Workplace Playbook
The first universal model for how to think and accomplish any task in any workplace. The model applies to everyone and anyone - 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.
Keeping Score
4/29/09
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Keeping Score
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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Keeping Score KEEPING SCORE
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
KEEPING SCORE
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Keeping Score
KEEPING SCORE
QUESTIONS TO ASK
1. Is there a process for estimating potential gain?
Y-N-?-N/A
2. How much potential gain is possible?
Y-N-?-N/A
3. Has the source of the problems been identified?
Y-N-?-N/A
4. Have the problems and most cost effective solutions been identified?
Y-N-?-N/A
5. How much net potential gain is possible?
Y-N-?-N/A
6. Was actual net gain satisfactory?
Y-N-?-N/A
7. Have results of the analysis been recorded on a score card/record?
Y-N-?-N/A
"It is funny about life: if you refuse to accept anything but the very best you will very often get it." —W. Somerset Maugham—
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Keeping Score
Is there a process for estimating potential gain? Now that we know how to use the model for optimizing performance, we need a system to measure performance. This includes a means of determining how much potential performance is possible along with a permanent record of accomplishments over time for the benefit of the organization and personal career growth. There are four parts to Keeping Score: *
Calculate Estimated Potential Gain
*
Making cost effective decisions
*
Calculate Estimated Net Gain
*
Calculate Actual Net Gain
*
The Score Card
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How much potential gain is possible? Now that we know how to apply the model in the workplace, we can discuss estimating how much improvement is possible before beginning any improvement work. There are numerous ways to estimate. Here is one way. This applies to an individual, team, department, or larger entity.
1.
2.
3.
4.
PROCEDURE Determine how much the best worker produces, or average of several of best. Multiply step 1 by number of people on team. Deduct ACTUAL performance (last period) from maximum potential possible (step 2 – 1). If estimated gain is substantial continue with improvement process by searching the model elements to find improvement opportunities.
THE RESULT Establishes total performance humanly possible. It’s possible because one or more have done it. Equals maximum performance possible assuming everyone on team could perform as well as the best. Deducting ACTUAL performance from maximum potential equals the estimated Potential Gain (*) . The problems or barriers to improvement will be found within one or more of the seven model elements.
If the estimated gain is insignificant find another opportunity and start again.
If no top performer(s) can be found or it’s a new mission or job, estimate a reasonable value based on whatever makes sense. In time, accumulation of data will adjust the target(s) up or down. * Estimated Potential Gain is also referred to as the PIP or Potential for Improved Performance. PIP was originated by Thomas Gilbert in his book, Human Performance in 1978.
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Keeping Score
PLAYING THE GAME Each of ten workers is required to produce 700 units per day (the objective). The ten workers produce 8,000 units per day, translating into an average of 800 units per worker. Two of the best produce 1000 units per day. If each worker could produce the maximum of 1000 units the daily total would be 10,000 units, a sizable increase. The difference between total potential of 10,000 units and actual of 8000 units is a potential increase of 2000 units, which is the Estimated Potential Gain that can be expected if everyone was able to produce as much as the best performers. The challenge: figure out how to raise the performance of the average workers (800 units/day), up to or as close as possible to the best. And how do we do that? By analyzing the elements in the THINK model to determine which one or more can be upgraded to help raise performance as close as possible to the potential of 10,000 units per day per person.
1. Objective (units required per person per day) 2. Best Known Performance (Per person/per day) 3. Maximum Potential (10 people X 1,000 units
700 1,000 10,000
4. Actual Total Volume for 10 people
8,000
5. Estimated Potential Gain (Units for one day) (If everyone could produce 1,000 units per day)
2,000
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Keeping Score
PLAYING THE GAME 2 An organization has 100 sales people. Minimum objective for each is $725,000 per year. Assume the best salesperson (or average of a few of the best) sell $1,000,000 per year. It’s clear $1,000,000 is humanly possible. Next figure out how to raise performance of all 100 up to or close to the best Multiply $1,000,000 (step 1) by the total working at the job. It produces total sales of $100,000,000 (step 2), assuming everyone produces as well as the best. Assume actual sales from the prior year were $70,000,000. This means average sales per person was $700,000 (70,000,000/100 = $700,000). The difference between the best salesperson ($1,000,000) and the average ($700,000) is $300,000.) Subtract Total Actual Performance from prior year from the Estimated Potential Performance (Step 3 from Step 2). The total difference between the best possible and actual sales volume is $30,000,000 (Step 4), or $300,000 per salesperson, the amount of improvement needed by Joe Average to do as well as the best. The difference of $30,000,000 is the ESTIMATED POTENTIAL GAIN. Up to $30,000,000 is what stands to be gained if performance of the average Rep can be raised to the level of the best, or close as possible. The calculation is shown on the next page.
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PLAYING THE GAME 2 (continued)
POTENTIAL PERFORMANCE 1.
OBJECTIVE - Current objective per person/year
$
2.
PERFORMANCE OF THE BEST - per person/year
3.
MAXIMUM POTENTIAL PERFORMANCE (100 people X $1,000,000)
4.
LESS: TOTAL PERFORMANCE (from prior year) = ($70,000,000/100 = $700,000 avg. per person)
5.
ESTIMATED POTENTIAL GAIN (for new year) = (Deduct step 4 from step 3)
725,000 1,000,000
= 100,000,000 (70,000,000) 30,000,000
Is it worth pursuing improvement? In the example it doesn’t take much genius to recognize the $30,000,000 Estimated Potential Gain appears to be more than adequate to justify pursuing improvement. These calculations can vary depending on the situation. In production, it may be units produced; in sales, revenues; in order processing, number processed; and in another situation, reduced time, etc. Assuming the Estimated Potential Gain is sufficient, it means it’s worth pressing on and studying the tactics in the model to find ways to raise performance of all the workers as close as possible to the best. You may find another way to apply the calculation. What matters is you understand the concept of figuring out the best that is humanly possible.
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Keeping Score
THINK
Has source of problems been identified?
1. EXPECTATIONS Objectives Sub objectives Job description
The estimated potential calculation produces the difference between performance of the top performer(s) and the average performer(s).
2. PROCESSES 3. RESOURCES Equipment Tools People Space/Environment Budget
The answer to why there is a difference between the best and the average can be found in one or more of the model elements.
4. INCENTIVES Compensation Communications Recognition Objectives Control
After all, since the model elements represent everything that takes place in the workplace, the answer(s) must be in one or more of them because there is nothing else.
5. SKILLS-TRAINING 6. FEEDBACK 7. MOTIVATION
KEEPING SCORE
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Keeping Score
THINK
Have the problems and cost effective solutions been identified?
LESS COSTLY LESS COMPLEX
After estimating potential gain, net potential gain can be determined. This involves determining which elements need upgrading, including the most cost effective solutions. The up and down arrow indicates the elements at the top of chart are less costly and less difficult to implement and those at bottom more costly and more difficult. In this graphic feedback is located second rather than sixth as has been represented. In this case it is second because for purposes of determining cost effectiveness, expectations and feedback are the easiest and least costly items to generate and manage.
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1.
EXPECTATIONS Objectives Sub objectives Job description
2.
FEEDBACK
3.
PROCESSES
4.
RESOURCES Equipment Tools People Space/Environment Budget
5.
INCENTIVES Compensation Communications Recognition Objectives Control
6.
SKILLS-TRAINING
7.
MOTIVATION MORE COSTLY MORE COMPLEX
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How much Estimated Net Gain is possible?
THINK 1. EXPECTATIONS Objectives Sub objectives Job description
Since the problem lies within one of the elements, they need to be studied to identify the problems and the directly related cost effective solutions:
2. PROCESSES 3. RESOURCES Equipment Tools People Space/Environment Budget
1. Examine the elements and determine which are deficient and in need of upgrading.
4. INCENTIVES
2. When the problem areas are identified, solutions and costs can be determined.
Compensation Communications Recognition Objectives Control
3. Deduct estimated total cost from Estimated Potential Gain to arrive at Estimated Net Gain.
5. SKILLS-TRAINING 6. FEEDBACK
–
7. MOTIVATION
Est. Potential Gain Est. Costs = Est. Net Gain
KEEPING SCORE
4. Track performance over period.
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Keeping Score PLAYING THE GAME
The earlier sales example calculated the first step, Estimated Potential Gain. Now the assumption is, the solutions have been determined and costs estimated, working with the model. It’s assumed the estimated cost of the solutions will be $5,000,000, which will produce an Estimated Net Gain of $25,000,000. Here is the updated caculation.
POTENTIAL PERFORMANCE OBJECTIVE - Current objective per person/year
$
725,000
1.
PERFORMANCE OF THE BEST - per person/year
1,000,000
2.
MAXIMUM TOTAL POTENTIAL PERFORMANCE = 100,000,000 (100 people X $1,000,000)
3.
LESS: TOTAL PERFORMANCE (from prior year) = ($70,000,000/100 = $700,000 avg. per person)
4.
ESTIMATED POTENTIAL GAIN (for new year) (Deduct step 3 from step 2)
=
30,000,000
5.
Deduct estimated cost of solutions
=
(5,000,000)
6.
ESTIMATED NET GAIN = $ 25,000,000 (Estimated Potential Gain less est. cost of solutions)
(70,000,000)
NOTE: It should be noted that it matters not how the up front, or first step of estimating potential is determined. The answer to the difference between the best performance and average performance (the PIP), lies someplace within the seven model elements (and subordinate elements). To repeat, there is nothing else and therefore no place else to look.
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Keeping Score
Was actual net gain satisfactory? When the period has come to an end the actual cost of improvements and operations can be calculated. Then compare the Actual Net Gain with the Estimated Net Gain. If the Actual Net Gain matches up well with the Estimated Net Gain, it’s time to celebrate. This means the performance of the average workers should have improved upward to match or come as close as possible to the best performers. After golf, football, soccer, basketball, and other organized sports, whether a win or loss, coaches and players do post game checks by reviewing the results and comparing performance to what was planned beforethe game. If they performed well they celebrate, if not, they go to work again to figure out how to improve performance for the next game.
At the end of the operational period, whether the gain is everything you were looking for or not, schedule the same kind of analysis for the next period. The act of scheduling this process from year to year provides what is recommended for any business, a continuous improvement system. This continuous improvement process is what keeps the organization (and yourself) constantly changing and growing as conditions change.
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Have results of the analysis and calculations been recorded into a score card record? In golf, there would be no game if there were no score card to record the results over the 18 holes. Similarly in the workplace a score card records the results of planning and improvement efforts (next page). The score card is a history of a person’s, leader’s, or team’s bottom line accomplishments measured in units and/or dollars. For the organization it provides hard data to back up finding people with growth potential rather than relying on “nice guy”, “works hard”, “knows his job” and the like. For the individual, it’s also an ongoing performance based resume, a living and growing career document. Each line is for information and data from a different project / accomplishment - Date of Completion, Project Name and Number, Estimated Potential Gain, Estimated Costs, and Estimated Net Gain. When the project is finished and Actual Costs are entered, they are deducted from actual performance data, producing Actual Net Gain. You may have your own ideas about how this score card should look and function. The point is, having a score card is of value to the individual team member and the organization.
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THE SCORECARD INITIAL DATE OF SCORECARD: EMPLOYEE: NUMBER: TEAM NAME: ESTIMATES DATE
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PROJECT NUMBER / NAME
EST. POTENT. GAIN
ACTUALS EST. COST
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EST. NET GAIN
ACTUAL GAIN
ACT. COST
ACT. NET GAIN
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Keeping Score
THE SCOREBOARD Pre Game Game Plan Expectations Processes Resources Incentives Skills Feedback Motivation Keeping Score The End Game
No human investigation can be called a real science if it cannot be demonstrated mathematically. —Leonardo da Vinci— (1452-1519)
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