Founded by Dr. Geary Rummler (1937- 2008) PDL Partners ......1 Performance Design Lab Rick Rummler,...

1

Performance Design Lab

Rick Rummler, Performance Design Lab


Founded by Dr. Geary Rummler (1937-2008)

PDL Partners:Alan Ramias, Rick Rummler, Cherie Wilkins

Based in Arizona, USA

2

2


Research, consulting, training and coaching organization, founded by Dr. Geary Rummler

Our theory base and methodologies have been adopted as the standard for◦ improvement initiatives within Fortune 100 companies, ◦ the consulting industry and business schools.

Why “Lab”? Our fundamental belief is that performance can be designed, that

performance improvement is not magic, but science.

We continue to apply, evolve and expand the theory base and methodologies to:◦ Management systems ◦ Measurement◦ Strategy◦ Organization design◦ Business process management

3


Geary Rummler: Performance improvement and management pioneer

◦ “Pit a good performer…”◦ Organizations as Systems◦ “White space…”◦ 9 Performance Variables◦ Concept of “is” to “should” ◦ Process management◦ Swimlane charts◦ Provided the process improvement methodology for Six Sigma

at Motorola◦ Serious Performance Consulting

4

3


“The consultant’s consultant”

5


Performance Thinking participants will: Apply models to impact human and

organization performance Distinguish between models and tools Identify the variables that impact human and

organization performance Apply a set of proven models Identify and adapt models to address specific

business situations

6

4


Introduction to Performance Thinking Application of Four Performance Lenses ◦ The Anatomy of Performance◦ The Super System◦ The Human Performance System◦ The Effective Process Framework

Summary and Close

7

Performance Design LabPerformance Design Lab

Introduction

5


Organizations are complex systems

Organization performance can be systematically designed, analyzed, improved, maintained

But improving a complex system requires visualizing that system

Visual models and tools are our stock in trade

14


How we view and understand performance is a function of the lens or mental model we use

Models: Abstract representations of reality that reveal relationships (e.g., interdependencies, cause-effect, impact) important to performance

Tools: Anything used as a means of accomplishing a task or purpose including communication, analysis and design

When models are applied they become tools

15

6

Performance Design Lab 16


7


Anatomy of Performance


Financial Stakeholders

ANY ENTERPRISE

MANAGEMENT SYSTEM

RESOURCES

capital

humanresources

material/equipment

MARKET

Customers

customer ordersrequirements &

feedback

products/services

technology

investments

returnsCapital Market

Labor Market

Suppliers

Technology Providers

BUSINESS

8



ANY ENTERPRISE

MANAGEMENT SYSTEM

RESOURCES

capital

humanresources

material/equipment

MARKET

Customers


feedback

products/services

COMPETITION

technology

investments

returns

BUSINESS ENVIRONMENTRegulatory/Legal Economy CultureNatural EnvironmentGeo-Political

Capital Market

Labor Market

Suppliers


products/services

BUSINESS

Organization

Process


Anatomy of PerformanceApplication

9



12

3 45

6

7

89

31

10


# Finding # ofdisconnects % of total1 Management System 63 162 Linkage Parent to USA 37 103 Linkage Strategy to BUs 39 104 Work System 79 205 Ideologies 13 36 Talent Management 58 157 New Product Development 6 28 Enabling IT Infrastructure 50 139 Compliance, Governance, Audit 33 9

Uncategorized 8 2

32

Performance Design LabPerformance Design Lab 33

11


OPERATIONS

Advanced Product Design

Manufacturing

Materials

Engineering

Sales & Marketing

Commercial Airlines

Material Vendors

market needs

sales efforts

A/C orders

prints

materialsprints

orders

materials

technology

design

aircraft

Aircraft Manufacturer


Super System

12



ANY ENTERPRISE

MANAGEMENT SYSTEM

RESOURCES

capital

humanresources

material/equipment

MARKET

Customers


feedback

products/services

COMPETITION

technology

investments

returns


Capital Market

Labor Market

Suppliers


products/services

BUSINESS


• Depicts the variables external to a given organization that might be factors in its performance

• Helps to make clear the context in which the organization exists

• Can model past, present or future conditions

There are several standard components: • the Organization’s Products and Services • Markets, Customers and Channels• Financial Stakeholders • Resources• Competition• General Environment• the Organization itself.

13


Super System Application


1. Earnings:a. Profits declined from 30% to 13% over

past four years.b. No data on profits by product.


ANY ENTERPRISERESOURCES

capital

humanresources

material/equipment

MARKET

Customers

customer ordersrequirements &feedback

products/services

COMPETITION

technology

investments

returns


Capital Market

LaborMarket

Suppliers


Products/services

5. Resources:a. Human Resources – increasing difficulty recruiting

qualified engineers over the past 18 months. An engineering shortage is a direct threat to developing new products to compete with competitor CCC.

b. Supplies/materials – Serious fire last quarter in prime facility of major component supplier has disrupted supply chain, causing some product delivery delays.

c. Technology – Necessary to aggressively pursue and evaluate emerging electronic and metallurgical technologies to counter recent success of competitor CCC.

d. Capital – Primary source of capital is Corporate, who is increasingly reluctant to invest more funds until they see an improvement in Belding Engineering earnings. The combination of lowered Belding Engineering earnings and no additional funding from Corporate has serious implications for new product development.

6. Business Environment:a. Economy predicted to remain strong for next 3

years.b. Federal legislation pending that could

influence the way the industry disposes of certain production chemical by-products.

3. Market:a. Industry continues to grow

at about 15% per year. Analysts predict this will remain the case for the next decade.

b. Overall revenue growth has averaged 12% for the past three years

2. Products:a. Original (Introduced ten years ago – sales growth

slowing each of last five years)b. Complex ( Introduced five years ago – sales remain

almost the same each of the past three years)c. New (Introduced three years ago – growing an

average of 75% per year since introduction)d. Two new products scheduled for launch early next

year.e. Product performance:

i. Rework on the increaseii. Increased delivery times

4. Competition:a. Three major competitors

- AAA – Comparable technology, features and price

- BBB – Inferior technology, less features, lower prices

- CCC – Newer technology, more features, slightly higher prices

b. Market share summary:

% Market ShareCompanyFour Year Ago This Year

% Change

Belding Eng 40 34 (15)AAA 27 22 (19)BBB 25 27 8CCC 5 14 180Other 3 3 0Total 100 100

14


RESOURCES

Capital

Human Resources

Raw Matls/ Supplies

Technology

COMPETITION

ANY BUSINESS

CAPITALMARKET

Earnings/Dividends

NeedFor"It"

"It"

"It"Ordered

PRODUCT/SERVICE MARKET

GENERAL BUSINESS ENVIRONMENTPolitical - Regulatory - Economic - Cultural

Customer


15



To understand scope and current condition To understand context To identify key relationships To compare and contrast To highlight, focus or reveal To dramatize complexity, issues, missing

elements To single out what is important To test design ideas To model improvements

43

16


“Definitely not. I might make better diagrams but certainly wouldn’t stop making them. On one level it’s like saying to a mathematician, ‘Couldn’t you do without all those formulas and numbers?’

“You can list variables that affect organizational results, but words can’t show the relationships between things—a diagram can. I have a saying that if I can’t draw a picture of a problem, I don’t understand it and thus can’t explain the problem to the client.”

You have been criticized for your abundant use of complex diagrams in your books. Given the chance, would you do them differently now?

Interview with Geary Rummler for ASTD Magazine, 2007


17


Human Performance System


Every performer in an organization is part of a larger system.◦ Every human performer is in a Human Performance

System, often with technology as a resource.

47

18


CONSEQUENCES

PERFORMER

+ ‐OUTPUTINPUT

FEEDBACK

PERFORMER

OUTPUTINPUT CONSEQUENCES + ‐


Adequate and appropriate criteria (standards) with

which to judge successful performance

• Clear or sufficiently recognizable indications of the need to perform

• Minimal interference from incompatible or extraneous demands

• Necessary resources (budget, personnel, equipment) to perform

• Sufficient positive consequences (incentives) to perform

• Few, if any, negative consequences (disincentives) to perform

Frequent and relevant feedback as to how well (or how poorly)

the job is being performed

• Necessary understanding and skill to perform

• Capacity to perform both physically and emotionally

• Willingness to perform (given the incentives available)

19


Every human performer exists as part of a larger Human Performance System.

Human behavior is influenced by its consequences - People exhibit behavior that leads to positive

consequences- Avoid behavior that leads to negative

consequences. There are a finite number of variables (six)

affecting human performance.

50


If we put a good performerin a bad system (HPS),

the system will win every time

51

20


Human Performance SystemApplication


A. PERFORMANCE SPECIFICATIONS

• Do performance standards exist?• Do performers know the desired

output and performance standards?

• Do performers consider the standards attainable?

B. TASK SUPPORT

• Can performers easily recognize the input requiring action?

• Can the task be done without interference from other tasks?

• Are job procedures and workflow logical?

• Are adequate resources available for performance (time, tools, staff and information)?

C. CONSEQUENCES

• Are consequences aligned to support desired performance?

• Are consequences meaningful from performer’s viewpoint?

• Are consequences timely?

D. FEEDBACK

• Do performers receive information about their performance?

• Is the information:• Timely?• Relevant?• Accurate?• Constructive?• Easy to understand?• Specific?

E. KNOWLEDGE/SKILL

• Do performers have the necessary knowledge and skill to perform?

• Do performers know why desired performance is important?

F. INDIVIDUAL CAPACITY

• Are performers physically, mentally and emotionally able to perform?

21


Consequences

Feedback

Operators

Input Spin @ PeakTarget: 200 MV

B. Task Support

• There is not record for a desk of what the latest standards/instructions are. There is only a historical e-mail thread that makes it difficult to discern what is current.

• Lots of equipment used to handle high voltage is inoperable. Lots of equipment has unique requirements that must be memorized or accessed.

• Adding to the chaos and work load: Last minute requests for permits from field. Unplanned building moves.

A. Performance Specifications

• The standard exists.

• Standard is not known by all performers. Confusion about whether it is a rolling 15 minute average or real time.

• Currently no one is at standard. The range is 205 -339. Is it realistic?

C. Consequences

• No positive consequences for meeting the target. No negative consequences for missing the target.

• Poor performers are not dealt with – This is observed by all other performers.

• No performance reviews

F. Individual Capacity

• Operators are physically, mentally, and emotionally able to perform this job.

• Anger over toward management may be interfering.

E. Knowledge and Skill

• Training on skills that are then not used for long period of time (due to desk assignment). Training viewed as not helpful.

• Not sure that the economics of the goal have been communicated. Comments about “no explanation of the numbers”, just “Do this”

D. Feedback

• Performance data is available via screen. There is no reporting after a shift or other interval.

54


IMMEDIATE DELAYED

What Information? What Source? How Often?

FEEDBACK: What feedback do the performers receive?

What Information? What Source? How Often?

FEEDBACK: What feedback do the performers receive?

IMMEDIATE DELAYED

INPUT/SIGNAL (WHAT INDICATES THAT ACTION IS REQUIRED?)

INPUT/RESOURCES (What resources are

available to assist the performers?)

PERFORMER(S)

DESIRED OUTPUT

(What should the performers do?)

UNDESIRED OUTPUT (What do the

performers do?)CONSEQUENCES TO THE

PERFORMER(S) (What happens to the performers when

they take the undesired action?)

CONSEQUENCES TO THE PERFORMER(S)

(What happens to the performers when they take the desired action?)

CONSEQUENCES TO

THE ORGANIZATION

CONSEQUENCES TO

THE ORGANIZATION

+

–

PAD 3-014

+

–

+

–

+

–

55

22


“20% of apps have errors

requiring us to go back to FC”

Output

FC MAO REP SALES SUPPORT

SPECIALIST

Fix errors

Output Output

“Est. 35% of apps requirecorrections. We don’t

track that “

Additional fallout or

interventions

? Time spent on Apps and corrections

by FC

• 15 mins to fix

• 5 mins to process

100% of apps observed needed corrections

Fix errors


1. Hypothesizing and diagnosing the cause(s) of poor human performance

2. Designing/Implementing changes at the job level -replacing the “is” HPS with a “should” HPS (Change management)

3. Managing performance by managing the “performance system” rather than the individual

4. Evaluating the likely impact of proposed policies/ changes on the HPS of employees. (Avoid the “Law of Unintended Consequences”)

5. Understanding “culture” (the prevailing “expectations-consequence” relationships) and what must be done to change it.

57

23


Fosters objective discussion of issues Makes complexity understandable without

artificially simplifying (if a good one) Fosters shared understanding among

stakeholders with diverse perspectives Promotes adoption and adaptation Fosters collaboration - suggestions to

improve vs. criticism

58


Clarity of purpose Clarity of audience Perceived neutrality of creator/presenter Selection is based on an understanding of

the set of variables impacting performance

59

24



Effective Process Framework

25



1. Desired process outputs/results – the specifications of the desired business value milestone and required process outputs Requirements: Linked to organization and customer requirements; clear; and

communicated to all parties designing, improving, performing and/or managing the process.

2. Process design – the design of the work and value creation flow of a process Requirements: Embodies optimal work and value flow characteristics such as continuous

and parallel flow and value add steps

3. Underlying models – the models or principles and supporting algorithms which dictate process design e.g. staffing level models, inventory management models, resource allocation models, etc. Requirements: Align to the business requirements of the process

4. Resources – the inputs provided by Contributing processes which enable the process to be performed as designed e.g. staffing levels, performance environment, budget, etc. Requirements: Align to the business requirements of the process

26


5. Inputs/triggers – the outputs from upstream processes and the events which feed and initiate the start of the process. Requirements: clearly defined and accounted for in the process design

6. Jobs/roles – the people who perform the process, the associated hierarchy and the system of variables that influence their ability to produce the desired outputs Requirements: properly aligned and executed as specified by the process design

7. Technology – the technology that performs or enables the performance of the process including hardware, software (i.e. systems, interfaces and applications) and data Requirements: properly aligned and executed as specified by the process design

8. Process Performance Management System – the act of planning and managing at the process level of performance Requirements: Timely and actionable performance expectations.


Effective Process FrameworkApplication

27


Confusing Offer Logic

• Application Errors

• Possibility of Duplication

Lack of visibility –not sure when done

• Accounts must be funded before sending –delay

• Multiple interface

• Difficult interfaces

• Multiple error checks

• Batching• Variation

• Organization & Physical silos

• Poor performance Support

66


Are the desired process outputs/results requirements Linked to Organization and Customer requirements? Clear? Communicated?

Is the process designed to meet output requirements? Are the underlying models appropriate? Are necessary resources available? Do the required inputs/triggers meet input standards? Are jobs/roles properly aligned and executed (including organization

structure)? Is the required technology aligned and executing? Is an appropriate Process Management System (PPMS)

In place? Aligned? Executing?

28


• Official Clock Start• Push the Process

Upstream• Single Source of

Information• Clear

Accountabilities

• Establish Metrics• Push the process

downstream• Eliminate NVA

outputs• Sunset support

costs

• Document processes

• Provide training• Eliminate task

interference• Balance

consequences• Provide feedback

• Pull System• Task Combining• Customer-centric

Redesign• Standardization• Harmonization• Activity-based costing• Push the process

outward

• Eliminate NVA support processes

• Just-in-Time

• Performance Specification Agreements

• Designate process owners

• Develop measurement systems

• Clarify mgmt roles and responsibilities

• Automate routine work

• Integrate process enhancements into systems

68


Summary

29



Organization complexity is increasing -modeling will continue to be essential to understanding, changing and managing performance.

Practitioners and Managers need models to: ◦ make effective and lasting changes/

improvements, and◦ avoid unintended consequences.

There is no excuse for not understanding the performance context associated with any problem/opportunity.

71

Founded by Dr. Geary Rummler (1937- 2008) PDL Partners ......1 Performance Design Lab Rick Rummler,...

Documents

Transcript of Founded by Dr. Geary Rummler (1937- 2008) PDL Partners ......1 Performance Design Lab Rick Rummler,...