Human development cost of quality in a quantified world

Applying a skill maturity to workers for a true cost calculator
most managers are unaware of.
Copyright @2015 Wicked Design Solutions
Lisa Martinez 408-638-9016

 Wicked Problems are difficult to explain and often people
don’t recognize the relationships across incidents, problems,
risk and often even once escalated to the crisis stage.
◦ Equality for Women and Girls and Minority Populations are wicked
problems
◦ Equal Access to Education, Healthcare, and Economic Opportunities
across the income classes are wicked problems
 In the workforce social responsibility has a few key points of interest;
 Fair labor practices
 Non-discriminatory hiring
 Diversity and Inclusion

Attrition at the right value for the expert,
mid –level and entry level worker.

 Data is the raw format of everything technology or manual inputs
from people in their process.
◦ Data without context is just raw data and a technical format for operations
 Information is data in context with date and time stamps
◦ Unaltered time and date stamps and record retention
 Knowledge is the way people translate information
◦ People may not have applied the knowledge they have merely acquired it.
 Wisdom is the way people understand and apply knowledge and
the way they influence the system.
◦ Not all workers seek to earn wisdom, many remain satisfied with knowledge.

1. For entry-level employees, it costs between 30% and 50%
of their annual salary to replace them.
◦ Fast Lane – Workers need Information
2. For mid-level employees, it costs upwards of 150% of their
annual salary to replace them.
◦ Middle Lane – Workers acquire and apply Knowledge
3. For high-level or highly specialized employees, you're
looking at 400% of their annual salary.
◦ Slow Lane – Workers understand their actions in the system
resulting in Wisdom
Lisa Martinez 408.638.9016 Wicked Design Solutions Copyright @ 2015

Different velocity on each
Different outcomes and behaviors
Different volumes
Different Risk and Returns

Financing for Development (FfD) Benefits – Direct Engagement

Fast Lane
Middle Lane
Slow Lane
Fast Lane
Middle Lane
Slow Lane
Suppliers are preferred
and transactions are
simply but many
Customers are typically
sold through a channel
who has invested in their
development. Simple
order but many

Fast Lane
Middle Lane
Slow Lane
Fast Lane
Middle Lane
Slow Lane
Suppliers are preferred
and transactions are
simply but many
Risk Transfers to
channels for indirect
customer business
models

Fast Lane
Middle Lane
Slow Lane
Fast Lane
Middle Lane
Slow Lane

Fast Lane
Middle Lane
Slow Lane
Fast Lane
Middle Lane
Slow Lane
Basic Skills
Advanced Skills
Expert Skills
Basic Skills
Advanced Skills
Expert Skills
Reduces Budget as a Cost or Expense
Increases revenue or supplies benefits

 Cost = Expense in
public to private sector
translation
 Supplier Stakeholders
Service
Providers
and
Suppliers
Cost
Branch or
Regional
Delivery
Capability
and
Customer
or
Citizen
Benefits
Copyright @ 2015 WICKED Design Solutions Lisa Martinez 408.638-9016
10
20
30
 Benefits = Revenue in
public to private sector
translation
 Customer Stakeholders
10
20
30
Benefits Increases Income
Cost reduces Income
Fast Lane
Middle Lane
Slow Lane
Fast Lane
Middle Lane
Slow Lane

Managers struggle with the “great
insiders” in fact, the majority are pushed
out of the workforce by age 45.

Resource Skills 10 entry level 20 advanced level 30 expert level
10-A new or small
Business
Healthy number of
operational type
workers
A percentage of
workers who can lead
and change
A small percent of
workers who are
highly adaptable and
understand invention
or R&D.
20-A medium size
business
Healthy number of
operational type
workers
A percentage of
and change
A small percent of
workers who are
or R&D.
30-An enterprise size
business
International
stakeholders
Healthy number of
operational type
workers
A percentage of
and change
A small percent of
workers who are
or R&D.

Partners
in a resale
model
Maturity Region authority Rewards based on
invested and
performance thresholds
10-A small
reseller
Healthy number of
partners who can
represent a specific
offer,
Focuses on an offer
without full product
expertise
Has invested n the
development and training
eligible for rebates, rewards
and discount thresholds
20-A
medium
size
reseller 2
tier
Healthy number of
partners effective at
managing a product line
including service
Represents a geography
of customers by
certification of product
line and 1st level service
support
Has invested n the
30-A
distributor
A healthy number of
distribution channels to
fulfill the regions
through resale channels
Has regional repair and
storage for massive
quantities
Has invested n the

Resource Maturity Resource Outcomes Effort Risk
10-May be an
experienced person
with solid training and
tools.
Enables organizations or
individuals to support with a
generalist skills when tools are
followed and monitored.
10 Low 10 Low
20-Skills are greater
than generalist and
tools must be
developed.
Enable effective tools to promote
the health with best practices for
medium businesses.
20 Medium 20 Medium
30 – Largest
Companies requires
the experts in small
workgroups.
Enable experts to quickly assess
and discreetly ensure a
comprehensive review of an
enterprise size business.
30 High 30 High

Offer Types For Profit Cooperative Not for Profit Commons
10 Sustainable
Development
Operational
Offers
Supplier of Environmentally
lean Goods and or Services
Ensures he operational execution of an offer
building and delivering goods or services proven
to enable least effort and least harm to people
and planet
Depends on the resources pipeline to upskill
rather than waste time on traditional models.
Quality Review
20 Change, Improve
or Upgrade
sustainable offer
s
Changes the current state
and measures proving gains
or improvements before
operationalizing.
Qualifies and Validates the changes are going to
be more effective and efficient before disrupting
the operations. Quality Review
30 Invent or
Innovate
New ground breaking offers
in a role of partner or
sponsor to outsource the
innovation model.
Requires social responsibility involvement and
moral considerations, with a highly complex
growth and competitive advantage when done
well.

Serial
Item
Methodology Outcomes or Stakeholder Value Dependency
10 Offer Type – Project Means of Implementation
Defined Offer with vectors and
options in the form of variables
Does not require
financing rather
payroll to worker in
local civil society
20 Offer type – Program Nations to branches or industry
into civil society through public and
private partnerships
Contribute to a
solution or set of
solutions
30 Offer type - Portfolio International to nations in universal
offers
Requires Public and
Private Partnerships
with an eye for
limitations and
variables

Serial
Item
Methodology Outcomes or Stakeholder Value
10 Offer Type – Components Means of Implementation run time monitoring
20 Offer type – Leader Manages the internal dependencies and
quality across functional boundaries
30 Offer type – Service Owner Outside In and Inside Out owns the quality
and life cycle
Offers in the IT Service Management Model are the technology transfer of the business
process activities used by people in their process.
A business service management extends the concept of IT Service to business services of
common types or universal in use across various business functions in any business or
agency

We can segment the organization by
worker maturity and align the business
models for operations,
change/improvement and transformation

Change/Continuous Improvement Innovation/Transformation
 Middle Lane
◦ Mid Level Workers
 Leaders influence others to change
or improve
 People Managers manage budgets
and people development
◦ Executives need visibility into the
effectiveness of the changes
whether strategy or continuous
improvements.
 Slow Lane
◦ Executives commit high risk
investment capital with longer term
returns
 innovation to grow market share
and transform the world.
 Without harm to people or planet
◦ High Level Workers (Experts)
minimize risk within and external to
the organization or agency.
 Innovation requires the wisdom and
breadth of knowledge

1. For entry-level employees, it costs between
30% and 50% of their annual salary to
replace them.
 Fast Lane
 Master Data Record – Sub-Account Code 10
2. For mid-level employees, it costs upwards of
150% of their annual salary to replace them.
 Middle Lane
3. For high-level or highly specialized
employees, you're looking at 400% of their
annual salary.
 Slow Lane
Fast Lane 10
Middle Lane 20
Slow Lane 30

1 Employee per month 12 months Graphic of the Same Scenario
 Six of these employees were entry level, with
an average salary of $40,000. It costs, on
average, $16,000 to replace each employee
at 40% of their annual salary, for $96,000
total.
 Four of these employees were mid-level, with
an average salary of $80,000. It costs, on
average, $120,000 to replace each employee
at 150% of their annual salary, for $480,000
total.
 Two of these employees were senior, with an
average salary of $120,000. At 400% of
their annual salary to replace them, you're
looking at almost $1 million, specifically
$960,000.
0
200000
400000
600000
800000
1000000
1200000
Worker Maturity Class Type
Percentage of
Salary to Replace
Total Cost to
Replace
Average Salary
Number of
Employees

Human development cost of quality in a quantified world

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