. And soccer has its characteristics applying to different positions.
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INTELLECTUAL CAPABILITES Do the people have the required academic/intellectual capabilities?
Professional golfers need keen judgment to select the right clubs and calculate the line of puts standing the best chance of success. A quarterback in football needs intelligence to make sense of the tactics (processes). He also needs to assess in seconds the best tactic under the circumstances. In chess a deep intellect is required. It’s mental muscle and the ability to withstand the stress of the moment. You can learn chess but to become a grand master is something else. When a job requires a good deal of natural intelligence it might come from ones natural talent or it could be something requiring a four year college education. Regardless these are also talents that cannot reasonably be included in a corporate training program. Therefore, the only reasonable answer is to hire a person having the appropriate credentials. Can you imagine a company making equipment for outer space attempting to train someone to be an astrophysicist?
When hirng people who are smarter than you, it’s proof you are smarter than they are. R. H. Grant
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EMOTIONAL / INTERPERSONAL
Do people have the right interpersonal/emotional make-up? The professional golfer needs strong nerves to excel even though a host of players are no more than one stroke behind. The quarterback in football needs strong interpersonal skills to keep his team motivated. In baseball, if it is the last of the ninth inning, there are two outs, a team is losing by one run, the bases are loaded, and the pitcher throws 100 miles per hour, it takes a calm under fire personality to remain relaxed and focused on hitting the ball squarely to optimize chances of hitting safely and driving in one or more runs. Certain jobs may require emotional characteristics such as tolerating rejection, having patience, courage, handling stress, and so on. Interpersonal characteristics represent ones ability to communicate effectively with a range of different personalities. Emotional and interpersonal characteristics are usually directly related. Astronauts are known for having all three elements: physical, intellectual and emotional capabilities. They require physical strength to withstand the environment of space; they need to be very bright to make complex calculations; and they certainly need to be emotionally stable to handle the stress and life and death decisions confronted in space. Firemen, Policemen, and military special-forces people need courage, or the ability to manage fear…and the list goes on.
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ASSESSMENT
Is there an adequate system for assessing talents and skills of potential employees? Given the importance of sizing up people’s talents and/or skills, it’s crucial to have an assessment system that identifies the very best potential candidates for various jobs. There is a vital relationship between the hiring system including assessing talents and skills, and the training function. The more effective an assessment system, the less of a training investment will be required after a person is hired, improving profitability.
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INTERVIEWING
Are interviewing procedures effective? (New job or promotion to another job) This segment offers thoughts on how a potential employee might handle an interview. By the same token an interviewer can take this information and use it as a guide or check on how a candidate is behaving during the interview. The first rule of handling an interview is to be yourself. This represents one way of demonstrating ones capabilities by the use of well-placed questions, using the model as an outline. During an interview the interviewer will usually start by getting to know you with a series of social questions and dialogue. Once the warm up period is completed, the interviewer will ask questions and search for answers that help grasp whether you are the best fit for the job. Respond with rational information displaying quiet-calm confidence and a cooperative style. When you have an opportunity to ask questions, you are in a position to help the interviewer watch your skills in action. These are some questions from the model that can be asked of the interviewer. * What are the primary and other objectives of the job/mission? * How is the team/department presently organized? * What are primary concerns about a job that need to be resolved. * How well is work being completed with respect to the objectives? * How effective is the process currently in place? * What resources is department using, and how adequate are they? * What kinds of incentives are in place to help with motivation? * Are there any specific skill sets that seem to be lacking? * How often do team members receive feedback on their progress? * Do the people seem to be satisfied in their jobs?
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INTERVIEWING (continued) An interviewer will know how capable a person is by the answers given to questions as well as the questions asked. Ones questions demonstrate confidence, as well as potential leadership skills. It also takes the pressure off of the interviewer to think of what to ask. Essentially what a person faces is satisfying several issues, ones knowledge, genuine nature and communication skills, and natural leadership ability. So the strategy should be to keep the conversation two-way, balancing discussion between listening, answering and asking questions. Ones demeanor is important. A person needs to be himself/herself, genuine, and let knowledge, communication skills and good instincts take hold. The candidate should behave as a doctor. The only way to help is to ask intelligent questions and get back answers that can be used to help the interviewer.
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ENVIRONMENT / SPACE
Is the work environment adequate for creating a productive atmosphere? In sports the size and comfort of a stadium and ease of parking dictates capacity for attendees, impacting profits. Design of locker rooms and practice facilities have an impact on incentive. In golf the beauty of the tournament courses attract top professionals and audiences. There isn’t a golfer not motivated by Pebble Beach in Monterrey, California.
When equipment, tools, and people issues are resolved, the space and environment needs can be planned. A physical plant needs to have the right characteristics in order to maximize productivity. Planning for a physical plant includes architectural drawings, rail sidings, power, quality of environment, convenience to markets, and so on. The right features that take into account what it takes to get the most out of employees is a crucial factor in optimizing performance. Workspace is usually leased because businesses will choose to pay for use of space and invest their monies in growing their business. When a business has grown and developed a healthy balance sheet, it may invest in real estate and become their own landlord.
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BUDGET
Is the budget adequate for managing function? Budgets are close estimates of how much it will cost to do what is needed to attain the objectives. Very often they are the measure of acceptable performance. Too little budget will not allow for making improvements, which can impair performance and profits. Too much budget may produce unnecessary spending, which increases cost of operations. In either case, it’s easy to see how budgets are critical to getting things done and need to be watched closely. Budgets are divided into two categories – operating and capital. The operating budgets are those expenditures for managing day-to-day operations of a company and departments. It pays the bills keeping operations healthy. Capital budgets are those representing larger scale and longer-term investments involving equipment installations, real estate and other investments known as fixed assets. Because capital equipment costs are sizable and benefit the organization over many years, the cost is distributed over the useful life of the asset(s) so that the cost allocated to each year becomes fair and far lower than the total investment. Budgets have an enormous impact on decision making in professional sports. The leagues frequently apply ceilings to how much can be invested in players as a means of providing financial equality and competitiveness. A superior player who is paid huge sums of money may be traded for a couple of players with lower valued contracts to reduce payroll and fulfill needs.
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PLAYING THE GAME
A story about money and value.
This is a tale about an engineer who had an exceptional gift for fixing things mechanical. After serving his company loyally for over 30 years, he happily retired. Several years later the company contacted him regarding a seemingly impossible problem they were having with one of their multimillion-dollar machines. They tried everything and spent thousands upon thousands to get the machine to work, but to no avail. Finally, in desperation, they called on the retired engineer who solved so many of their problems in the past. The engineer reluctantly took the challenge. He spent one day studying the huge machine. At the end of the day, he marked a small "x" in chalk on a particular component of the machine and stated, "This is where your problem is. Replace the part." The part was replaced and the machine worked perfectly, providing enormous productivity and saving the company huge sums of money. The company received a bill for $50,000 from the engineer. They demanded an itemized accounting. The engineer responded briefly: "One chalk mark, $1; knowing where to put the mark, $49,999. The bill was paid in full and the engineer retired again. It’s apparent the contractor/expert was being viewed as just another former employee rather than viewing the substantial return on investment produced by the work effort of a reliable and independent service provider.
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PLAYING THE GAME 2 One of the top technology companies in the country was concerned about providing feedback more effectively to their sales people. They monitored sales performance using out dated manually maintained methods. What was remarkable about the situation is they were in the business of automating manual processes for major corporations and yet, still using obsolete methods for their own operations. This was a perfect example of, “The shoemaker with holes in his shoes.� As it turned out they upgraded their management information systems (feedback) and once completed, they developed software tools for monitoring and providing performance feedback to the sales organization from salesperson through every level of the hierarchy. The result was, the system expanded on the information provided and significantly increased turnaround time to all levels of the sales organization. It provided a healthy Return on Investment and contributed to future sales planning capabilities.
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PLAYING THE GAME 3 A major telecommunications company came out with a new telephone system sooner than planned. They needed to quickly bring their large and experienced telephone service people up to speed on how to install, troubleshoot and repair their new system. The techs had a great deal of experience with phone systems, but needed the details related to the new system. Because their program developers were short handed, they called in a performance systems consultant to review the situation and develop a program. After a thorough review it was found that although it seemed to be a training issue it was not. Since the technicians understood telephony, they understood installation and maintenance quite well. In this case, they just needed to know how the new system worked. It was concluded that rather than training, an interactive tool would be developed that would guide the technicians through any of the installation, troubleshooting, and/or repair processes. The consultant worked with several subject matter experts and documented the three processes for the new telephone system using flow modeling. The flow models were converted into a small, easy to carry portable tool. The benefit...any routine could be accessed in seconds. This small, efficient, detailed tool rather than an extensive and expensive training program resulted in sizable savings of time and budget.
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PLAYING THE GAME 4 Tom Dempsey was a football player in the NFL. On the eighth of November 1970, the New Orleans Saints beat the Detroit Lions 19-17 on Tom Dempsey’s 63 yard field goal with five seconds remaining in the game. This was a record and continued for years until it was equaled by Jason Elam in 1998. So what was so important about all this? Tom Dempsey was born with no right hand, and a right club foot with no toes. This was his kicking foot. As it turned out he kicked field goals in high school wearing a modified shoe with a flattened front and enlarged toe area. He used a straight approach to kick the ball as opposed to the modern soccer style kick. Dempsey's accomplishment led to the NFL eventually passing a rule requiring that all footgear be "normal" (their term) regardless of the kicker's personal situation. Using the model, it isn’t difficult to analyze the situation. There was a trade off in “resources”. With respect to physical capabilities Dempsey was entirely unqualified with the shortcomings in his right foot. However, he overcame the deficiency with his special shoe, a tool, and set a NFL record.
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PLAYING THE GAME 5 A company presently produces 5,000 parts a day. They learn that a new piece of equipment will produce 10,000 of the same parts a day. The cost of the new equipment is $2,000,000 and has an estimated useful life of about ten years. So assuming the equipment functions every day the calculation looks like this: New Equipment: $4,000,000 / 10 yrs / 365 days = $1,095.89 per day. Calculation applied to old equipment: Assume cost of $1,000 per day ($1,000.00 / 5000 per day = .20 per part). The new equipment: $1,095.89 / 10,000 = .1096 per part The investment in the new equipment reduces the cost of production per part by almost half. Capital investments are designed to increase productivity and reduce cost, increasing profitability. Over time innovation and ongoing improvements in capital equipment contribute to quality and productivity improvement. Because the costs are spread over the life of the equipment, the cost per year becomes relatively small in comparison to the resulting outputs.
PLAYING THE GAME 6 For your job or another, record needed resources on the following SCRATCHPAD or one of your own making.
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SCRATCHPAD (side 1)
PLAYER NAME: TEAM NAME: BARRIER
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COST TO FIX
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SCRATCHPAD (Side 2)
BARRIER
SOLUTION
KEEPING SCORE ESTIMATED POTENTIAL GAIN
ESTIMATED NET POTENTIAL GAIN
ACTUAL NET GAIN
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COST TO FIX
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Resources APPLYING RESOURCES TO JOBS
APPLYING RESOURCES TO ANY INDIVIDUAL WORKER Do I have the very best equipment, tools, people, environment, and budget to execute the processes efficiently/profitably? APPLYING RESOURCES TO ANY INDIVIDUAL MANAGER Does my team have the very best equipment, tools, people, environment, and budget to execute the processes efficiently/profitably? APPLYING RESOURCES TO A PRODUCTION DEPARTMENT Does the production team have the very best production equipment, tools, people, environment, and budget to execute the processes efficiently/profitably? APPLYING RESOURCES TO A FOOTBALL TEAM Does the team have the best equipment, tools, people, environment, and budget to execute the tactics as close to perfect as possible? APPLYING RESOURCES TO A LOCAL SMALL GROCERY STORE Does the grocery store team have the best equipment, tools, people, environment, and budget to optimize sales and profits? APPLYING RESOURCES TO AN OVERNIGHT DELIVERY TEAM Does the team have the best equipment, tools, people, environment, and budget to optimize profitability? APPLYING RESOURCES TO A LOCAL INSURANCE AGENCY Does the agency team have the best equipment, tools, people, environment, and budget to optimize Insurance sales and profits? APPLYING RESOURCES TO A LEMONADE STAND VENDOR Does the vendor have the best equipment, tools, people, environment, and budget to optimize lemon aid sales and profits? APPLYING RESOURCES TO A HOSPITAL INTENSIVE CARE UNIT Does the unit have the best equipment, tools, people, environment, and budget to optimize patient care and performance? 5/4/09
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THE SCOREBOARD Pre Game Game Plan Expectations Processes Resources Incentives Skills-Training Feedback Motivation Keeping Score The End Game
Without a process, attaining a goal is difficult. Without the right tools, executing a process is difficult.
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