Opd Govt & Not For Profit Overview V12.2
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Opd Govt & Not For Profit Overview V12.2

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The pre-eminent approach to improving results,delivery and productivity. If you would like a free detail sheet email neville@aitchisonassociates.co.nz

The pre-eminent approach to improving results,delivery and productivity. If you would like a free detail sheet email neville@aitchisonassociates.co.nz

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  • Understanding why we are here…. Staff performance is a strategic factor in our results. Strategic HR needs to be taken as seriously as the sales & market, operations, or financial strategies. HR global current best practice is applied but staff performance could still improve. Consideration for supply will be given any system that will support moving our organization from good to great. The potential payback is substantial, with modest gains in human performance (10%-15%) resulting in substantial gains (20%) in qualitative goals and improvements in financial surpluses.
  • OPD-SHRM makes improving alignment easier and more effective hence improves results. The most valuable resources in any organization is what people think about most of the time. OPD-SHRM is designed to manage minds. The crucial beginning of improved alignment what leaders think about most of the time to ensure it is aligned with sustainable superior best practice. If leaders are not clear, accurate and focused neither will those reporting to them.
  • Current global HR best practice Goal cascade Job descriptions Performance management… Cultural audits and cultural development… 360… E-learning Psychometrics… Other… All in unrelated silos. Limited integration. Systems often too detailed and hence loss of leadership ‘balance’.
  • Actions belong to goals, not people The organisation is separate from people therefore ideal actions can be derived from each goal Improved human performance can now be causally defined as follows: Improved human performance = More effective delivery of ideal actions = better performance = better results Aim of a sports coach is to produce high performing team of – rugby or netball or hockey or soccer or golf, etc - athletes. Aim of a team leader is to produce high performing team of commercial athletes. Organisational performance is different only in that sports team peak at time of the sport whereas organisational staff must maintain quality levels of performance every day at work. If leaders do not exhibit commitment, determination and intensely resist mediocrity neither will the staff reporting to them.
  • Architecture: Business KPIs in every role and ideal actions derived from outputs Alignment using culture/psychological targets: Actual behaviour=ideal actions Result : Improved outputs (understand that all numbers merely reflect if ideal actions delivered in teams). OPD HR-KPIs : Monitor leader effectiveness at delivery of SHRM processes derived from OPD-SHRM model. Weak OPD HR-KPIs are leading indicators that profits will slip, and tactical HR-KPIs such as absenteeism, turnover, etc, will also slip. Improved staff alignment begins with the leaders ensuring they are striving for excellence through delivering superior quality performance as the fundamental cultural role model for the organization.
  • The complete OPD–SHRM solution to the causal and scientific link between strategy and staff behaviour. This is not management but fully social science. The ‘arrows’ and the ‘boxes’ all have precise definitions such that the model is a scientific ‘causal description relative to higher level descriptions of the system organisation  person. All the intellectual issues that underlie this model have been fully defined so that the model is a causal description as defined Dr Little’s papers at www.grlphilosophy.co.nz. This model is the only global unequivocal scientific and causal link between strategy/goals and staff behaviour. For more intellectual credibility see the ANZAM paper by Dr Little and Professor Nel: An Integrated Model to Achieve Organisation Objectives at www.opdcoach.com.
  • Architecture: Business KPIs in every role and ideal actions derived from outputs Alignment using culture/psychological targets: Actual behaviour=ideal actions Result : Improved outputs (understand that all numbers merely reflect if ideal actions delivered in teams). OPD SHRMIS-KPIs : Monitor leader effectiveness at delivery of SHRM processes derived from OPD-SHRM model. Weak OPD SHRMIS-KPIs are leading indicators that profits will slip, and tactical HR-KPIs such as absenteeism, turnover, etc, will also slip. Improved staff alignment begins with the leaders ensuring they are striving for excellence through delivering superior quality performance as the fundamental cultural role model for the organization.
  • The OPD-model directs the implementation process: Work with leadership to build time budgets. Ensure all team leaders including CEO use time budgets as clear cultural role model. Train team leaders in motivation and coaching skills to guide personal choice, build clarity, engagement and commitment. Train HR and team leaders in use of admin system. Monitor it is being done to standard to achieve sustainable superior performance and intervene as needed. The OPD-SHRM web site is the administrative and monitoring details for ensuring the steps above are performed to standard. The OPD process turns the rational judgement that the ideal actions are the best way to gain greatest success into the living dynamic whereby strategy/goals/KPIs are evident in staff behaviour
  • OPD-SHRM is a process that will: Result in more clearly defined goals/outputs in each role as determined and guided by the client leadership. From the goals the client team leaders are guided to identify the ideal actions in each role that will enable the greatest result. Team leaders are then guided to achieve improved delivery of the ideal actions by each person. OPD understands the link between strategy and personal success, the client understand what is needed for goals and strategy to be achieved, and complete success is the effective interaction of the two. Are the mutual roles clear and is it clear how the roles interact to improve results…?
  • Components from within the computer system A cultural audit and report system enabling a team leader to track the improvements in the focus, accuracy and application of the team. This conducted every six months. A performance specification and goal integrity system providing a summary of goals, key task, and monthly and weekly checklists. A performance management system rating performance of team members against the outputs expected of them. Training needs analysis system including ongoing assessment of the implementation potential of the business. Personal development planning system so each person in conjunction with their manager can tailor a self-training and development system directly suited to them, their own needs and goals. A library of self-training materials , the tools used to improve performance against the goals and outputs. A profit improvement planning system encouraging and guiding creative input by teams into improved performance. A customer satisfaction audit system enabling the senior team to audit customer satisfaction and to take steps through appropriate teams to ensure the audit result is retained at a high level. Balanced scorecard system enabling senior management to set benchmarks for team leader coaching and leadership effectiveness. Framework of reports enabling transparency into the most remote teams. A goal review and goal integrity system whereby efforts of everyone is tied back to the firm’s strategy. Learning organization system encouraging and enabling sharing of good ideas and learning through the firm. Consulting support of the computer system Comprehensive team leader coaching. Ongoing consulting ensuring application and effectiveness of the system. Email and telephone help desk. The OPD-SHRM website is the administration for ensuring the steps above are performed to standard. It has direct, user friendly menus, with half hours/month admin for a team of 8.
  • Human performance becomes key a strategic driver of the business results. The OPD-SHRM processes are the tools whereby HR ‘oversees’ and ‘guides’ management of strategic HR processes by every team leader. The senior (strategic) HR Manager oversees a clearly defined strategic factor crucial for success, but one that cuts across all other divisions and management boundaries therefore HR is in a well defined support and guidance role for the leaders who are responsible for the alignment in their teams. Understanding intrinsic organisational drivers In commercial organisations the intrinsic driver is sustainable profits. In non-profit social service organisations – local bodies, health – key performance drivers of the organisation are ‘public good’ and ‘cost’. These are intrinsically in conflict. This difference makes these public service organisations fundamental and intrinsically different from business. These create role tensions in minds of staff. No organisational or structural solution will resolve this fundamental psychological (HR) problem. The OPD-SHRM process fully resolves this intrinsic role conflict.
  • The web system administers the delivery of the OPD model. The model is causal, more of the ideals ensures better results. The web system is simple and intuitive, for example stage 1 key inputs: Build goal cascade and aims for each team. Identify roles in each team. Build performance specification relative to goals. Assign people to roles. Complete cultural processes with each person. Set up time budgets in team. Do performance assessment comparing actual behaviour against ideal actions (best practice) in role. Do cultural audits. Assess cultural audit and decide leader intervention in team. (See the implementation plan and recommended administration.) A causal, scientific and definitive link between business targets and staff behavior will accelerate and intensify profit gains from improved human performance…
  • The ideal actions are derived from the goals/KPIs and to that extent are without social or ethnic ‘content’. Ideal actions are expected to be: Focused on achieving required goals. Agreed as the best way to achieve greatest goal success. There are major life roles in ‘work/professional’ and ‘private/personal’. An organisation needs to be ethnically aware when identifying ideal actions and requesting people act them out. Equally people need to be aware that a ‘professional’ does as is required to get the task done independent of private objections.
  • The OPD-SHRM web based admin system is based on the model and supports and guides application of the system to teams and the means of capturing best current judgment of how to achieve the best results and so is the central and essential ‘learning base’ of the firm. Maintaining admin ensures: The learning curve is greatly reduced. There is ongoing opportunity to have everyone work ‘on’ and so sharpen the organizations understanding of how to get the best result. User friendly menus. Intuitive, in that things are where one ‘feels’ they should be. Very little administration is required. Leader of team of 8: 10 minutes per week average. Central HR admin for company of 100: 2 hours/month. OPD consultant provides admin during set up then hands over to the internal resources. To ensure management of single database the OPD system is linked to HRIS or payroll systems.
  • SHRMIS-KPIs measure extent team leaders apply the SHRM processes based on the model so that the team has the greatest chance of greatest success. SHRM policy for each team, ‘no red’. OPD SHRMIS-KPIs leading indicators of potential trouble with business KPIs and with tactical HR-KPIs (absenteeism, turnover health and safety. HR-architecture. (Performance specs) . % current performance specifications. (Current < 12 months) % sign off of performance specifications. (Current < 12 mths.) HR-cultural development. (Team development) . % acceptance of the performance agreement. (Current < 12 months.) % time budget accepted. (Current < 6 months.) % completed individual performance contract. (Current < 12 months.) % average current CA score. (Current < 12 months) HR-mentoring/training. (Guide downloads) % people with current PDP. (Current < 6 months. Every person undertakes training annually.) % people "Able, but not reviewed for some time, apply refresher" or better. (100% is all people with all ideals above standard) HR-performance management. (Performance management & guide downloads) % people with current performance report. (Current < 6 mths.) Team implementation potential. HR-results proactive. (PIP/SLP & Learning firm) At least 1 current item in learning firm. (Current < 12 months) At least 1 successfully completed project in Strategic Leadership Planning (SLP) in past six months. At least 1 successfully completed project in Profit Improvement Planning (PIP) in past six months. HR-customer satisfaction. (Customer Satisfaction & Internal Team Performance Audits) % average current CSA. (Current < 12 months) % average current ITPA. (Current < 12 months)
  • With these improvements would you expect improved performance…? How much could staff performance improve in your organisation? With this improved performance where would the results improve in your organization…?
  • Key links from OPD-SHRM model Goal  action: Applied to strategy and business KPIs to identify ideal actions that enable greatest success. Increased human performance is then causal. More of ideal actions MUST deliver greater result. (Or there are market or product problems if not). Through team leaders people guided to deliver more of ideal actions (8 – 22%). By relating gains in cultural audit scores to financial gains the link between increased human performance and financial results can be assessed. This is supported by client managers direct assessments. The links to financials is normalized to a 1% gain in human performance and is called the OPD performance profile link (OPDPPL). The OPDPPL is then multiplied by the projected gain in human performance to give the OPD performance improvement factor (OPDPIF). Application of OPD to a well managed business is projected to convert 2% of revenues into EBIT.
  • Projected qualitative links Estimated that for every 1% gain in staff performance OPD will improve qualitative goals by 1% to 2%. For example after OPD a senior manager estimates they are 15% more effective, getting through more with greater effect. Source of projected links Financial : % links projected from % improvements in cultural audits versus client financial gains supported by surveys of client management teams own estimates. Qualitative goals : Estimated by client management teams, client audits, and customer audits of the impact of improved human non-quantifiable goals such as ‘service quality’, ‘responsiveness’, and ‘support and concern’.
  • How do we know it will work? Testimonials and references Careful assessment Why will managers do it and what will keep them doing it? They get better results How much time does it take? One hour/week/team member including administration How much administration time is involved? For team of 8, about one hour per week administration How long does it take to fully install? It will pay for itself in 4-6 months, first stage fully installed in 10-12 months, second stage over next year, consolidated over next two years Can we have a trial? Yes, provided it is a clear and self contained business unit Are there any direct savings? Yes, reduced external training Tightening and reduction of roles usually in middle and upper middle management What are the hidden costs? There are no hidden costs from OPD There may be internal HR staff costs Costs of workshops during set up Some travel, venues costs etc How does it fit with what we do now? Current systems are integrated into OPD which builds on them and advances them to provide the platform for superior sustainable performance Much of this we do, so why can’t we do this for ourselves? Organisations can but there are issues to bring to account. It is agreed a system is needed to manage and guide team leader efforts and ensure the opportunities inherent in SHRM are realised. Design complexity : Designing such a system is a complex task. IT complexity : Building the full SHRM system is technically complex both in design and technical IT/web software development Cultural complexity : The cultural processes are sophisticated and require specific coaching and direction to be done effectively Appropriateness of effort : Few accounting firms would seek to build their own software, the effort, costs of the build and ongoing maintenance are not justified … should this apply to SHRM systems? Appropriateness of capital application : The OPD-SHRM system is valued at several million, plus learning cost of cultural and psychological implementation, the application of this level of capital to the issue seems inappropriate when the capital will payback will take several years. It is more cost effective to lease the system and secure EBIT gains immediately and expense off the cost of those gains. Maintenance of system as state of art : OPD will also ensure clients benefit by regularly upgrading the systems in particular user friendliness and by drawing attention to experiences that enable sharper prioritising of effort

Opd Govt & Not For Profit Overview V12.2 Opd Govt & Not For Profit Overview V12.2 Presentation Transcript

  • Not for profit and community service introduction
    • The OPD system of strategic human resource management (SHRM) for achieving sustainable superior performance
    Aligning staff behaviour with strategy and goals improve results
  • Why bother?
    • SHRM is an undervalued strategic factor in the results
    • OPD-SHRM is a superior system
    • OPD-SHRM will improve results 20-20%
    • We recommend a step by step process in assessing OPD-SHRM
  • Reviewing current strategic HR processes
    • If alignment staff behaviour with goals was improved 10%:
    • Would results improve? … and by how much?
    • Would leadership be easier?
    • Could the alignment be improved in this organisation?
    • Does the organisation take SHRM seriously?
    • Who is responsible for ensuring alignment?
    • Would a clear and definite system make it easier to drive the alignment and achieve improved results?
  • Why OPD?
    • Why is OPD a superior SHRM system?
  • Current global state of strategic HR
    • Global HR best practice consists of a range of unconnected activities with strategic HR having limited impact due poor definition and weak underlying processes
    • Research shows number of problems
      • Team leaders find HR an admin chore that does not add value
      • HR activities are delivered in uncoordinated silos as “latest new initiative” and achieve limited long term, sustainable results
      • Once team leaders lift ‘foot off the pedal’ performance slips back and plateaus
      • Why…?
    • Background fact
      • Globally there is no clear scientific and causal link between strategy and staff behaviour (including a definition of SHRM)
    • Proposition
      • If we had such a link team leaders could be guided to use it to achieve superior sustainable staff performance
  • Fundamentals SPORT Goal  Action (ideal actions enabling best chance of greatest success) BUSINESS The organisation is separate from people therefore KPIs  Ideal actions The goal  action principle is causal More of the ideal action more of the goal Ideal actions underlie every strategy independent of people
  • The OPD concept Strategy  Goal cascade  Ideal Actions Get people to do it Monitor that it is done
  • The OPD–SHRM solution Strategy Team structure, roles in teams, goals in each role (1) KPIs (2) Ideal actions to achieve goals/KPIs (3)
    • Leadership actions to:
    • identify ideal actions
    • guide delivery of ideal actions
    • maintain ideal actions
    HR-KPIs (1-9) Measure team leader effectiveness with HR processes to build alignment in their team. Becomes the key driver of SHRM in the business. (No red SHRM policy) Psychological Targets
    • Engagement:
    • Clarity of goals/KPIs (4)
    • Clarity of ideal actions (5)
    • Visualization of action (6)
    • Commitment:
    • Motivation as personal commitment to work success (7)
    • Self-discipline or professionalism (8)
    • Support to deliver ideal actions (9)
  • The OPD-SHRM model
    • OPD-SHRM is a superior system because it is based on the only scientific and causal model of the link between staff behaviour and results
    • It is the OPD-SHRM model that drives superior sustainable performance
  • Defining SHRM
    • Under the OPD model SHRM is defined as the alignment of staff behaviour with those actions that offer the greatest chance of goal success (align actual behaviour with the ideal actions).
  • SHRM is the fundamental driver of results
    • SHRM is the translation of strategy into action
    • Managing the SHRM processes will increase human performance and improve results
  • OPD-SHRM defines the performance stack Strategy Implement SHRM processes aligning staff behaviour with strategy SHRMIS monitoring the SHRM processes are implemented HRIS analytics Finance/MIS analytics Results OPD-SHRM is global unique provider of SHRM processes assuring alignment of staff behaviour with strategy. OPD-SHRMIS monitors each team leader is implementing SHRM processes to give team greatest chance of greatest success. SHRM is the crucial leadership tool enabling improved application of MIS & HRIS analytics
  • Key principles
    • The OPD model :
    • Links strategy with staff behaviour via ideal actions.
    • Is fully scientific and causal in improving results.
    • Leads to the definition of SHRM as the alignment of staff behaviour with goals via ideals.
    • Leads to the performance stack making SHRM the primary driver of business results.
    • Is the goal-action link whereby all other metrics (financial/MIS and HRIS) can be used to improve the results.
    • Improving SHRM in your business will improve results.
  • What OPD-SHRM offers
    • SHRM producing superior results : Superior HR processes based on an improved understanding of SHRM such that the processes are causally linked to strategy leading to superior performance and outcomes.
    • SHRMIS enabling superior results to be maintained : Monitoring via the SHRMIS system that team leaders are implementing the processes enables sustainable superior performance.
  • OPD operations
    • How is OPD-SHRM implemented?
  • The OPD-SHRM process
    • Build architecture
    • Guide people to act out the ideal actions
    • Monitor it is being done to standard to maintain superior performance
    Strategy/goals/KPIs OPD-SHRM success is driven by the model not the web site which is the administration for ensuring the steps of the model are performed to standard Revenues Direct Costs Gross margin Overheads EBIT Ideal actions
  • The client -OPD strategic partnership
    • The client provides detailed insight, understanding and best judgment of what is needed to achieve best result
    • OPD provides a system of strategic HR processes that captures client insight and so enables ongoing improved management of human performance as a strategic factor in results
  • OPD-SHRM administration and support
    • Consulting support
    • Comprehensive team leader coaching
    • Ongoing consulting to support effective delivery of the system
    • Development of internal HR staff
    • Email and telephone help desk
    • Ongoing tactical and strategic reviews
    • Ongoing back up for internal staff
    • Ongoing audits to support sustainability
    • Web system components
    • Architecture – teams, roles in teams, goals/KPIs, ideal actions
    • Cultural audits
    • Customer audits
    • Internal customer audits
    • Leader monitoring (HR-KPIs)
    • Training needs identification
    • Training and coaching materials
    • Learning firm
    • Performance assessment
    • Performance management
    • Strategic leadership planning
  • Strengthened strategic role of HR as driver of results The role of HR is to identify shortfalls in delivery of SHRM by any team leader, check skills and if needed report to the management team Results/targets/KPIs Revenues Direct Costs Gross margin Overheads EBIT Ideal actions
  • The OPD –SHRM building superior sustainable results Strategy (Business targets) Ideal actions (Leadership targets) Get people to do it Cultural management Populate the architecture and apply psychological processes to build engagement. Monitor leadership application Use OPD-SHRMIS to monitor all leaders are implementing OPD- SHRM in their teams. Organisational development Build architecture. Team leaders applying OPD-SHRM
  • Ethnic & cultural considerations Strategy (Business targets)  Goal cascade (enable identify ideals)  Ideal Actions (leadership targets) Get people to do it Communication must consider staff social, cultural, and ethnic background
  • The web based admin system
    • Guides implementation of OPD model
    • User friendly
    • Simple
    • Requires little admin time
    • Focus is on building ‘images and positive emotions’ in mind
    • Effective strategic HR-KPI monitoring to support sustainability
  • Sample web system menus
  • SHRMIS report (no red SHRM policy)
  • The effect of OPD
    • What is the result of OPD?
  • Improved psychology, culture and HR processes
    • Improvements in :
    • Commitment and motivation
    • Ownership
    • Clarity of goals and ideal actions
    • Engagement
    • Satisfaction
    • Team leadership
    • Coaching effectiveness
    • Performance management
    • Team relationships
    • Training effectiveness
    • Culture
    Results/targets/KPIs Revenues Direct Costs Gross margin Overheads EBIT Ideal actions
  • Improvements resulting from improved SHRM Goals/results (qualitative & quantitative) Ideal actions Actual behaviour Human performance increase (causal increase in results) Link to results (OPDPPL) Financial results
    • Qualitative results
    • Comprehensive rollout of strategy
    • Improved delivery of services
    • Increased customer satisfaction
    • More responsive teams
    • Reduced stress
    • Leadership easier
    Assuming a 10% improvement in human performance with 1% gain in human performance producing 0.3 cost decrease. Surplus increased by 27%. Surplus may not be taken in cash, rather in better results for same costs. 12.7% $127,000 10% $100,000 Surplus 87.3% $873,000 -3% 90.0% $900,000 Costs 100.0% $1,000,000 NA 100.0% $1,000,000 Revenues % After PIF % Before
  • Factors in the spreadsheet
    • The spread sheet factors:
    • Increased human performance is an increase in delivery of the ideal actions.
    • Minimum improved delivery of ideal actions is 8%-16%.
    • Improving ideal actions links directly to results:
      • Revenues increase by 0-0.2%
        • Frequently no link between staff behavior and revenues.
      • Costs decrease by 0.2-0.4%.
    • Multiplying the human performance gain (2) by the profit link (3) gives the performance improvement factor (OPDPIF).
    • People learn how to do it better and better, therefore results improve over several years.
  • Not for profit cost reductions
  • Frequently asked questions
    • How do we know it will work?
    • Why will managers do it and what will keep them doing it?
    • How much time does it take?
    • How much administration time is involved?
    • How long does it take to fully install?
    • Can we have a trial?
    • Are there any direct savings?
    • What are the hidden costs?
    • How does it fit with what we do now?
    • Much of this we do, so why can’t we do this for ourselves?
  • Summary
      • Human performance is a strategic factor in results.
      • SHRM needs to be taken more seriously and when it is it can provide major gains in results.
      • Improved alignment of staff behaviour with goals/KPIs will improve goal achievement.
      • A SHRM system with causal link between goals and staff behaviour is essential to ensure the superior sustainable results.
      • The OPD-SHRM is the only causal system that can enable full human potential.
      • It is more effective and more economic to lease a system .
  • The next step…
    • SHRM will pay back, there is value for money with strong returns.
    • OPD-SHRM can provide the framework for improved strategic alignment and improved results.
    • There are many considerations and the decision needs taken step by step.
    • What is suggested as the next step...?