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Module 0: Ground Zero to 50,000 Foot View


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High-Level Overview of Work Focused Improvement®
Management Essentials for Daily Use & Ongoing Improvement

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Module 0: Ground Zero to 50,000 Foot View

  1. 1. Work Focused Improvement® Management Essentials for Daily Use & Ongoing Improvement Beyond World Class Performance Year After Year Quick Intro By Sam Pratt © 1986-2017 Samuel H. Pratt / SHP Consulting Limited Module 0 Ground Zero to 50,000 Foot View
  2. 2. Why WFI Pay Systems are World’s Best 1. They improve bottomline performance a) Minimum of 25% gain for each of the first 5 years [gain is often much higher] b) Gain continues as long as prescription is followed 2. Gains continue unless something like this happens: a) An executive / owner notices that the monthly “cost” of incentive bonuses is $480,000 [ignoring the fact that monthly profits are up $ 2.2 million] b) He tells the powers / partners that “we are paying people an extra $480,000 a month to do the job they were hired to do c) A letter is sent out telling the associates that their performance, including throughput & quality is excellent, but due to tough economic times, the Gain Share & Direct Incentives are being temporarily suspended, but it is expected that associates will continue to perform at the recent very high levels [this is known as “Management by Wishful Thinking”] © 1986-2014 SHP Consulting Limited, Samuel H. Pratt
  3. 3. First Steps (these steps are Form & Workbook driven) • Conduct Environmental Analysis • Perform Social & Technical Analysis as needed • Identify key Inhibitors & need for Parallel Paths • Introduce Continuous Improvement & Advancement process • Review business data and determine Key Performance Indicators (KPIs) • Determine Business Objectives in support of Mission • Complete Work Essentials process to determine nature of work and secure re-engineering gains • Identify target areas for Gain Share & Direct Incentives • Design the Pay System Key Systems & Mechanisms© 1986-2014 SHP Consulting Limited, Samuel H. Pratt
  4. 4. Work Essentials • Work Essentials is a streamlined reengineering process that scrutinizes jobs to uncover improvement opportunities • A form is used to analyze work to trigger improvement: • The various tasks performed by the job • The % weekly time spent on the task • The worth of the task in terms of bottomline performance • The goal is to eliminate non value adding work and to increase the organizational time on things that help the bottomline Organization© 1986-2014 SHP Consulting Limited, Samuel H. Pratt
  5. 5. Work System Design 1. Design as a collaborative effort among Work Groups 2. Design so that people rely on their strengths and develop their weaknesses 3. Design so that people are equally challenged, but recognize the mastery vs variety dynamic 4. Incorporate vision that there will be greater cooperation and more cross functional Advancement Teams 5. Include mechanisms to insure design refinement and reconfiguration in an ongoing way 6. Consider how all associates will be more integrated into the information and decision making system 7. Support the concept of "boundaryless" and protect against turf battles 8. Develop multiple work assignment groupings to show occupation options 9. Develop multiple organizations that include various diagonal groupings 10. Don’t avoid past adversarial relationships but consider both healing and synergy 11. Include discretionary and non-discretionary work in each team if possible 12. Include repetitive and creative tasks in occupations and teams where possible 13. Design from a organization perspective first, and consider specific personalities second 14. Push the limits … don’t be afraid to combine or change teams, jobs, etc. Organization© 1986-2014 SHP Consulting Limited, Samuel H. Pratt
  6. 6. WFI Socio-technical Design Traditional Less of this • Controlled compartmentalized units • Ambiguous requirements • Technical system dominance • Limited information flow • Narrowly defined jobs • Errors reworked downstream • Controlling structure & culture • Static design by top management Socio-technical Design More of this • Empowered autonomous units • Clear direction and goals • Socio-technical integration • Accessible information flow • Diagonally enriched jobs • Control of variance at source • Empowering structure & culture • Capacity to reconfigure built in Organization© 1986-2014 SHP Consulting Limited, Samuel H. Pratt
  7. 7. Key Design Steps for WFI Direct Incentives 1. Gather performance data of Linear occupations 2. Perform Focus Studies on all key repetitive tasks 3. Use Environmental Assessment Scores workbooks & sheets to gather & analyze ratings of various work groups 4. Gather historic & observed performance data & use Correction Factors to fine tune in 5 below 5. Use Rate Analysis & Derivation Template to set Baselines for various linear work tasks 6. Use Situational Pay Curves only if the Standard WFI Pay Curve will not be optimum
  8. 8. Gather Performance Data Macro Collect all periodic data and calculate gross widgets per hour Multiply by correction factor Micro – Focus Study Observe & record tasks by average or above worker for 1 or 2 hours Multiply by correction factor Micro – Challenge Give worker “3 hours” with direction to complete ASAP & record time Multiply by correction factor Micro – Target Data From historic records, select known periods of work that reflect good performance Multiply by correction factor © 1986-2014 SHP Consulting Limited, Samuel H. Pratt
  9. 9. At least 7 WFI Organizations have been Acquired/Merged by Larger Organizations 1) This is good and bad a) Usually the WFI organization owners have been able to insure that the purchase / merger was with the right party at the right price (many millions of dollars) b) In some instances the new organization has wandered off the WFI path with serious consequences 2) Ultimately the lesson is that WFI companies stay world class only if they adhere to the tenets of WFI © 1986-2014 SHP Consulting Limited, Samuel H. Pratt
  10. 10. WFI Key Characteristics & Components 1. Emphasis is not on control, empowerment, or any traditional management focal point. 2. Key Performance Indicators and other measures are used to facilitate Fact Based Management. 3. Everyone in the organization is preoccupied with performance. They are owners and are rewarded for organizational gains through a Gain Share Plan, possibly in the form of a Virtual Performance Company™. 4. Key core value adding linear work is covered by a Direct Incentive Plan that changes all traditional dynamics and moves individuals out of the Entertainment / Entitlement Zone to the Performance Zone. 5. Hygiene (me issues) are in the background and not a focal point. 6. Gain Share and Direct Incentives are uniquely linked to reinforce each other, and the design effort is socio-technical. 7. Incentive Baselines (Productivity & Quality) are set using 6 weighted rating factors including culture & business mechanisms. 8. Annual Continuous Improvement Adjustments insure that the pay system is fair to Individuals and the organization. 9. Situational Sculpted Pay Curves optimize incentive impact. 10. A Continuous Improvement System works in concert with the Pay System. 11. Non-value adding work naturally and systematically disappears. 12. The underlying principle is, “When a group of people work in concert to advance the business, a by-product of the effort is a better functioning social unit.” © 1986-2014 SHP Consulting Limited, Samuel H. Pratt
  11. 11. Logic of Managing with Facts  Edwards Deming said: “If you can't describe what you are doing as a process, you don't know what you're doing.”  Extending the above logic, it is reasonable to conclude that if you do not have access to process performance data, you don’t know how well you are doing.  The goal of any organization or process is to continuously improve to the point of being the world’s best.  If you don’t have the core facts, you will fail.  Also, a lack of access to key core facts injects extreme stress in to the social structure. © 1986-2014 SHP Consulting Limited, Samuel H. Pratt
  12. 12. Learn More About Work Focused Improvement 1. Browse the other modules on the WFI website … probably beginning with Module 1 2. Contact Sam Pratt to discuss Guaranteed Improvement: Payments come only from Unforecast Profit triggered by increased productivity & Work System Design 3. Contact Info a) Phone 330-904-7147 b) Email: c) Text: 330-904-7147