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The Key to Productivity
                  People Productivity




A step by step guide to improve workplace productivity

                   By Peter Mitchell




   Published by The Learning Company Publishing Group.
                      P O Box 20-132
                         Hamilton
                       New Zealand

                     Copyright 2009

              E-mail peter@thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com




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       © The Learning Company Ltd Publishing Group New Zealand                    2
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
          A step by step guide to improve workplace productivity.
                  http://www.thekeytoproductivity.com

             /root/convert/jodconverter-tomcat-
               2.2.0/temp/document483210.doc
                          Contents

Chapter       Title
              Author’s note                                                    4
              How to Use This Book                                             5
    1         Introduction                                                     6
    2         Understanding the Basis of Productivity                          9
    3         Your Productivity Questionnaire                                  14
    4         Some Typical Barriers to Productivity                            18
    5         Take a Break—Read a Short Story                                  24
    6         12 Common Symptoms of Low Productivity                           25
    7         Plan to Succeed with your Strategy and Tactics                   29
    8         Measure and Record Where you are.                                33
    9         Evaluate Your Leadership Resources and Capabilities.             37
   10         Set Mutually Agreed on Expectations                              44
   11         Set Targets and Milestones                                       48
   12         Provide Clear and Meaningful Feedback                            50
   13         Leadership Skills, one of the keys to Improving Productivity     56
   14         Increasing Productivity Through People                           61
   15         Demotivation, Disincentives and Discouragement.                  65
   16         Managing Performance.                                            74
   17         Managing the Business of Change                                  79
   18         The Practical Science of Behaviour                               87
   19         Feedback Guidelines                                              91
   20         A Plan for Easily Improving methods                              96
   21         Humour and Happiness Improves Workplace Productivity             99
   22         The Magic Process of Motivation                                  105
   23         How to Reduce Absenteeism                                        110
   24         Delegation, Development and Personal Productivity.               113
   25         Putting it all together. A Plan to Lift Workplace Productivity   121
Appendix 1    An explanation of Productivity                                   126
Appendix 2    Business Productivity Case Study                                 128
Appendix 3    Personal Productivity Case Study                                 133




      © The Learning Company Ltd Publishing Group New Zealand             3
                   For more learning resources, visit:
                     http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

Author’s note
We all know WHAT to do to win a lottery. Just pick the right numbers and be
rich for life. The problem is that we don’t know HOW to do it.

This is the problem that I find with so many books on business. They tell you
WHAT to do but not HOW to do it.

My approach to this book is to give the reader a selection of strategies and tactics
to increase the productivity of their business and explain HOW to do it in a
practical way.




       © The Learning Company Ltd Publishing Group New Zealand                     4
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

How to Use This Book
To get the best results from this book, I suggest you follow the process outlined
below.

Firstly, read the book at your normal reading speed and use a pencil or pen to
underline key passages and make notes to yourself in the margins. If you come
across something which you want to remember, either put a sticker on the page
or write the page number in the front of the book.

Once you have finished the book, take a few minutes every day, and flick
through the pages, and re-read the key points that you have marked. The reason
for this repetition is that principles are easier to apply when they are familiar and
fixed in your subconscious mind.

After several repetitions, write down an action plan for your productivity
improvement. Make sure that when writing your action plan you include a
timeframe.

At this stage you can also write down a training module to show others how to
improve productivity or you can list topics from the book to coach other
managers in the process of productivity improvement. Remember, you will need
to persuade your supervisors to accept the steps of productivity improvement
before introducing any changes.




        © The Learning Company Ltd Publishing Group New Zealand                     5
                     For more learning resources, visit:
                       http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com


                                    Chapter 1
                                 Introduction
The traditional methods of increasing workplace productivity usually require
capital outlay on machinery and the installation of systems. However, the key to
improving productivity is the people in the business.

This book has been written specifically to help businesses lift their productivity
through their people. These enterprises can be any sized businesses, not-for-
profit organisations and government departments. This is without a large
investment in capital expenditure on new machinery or the introduction of more
complex systems.

In this book I have focussed on the people side of the equation. The reason is
quite simple: if you have staff who are not very productive, the addition of more
sophisticated equipment will not necessarily improve the situation. On the other
hand, if you maximise productivity with what you have at present, any
subsequent investment in machinery will be well rewarded in terms of greater
productivity.

The key is the people and their performance.

Regrettably, the most cost effective source of extra productivity—people, is
normally ignored. The strategies and tactics offered in this book provide low or
no cost solutions to improving productivity.

The lack of productivity costs money and when costs are under threat, then so to
are jobs and businesses. Whatever the industry, the need to improve
productivity is the ultimate goal. This is true today, as it was yesterday and as it
will be tomorrow.

Millions of dollars are wasted each and every day in organizations, through lack
of awareness of this need to constantly improve productivity.

Most of the waste can be stopped. A concerted effort at all levels, management,
supervision and “shop floor'” will produce results. Positive, active co-operation
by all levels is the surest way of producing results.

The methods shown here in this book are applicable to manual work, clerical
work and the service industries. The benefits of improving productivity are not
always obvious. Certainly, there is a financial benefit for the bottom line of the
business but there are less obvious benefits for the employees.

        © The Learning Company Ltd Publishing Group New Zealand                      6
                     For more learning resources, visit:
                       http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

Many employees are not included in setting meaningful targets. So, without
mutual expectations they are not motivated to perform. On top of this, most
employees don’t receive relevant feedback about their efforts on a regular and
frequent basis. By not receiving feedback they are unable to adjust their
performance.

Given the situation, it is little wonder that workplace productivity is low.

This book will give you a step-by-step process to follow so that your workplace
productivity can steadily grow. It has been designed as a “how-to-do-book” as
well as a “what-to-do-book.”

The majority of managers and leaders know what to do but often don’t know
how to do it. In this book we address that problem.

It is clear that to achieve behavioural change in the workplace so that
productivity levels are lifted, it must be done with the full co-operation of the
staff. Often, the installation of change is carried out in the face of very stiff
resistance. The outcomes are minimal. We need to change our style of
management and leadership to one that nurtures change rather than prescribes it
or imposes it.

This means that the person in the leadership position of the business holds the
key to increased productivity. It is this person who can initiate change,
encourage others to follow, lead people to perform to a higher level, harness the
skill and experience of their staff and engage their brains.

In the past we seem to have shied away from a cooperative approach and used a
prescriptive approach because, as leaders, we didn’t want to be seen as being
weak.

From what I’ve seen during the last 35 years, the cooperative approach is
definitely more difficult than the prescriptive approach but so much more
effective and worthwhile.

In small and medium sized businesses, great results can be achieved by focussing
the productivity effort on one section of the staff. The most logical area to
pinpoint is the front line leaders, the team leaders or supervisors.

Through a process of careful training, mentoring and coaching, substantial
productivity gains can be achieved.

By consistently thinking, acting, and speaking productivity, the leader will be
extremely effective in getting the message across and understood.

       © The Learning Company Ltd Publishing Group New Zealand                      7
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com




The Basis of Productivity Improvement
To improve productivity levels there are a small number of basic principles that
apply in all cases.

No organisation is too small or too large to benefit from the beneficial results of
productivity improvement. It doesn’t matter if it is in the public or private
sector, the benefits are still available.

Productivity planning should involve as many employees as possible. This is so
that as many people can feel involved and then they will feel that the success of
the productivity program is partly dependent on them.

A productivity program should be on-going because it can never be completed.
It should be a dynamic part of the business at all levels.

In setting the goals, care must be exercised to ensure that the achievement of the
goal is possible. That control can be exercised. Too many times the goals are set
out of reach of the employees which leads to a lack of participation and an early
withdrawal of commitment by the staff.

Every cost reduction tool can be used.

Improving methods can have a profound effect on productivity and the best
people to design new methods are the people doing the job.

Individual levels of productivity should be measured and the employee be given
training and on-the-job coaching to lift their personal productivity. They should
receive feedback on their performance.

Often there is a lot more said than done about productivity. There is also a lack
of planning and the lack of a concerted, consistent effort applied to the situation.
Improving productivity is the real key to national prosperity contributing to a
rising standard of living.

No business can ignore the implications of increasing productivity.
Productivity improvement requires imagination, enthusiasm, flexibility and a
single minded, intelligent approach.

Productivity improvement is like gravity; it starts at the top and works
downwards through the business. Not the other way round.



        © The Learning Company Ltd Publishing Group New Zealand                        8
                     For more learning resources, visit:
                       http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

                                    Chapter 2
             Understanding the Basis of Productivity
There are several common misunderstandings about productivity. Quite
frequently, productivity and production are treated as the same thing.
Productivity is not production. It is not just pushing products out of the
assembly line as fast as possible without any consideration for quality, safety,
and cost.

In some businesses productivity and performance are treated as the same. They
are not the same although performance can have an effect on productivity.
Performance relates to how close we come to meeting a target such as a certain
quantity or quality of output.

The term productivity means different things to different people—more output
while maintaining costs; doing the right thing; working smarter and not harder;
automating the operation to get more and faster output; and so on.

Production is an output but productivity is determined by the inputs used to
gain that output

Production relates just to output, is normally expressed as production volume
and measured in terms of units. For instance, when a manufacturer produces
items at the rate of 100,000 units per year, the production volume is 100,000 units.

On the other hand, productivity is the ratio between output and input. It clearly
shows us the relationship between input and output. This relationship is
expressed as:

Productivity = Input divided by output
There are three elements in productivity. The input, conversion and output.
Input is the resources used in the process. Conversion is the process of changing
input to the output. This is where productivity occurs and it is this area where
people and machinery convert the input resources to the output. (For a further
explanation see Appendix 1)

It is difficult to compare productivity levels in organisations unless the inputs are
the same and the productivity is expressed in the same way such as items per
hour or week. It is relatively rare to find two businesses making the same
product using the same machinery and equipment to directly compare
productivity levels.



        © The Learning Company Ltd Publishing Group New Zealand                     9
                     For more learning resources, visit:
                       http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com


For the sake of this explanation and to assist understanding, we will use the
following examples.

For example, if 10 people worked at the rate of 8 hours per day for 5 days, they
can produce 10,000 items. What is their productivity?

Input is the number of hours worked in this example,
10 people x 5 days x 8 hrs/day = 400 hours
Output = 10,000 items

Output = 10,000
Input 400
Productivity= 25 items per hour

A different business that was smaller with only four people, with exactly the
same equipment and raw material worked a nine hour day. They produced 5,800
items per week.

Their productivity would be 4 people x 5 days x 9 hours/day = 180 hours
Output = 5,800 items
Input = 180
Productivity = 32 items per hour.

The productivity of the second business was 28% higher than the first business.
In this case there may be many other factors that enabled the second business to
have higher levels of productivity.

Efficiency and Effectiveness.
The two vital aspects of productivity are efficiency and effectiveness. Efficiency
refers to how well the various inputs are combined or a job is done.

For example, if there are two clerks working in an insurance company dealing
with claims. They both work the same number of hours and they are in the same
department, and seated next to each other. On the outside, they look like they
are doing the same things. However, one of them completes more claims than
the other.

Although the input (number of hours, equipment, claims, etc.) is the same in both
cases, the output of one clerk seems to be higher than the other in a given number
of hours. The difference might have been due to any number of factors. For
example, they may include motivation, job knowledge, training or the methods
used in performing the job.


       © The Learning Company Ltd Publishing Group New Zealand                     10
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The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

In this case it was found that clerk Y planned and organised the work, putting
time and effort to better use. The efficiency of clerk Y was greater than that of
clerk Z who had completed less work. Better utilisation of time and effort made
possible by planning and organising probably led to greater effectiveness, and
clerk Y was able to complete more claims than clerk Z.

Productivity is how well various resources (inputs) are brought together and put
into use for achieving special goals or results. Productivity is the key to
profitability. It is doing things better and working smarter, not just harder.

To do so, we have to tap the reservoir of knowledge, creativity and productivity
available from our workforce through education, training, motivation,
technology and group effort. The challenge is how to secure the maximum
possible improvement in performance or results while using the minimum
possible resources.

With proper planning and motivation, the job of productivity growth can be
achieved. However, certain facts have to be borne in mind when launching the
productivity improvement programme.

The productivity growth is more likely to be achieved if the objectives are
discussed with the employees and they are able to contribute their ideas. Let us
say, the objective is: “Reduce rework.” The employees must know and be
familiar with the following information:

   •   The current rework rate.

   •   The expected reduction targets.

   •   The reasons for the current rework rate.

   •   The methods to improve the rate.

They also need to be aware that they have the opportunity to voice their opinions
on how to improve the situation.

By making periodic checks, the supervisors can make sure whether their team
members understand the objectives and make efforts to accomplish them.

If the expected results can be measured in tangible terms, productivity is more
likely to improve. Using the same example, let’s say that the current rework is
costing the business about $65,000 a year. The objective can be stated in tangible
terms as: “Reduce rework cost from $65,000.”


       © The Learning Company Ltd Publishing Group New Zealand                  11
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

To be successful, there has to be a clear understanding of mutual benefits
between the business and the staff. The motivation to improve is greatly
enhanced when the employer and the employees are working towards common
goals with mutual expectations.

Employees may be wondering how they are going to benefit from the reduction
of the cost of rework. So, the employer may link an incentive to the
accomplishment of the objective. For instance, a portion of the savings from the
reduced costs may be given to the employees as bonus or a proportion of the
savings may be used to fund time off from work.

This way, the employer and employees share the benefits. This sort of approach
must be treated with utmost caution because of the many pitfalls that can occur.

Only when there is ample opportunity for employees to participate in and be
responsible for productivity objectives, will they accept the productivity growth
seriously.

For instance, before setting the productivity objective for rework, the employees
involved with rework should be consulted as to the reasons for rework, the
methods to be employed in reducing rework, and the setting of realistic targets.
Since these suggestions come from them, they may become more involved and
committed to the objectives. They will be ready to undertake the responsibility
with enthusiasm. The whole concept of “waste reduction” normally finds
support from most people, so there is already something to build on.

When a time frame is set for achieving the productivity objectives, it enhances the
positive outcome. Using the same example of “Reduce rework”, a time frame
can be linked to it in this way: reduce rework cost in the next three months from
$65,000 to $40,000, in the next six months to $30,000 and in a year to the objective
of $20,000.

The quality aspect should not be sacrificed for quantity. Quantity at the expense
of quality will be short-lived. If the objective is to reduce rework from 2000 to
1000 units in a year, the focus should not be just on the number to be reduced.
Employees must make sure that the reworked items do not come back for further
rework. The focus should be on reducing the quantity of rework and at the same
time maintaining the quality of workmanship.

Accountability for productivity is more likely to be accepted when employees are
held responsible for the productivity objectives. Coupled with this responsibility
is the involvement in setting the objectives.



       © The Learning Company Ltd Publishing Group New Zealand                   12
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

The road to higher productivity must start with the leadership team. Staff will
respond when they see for themselves that the their leaders are actually
consistently practising what they are preaching. Improving productivity is a
leadership skill.

At this moment, just take a bit of time and answer these questions.

How much is rework costing your business?
   •   What proportion of work do you have to re-do?

   •   How much time does this take?

   •   What are the labour costs associated with this rework?

   •   What are the material costs associated with this rework?

   •   What are the hidden costs of your rework? (The hidden costs include
       frustration created amongst the staff, stopping and starting costs, the lack
       of effort applied when a job has to be done again.)

   •   What are the opportunity costs associated with this rework?
       (Opportunity costs in this case is the revenue, that you would have
       received if you were working on another profitable job instead)

Add all these costs up and decide whether or not you need to reduce the amount
of rework which is currently happening in your business.

It may sound a bit brutal, but it's true. Your job in leadership is to create an
environment where your people get what they want and you get what you want.
The outcome of this process is that the right things are achieved by people who
are happy.




       © The Learning Company Ltd Publishing Group New Zealand                    13
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
             A step by step guide to improve workplace productivity.
                     http://www.thekeytoproductivity.com

                                   Chapter 3
                   Your Productivity Questionnaire.
Fill in this questionnaire honestly and add up your total. Remember that this is
not a deep scientific survey but will give you some food for thought. Take note
that if you don’t know the answer to any of the questions you lose 4 points from
your score.

Does your business invest in developing leadership skills?

5              3               1                 0              -4

Constantly         Sometimes       Hardly Ever       Never           No Idea

Does your business invest in method and process improvement?

5              3               1                 0              -4

Constantly         Sometimes       Hardly Ever       Never           No Idea

Do your managers involve staff in decision-making?

5              3               1                 0              -4

Constantly         Sometimes       Hardly Ever       Never           No Idea

Do your managers have the right mix of experience and knowledge?

5              3               1                 0              -4

Constantly         Sometimes       Hardly Ever       Never           No Idea

Do your staff have the right mix of experience and knowledge?

5              3               1                 0              -4

Constantly         Sometimes       Hardly Ever       Never           No Idea

Are the methods and systems used in your conversion process appropriate and
up-to-date?

5              3               1                 0              -4

Constantly         Sometimes       Hardly Ever       Never           No Idea

Do your managers ask staff for ideas on method and process improvement?
      © The Learning Company Ltd Publishing Group New Zealand                  14
                   For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
             A step by step guide to improve workplace productivity.
                     http://www.thekeytoproductivity.com


5              3               1                 0             -4

Constantly         Sometimes       Hardly Ever         Never        No Idea

Do your managers actually know what their staff think about the business?

5              3               1                 0             -4

Constantly         Sometimes       Hardly Ever         Never        No Idea

Is the machinery used in your conversion process up-to-date and effective?

5              3               1                 0             -4

Constantly         Sometimes       Hardly Ever         Never        No Idea

Do all employees receive comprehensive, practical and effective training?

5              3               1                 0             -4

Constantly         Sometimes       Hardly Ever         Never        No Idea

Is your business and your staff receptive to change?

5              3               1                 0             -4

Constantly         Sometimes       Hardly Ever         Never        No Idea

Do all your managers have an effective leadership style?

5              3               1                 0             -4

Constantly         Sometimes       Hardly Ever         Never        No Idea

Are the systems used in your conversion process effective?

5              3               1                 0             -4

Constantly         Sometimes       Hardly Ever         Never        No Idea

Do all employees know how their performance is measured?

5              3               1                 0             -4

Constantly         Sometimes       Hardly Ever         Never        No Idea

Do all employees understand the goals of the business?
       © The Learning Company Ltd Publishing Group New Zealand                15
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
             A step by step guide to improve workplace productivity.
                     http://www.thekeytoproductivity.com


5              3                1                 0             -4

Constantly         Sometimes        Hardly Ever       Never          No Idea

Do all employees receive appropriate, regular feedback on performance?

5              3                1                 0             -4

Constantly         Sometimes        Hardly Ever       Never          No Idea

Do all employees receive feedback from customers?

5              3                1                 0             -4

Constantly         Sometimes        Hardly Ever       Never          No Idea

Are all the materials used in your process completely suitable for the end
product?

5              3                1                 0             -4

Constantly         Sometimes        Hardly Ever       Never          No Idea

Do all employees participate in regular briefing sessions?

5              3                1                 0             -4

Constantly         Sometimes        Hardly Ever       Never          No Idea

Do you have a training and development plan for each staff member?

5              3                1                 0             -4

Constantly         Sometimes        Hardly Ever       Never          No Idea

Do all your employees receive training and on-the-job coaching to improve their
productivity?

5              3                1                 0             -4

Constantly         Sometimes        Hardly Ever       Never          No Idea




       © The Learning Company Ltd Publishing Group New Zealand                 16
                    For more learning resources, visit:
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The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com



Results of the informal and not very scientific survey.

Less than 30
Hmmm! You have severe problems with productivity but have a huge
opportunity to improve the performance and profit of your business. The upside
is that there is plenty of room to dramatically increase your net profit and change
the way your staff feel about working for you. Your customers will be so happy
when you institute changes to increase your productivity. What would be the
effect on your business if your productivity increased by 10%?

30 to 60
All is not lost. You have a reasonable basis to work from. Again, there are clear
opportunities to increase your net profit with only a few small changes. Make
changes as soon as possible otherwise your competition may fill the gap. As
your productivity increases you might find that your marketing effort needs to
increase as a results of your increased output.

60 to 90
Your business is looking good. A few more small adjustments will make you
more profit, keep your customers happy as well as your bank and shareholders.
This will ultimately reduce your costs so that you can expand your customer
base.

Over 90
Well done! Please get in contact with me so I can learn about your success and
write it up to include as a case study in the next edition of this book. Think about
capitalising on your success by acting as a mentor for other business owners
starting with your suppliers or customers.


How to use your results.
Look at your scores—select all the questions where you scored less than three.
One by one, starting with the lowest score, install workplace change to lift your
ranking. In six month’s time, fill in the questionnaire again.




       © The Learning Company Ltd Publishing Group New Zealand                      17
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

                                   Chapter 4
            Some Barriers to Workplace Productivity.
One of the important inputs to productivity is time. However, some days it
seems like there is a conspiracy to steal your time from you. The Time Bandits
seem to work like crazy some days and the day seems like it is frittered away
with interruptions.

Time is our most finite resource and interruptions cause us to lose our
momentum. Just like your car engine has to work harder to accelerate from a
complete stop, you have the same situation with your work when you lose your
momentum because of an interruption and then have to start again.

Although interruptions are a normal part of work life, limiting social
interruptions is often crucial in enabling us to maintain our momentum for
longer periods.

Productivity in some work environments depends on being able to juggle a lot of
little details in short-term memory all at once. Any type of interruption can cause
these details to be lost. When you resume work, you can’t remember the details
and have to keep looking them up which slows you down a lot until you get back
up to speed. This is rework, mental rework. And like physical rework it comes
with a considerable loss.

Here are some factors that curtail our productivity. They are by no means
exhaustive or comprehensive but serve as examples only.

Housekeeping.
Poor housekeeping in the office or workshop environment is a significant cause
of low productivity. The difficulty in finding documents or tools means that the
flow of work is disrupted. Furthermore, the individual can feel frustrated
because of the general untidiness in which they are working.

It is clear that an orderly workplace contributes to productivity and quality.
There are some individuals who thrive and perform in a perpetual mess.
However, their presence and work methods can have a negative effect on those
working alongside.

Efforts to improve housekeeping generally fail because of the method used for
improvement. It is far better to involve the people concerned and get them to
check and evaluate the workplace housekeeping of other people who then
reciprocate. The alternative is to prescribe a housekeeping standard, have a
mighty cleanup and then repeat the process six weeks later.


       © The Learning Company Ltd Publishing Group New Zealand                   18
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

The inability to find a document or a tool can be classed as an interruption. The
effect of interruptions on work productivity has been well researched and the
results are quite alarming.

Interruptions.
The average office worker is interrupted 73 times a day. The average manager is
interrupted every eight minutes. Interruptions include telephone calls, incoming
e-mail messages, interruptions by colleagues and crises. Research tells us it takes
20 to 30 minutes to get back to the level of concentration that we were at prior to
the disruption. Of course, we cannot and would not want to eliminate all
interruptions but we can reduce them and take control of our time and
momentum more effectively.

We know from our own experience that we do our best work when we are in the
“zone.” This is when we are fully concentrating on our work and fully tuned out
of our environment. We lose track of time and produce great work through
absolute concentration.

Getting into the “zone” is not easy. It seems to take about 20 to 30 minutes to
start working at maximum productivity. But if you’re tired or you’ve had a lot of
interruptions during that day you just can’t get into the “zone.” When you look
at it like this, interruptions of any sort are an effective barrier to high
productivity.

The other problem is that it is very easy to get pushed out of your “zone.” It only
takes a question from a co-worker, a telephone call, an e-mail message or the
distraction of two people talking near your work area. Your overall productivity
takes a beating the more interruptions you get. Some days you don’t even
operate in your “zone.”

An interruption is nothing more than an unanticipated event. To put it in
perspective, on average, we experienced one interruption every eight minutes or
approximately six to seven per hour. In an eight-hour day that totals around
about 50 to 60 interruptions. The average interruption takes approximately 5
minutes. If you are receiving 50 interruptions in the day and each takes five
minutes, that totals 250 minutes, or just over four hours out of eight. About 50%
of your workday.

Given the figures above, it is no wonder that some days you just don’t seem to
make any progress at all. You go home at the end of the day exhausted and
puzzled why progress has been so slow and results so small.




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Planning and Organisation.
Poor planning and poor leadership is another major contributor to low
productivity. This is shown by managers and supervisors who continually
change the priorities of tasks.

Again, research is shown that a person doing a task mentally assesses the time it
will take to complete. When halfway through that task the manager or
supervisor says, “Okay stop what you doing and start this job because it is more
urgent,” the new task will take a long time to be started. When that new task has
been completed, it will take typically twice as long for the old task to be restarted.

This is a complete disruption of the person’s momentum and if it happens often
enough it will frustrate and lower morale. The result will be even lower levels of
productivity and higher levels of resentment. In many cases the person will not
even try to get into the “zone” therefore limiting their opportunity to be
productive.

When the work is planned and the people are involved in the planning and
organisation, there is a natural lift in productivity.

To sum up, every interruption loses at least five minutes plus the amount of time
it takes to get back to maximum productivity. Unfortunately, technology with
cellphones, pagers and e-mails have all conspired to interrupt us and slow down
our productivity. This is in addition to the social interruptions.

The solutions are relatively simple but require a certain amount of self-discipline.

Firstly, deal with the technology by making it silent and allocate a particular part
of time during the day to deal with all messages. Better still, delegate the
interruptions to a receptionist or PA. Secondly, if you need uninterrupted time to
work in your “zone,” put a flag on your workstation or machine to inform your
co-workers that you do not want any social interruptions.

To put this in perspective, try keeping a daily log of all your interruptions and
where they come from. Are they from the phone? Are they from people that
want to chat with you? Are they from people who want to ask questions? Are
they from customers? Where do all these interruptions come from? Make sure
that when you log these interruptions that you put down the amount of time that
you lose.

Once you have completed this exercise you will be surprised at two things.
Firstly the number of interruptions and secondly, the amount of time that has
been sucked out of your day.

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Once you know the source of the interruptions you can organise your work so
that these can be controlled. Obviously, you’re going to get some interruptions
during the day and they cannot be avoided. Your control should be exercised
over those interruptions that are unnecessary.

You’ll be surprised how pleasant your working day becomes when you have
eliminated the unnecessary interruptions. Your personal productivity will soar.

Our Brains are Different.
(This is true although not politically correct)
There is another factor that compounds the problem of disruption to a person’s
momentum and that is gender.

All available research agrees that men’s brains are compartmentalised. The male
brain is generally set up to concentrate on one specific task at a time. This means
that interruptions are not handled very well.

In comparison, the female brain is able to cope with several tasks at once because
there is a much more comprehensive series of links between the right and left
hemispheres of the brain. An interruption is handled as a normal part of their
brain activity as they can do many different things at the same time. Their
momentum is not adversely affected for very long.

The male brain, on the other hand, has relatively few connections between the
hemispheres and generally, is only able to deal with one task at a time. This
means that they focus entirely on the job at hand. When they are interrupted,
they have to totally stop focussing on the current job and start to focus on the
cause of the interruption. This means that all momentum ceases until they re-
focus on the original job. The process can take up to 20 minutes!

This is the prime reason why some men are not always very productive working
in environments such as open-plan offices because of interruptions and
distractions. It also explains why most men are not very good at some work that
has interruptions as part of the job.




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Notes on Keeping an Interruption Log
For one week keep a log of your interruptions.

Record each interruption as the day progresses.

Every time your attention shifts from one thing to another, make a note of the
diverting activity, no matter how trivial. This means that you will record all
interruptions, noting their sources and reasons. Give as much detail as possible.
Make a note on how much time you spent on each item. Set a priority for every
single item.

At the end of the day you will be able to see what proportion of your time was
spent on high priority work.

In the "Comments" column, record your ideas on how you might have done
things better. Write these comments as you go along. This reduces the chance of
overlooking details.

Keep the book close at hand. When you answer the phone, write down the
phone call. When someone pokes their head to make a comment or pass on
information, reach over and jot it down on the log sheet.

Use abbreviations and shortcuts.

Show people by their initials.

Indicate interruptions with a big “X”.

For incoming phone calls, use a letter “C” with an arrow pointing to the “C” and
an arrow pointing away from it for your outgoing calls.

Each day go over the following points. Every time you shift your attention - log
it.
Be specific. If you note a ten minute block as “Phone calls” you will not be able
to tell if they were necessary or time wasters.

Record Everything
Do not skip over socialising, brief interruptions because they seem minor.

You are trying to determine how much of your Total time is frittered away in
such “minor” activities.
Log your time As You Go.

                   Do not try to catch up at the end of the day.
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                              Interruption Log
                                                                DATE___________
Priorities for evaluating logged interruptions.
1 = Important and urgent           3 = Routine
2 = Important                      4 = Wasted

Code
C = Phone call in or out.   D = could be delegated      X = Interruption

Time      Activity                    Time        Priority   Comments
                                      used




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                                   Chapter 5
                                Take a Break
Take a break and read this modern parable on leadership because leadership is
one of the most important ingredients in the mix of strategies to improve
productivity.

A Modern Parable On Leadership
A business owner once asked a wise man for help in improving an unprofitable
business. The wise man wrote a charm on a piece of paper and sealed it in a box
which he gave to the business owner. “Take this box to every worker in your
business every day for a year,” he told him.

The business owner did so. In the morning he carried it into the store and asked
the Stores Supervisor about the Quality Control on Inwards Goods.

Later, when he carried it into the production area he saw that the Production
Manager was in his office reading the newspaper. They discussed the need to be
visible on the factory floor.

During the afternoon he carried it into the Engineering Shop and found the
Engineering Supervisor trying to balance his budget. He helped him by showing
an easier way.

Every day, as he took the box around his business, he found things to discuss
with the staff and help them to improve their performance.

At the end of the year he returned to the wise man. “Let me keep the magic
charm for another year,” he begged. “My business has been a hundred times
more profitable this year than ever before because my people are happy.”

The wise man smiled and he took the box, “I’ll give you the charm itself,” he
said.

He broke the seal, lifted out the piece of paper and handed it to the business
owner. On it was written:
“You cannot be a leader by being invisible Your results are obtained
through your People. By coaching your People, you are treating them
with respect and allowing them to grow and develop. Constant personal
communication with your People will help them to develop.”

Reflect on the message of the parable and compare yourself and your business.


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                                    Chapter 6
     Twelve Common Symptoms of Productivity Problems
Consider these twelve symptoms of productivity problems. Ask yourself if they
exist in your workplace. Once you have done that, work out how to remove the
causes of these symptoms. It is probably best to start with the one that will have
the greatest effect if it is fixed or reduced.

1)     Variable Quality
When quality is not consistent and predictable it is likely that it is a symptom of a
productivity problem. Sometimes, this is linked to either a lack of training, or
ineffective training. Other times it is due to variations in components or
materials When the product quality is not consistent the amount of rework or
rejects will climb and the situation will reduce profit as productivity declines.

2)     Poor Workflow
Poor workflow shows itself through bottlenecks on one hand and a lack of work
on the other. These two extremes contribute to low productivity because there is
not a consistent flow of work. It is easy to see this in production lines but not so
evident in administrative or service work. However, it exists frequently and is a
major cause of lower profits. The best people to identify poor workflow
situations and recommend solutions are the people doing the job.

3)     High Rework and High Rejects.
It is impossible to maximise profits when rework and reject levels are high.
When the cost of labour is added to the cost of materials any product which has
to be rejected or reworked represents a loss to the business. This is an area where
it is extremely unprofitable to have a high tolerance for rejects and rework. The
financial losses created through rework is considerable because of the lost
opportunity to make a profit as well as the inevitable losses in material.

Any organisation should work hard to minimise these losses because this
situation also contributes to low morale and frustration. Both of these
demotivators reduce people productivity.

4)     Machine and Equipment Downtime
Profits cannot be maximised when there is preventable machine and equipment
downtime. Underlying causes could involve operator training, maintenance,
poor leadership or that the machinery and equipment needs replacement.
Constant breakdowns produce a powerful negative effect on the workforce. The
constant stop/start alone reduces productivity because of interruptions to
workflow. Again, another cause of low morale and frustration.


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5)    Low Discretionary Effort
Discretionary Effort is that extra capacity that we all possess. Poor leadership
will reduce our discretionary effort, whereas effective leadership will motivate us
to produce our highest level of Discretionary Effort. Any strategy to increase
discretionary effort should be considered and then installed.

Situations such as constant breakdowns and poor workflow will also have a
negative effect on our discretionary effort because they are interruptions.

6)    Lack of Clear Performance Expectations.
Most people in the workplace often have no idea of what is expected of them.
Discussions about performance expectations are rare and many employees are
unaware of how their performance is measured.

7)    Lack of Feedback
We all need feedback because without it we have no idea of our progress towards
standards. As human beings we need to know how we are getting along. When
we are not told, we believe that we are doing a good job. For a variety of reasons,
this is often not the case. The absence of feedback in the workplace makes the
work pointless. We all need a constant supply of credible feedback and
encouragement to keep us engaged in our work.

8)    Lack of Recognition
Many managers believe that giving positive reinforcement to staff will encourage
them to seek increases in pay. Other managers believe that giving positive
reinforcement will give staff swollen heads and they will have an inflated belief
of their value to the organisation. When people work and apply effort to their
work they will often reduce their effort if they don’t receive any recognition for
their efforts. When recognition or praise is missing in the workplace, it is a
potent factor in severely reducing motivation and productivity.

9)    Lack of Measurement
This is closely linked to a lack of feedback. Public measurements of team or
individual performances provide feedback, motivation, trends and results. If
results are not measured and displayed they cannot be used as a leadership tool.
Any changes cannot be evaluated unless there is measurement.

10)   Unsafe Work Environment
An unsafe work environment provides a powerful incentive not to be productive.
It has a strong morale lowering effect as the employees believe that the
organisation doesn’t care enough about them to keep them safe. This situation
also has the effect of lowering productivity when people get injured at work


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because the incident will drain all discretionary effort for some time as people
think, “That could have been me.”

11)    A Lack of Performance Standards
This is linked to Lack of Clear Performance Expectations. In all aspects of the
workplace there should be a set of performance standards that are discussed with
the staff and agreed on as a bare minimum. They should not be prescribed but
rather set in a consultative fashion with agreed consequences for breaching them.

12)    Poor Leadership.
This is one of the keys to productivity. All organisations that have high levels of
productivity share the common factor of better than average leadership at nearly
every level. Poor leadership is the most common cause of low productivity and
also one of the most difficult to fix. The problem lies in the fact that the
development of good leadership skills takes time because it is not an easy
process.

Yes, there are leadership programs but very rarely do they change behaviour in
the workplace. Mostly, they are training events lasting two days and by their
very nature cannot develop leadership skills. Most people require coaching on-
the-job to develop their leadership ability. There are leadership adventure
programs that feature abseiling, rock climbing and activities like kayaking, but
there is little scientific evidence that they create a change in behaviour that leads
to improved leadership skills back at work.

Management Responsibility for Productivity
Every one of these twelve symptoms of productivity problems can be eliminated
or improved by the people who are leaders within the business. It could be said
that organisations don’t have productivity problems, they have leadership and
management problems.

At first look, this may be a daunting list of things that need fixing or changing.
The sound advice is to single out the most important and fix that one before
moving on to the next.

All the solutions are included in this book.

Have a clear objective
Firstly, it is necessary to set a clear objective with the person or people concerned.
For example, if these principles are to be applied to a machine then the operator
must be aware and agree to the objective.




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A typical objective may be, ”To keep the machine running for a total of seven
hours per working day.” However, this could be expressed in the form of a
percentage. “To run the machine for 85% of the working day.”

This objective can be illustrated as a straight line on a graph. The actual hours or
percentages can be plotted on a daily basis by the operator. This sort of feedback
shows the operator straight away how they are performing in relation to the
mutual objective that has been agreed.

Keep the end in mind
Secondly, the operator has to learn that every task which does not contribute to
the objective has the result of preventing or delaying the achievement of the
target. The best way to train the operator, is to work with them. Ask them what
the consequences are if they perform a certain low priority task. Ask them if it is
going to contribute to their objective of keeping the machine running. One of the
most important lessons for them to learn is that, “lost time can not be caught up,
it is lost for ever.”

Thinking ahead
Thirdly, the operator has to learn to think ahead. Generally speaking, thinking
ahead for the next three or four tasks will be sufficient under normal
circumstances. There will be occasions when it is necessary to plan may be five
to eight tasks ahead. Whilst they are thinking ahead, they must remember their
number one priority which is to keep the machine running.

Coaching on-the-job
Working with the operator enables the trainer to ask questions rather than
instruct or tell the person what to do. By constantly asking questions the
operator will learn to think for themselves. If the trainer tells the operator what
to do all the time, the operator will be unable to think for themselves and their
performance will drop as soon as the trainer is not there. Think about asking
questions that “ lead the person to discover.” When the trainer is not there, the
operator can still go through the same thinking process.




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                                   Chapter 7
        Plan to Succeed with your strategies and tactics
It is essential to plan your strategy and tactics prior to starting to improve your
business productivity because it gives direction and something to modify if you
need to change halfway through. If you write a plan, circulate the information so
your team can have input to it if you. Again, including your team and allowing
them to contribute to the plan will give them some psychological ownership of
the success of the program.

Just remember, your program will be unsuccessful if you don’t win the co-
operation of your team. Inclusion in the design of the program will contribute to
the successful outcome.

Let us have a look at an actual program that was installed in a small engineering
shop that specialised in jobbing work, mostly repairs to the heavy machinery.
There were thirty three staff employed including five apprentices and two
supervisors.

The first thing that the manager did, was to measure where they were and look
for opportunities for improvement. Then he examined the business to find out
what barriers existed to improving productivity.

When he analysed the current situation, he discovered that unplanned absences
were running at about 13% of available time. Secondly, in spite of the heavy and
consistent workload, chargeable hours averaged only 75% of the available hours.

Having discovered these opportunities, the manager decided to fix these first.
Initially, he met with his staff and explained that he wanted to improve
productivity with their help.

He said that attendance was not very good and that they couldn’t be productive
if they were absent. He went on to say that the objective was not to work harder
but smarter.

He asked if it was fair and reasonable to expect a better attendance and they all
agreed. He said that he would be closely monitoring attendance in the future
and that there would be some fairly simple ground rules installed in conjunction
with the staff members.

At the next meeting with his staff the following day, he explained that these daily
briefing meetings would become a regular feature of the business.



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Next, he looked at his own leadership qualities and the leadership qualities of his
supervisors. He realised that he needed help in this area, so he enrolled on a
practical leadership training course after considerable research.

He was looking for a course which was totally practical and included coaching
on-the-job. He had been on other leadership courses but they only dealt with the
theory and not the practical aspects of leadership.

Over the next three weeks, he went through the process of establishing mutual
expectations with his team. When this was complete, everyone was aware of
what was expected of them and how their jobs were measured.

There had been complete agreement by everyone that the expectations were “fair
and reasonable.” At this stage, he noticed that the amount of chargeable hours
was starting to climb and during the previous week had reached a level of 85% of
available hours.

During the next morning meeting, he established some productivity goals and
milestones with the supervisors and staff which included attendance and
chargeable hours.

He got agreement from his team that they had the resources to achieve these
goals and milestones and that the whole plan was flexible enough to be changed
if necessary. He also got agreement from his team that they were in control of
reaching the targets.

The manager mentioned that the chargeable hours had started to rise and
congratulated the team on the effort.

Next, he negotiated with the staff to provide clear and meaningful feedback on
progress. Each member of staff would keep a graph of their chargeable hours, on
a daily basis. Each week they would get new graphs to plot their hours.

At the end of each week they would present their graphs to the group and
explain what the week had been like. At the end of the month, the chargeable
hours would be added up and put on a graph which included the whole
workshop.

At this point, they would bring up any barriers or difficulties they had
encountered and it was the manager’s job to ensure that these barriers or
difficulties, where possible, did not occur in the future.

Starting from the present day a graph of the attendance records of individuals
would be posted on the notice board.

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Productivity was measured by the input of their hours divided into the dollar
value of work invoiced. This was also posted on the notice board in the form of a
ratio so that casual observers would not be given confidential information.

This whole thing was backed up by discussion during the morning meetings so
that the group was given feedback on progress towards milestones.

After the six weeks, the results were reviewed and the manager asked the team
whether there were any changes which were necessary to maintain progress. No
one could come up with any changes that would improve the situation and the
consensus of opinion was that they continue as they were going.

The first milestone was to improve attendance and this was achieved during the
first month. Instead of averaging 13% of available time, it dropped to 2%. As a
result, the manager wrote to each member of staff thanking them for their
contribution to a positive change.

Without doing much differently, chargeable hours had now climbed to 85%. The
manager arranged for a catered lunch to be delivered for each member of staff on
Friday. This is arranged on the Wednesday prior and the team were told.

The next step was to look at what had been achieved and to ask a question, “ If
we had to do this again what would we do differently?” The team came up with
quite a number of suggestions and most of them were related to how they could
take more responsibility, not just for results, but for tasks that could be delegated.
This was the major theme of this step.

The manager listened carefully and after the meeting had a session with his
supervisors to discuss delegations. They all went away to think about it so they
could come up with a plan to pass down more responsibility. The following
morning they met again and formulated a plan which they presented to the team.
The effect of this was that the level of trust was increased because the day after
making some suggestions that team was presented with a draft plan.

The manager and the supervisors started on a series of internal training sessions
so that more tasks could be delegated down the line.

At this stage, the team were approaching their end targets and the manager could
not think of anything to reward the participants. Using his new-found skills
acquired during the practical leadership program, he asked the team.

The answer he got surprised him, because he confessed that he wouldn't have
thought of it. The consensus of the group was that a fitting reward for reaching

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the targets would be to finish at midday on a Friday so they could have half a
day off and still be paid.
They dismissed the idea of more money because they were pretty well paid
anyway and they all held a free half-day holiday as being valuable. Once the
targets have been met, the team asked what shall we try for next?

One of the supervisors said that in conversation with a couple of staff members
they agreed that it had been easy and that there had been no extra hard work to
achieve the result.




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                                    Chapter 8
                 Measure and record where you are.
This may sound obvious but this is not always done at the beginning of a
productivity improvement process.

Whilst the outcome of this measurement may be distressing because of the low
levels of productivity that are revealed, it is also an indicator of what
improvement can be achieved. It is best to look at it from a positive point of view
so that it becomes a motivator rather than a demotivator.

Productivity can be measured by individual machines or groups. The process of
measurement remains the same.

                    output
Productivity =     -----------
                    input

Make sure that your measurement period is over a reasonable time frame
without any abnormal highs because of large continuous production runs or lows
because of down time or an unusual run of rejects.

This initial measurement is your starting place. It is the point from where your
business is moving. This starting point enables your business to progress and
represents where you have reached.

At this time, it is wise to explain to your teams where you are an applaud the
achievement to date.

At the time of measuring your current levels of productivity, it is wise to firmly
establish exactly the levels of your fixed and variable operating costs.

This may create some surprises as well.

At this stage, you will have established your current levels of productivity and
the level of your fixed and variable costs. You are now in a position to consider
the potential difference to your net profit with a change in productivity.

Let’s use the following simple example and you can see how changes in your
business productivity can positively affect your profit.




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          Revenue                              VARIABLE COSTS
                                               Cost of making products or
                                               supplying services

                                               50
          100                                  FIXED COSTS
                                               Cost of overheads

                                               40
                                               PROFIT

                                               10
Now Increase Productivity by 10%

          Revenue                              VARIABLE COSTS
                                               Cost of making products or
                                               supplying services


                                               FIXED COSTS
                                               Cost of overheads


                                               PROFIT




When you raise productivity by 10%, you effectively produce 10% more with the
same fixed costs. Variable costs may rise a little bit but they only seem to rise as a
proportion of the increased productivity.

Yes, you got it right! If you increase productivity by 10% your revenue will rise
by 10%. Your variable costs may rise by 5% taking them up to 55. Your fixed
costs and your overheads will generally remain the same. This means that your
profit will rise to 15, an increase of 50%!

Most businesses would really appreciate a 50% increase in profit.

This is a very simplistic view of the whole business equation, but at the least, it
gives you some idea of the value of increasing productivity and the scope for
increasing profits.


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Now you can see that increasing the productivity of your business by 10%
produces great financial benefits and there may be scope to increase the
productivity by much more.

Put your own figures in the equation and see the effect on your bottom line. This
may provide powerful motivating forces for you to embark on a program to
increase your productivity.

Example
Let us use another example. You have a one chair men’s barbershop and there
always seem to be people waiting for a haircut.

Your net profit is 15% of revenue.

Over the year you average twenty haircuts every working day.

Your shop is open 235 days every year.

You make a conscious decision to use electric clippers more than scissors.

After some experimentation you find that instead of twenty haircuts a day you
start to average twenty-one haircuts a day. (An increase of 5%)

Using this simple example, here is the result.

Before The Change

          Revenue                                VARIABLE COSTS
                                                 Cost of making products or
                                                 supplying services

                                                 55
          100                                    FIXED COSTS
                                                 Cost of overheads

                                                 30
                                                 PROFIT

                                                 15


       © The Learning Company Ltd Publishing Group New Zealand                  35
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com




After The Change

          Revenue                             VARIABLE COSTS
                                              Cost of making products or
                                              supplying services

                                              55
          105                                 FIXED COSTS
                                              Cost of overheads

                                              30
                                              PROFIT

                                              20
As you can see, the revenue has increased from 100 to 105 (5%). The costs have
remained the same although there may be some small increase in variable costs
because of maintenance on the clippers. However, the big change has come in
profit. It has risen from 15 to 20, an increase of 33%.

I don’t think the barber would have worked any harder but his bank balance
would have certainly improved.

Using this example, you can see that for a small increase in productivity (5%)
there is a substantial increase in net profit (33%). This is an example of the power
of productivity to positively affect your bottom line.

Any business that is serious about making more profit should consider how to
improve their “People Productivity.”




       © The Learning Company Ltd Publishing Group New Zealand                    36
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
             A step by step guide to improve workplace productivity.
                     http://www.thekeytoproductivity.com

                                     Chapter 9
    Evaluate your Leadership Resources and Capabilities.
In most work places there is a well defined initial level of authority, the first line
leader. Many of these people have received little training to fulfil what is
generally regarded as one of the most critical jobs in the working environment.
The leader is not only responsible for their own behaviour but also the behaviour
of others.

Their own high performance is normally the prime criterion for selecting them
for promotion. Which is similar to saying that the best player is the best coach.
We are dealing with two unrelated skills in this situation. One, the skill in doing
the job and two, the skill in leadership.

Nothing has prepared them for the difficult task of getting the very best from
other people. To cope with this situation they may adopt the style of their
previous supervisor or copy the style of the manager.

It is unlikely that copying other people will help them to be successful because
their staff will quickly realise that the person is playing a rôle and not being their
authentic self.

However, given a lack of training and coaching, the most common style which
prevails is the adversarial one. A win/lose mentality. “I am in charge and you
will do as I say.” This causes a negative effect on the individuals and the
organisation as well as having far-reaching effects on quality, safety and
production.

In reality, not much has changed between some leadership cultures found in
some business today and slavery. Since the time of the galley slave system, great
technological changes have taken place in our society, yet our human relations
skills seem to be as primitive as ever.

True, the physical working conditions in today’s organisations are better than
those on the galley, and the management techniques more subtle, yet the whip is
still there. You’ll still hear the term “slave driver” used when referring to leaders
seemingly indifferent to the needs of their employees. The use of reward and
punishment to get people to do their job is still standard operating procedure.

In many organisations, even the modern concept of “empowerment” is another
form of manipulation to get employees to do what management want them to do.




        © The Learning Company Ltd Publishing Group New Zealand                     37
                     For more learning resources, visit:
                       http://www.thelearning.co.nz
The Key to Productivity
             A step by step guide to improve workplace productivity.
                     http://www.thekeytoproductivity.com

The waste of human talent inside today’s organisations is appalling. There is a
tremendous drain of human resources and capabilities. Some people get fed up
and leave, while others decide to stay physically but have resigned mentally.
Many do just what’s needed to get by, and still others simply mark the days until
the weekend, their Christmas holidays, or their retirement. In many
organisations, this situation is simply accepted as “That’s just the way it is, and it
won’t ever change” or “That’s just the nature of human beings; you can’t hire and
keep qualified staff anymore.”

The products of the win/lose mentality creates an incredible waste in many
organisations, but, it also points to a huge opportunity. Imagine an organisation
that suffers from this state of affairs and enjoys a modest success in today’s
marketplace.

What latent ability could be released with a change to a win/win method of
leadership? The untapped resources are tremendous. Have we forgotten that all
organisations obtain their results through the efforts of people?

It requires well developed leadership skills to bring out the best in people.
Unfortunately, businesses fail to make the connection between effective
leadership and productivity.

This leads to all sorts of attempts to increase productivity and profits whilst
ignoring what is a fairly obvious strategy of increasing leadership skills within
the organisation.

It is puzzling why more businesses don’t make the link between improved
leadership skills and improved productivity.

Improved Leadership and Productivity
One business that capitalised on the link between improved leadership and
improved productivity was a large shoe manufacture. They decided that anyone
in a leadership position should be properly trained.

Accordingly, they set up a practical leadership skills training programme which
was conducted inside the organisation. All the participants were coached in
leadership skills on-the-job to make the whole program relevant.

It didn’t take long before the improved leadership skills created a 40% increase in
productivity.

They invited to senior managers from a competitor to visit their manufacturing
facility. The visitors were surprised to find the premises old and dingy, with


        © The Learning Company Ltd Publishing Group New Zealand                     38
                     For more learning resources, visit:
                       http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

obsolete equipment and machinery. They found that the management systems
were unsophisticated and primitive.

This company devoted their efforts to building a strong leadership base and this
more than compensated for the deficiencies in the plant, equipment and systems.

However, the productivity was considerably higher than their competitors who
had the up-to-date facilities and the more modern machinery.

This forward thinking business had realised that improved leadership skills
could overcome all sorts of other workplace deficiencies. They have also reaped
the reward by investing in their staff and as you can imagine, the return on the
training investment was substantial.

This clearly illustrates the rôle that good leadership plays in improving
productivity. This business made a wise choice in selecting a training
organisation to carry out the leadership training.

They knew that you cannot teach leadership in a class room or a training room.
Leadership is a practical skill and does not translate well with academic methods
to changes in behaviour at work.

Leadership is learned on the job and is best developed through guided practice
through coaching. The best training is spread over several months complete with
follow up coaching in the person’s workplace.

Small groups may seem to be extravagant but most learning will take place when
there is plenty of engagement and discuss.

Once the group size is greater than ten, learning and retention seems to drop off,
making the training poor value. If there is no change in behaviour as a result of
training, the training could be a total waste of money.

Again, the key to improved productivity, is leadership. The solution is this.
Improve the leadership, improve the productivity and this will result in
improved profit.




       © The Learning Company Ltd Publishing Group New Zealand                  39
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
              A step by step guide to improve workplace productivity.
                      http://www.thekeytoproductivity.com


Leadership Questionnaire
Fill out the following questionnaire and discover which part of your leadership
skills need a tune up. Be honest with yourself.

          •    Please indicate the extent to which each of the following statements
               apply to you.

          •    Think about the statement and rate yourself according to the five-
               point scale below.

          •    You can always give this questionnaire to others to gain their
               perception of your leadership ability.



      5 = Always.
      4 = Often.
      3 = Sometimes.
      2 = Rarely.
      1 = Never.




       © The Learning Company Ltd Publishing Group New Zealand                      40
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
             A step by step guide to improve workplace productivity.
                     http://www.thekeytoproductivity.com

                         Leadership Questionnaire
1    I always listen carefully to others.
                                                                             12345
2    I always give people responsibility for tasks and projects.
                                                                             12345
3    I always challenge the rules and standards of the business.
                                                                             12345
4    I have a clear vision for the team which I communicate.
                                                                             12345
5    I have clear understanding of my strengths and weaknesses.
                                                                             12345
6    I always encourage ideas from the team.
                                                                             12345
7    I always demonstrate my trust in others.
                                                                             12345
8    I always anticipate and adapt to changing conditions.
                                                                             12345
9    I always understand the effect I have on other people.
                                                                             12345
10   I always keep up-to-date and develop new skills as often as possible.
                                                                             12345
11   I always try to motivate and encourage others.
                                                                             12345
12   I always provide training to enable people to work effectively.
                                                                             12345
13   I always help others to manage change.
                                                                             12345
14   I always demonstrate a high level of commitment to my work.
                                                                             12345
15   I manage my priorities well.
                                                                             12345
16   I have developed a communication network within the business.
                                                                             12345

17   I always provide support for people when needed.
                                                                             12345
18   I always manage my stress levels well.
                                                                             12345
19   I always focus on achieving results.
                                                                             12345
20   I always have a positive feeling towards myself.
                                                                             12345

                                                                   Total ________

        © The Learning Company Ltd Publishing Group New Zealand                     41
                     For more learning resources, visit:
                       http://www.thelearning.co.nz
The Key to Productivity
             A step by step guide to improve workplace productivity.
                     http://www.thekeytoproductivity.com

Results of another informal and not very scientific survey.

Less than 30
Oh dear! Ask yourself if you should be in a leadership position. If you decide to
remain in a leadership job, the road ahead is steep and very hard work. You will
have to work hard to become a competent leader.

Start by learning and practicing Emotional Intelligence. Get a trusted member of
staff to rate you using this assessment to make sure that you have not been too
severe on yourself.

Go back and re-assess your rating.

31 to 60
All is not lost. You have a basis to work from. Again, there are clear
opportunities to increase your leadership skills with only a few changes. Start to
develop a greater skill level in all those things where you rated yourself at 1, 2, or
3.

 Focus on learning more about Emotional Intelligence and rate yourself again in
six months. Keep learning and never stop.

61 to 80
Your leadership is looking good. Work on those areas where you rated yourself
at three or less. You are well on the way to becoming a competent leader,
however, there are areas for improvement.

Over 81
Well done! Train your replacement. Pass on your skill to other members of your
team because you are obviously destined for higher things.

Go back and re-assess your rating.

Get a trusted member of staff to rate you using this assessment to make sure that
you have not been too generous to yourself.

How to use your results.

Use this assessment for direction in personal change.
Look at your scores—select all the questions where you scored less than three.
One by one, starting with the lowest score, install personal changes to lift your
ranking. In six month’s time, fill in the assessment again.


        © The Learning Company Ltd Publishing Group New Zealand                     42
                     For more learning resources, visit:
                       http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com



Lethal Leadership
The late Gordon Lippitt, professor at George Brown University, after studying
the subject of leadership for years, concluded:
“Leadership is the worst defined, least understood, personal attribute
sometimes possessed by human beings.”

Lethal Leadership                          Effective Leadership
Staff are seen as malleable,              Staff are seen as self-directing,
controllable, and expendable              capable of assuming responsibility for
commodity by the leader                   their own decisions. The leader
                                          understands that results are obtained
                                          through people.

Leader tells staff what to do and how     Leader discusses ways of reaching
to do it.                                 objectives set with the staff.

Leader employs strategies including       Staff set their own realistic
veiled threats to increase production,.   production targets with the leader to
                                          meet needs of customers.

Leader puts production first above        Leader puts staff first understanding
quality and safety. Encourages the        that staff health is necessary for
use of “short cuts.”                      business health and that “short cuts”
                                          normally turn out to be “long cuts.”

The leader considers training a waste     Leader understands that training is a
of time which causes production           vital on-going process. Leader
delays.                                   realizes that it is more effective to
                                          train and make less mistakes than it is
                                          to fix errors.

The leader frequently shows that it is    The leader understands clearly that
necessary to punish people by             encouragement and respect for the
making them lose.                         individual will help people to do
                                          their very best.

As you can see this point by point contrast reflects a dramatic shift in thinking
about leader/staff relationships.

Is the leadership in your organisation lethal?




       © The Learning Company Ltd Publishing Group New Zealand                      43
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
The Key to Productivity
             A step by step guide to improve workplace productivity.
                     http://www.thekeytoproductivity.com

                             Chapter 10
                  Set mutually agreed expectations.

Performance Expectations.
We live in a world of expectations. People have expectations of us, we have
expectations of them and we have expectations of ourselves. Normally, we have
higher expectations of our performance than the expectations held by others.
This is part of human nature.

In the work environment, there are all sorts of expectations, however, they are
not always discussed. These expectations are only voiced when they are not met.
This situation is extremely common. How can people meet expectations if they
don’t know what they are and have had no input to them?

Expectations that are not discussed create a very difficult situation in the
workplace. They only become known when they are not met. At this stage,
emotion starts to creep into the situation closely followed by resentment. You
must have heard some say at one stage, “But I didn't know I was supposed to do
that.”

The amount of frustration this causes is unbelievable. On one hand we have a
leader who has clear expectations and has not communicated them and will be
frustrated when his people do not perform. On the other hand we have a staff
member who is doing their best and failing because they didn't have the
necessary direction.

This is clearly a recipe for resentment and a lack of cooperation. Not the ideal
environment if you want to build increased productivity.

If people do not know what is expected of them, how can they perform to the
desired standard? Successful leaders always share their expectations with their
people so that they can work towards them.

What would happen if our people have unrealistic expectations of us as leaders?
What if we have unrealistic expectations of our people? If you look closely at
some of the problems in the workplace, you can often trace the basic cause of the
problem to a lack of real understanding of expectations.

It is vital to comprehend that it is the quality of the relationships which
determines the ability of the team to work together or work apart.




        © The Learning Company Ltd Publishing Group New Zealand                    44
                     For more learning resources, visit:
                       http://www.thelearning.co.nz
The Key to Productivity
            A step by step guide to improve workplace productivity.
                    http://www.thekeytoproductivity.com

Too often, the team does not function well because the leader has not discussed
expectations with his or her team. A failure to discuss expectations will have a
profoundly negative effect on individuals and teams.

We know that our expectations of our own performance are often greater than
the expectations others have of our performance. When you think about this
from a leadership perspective, the best people to set their own targets, KPI’s or
performance objectives should be the people doing the job.

If this provokes you to say, “but they will set low targets,” try it. You will be
pleasantly surprised when they set targets which are not easy and higher than
yours would have been.

To summarise: the failure to set mutual expectations will severely hamper any
attempts to improve productivity. It could be said that it is a clear requirement
prior to any strategies and tactics designed to lift productivity.

How to Set Expectations.
How can you create and develop a mutual understanding of expectations? After
all, expectations change because we live in a changing world.
To start to introduce the concept of setting expectations, it is suggested that the
following be carried out in the sequence shown.
There is a very important reason why you must ask for the expectations of your
team first. The reason is that once you have completed that exercise, you have
permission to give them your expectations and they will be much more receptive.

Firstly
Meet with your team, either as individuals or as a team and ask them what their
expectations are of you in your rôle as the leader. Make note of these
expectations. Let them see you making notes so that they understand you are
listening and taking their expectations seriously. Carefully consider if you are
able to meet them.

If you are, communicate this to your team but remind them that part of their
responsibility is to let you know if your performance is dropping below these
agreed expectations. If you believe that you are unable to meet any of these
expectations let your team know and give them clear reasons. In some cases, it
may be possible to negotiate these expectations.

Imagine what it would be like if your team had unrealistic expectations of your
performance as a leader and your performance was below what they expected.
What sort of effect would this have on their productivity, quality, co-operation
and safety?


       © The Learning Company Ltd Publishing Group New Zealand                      45
                    For more learning resources, visit:
                      http://www.thelearning.co.nz
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The keytoproductivity 1273

  • 1. The Key to Productivity People Productivity A step by step guide to improve workplace productivity By Peter Mitchell Published by The Learning Company Publishing Group. P O Box 20-132 Hamilton New Zealand Copyright 2009 E-mail peter@thelearning.co.nz
  • 2. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com This is NOT a free e-book The purchase of this e-book entitles supplier to keep one copy on his or her computer and to print out one copy only. Printing out more than one copy or distributing it electronically is prohibited by international and USA copyright laws and treaties and would subject the purchaser to penalties of up to $100,000 per copy distributed. Legal Notice This e-book is designed to provide helpful and useful advice regarding the subject matters covered. However, it is understood that the author and the distributor do not engage in the practice of providing legal or professional advice and that the laws and regulations governing the subjects covered in this e-book may vary from state to state, country to country, and jurisdiction to jurisdiction. It is also understood that the author and any distributors of this e-book specifically disclaim any liability that is incurred in the US, application, all recommendations of this e-book. The author and distributors of this e-book make no representations, warranties or claims whatsoever regarding the accuracy, effectiveness, legality or completeness of the information included in this e-book, including any and all links, references, content, and recommendations therein. The author and distributor of this e-book shall in no way be held liable to any loss or other damages, including not limited to special, incidental, consequential, accidental, or other damages. As always, legal, professional, tax, accounting, and any other forms of advice should be sought from the professional and is in no way implied in this e-book. Any and all links and recommendations are for instructional and informational purposes only and are not warranted or guaranteed for accuracy, content, reliability, or reputation, or any other expressed or implied purpose. © The Learning Company Ltd Publishing Group New Zealand 2 For more learning resources, visit: http://www.thelearning.co.nz
  • 3. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com /root/convert/jodconverter-tomcat- 2.2.0/temp/document483210.doc Contents Chapter Title Author’s note 4 How to Use This Book 5 1 Introduction 6 2 Understanding the Basis of Productivity 9 3 Your Productivity Questionnaire 14 4 Some Typical Barriers to Productivity 18 5 Take a Break—Read a Short Story 24 6 12 Common Symptoms of Low Productivity 25 7 Plan to Succeed with your Strategy and Tactics 29 8 Measure and Record Where you are. 33 9 Evaluate Your Leadership Resources and Capabilities. 37 10 Set Mutually Agreed on Expectations 44 11 Set Targets and Milestones 48 12 Provide Clear and Meaningful Feedback 50 13 Leadership Skills, one of the keys to Improving Productivity 56 14 Increasing Productivity Through People 61 15 Demotivation, Disincentives and Discouragement. 65 16 Managing Performance. 74 17 Managing the Business of Change 79 18 The Practical Science of Behaviour 87 19 Feedback Guidelines 91 20 A Plan for Easily Improving methods 96 21 Humour and Happiness Improves Workplace Productivity 99 22 The Magic Process of Motivation 105 23 How to Reduce Absenteeism 110 24 Delegation, Development and Personal Productivity. 113 25 Putting it all together. A Plan to Lift Workplace Productivity 121 Appendix 1 An explanation of Productivity 126 Appendix 2 Business Productivity Case Study 128 Appendix 3 Personal Productivity Case Study 133 © The Learning Company Ltd Publishing Group New Zealand 3 For more learning resources, visit: http://www.thelearning.co.nz
  • 4. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Author’s note We all know WHAT to do to win a lottery. Just pick the right numbers and be rich for life. The problem is that we don’t know HOW to do it. This is the problem that I find with so many books on business. They tell you WHAT to do but not HOW to do it. My approach to this book is to give the reader a selection of strategies and tactics to increase the productivity of their business and explain HOW to do it in a practical way. © The Learning Company Ltd Publishing Group New Zealand 4 For more learning resources, visit: http://www.thelearning.co.nz
  • 5. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com How to Use This Book To get the best results from this book, I suggest you follow the process outlined below. Firstly, read the book at your normal reading speed and use a pencil or pen to underline key passages and make notes to yourself in the margins. If you come across something which you want to remember, either put a sticker on the page or write the page number in the front of the book. Once you have finished the book, take a few minutes every day, and flick through the pages, and re-read the key points that you have marked. The reason for this repetition is that principles are easier to apply when they are familiar and fixed in your subconscious mind. After several repetitions, write down an action plan for your productivity improvement. Make sure that when writing your action plan you include a timeframe. At this stage you can also write down a training module to show others how to improve productivity or you can list topics from the book to coach other managers in the process of productivity improvement. Remember, you will need to persuade your supervisors to accept the steps of productivity improvement before introducing any changes. © The Learning Company Ltd Publishing Group New Zealand 5 For more learning resources, visit: http://www.thelearning.co.nz
  • 6. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 1 Introduction The traditional methods of increasing workplace productivity usually require capital outlay on machinery and the installation of systems. However, the key to improving productivity is the people in the business. This book has been written specifically to help businesses lift their productivity through their people. These enterprises can be any sized businesses, not-for- profit organisations and government departments. This is without a large investment in capital expenditure on new machinery or the introduction of more complex systems. In this book I have focussed on the people side of the equation. The reason is quite simple: if you have staff who are not very productive, the addition of more sophisticated equipment will not necessarily improve the situation. On the other hand, if you maximise productivity with what you have at present, any subsequent investment in machinery will be well rewarded in terms of greater productivity. The key is the people and their performance. Regrettably, the most cost effective source of extra productivity—people, is normally ignored. The strategies and tactics offered in this book provide low or no cost solutions to improving productivity. The lack of productivity costs money and when costs are under threat, then so to are jobs and businesses. Whatever the industry, the need to improve productivity is the ultimate goal. This is true today, as it was yesterday and as it will be tomorrow. Millions of dollars are wasted each and every day in organizations, through lack of awareness of this need to constantly improve productivity. Most of the waste can be stopped. A concerted effort at all levels, management, supervision and “shop floor'” will produce results. Positive, active co-operation by all levels is the surest way of producing results. The methods shown here in this book are applicable to manual work, clerical work and the service industries. The benefits of improving productivity are not always obvious. Certainly, there is a financial benefit for the bottom line of the business but there are less obvious benefits for the employees. © The Learning Company Ltd Publishing Group New Zealand 6 For more learning resources, visit: http://www.thelearning.co.nz
  • 7. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Many employees are not included in setting meaningful targets. So, without mutual expectations they are not motivated to perform. On top of this, most employees don’t receive relevant feedback about their efforts on a regular and frequent basis. By not receiving feedback they are unable to adjust their performance. Given the situation, it is little wonder that workplace productivity is low. This book will give you a step-by-step process to follow so that your workplace productivity can steadily grow. It has been designed as a “how-to-do-book” as well as a “what-to-do-book.” The majority of managers and leaders know what to do but often don’t know how to do it. In this book we address that problem. It is clear that to achieve behavioural change in the workplace so that productivity levels are lifted, it must be done with the full co-operation of the staff. Often, the installation of change is carried out in the face of very stiff resistance. The outcomes are minimal. We need to change our style of management and leadership to one that nurtures change rather than prescribes it or imposes it. This means that the person in the leadership position of the business holds the key to increased productivity. It is this person who can initiate change, encourage others to follow, lead people to perform to a higher level, harness the skill and experience of their staff and engage their brains. In the past we seem to have shied away from a cooperative approach and used a prescriptive approach because, as leaders, we didn’t want to be seen as being weak. From what I’ve seen during the last 35 years, the cooperative approach is definitely more difficult than the prescriptive approach but so much more effective and worthwhile. In small and medium sized businesses, great results can be achieved by focussing the productivity effort on one section of the staff. The most logical area to pinpoint is the front line leaders, the team leaders or supervisors. Through a process of careful training, mentoring and coaching, substantial productivity gains can be achieved. By consistently thinking, acting, and speaking productivity, the leader will be extremely effective in getting the message across and understood. © The Learning Company Ltd Publishing Group New Zealand 7 For more learning resources, visit: http://www.thelearning.co.nz
  • 8. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com The Basis of Productivity Improvement To improve productivity levels there are a small number of basic principles that apply in all cases. No organisation is too small or too large to benefit from the beneficial results of productivity improvement. It doesn’t matter if it is in the public or private sector, the benefits are still available. Productivity planning should involve as many employees as possible. This is so that as many people can feel involved and then they will feel that the success of the productivity program is partly dependent on them. A productivity program should be on-going because it can never be completed. It should be a dynamic part of the business at all levels. In setting the goals, care must be exercised to ensure that the achievement of the goal is possible. That control can be exercised. Too many times the goals are set out of reach of the employees which leads to a lack of participation and an early withdrawal of commitment by the staff. Every cost reduction tool can be used. Improving methods can have a profound effect on productivity and the best people to design new methods are the people doing the job. Individual levels of productivity should be measured and the employee be given training and on-the-job coaching to lift their personal productivity. They should receive feedback on their performance. Often there is a lot more said than done about productivity. There is also a lack of planning and the lack of a concerted, consistent effort applied to the situation. Improving productivity is the real key to national prosperity contributing to a rising standard of living. No business can ignore the implications of increasing productivity. Productivity improvement requires imagination, enthusiasm, flexibility and a single minded, intelligent approach. Productivity improvement is like gravity; it starts at the top and works downwards through the business. Not the other way round. © The Learning Company Ltd Publishing Group New Zealand 8 For more learning resources, visit: http://www.thelearning.co.nz
  • 9. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 2 Understanding the Basis of Productivity There are several common misunderstandings about productivity. Quite frequently, productivity and production are treated as the same thing. Productivity is not production. It is not just pushing products out of the assembly line as fast as possible without any consideration for quality, safety, and cost. In some businesses productivity and performance are treated as the same. They are not the same although performance can have an effect on productivity. Performance relates to how close we come to meeting a target such as a certain quantity or quality of output. The term productivity means different things to different people—more output while maintaining costs; doing the right thing; working smarter and not harder; automating the operation to get more and faster output; and so on. Production is an output but productivity is determined by the inputs used to gain that output Production relates just to output, is normally expressed as production volume and measured in terms of units. For instance, when a manufacturer produces items at the rate of 100,000 units per year, the production volume is 100,000 units. On the other hand, productivity is the ratio between output and input. It clearly shows us the relationship between input and output. This relationship is expressed as: Productivity = Input divided by output There are three elements in productivity. The input, conversion and output. Input is the resources used in the process. Conversion is the process of changing input to the output. This is where productivity occurs and it is this area where people and machinery convert the input resources to the output. (For a further explanation see Appendix 1) It is difficult to compare productivity levels in organisations unless the inputs are the same and the productivity is expressed in the same way such as items per hour or week. It is relatively rare to find two businesses making the same product using the same machinery and equipment to directly compare productivity levels. © The Learning Company Ltd Publishing Group New Zealand 9 For more learning resources, visit: http://www.thelearning.co.nz
  • 10. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com For the sake of this explanation and to assist understanding, we will use the following examples. For example, if 10 people worked at the rate of 8 hours per day for 5 days, they can produce 10,000 items. What is their productivity? Input is the number of hours worked in this example, 10 people x 5 days x 8 hrs/day = 400 hours Output = 10,000 items Output = 10,000 Input 400 Productivity= 25 items per hour A different business that was smaller with only four people, with exactly the same equipment and raw material worked a nine hour day. They produced 5,800 items per week. Their productivity would be 4 people x 5 days x 9 hours/day = 180 hours Output = 5,800 items Input = 180 Productivity = 32 items per hour. The productivity of the second business was 28% higher than the first business. In this case there may be many other factors that enabled the second business to have higher levels of productivity. Efficiency and Effectiveness. The two vital aspects of productivity are efficiency and effectiveness. Efficiency refers to how well the various inputs are combined or a job is done. For example, if there are two clerks working in an insurance company dealing with claims. They both work the same number of hours and they are in the same department, and seated next to each other. On the outside, they look like they are doing the same things. However, one of them completes more claims than the other. Although the input (number of hours, equipment, claims, etc.) is the same in both cases, the output of one clerk seems to be higher than the other in a given number of hours. The difference might have been due to any number of factors. For example, they may include motivation, job knowledge, training or the methods used in performing the job. © The Learning Company Ltd Publishing Group New Zealand 10 For more learning resources, visit: http://www.thelearning.co.nz
  • 11. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com In this case it was found that clerk Y planned and organised the work, putting time and effort to better use. The efficiency of clerk Y was greater than that of clerk Z who had completed less work. Better utilisation of time and effort made possible by planning and organising probably led to greater effectiveness, and clerk Y was able to complete more claims than clerk Z. Productivity is how well various resources (inputs) are brought together and put into use for achieving special goals or results. Productivity is the key to profitability. It is doing things better and working smarter, not just harder. To do so, we have to tap the reservoir of knowledge, creativity and productivity available from our workforce through education, training, motivation, technology and group effort. The challenge is how to secure the maximum possible improvement in performance or results while using the minimum possible resources. With proper planning and motivation, the job of productivity growth can be achieved. However, certain facts have to be borne in mind when launching the productivity improvement programme. The productivity growth is more likely to be achieved if the objectives are discussed with the employees and they are able to contribute their ideas. Let us say, the objective is: “Reduce rework.” The employees must know and be familiar with the following information: • The current rework rate. • The expected reduction targets. • The reasons for the current rework rate. • The methods to improve the rate. They also need to be aware that they have the opportunity to voice their opinions on how to improve the situation. By making periodic checks, the supervisors can make sure whether their team members understand the objectives and make efforts to accomplish them. If the expected results can be measured in tangible terms, productivity is more likely to improve. Using the same example, let’s say that the current rework is costing the business about $65,000 a year. The objective can be stated in tangible terms as: “Reduce rework cost from $65,000.” © The Learning Company Ltd Publishing Group New Zealand 11 For more learning resources, visit: http://www.thelearning.co.nz
  • 12. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com To be successful, there has to be a clear understanding of mutual benefits between the business and the staff. The motivation to improve is greatly enhanced when the employer and the employees are working towards common goals with mutual expectations. Employees may be wondering how they are going to benefit from the reduction of the cost of rework. So, the employer may link an incentive to the accomplishment of the objective. For instance, a portion of the savings from the reduced costs may be given to the employees as bonus or a proportion of the savings may be used to fund time off from work. This way, the employer and employees share the benefits. This sort of approach must be treated with utmost caution because of the many pitfalls that can occur. Only when there is ample opportunity for employees to participate in and be responsible for productivity objectives, will they accept the productivity growth seriously. For instance, before setting the productivity objective for rework, the employees involved with rework should be consulted as to the reasons for rework, the methods to be employed in reducing rework, and the setting of realistic targets. Since these suggestions come from them, they may become more involved and committed to the objectives. They will be ready to undertake the responsibility with enthusiasm. The whole concept of “waste reduction” normally finds support from most people, so there is already something to build on. When a time frame is set for achieving the productivity objectives, it enhances the positive outcome. Using the same example of “Reduce rework”, a time frame can be linked to it in this way: reduce rework cost in the next three months from $65,000 to $40,000, in the next six months to $30,000 and in a year to the objective of $20,000. The quality aspect should not be sacrificed for quantity. Quantity at the expense of quality will be short-lived. If the objective is to reduce rework from 2000 to 1000 units in a year, the focus should not be just on the number to be reduced. Employees must make sure that the reworked items do not come back for further rework. The focus should be on reducing the quantity of rework and at the same time maintaining the quality of workmanship. Accountability for productivity is more likely to be accepted when employees are held responsible for the productivity objectives. Coupled with this responsibility is the involvement in setting the objectives. © The Learning Company Ltd Publishing Group New Zealand 12 For more learning resources, visit: http://www.thelearning.co.nz
  • 13. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com The road to higher productivity must start with the leadership team. Staff will respond when they see for themselves that the their leaders are actually consistently practising what they are preaching. Improving productivity is a leadership skill. At this moment, just take a bit of time and answer these questions. How much is rework costing your business? • What proportion of work do you have to re-do? • How much time does this take? • What are the labour costs associated with this rework? • What are the material costs associated with this rework? • What are the hidden costs of your rework? (The hidden costs include frustration created amongst the staff, stopping and starting costs, the lack of effort applied when a job has to be done again.) • What are the opportunity costs associated with this rework? (Opportunity costs in this case is the revenue, that you would have received if you were working on another profitable job instead) Add all these costs up and decide whether or not you need to reduce the amount of rework which is currently happening in your business. It may sound a bit brutal, but it's true. Your job in leadership is to create an environment where your people get what they want and you get what you want. The outcome of this process is that the right things are achieved by people who are happy. © The Learning Company Ltd Publishing Group New Zealand 13 For more learning resources, visit: http://www.thelearning.co.nz
  • 14. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 3 Your Productivity Questionnaire. Fill in this questionnaire honestly and add up your total. Remember that this is not a deep scientific survey but will give you some food for thought. Take note that if you don’t know the answer to any of the questions you lose 4 points from your score. Does your business invest in developing leadership skills? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Does your business invest in method and process improvement? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do your managers involve staff in decision-making? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do your managers have the right mix of experience and knowledge? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do your staff have the right mix of experience and knowledge? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Are the methods and systems used in your conversion process appropriate and up-to-date? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do your managers ask staff for ideas on method and process improvement? © The Learning Company Ltd Publishing Group New Zealand 14 For more learning resources, visit: http://www.thelearning.co.nz
  • 15. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do your managers actually know what their staff think about the business? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Is the machinery used in your conversion process up-to-date and effective? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do all employees receive comprehensive, practical and effective training? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Is your business and your staff receptive to change? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do all your managers have an effective leadership style? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Are the systems used in your conversion process effective? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do all employees know how their performance is measured? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do all employees understand the goals of the business? © The Learning Company Ltd Publishing Group New Zealand 15 For more learning resources, visit: http://www.thelearning.co.nz
  • 16. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do all employees receive appropriate, regular feedback on performance? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do all employees receive feedback from customers? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Are all the materials used in your process completely suitable for the end product? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do all employees participate in regular briefing sessions? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do you have a training and development plan for each staff member? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea Do all your employees receive training and on-the-job coaching to improve their productivity? 5 3 1 0 -4 Constantly Sometimes Hardly Ever Never No Idea © The Learning Company Ltd Publishing Group New Zealand 16 For more learning resources, visit: http://www.thelearning.co.nz
  • 17. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Results of the informal and not very scientific survey. Less than 30 Hmmm! You have severe problems with productivity but have a huge opportunity to improve the performance and profit of your business. The upside is that there is plenty of room to dramatically increase your net profit and change the way your staff feel about working for you. Your customers will be so happy when you institute changes to increase your productivity. What would be the effect on your business if your productivity increased by 10%? 30 to 60 All is not lost. You have a reasonable basis to work from. Again, there are clear opportunities to increase your net profit with only a few small changes. Make changes as soon as possible otherwise your competition may fill the gap. As your productivity increases you might find that your marketing effort needs to increase as a results of your increased output. 60 to 90 Your business is looking good. A few more small adjustments will make you more profit, keep your customers happy as well as your bank and shareholders. This will ultimately reduce your costs so that you can expand your customer base. Over 90 Well done! Please get in contact with me so I can learn about your success and write it up to include as a case study in the next edition of this book. Think about capitalising on your success by acting as a mentor for other business owners starting with your suppliers or customers. How to use your results. Look at your scores—select all the questions where you scored less than three. One by one, starting with the lowest score, install workplace change to lift your ranking. In six month’s time, fill in the questionnaire again. © The Learning Company Ltd Publishing Group New Zealand 17 For more learning resources, visit: http://www.thelearning.co.nz
  • 18. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 4 Some Barriers to Workplace Productivity. One of the important inputs to productivity is time. However, some days it seems like there is a conspiracy to steal your time from you. The Time Bandits seem to work like crazy some days and the day seems like it is frittered away with interruptions. Time is our most finite resource and interruptions cause us to lose our momentum. Just like your car engine has to work harder to accelerate from a complete stop, you have the same situation with your work when you lose your momentum because of an interruption and then have to start again. Although interruptions are a normal part of work life, limiting social interruptions is often crucial in enabling us to maintain our momentum for longer periods. Productivity in some work environments depends on being able to juggle a lot of little details in short-term memory all at once. Any type of interruption can cause these details to be lost. When you resume work, you can’t remember the details and have to keep looking them up which slows you down a lot until you get back up to speed. This is rework, mental rework. And like physical rework it comes with a considerable loss. Here are some factors that curtail our productivity. They are by no means exhaustive or comprehensive but serve as examples only. Housekeeping. Poor housekeeping in the office or workshop environment is a significant cause of low productivity. The difficulty in finding documents or tools means that the flow of work is disrupted. Furthermore, the individual can feel frustrated because of the general untidiness in which they are working. It is clear that an orderly workplace contributes to productivity and quality. There are some individuals who thrive and perform in a perpetual mess. However, their presence and work methods can have a negative effect on those working alongside. Efforts to improve housekeeping generally fail because of the method used for improvement. It is far better to involve the people concerned and get them to check and evaluate the workplace housekeeping of other people who then reciprocate. The alternative is to prescribe a housekeeping standard, have a mighty cleanup and then repeat the process six weeks later. © The Learning Company Ltd Publishing Group New Zealand 18 For more learning resources, visit: http://www.thelearning.co.nz
  • 19. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com The inability to find a document or a tool can be classed as an interruption. The effect of interruptions on work productivity has been well researched and the results are quite alarming. Interruptions. The average office worker is interrupted 73 times a day. The average manager is interrupted every eight minutes. Interruptions include telephone calls, incoming e-mail messages, interruptions by colleagues and crises. Research tells us it takes 20 to 30 minutes to get back to the level of concentration that we were at prior to the disruption. Of course, we cannot and would not want to eliminate all interruptions but we can reduce them and take control of our time and momentum more effectively. We know from our own experience that we do our best work when we are in the “zone.” This is when we are fully concentrating on our work and fully tuned out of our environment. We lose track of time and produce great work through absolute concentration. Getting into the “zone” is not easy. It seems to take about 20 to 30 minutes to start working at maximum productivity. But if you’re tired or you’ve had a lot of interruptions during that day you just can’t get into the “zone.” When you look at it like this, interruptions of any sort are an effective barrier to high productivity. The other problem is that it is very easy to get pushed out of your “zone.” It only takes a question from a co-worker, a telephone call, an e-mail message or the distraction of two people talking near your work area. Your overall productivity takes a beating the more interruptions you get. Some days you don’t even operate in your “zone.” An interruption is nothing more than an unanticipated event. To put it in perspective, on average, we experienced one interruption every eight minutes or approximately six to seven per hour. In an eight-hour day that totals around about 50 to 60 interruptions. The average interruption takes approximately 5 minutes. If you are receiving 50 interruptions in the day and each takes five minutes, that totals 250 minutes, or just over four hours out of eight. About 50% of your workday. Given the figures above, it is no wonder that some days you just don’t seem to make any progress at all. You go home at the end of the day exhausted and puzzled why progress has been so slow and results so small. © The Learning Company Ltd Publishing Group New Zealand 19 For more learning resources, visit: http://www.thelearning.co.nz
  • 20. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Planning and Organisation. Poor planning and poor leadership is another major contributor to low productivity. This is shown by managers and supervisors who continually change the priorities of tasks. Again, research is shown that a person doing a task mentally assesses the time it will take to complete. When halfway through that task the manager or supervisor says, “Okay stop what you doing and start this job because it is more urgent,” the new task will take a long time to be started. When that new task has been completed, it will take typically twice as long for the old task to be restarted. This is a complete disruption of the person’s momentum and if it happens often enough it will frustrate and lower morale. The result will be even lower levels of productivity and higher levels of resentment. In many cases the person will not even try to get into the “zone” therefore limiting their opportunity to be productive. When the work is planned and the people are involved in the planning and organisation, there is a natural lift in productivity. To sum up, every interruption loses at least five minutes plus the amount of time it takes to get back to maximum productivity. Unfortunately, technology with cellphones, pagers and e-mails have all conspired to interrupt us and slow down our productivity. This is in addition to the social interruptions. The solutions are relatively simple but require a certain amount of self-discipline. Firstly, deal with the technology by making it silent and allocate a particular part of time during the day to deal with all messages. Better still, delegate the interruptions to a receptionist or PA. Secondly, if you need uninterrupted time to work in your “zone,” put a flag on your workstation or machine to inform your co-workers that you do not want any social interruptions. To put this in perspective, try keeping a daily log of all your interruptions and where they come from. Are they from the phone? Are they from people that want to chat with you? Are they from people who want to ask questions? Are they from customers? Where do all these interruptions come from? Make sure that when you log these interruptions that you put down the amount of time that you lose. Once you have completed this exercise you will be surprised at two things. Firstly the number of interruptions and secondly, the amount of time that has been sucked out of your day. © The Learning Company Ltd Publishing Group New Zealand 20 For more learning resources, visit: http://www.thelearning.co.nz
  • 21. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Once you know the source of the interruptions you can organise your work so that these can be controlled. Obviously, you’re going to get some interruptions during the day and they cannot be avoided. Your control should be exercised over those interruptions that are unnecessary. You’ll be surprised how pleasant your working day becomes when you have eliminated the unnecessary interruptions. Your personal productivity will soar. Our Brains are Different. (This is true although not politically correct) There is another factor that compounds the problem of disruption to a person’s momentum and that is gender. All available research agrees that men’s brains are compartmentalised. The male brain is generally set up to concentrate on one specific task at a time. This means that interruptions are not handled very well. In comparison, the female brain is able to cope with several tasks at once because there is a much more comprehensive series of links between the right and left hemispheres of the brain. An interruption is handled as a normal part of their brain activity as they can do many different things at the same time. Their momentum is not adversely affected for very long. The male brain, on the other hand, has relatively few connections between the hemispheres and generally, is only able to deal with one task at a time. This means that they focus entirely on the job at hand. When they are interrupted, they have to totally stop focussing on the current job and start to focus on the cause of the interruption. This means that all momentum ceases until they re- focus on the original job. The process can take up to 20 minutes! This is the prime reason why some men are not always very productive working in environments such as open-plan offices because of interruptions and distractions. It also explains why most men are not very good at some work that has interruptions as part of the job. © The Learning Company Ltd Publishing Group New Zealand 21 For more learning resources, visit: http://www.thelearning.co.nz
  • 22. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Notes on Keeping an Interruption Log For one week keep a log of your interruptions. Record each interruption as the day progresses. Every time your attention shifts from one thing to another, make a note of the diverting activity, no matter how trivial. This means that you will record all interruptions, noting their sources and reasons. Give as much detail as possible. Make a note on how much time you spent on each item. Set a priority for every single item. At the end of the day you will be able to see what proportion of your time was spent on high priority work. In the "Comments" column, record your ideas on how you might have done things better. Write these comments as you go along. This reduces the chance of overlooking details. Keep the book close at hand. When you answer the phone, write down the phone call. When someone pokes their head to make a comment or pass on information, reach over and jot it down on the log sheet. Use abbreviations and shortcuts. Show people by their initials. Indicate interruptions with a big “X”. For incoming phone calls, use a letter “C” with an arrow pointing to the “C” and an arrow pointing away from it for your outgoing calls. Each day go over the following points. Every time you shift your attention - log it. Be specific. If you note a ten minute block as “Phone calls” you will not be able to tell if they were necessary or time wasters. Record Everything Do not skip over socialising, brief interruptions because they seem minor. You are trying to determine how much of your Total time is frittered away in such “minor” activities. Log your time As You Go. Do not try to catch up at the end of the day. © The Learning Company Ltd Publishing Group New Zealand 22 For more learning resources, visit: http://www.thelearning.co.nz
  • 23. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Interruption Log DATE___________ Priorities for evaluating logged interruptions. 1 = Important and urgent 3 = Routine 2 = Important 4 = Wasted Code C = Phone call in or out. D = could be delegated X = Interruption Time Activity Time Priority Comments used © The Learning Company Ltd Publishing Group New Zealand 23 For more learning resources, visit: http://www.thelearning.co.nz
  • 24. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 5 Take a Break Take a break and read this modern parable on leadership because leadership is one of the most important ingredients in the mix of strategies to improve productivity. A Modern Parable On Leadership A business owner once asked a wise man for help in improving an unprofitable business. The wise man wrote a charm on a piece of paper and sealed it in a box which he gave to the business owner. “Take this box to every worker in your business every day for a year,” he told him. The business owner did so. In the morning he carried it into the store and asked the Stores Supervisor about the Quality Control on Inwards Goods. Later, when he carried it into the production area he saw that the Production Manager was in his office reading the newspaper. They discussed the need to be visible on the factory floor. During the afternoon he carried it into the Engineering Shop and found the Engineering Supervisor trying to balance his budget. He helped him by showing an easier way. Every day, as he took the box around his business, he found things to discuss with the staff and help them to improve their performance. At the end of the year he returned to the wise man. “Let me keep the magic charm for another year,” he begged. “My business has been a hundred times more profitable this year than ever before because my people are happy.” The wise man smiled and he took the box, “I’ll give you the charm itself,” he said. He broke the seal, lifted out the piece of paper and handed it to the business owner. On it was written: “You cannot be a leader by being invisible Your results are obtained through your People. By coaching your People, you are treating them with respect and allowing them to grow and develop. Constant personal communication with your People will help them to develop.” Reflect on the message of the parable and compare yourself and your business. © The Learning Company Ltd Publishing Group New Zealand 24 For more learning resources, visit: http://www.thelearning.co.nz
  • 25. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 6 Twelve Common Symptoms of Productivity Problems Consider these twelve symptoms of productivity problems. Ask yourself if they exist in your workplace. Once you have done that, work out how to remove the causes of these symptoms. It is probably best to start with the one that will have the greatest effect if it is fixed or reduced. 1) Variable Quality When quality is not consistent and predictable it is likely that it is a symptom of a productivity problem. Sometimes, this is linked to either a lack of training, or ineffective training. Other times it is due to variations in components or materials When the product quality is not consistent the amount of rework or rejects will climb and the situation will reduce profit as productivity declines. 2) Poor Workflow Poor workflow shows itself through bottlenecks on one hand and a lack of work on the other. These two extremes contribute to low productivity because there is not a consistent flow of work. It is easy to see this in production lines but not so evident in administrative or service work. However, it exists frequently and is a major cause of lower profits. The best people to identify poor workflow situations and recommend solutions are the people doing the job. 3) High Rework and High Rejects. It is impossible to maximise profits when rework and reject levels are high. When the cost of labour is added to the cost of materials any product which has to be rejected or reworked represents a loss to the business. This is an area where it is extremely unprofitable to have a high tolerance for rejects and rework. The financial losses created through rework is considerable because of the lost opportunity to make a profit as well as the inevitable losses in material. Any organisation should work hard to minimise these losses because this situation also contributes to low morale and frustration. Both of these demotivators reduce people productivity. 4) Machine and Equipment Downtime Profits cannot be maximised when there is preventable machine and equipment downtime. Underlying causes could involve operator training, maintenance, poor leadership or that the machinery and equipment needs replacement. Constant breakdowns produce a powerful negative effect on the workforce. The constant stop/start alone reduces productivity because of interruptions to workflow. Again, another cause of low morale and frustration. © The Learning Company Ltd Publishing Group New Zealand 25 For more learning resources, visit: http://www.thelearning.co.nz
  • 26. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com 5) Low Discretionary Effort Discretionary Effort is that extra capacity that we all possess. Poor leadership will reduce our discretionary effort, whereas effective leadership will motivate us to produce our highest level of Discretionary Effort. Any strategy to increase discretionary effort should be considered and then installed. Situations such as constant breakdowns and poor workflow will also have a negative effect on our discretionary effort because they are interruptions. 6) Lack of Clear Performance Expectations. Most people in the workplace often have no idea of what is expected of them. Discussions about performance expectations are rare and many employees are unaware of how their performance is measured. 7) Lack of Feedback We all need feedback because without it we have no idea of our progress towards standards. As human beings we need to know how we are getting along. When we are not told, we believe that we are doing a good job. For a variety of reasons, this is often not the case. The absence of feedback in the workplace makes the work pointless. We all need a constant supply of credible feedback and encouragement to keep us engaged in our work. 8) Lack of Recognition Many managers believe that giving positive reinforcement to staff will encourage them to seek increases in pay. Other managers believe that giving positive reinforcement will give staff swollen heads and they will have an inflated belief of their value to the organisation. When people work and apply effort to their work they will often reduce their effort if they don’t receive any recognition for their efforts. When recognition or praise is missing in the workplace, it is a potent factor in severely reducing motivation and productivity. 9) Lack of Measurement This is closely linked to a lack of feedback. Public measurements of team or individual performances provide feedback, motivation, trends and results. If results are not measured and displayed they cannot be used as a leadership tool. Any changes cannot be evaluated unless there is measurement. 10) Unsafe Work Environment An unsafe work environment provides a powerful incentive not to be productive. It has a strong morale lowering effect as the employees believe that the organisation doesn’t care enough about them to keep them safe. This situation also has the effect of lowering productivity when people get injured at work © The Learning Company Ltd Publishing Group New Zealand 26 For more learning resources, visit: http://www.thelearning.co.nz
  • 27. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com because the incident will drain all discretionary effort for some time as people think, “That could have been me.” 11) A Lack of Performance Standards This is linked to Lack of Clear Performance Expectations. In all aspects of the workplace there should be a set of performance standards that are discussed with the staff and agreed on as a bare minimum. They should not be prescribed but rather set in a consultative fashion with agreed consequences for breaching them. 12) Poor Leadership. This is one of the keys to productivity. All organisations that have high levels of productivity share the common factor of better than average leadership at nearly every level. Poor leadership is the most common cause of low productivity and also one of the most difficult to fix. The problem lies in the fact that the development of good leadership skills takes time because it is not an easy process. Yes, there are leadership programs but very rarely do they change behaviour in the workplace. Mostly, they are training events lasting two days and by their very nature cannot develop leadership skills. Most people require coaching on- the-job to develop their leadership ability. There are leadership adventure programs that feature abseiling, rock climbing and activities like kayaking, but there is little scientific evidence that they create a change in behaviour that leads to improved leadership skills back at work. Management Responsibility for Productivity Every one of these twelve symptoms of productivity problems can be eliminated or improved by the people who are leaders within the business. It could be said that organisations don’t have productivity problems, they have leadership and management problems. At first look, this may be a daunting list of things that need fixing or changing. The sound advice is to single out the most important and fix that one before moving on to the next. All the solutions are included in this book. Have a clear objective Firstly, it is necessary to set a clear objective with the person or people concerned. For example, if these principles are to be applied to a machine then the operator must be aware and agree to the objective. © The Learning Company Ltd Publishing Group New Zealand 27 For more learning resources, visit: http://www.thelearning.co.nz
  • 28. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com A typical objective may be, ”To keep the machine running for a total of seven hours per working day.” However, this could be expressed in the form of a percentage. “To run the machine for 85% of the working day.” This objective can be illustrated as a straight line on a graph. The actual hours or percentages can be plotted on a daily basis by the operator. This sort of feedback shows the operator straight away how they are performing in relation to the mutual objective that has been agreed. Keep the end in mind Secondly, the operator has to learn that every task which does not contribute to the objective has the result of preventing or delaying the achievement of the target. The best way to train the operator, is to work with them. Ask them what the consequences are if they perform a certain low priority task. Ask them if it is going to contribute to their objective of keeping the machine running. One of the most important lessons for them to learn is that, “lost time can not be caught up, it is lost for ever.” Thinking ahead Thirdly, the operator has to learn to think ahead. Generally speaking, thinking ahead for the next three or four tasks will be sufficient under normal circumstances. There will be occasions when it is necessary to plan may be five to eight tasks ahead. Whilst they are thinking ahead, they must remember their number one priority which is to keep the machine running. Coaching on-the-job Working with the operator enables the trainer to ask questions rather than instruct or tell the person what to do. By constantly asking questions the operator will learn to think for themselves. If the trainer tells the operator what to do all the time, the operator will be unable to think for themselves and their performance will drop as soon as the trainer is not there. Think about asking questions that “ lead the person to discover.” When the trainer is not there, the operator can still go through the same thinking process. © The Learning Company Ltd Publishing Group New Zealand 28 For more learning resources, visit: http://www.thelearning.co.nz
  • 29. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 7 Plan to Succeed with your strategies and tactics It is essential to plan your strategy and tactics prior to starting to improve your business productivity because it gives direction and something to modify if you need to change halfway through. If you write a plan, circulate the information so your team can have input to it if you. Again, including your team and allowing them to contribute to the plan will give them some psychological ownership of the success of the program. Just remember, your program will be unsuccessful if you don’t win the co- operation of your team. Inclusion in the design of the program will contribute to the successful outcome. Let us have a look at an actual program that was installed in a small engineering shop that specialised in jobbing work, mostly repairs to the heavy machinery. There were thirty three staff employed including five apprentices and two supervisors. The first thing that the manager did, was to measure where they were and look for opportunities for improvement. Then he examined the business to find out what barriers existed to improving productivity. When he analysed the current situation, he discovered that unplanned absences were running at about 13% of available time. Secondly, in spite of the heavy and consistent workload, chargeable hours averaged only 75% of the available hours. Having discovered these opportunities, the manager decided to fix these first. Initially, he met with his staff and explained that he wanted to improve productivity with their help. He said that attendance was not very good and that they couldn’t be productive if they were absent. He went on to say that the objective was not to work harder but smarter. He asked if it was fair and reasonable to expect a better attendance and they all agreed. He said that he would be closely monitoring attendance in the future and that there would be some fairly simple ground rules installed in conjunction with the staff members. At the next meeting with his staff the following day, he explained that these daily briefing meetings would become a regular feature of the business. © The Learning Company Ltd Publishing Group New Zealand 29 For more learning resources, visit: http://www.thelearning.co.nz
  • 30. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Next, he looked at his own leadership qualities and the leadership qualities of his supervisors. He realised that he needed help in this area, so he enrolled on a practical leadership training course after considerable research. He was looking for a course which was totally practical and included coaching on-the-job. He had been on other leadership courses but they only dealt with the theory and not the practical aspects of leadership. Over the next three weeks, he went through the process of establishing mutual expectations with his team. When this was complete, everyone was aware of what was expected of them and how their jobs were measured. There had been complete agreement by everyone that the expectations were “fair and reasonable.” At this stage, he noticed that the amount of chargeable hours was starting to climb and during the previous week had reached a level of 85% of available hours. During the next morning meeting, he established some productivity goals and milestones with the supervisors and staff which included attendance and chargeable hours. He got agreement from his team that they had the resources to achieve these goals and milestones and that the whole plan was flexible enough to be changed if necessary. He also got agreement from his team that they were in control of reaching the targets. The manager mentioned that the chargeable hours had started to rise and congratulated the team on the effort. Next, he negotiated with the staff to provide clear and meaningful feedback on progress. Each member of staff would keep a graph of their chargeable hours, on a daily basis. Each week they would get new graphs to plot their hours. At the end of each week they would present their graphs to the group and explain what the week had been like. At the end of the month, the chargeable hours would be added up and put on a graph which included the whole workshop. At this point, they would bring up any barriers or difficulties they had encountered and it was the manager’s job to ensure that these barriers or difficulties, where possible, did not occur in the future. Starting from the present day a graph of the attendance records of individuals would be posted on the notice board. © The Learning Company Ltd Publishing Group New Zealand 30 For more learning resources, visit: http://www.thelearning.co.nz
  • 31. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Productivity was measured by the input of their hours divided into the dollar value of work invoiced. This was also posted on the notice board in the form of a ratio so that casual observers would not be given confidential information. This whole thing was backed up by discussion during the morning meetings so that the group was given feedback on progress towards milestones. After the six weeks, the results were reviewed and the manager asked the team whether there were any changes which were necessary to maintain progress. No one could come up with any changes that would improve the situation and the consensus of opinion was that they continue as they were going. The first milestone was to improve attendance and this was achieved during the first month. Instead of averaging 13% of available time, it dropped to 2%. As a result, the manager wrote to each member of staff thanking them for their contribution to a positive change. Without doing much differently, chargeable hours had now climbed to 85%. The manager arranged for a catered lunch to be delivered for each member of staff on Friday. This is arranged on the Wednesday prior and the team were told. The next step was to look at what had been achieved and to ask a question, “ If we had to do this again what would we do differently?” The team came up with quite a number of suggestions and most of them were related to how they could take more responsibility, not just for results, but for tasks that could be delegated. This was the major theme of this step. The manager listened carefully and after the meeting had a session with his supervisors to discuss delegations. They all went away to think about it so they could come up with a plan to pass down more responsibility. The following morning they met again and formulated a plan which they presented to the team. The effect of this was that the level of trust was increased because the day after making some suggestions that team was presented with a draft plan. The manager and the supervisors started on a series of internal training sessions so that more tasks could be delegated down the line. At this stage, the team were approaching their end targets and the manager could not think of anything to reward the participants. Using his new-found skills acquired during the practical leadership program, he asked the team. The answer he got surprised him, because he confessed that he wouldn't have thought of it. The consensus of the group was that a fitting reward for reaching © The Learning Company Ltd Publishing Group New Zealand 31 For more learning resources, visit: http://www.thelearning.co.nz
  • 32. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com the targets would be to finish at midday on a Friday so they could have half a day off and still be paid. They dismissed the idea of more money because they were pretty well paid anyway and they all held a free half-day holiday as being valuable. Once the targets have been met, the team asked what shall we try for next? One of the supervisors said that in conversation with a couple of staff members they agreed that it had been easy and that there had been no extra hard work to achieve the result. © The Learning Company Ltd Publishing Group New Zealand 32 For more learning resources, visit: http://www.thelearning.co.nz
  • 33. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 8 Measure and record where you are. This may sound obvious but this is not always done at the beginning of a productivity improvement process. Whilst the outcome of this measurement may be distressing because of the low levels of productivity that are revealed, it is also an indicator of what improvement can be achieved. It is best to look at it from a positive point of view so that it becomes a motivator rather than a demotivator. Productivity can be measured by individual machines or groups. The process of measurement remains the same. output Productivity = ----------- input Make sure that your measurement period is over a reasonable time frame without any abnormal highs because of large continuous production runs or lows because of down time or an unusual run of rejects. This initial measurement is your starting place. It is the point from where your business is moving. This starting point enables your business to progress and represents where you have reached. At this time, it is wise to explain to your teams where you are an applaud the achievement to date. At the time of measuring your current levels of productivity, it is wise to firmly establish exactly the levels of your fixed and variable operating costs. This may create some surprises as well. At this stage, you will have established your current levels of productivity and the level of your fixed and variable costs. You are now in a position to consider the potential difference to your net profit with a change in productivity. Let’s use the following simple example and you can see how changes in your business productivity can positively affect your profit. © The Learning Company Ltd Publishing Group New Zealand 33 For more learning resources, visit: http://www.thelearning.co.nz
  • 34. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Revenue VARIABLE COSTS Cost of making products or supplying services 50 100 FIXED COSTS Cost of overheads 40 PROFIT 10 Now Increase Productivity by 10% Revenue VARIABLE COSTS Cost of making products or supplying services FIXED COSTS Cost of overheads PROFIT When you raise productivity by 10%, you effectively produce 10% more with the same fixed costs. Variable costs may rise a little bit but they only seem to rise as a proportion of the increased productivity. Yes, you got it right! If you increase productivity by 10% your revenue will rise by 10%. Your variable costs may rise by 5% taking them up to 55. Your fixed costs and your overheads will generally remain the same. This means that your profit will rise to 15, an increase of 50%! Most businesses would really appreciate a 50% increase in profit. This is a very simplistic view of the whole business equation, but at the least, it gives you some idea of the value of increasing productivity and the scope for increasing profits. © The Learning Company Ltd Publishing Group New Zealand 34 For more learning resources, visit: http://www.thelearning.co.nz
  • 35. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Now you can see that increasing the productivity of your business by 10% produces great financial benefits and there may be scope to increase the productivity by much more. Put your own figures in the equation and see the effect on your bottom line. This may provide powerful motivating forces for you to embark on a program to increase your productivity. Example Let us use another example. You have a one chair men’s barbershop and there always seem to be people waiting for a haircut. Your net profit is 15% of revenue. Over the year you average twenty haircuts every working day. Your shop is open 235 days every year. You make a conscious decision to use electric clippers more than scissors. After some experimentation you find that instead of twenty haircuts a day you start to average twenty-one haircuts a day. (An increase of 5%) Using this simple example, here is the result. Before The Change Revenue VARIABLE COSTS Cost of making products or supplying services 55 100 FIXED COSTS Cost of overheads 30 PROFIT 15 © The Learning Company Ltd Publishing Group New Zealand 35 For more learning resources, visit: http://www.thelearning.co.nz
  • 36. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com After The Change Revenue VARIABLE COSTS Cost of making products or supplying services 55 105 FIXED COSTS Cost of overheads 30 PROFIT 20 As you can see, the revenue has increased from 100 to 105 (5%). The costs have remained the same although there may be some small increase in variable costs because of maintenance on the clippers. However, the big change has come in profit. It has risen from 15 to 20, an increase of 33%. I don’t think the barber would have worked any harder but his bank balance would have certainly improved. Using this example, you can see that for a small increase in productivity (5%) there is a substantial increase in net profit (33%). This is an example of the power of productivity to positively affect your bottom line. Any business that is serious about making more profit should consider how to improve their “People Productivity.” © The Learning Company Ltd Publishing Group New Zealand 36 For more learning resources, visit: http://www.thelearning.co.nz
  • 37. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 9 Evaluate your Leadership Resources and Capabilities. In most work places there is a well defined initial level of authority, the first line leader. Many of these people have received little training to fulfil what is generally regarded as one of the most critical jobs in the working environment. The leader is not only responsible for their own behaviour but also the behaviour of others. Their own high performance is normally the prime criterion for selecting them for promotion. Which is similar to saying that the best player is the best coach. We are dealing with two unrelated skills in this situation. One, the skill in doing the job and two, the skill in leadership. Nothing has prepared them for the difficult task of getting the very best from other people. To cope with this situation they may adopt the style of their previous supervisor or copy the style of the manager. It is unlikely that copying other people will help them to be successful because their staff will quickly realise that the person is playing a rôle and not being their authentic self. However, given a lack of training and coaching, the most common style which prevails is the adversarial one. A win/lose mentality. “I am in charge and you will do as I say.” This causes a negative effect on the individuals and the organisation as well as having far-reaching effects on quality, safety and production. In reality, not much has changed between some leadership cultures found in some business today and slavery. Since the time of the galley slave system, great technological changes have taken place in our society, yet our human relations skills seem to be as primitive as ever. True, the physical working conditions in today’s organisations are better than those on the galley, and the management techniques more subtle, yet the whip is still there. You’ll still hear the term “slave driver” used when referring to leaders seemingly indifferent to the needs of their employees. The use of reward and punishment to get people to do their job is still standard operating procedure. In many organisations, even the modern concept of “empowerment” is another form of manipulation to get employees to do what management want them to do. © The Learning Company Ltd Publishing Group New Zealand 37 For more learning resources, visit: http://www.thelearning.co.nz
  • 38. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com The waste of human talent inside today’s organisations is appalling. There is a tremendous drain of human resources and capabilities. Some people get fed up and leave, while others decide to stay physically but have resigned mentally. Many do just what’s needed to get by, and still others simply mark the days until the weekend, their Christmas holidays, or their retirement. In many organisations, this situation is simply accepted as “That’s just the way it is, and it won’t ever change” or “That’s just the nature of human beings; you can’t hire and keep qualified staff anymore.” The products of the win/lose mentality creates an incredible waste in many organisations, but, it also points to a huge opportunity. Imagine an organisation that suffers from this state of affairs and enjoys a modest success in today’s marketplace. What latent ability could be released with a change to a win/win method of leadership? The untapped resources are tremendous. Have we forgotten that all organisations obtain their results through the efforts of people? It requires well developed leadership skills to bring out the best in people. Unfortunately, businesses fail to make the connection between effective leadership and productivity. This leads to all sorts of attempts to increase productivity and profits whilst ignoring what is a fairly obvious strategy of increasing leadership skills within the organisation. It is puzzling why more businesses don’t make the link between improved leadership skills and improved productivity. Improved Leadership and Productivity One business that capitalised on the link between improved leadership and improved productivity was a large shoe manufacture. They decided that anyone in a leadership position should be properly trained. Accordingly, they set up a practical leadership skills training programme which was conducted inside the organisation. All the participants were coached in leadership skills on-the-job to make the whole program relevant. It didn’t take long before the improved leadership skills created a 40% increase in productivity. They invited to senior managers from a competitor to visit their manufacturing facility. The visitors were surprised to find the premises old and dingy, with © The Learning Company Ltd Publishing Group New Zealand 38 For more learning resources, visit: http://www.thelearning.co.nz
  • 39. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com obsolete equipment and machinery. They found that the management systems were unsophisticated and primitive. This company devoted their efforts to building a strong leadership base and this more than compensated for the deficiencies in the plant, equipment and systems. However, the productivity was considerably higher than their competitors who had the up-to-date facilities and the more modern machinery. This forward thinking business had realised that improved leadership skills could overcome all sorts of other workplace deficiencies. They have also reaped the reward by investing in their staff and as you can imagine, the return on the training investment was substantial. This clearly illustrates the rôle that good leadership plays in improving productivity. This business made a wise choice in selecting a training organisation to carry out the leadership training. They knew that you cannot teach leadership in a class room or a training room. Leadership is a practical skill and does not translate well with academic methods to changes in behaviour at work. Leadership is learned on the job and is best developed through guided practice through coaching. The best training is spread over several months complete with follow up coaching in the person’s workplace. Small groups may seem to be extravagant but most learning will take place when there is plenty of engagement and discuss. Once the group size is greater than ten, learning and retention seems to drop off, making the training poor value. If there is no change in behaviour as a result of training, the training could be a total waste of money. Again, the key to improved productivity, is leadership. The solution is this. Improve the leadership, improve the productivity and this will result in improved profit. © The Learning Company Ltd Publishing Group New Zealand 39 For more learning resources, visit: http://www.thelearning.co.nz
  • 40. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Leadership Questionnaire Fill out the following questionnaire and discover which part of your leadership skills need a tune up. Be honest with yourself. • Please indicate the extent to which each of the following statements apply to you. • Think about the statement and rate yourself according to the five- point scale below. • You can always give this questionnaire to others to gain their perception of your leadership ability. 5 = Always. 4 = Often. 3 = Sometimes. 2 = Rarely. 1 = Never. © The Learning Company Ltd Publishing Group New Zealand 40 For more learning resources, visit: http://www.thelearning.co.nz
  • 41. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Leadership Questionnaire 1 I always listen carefully to others. 12345 2 I always give people responsibility for tasks and projects. 12345 3 I always challenge the rules and standards of the business. 12345 4 I have a clear vision for the team which I communicate. 12345 5 I have clear understanding of my strengths and weaknesses. 12345 6 I always encourage ideas from the team. 12345 7 I always demonstrate my trust in others. 12345 8 I always anticipate and adapt to changing conditions. 12345 9 I always understand the effect I have on other people. 12345 10 I always keep up-to-date and develop new skills as often as possible. 12345 11 I always try to motivate and encourage others. 12345 12 I always provide training to enable people to work effectively. 12345 13 I always help others to manage change. 12345 14 I always demonstrate a high level of commitment to my work. 12345 15 I manage my priorities well. 12345 16 I have developed a communication network within the business. 12345 17 I always provide support for people when needed. 12345 18 I always manage my stress levels well. 12345 19 I always focus on achieving results. 12345 20 I always have a positive feeling towards myself. 12345 Total ________ © The Learning Company Ltd Publishing Group New Zealand 41 For more learning resources, visit: http://www.thelearning.co.nz
  • 42. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Results of another informal and not very scientific survey. Less than 30 Oh dear! Ask yourself if you should be in a leadership position. If you decide to remain in a leadership job, the road ahead is steep and very hard work. You will have to work hard to become a competent leader. Start by learning and practicing Emotional Intelligence. Get a trusted member of staff to rate you using this assessment to make sure that you have not been too severe on yourself. Go back and re-assess your rating. 31 to 60 All is not lost. You have a basis to work from. Again, there are clear opportunities to increase your leadership skills with only a few changes. Start to develop a greater skill level in all those things where you rated yourself at 1, 2, or 3. Focus on learning more about Emotional Intelligence and rate yourself again in six months. Keep learning and never stop. 61 to 80 Your leadership is looking good. Work on those areas where you rated yourself at three or less. You are well on the way to becoming a competent leader, however, there are areas for improvement. Over 81 Well done! Train your replacement. Pass on your skill to other members of your team because you are obviously destined for higher things. Go back and re-assess your rating. Get a trusted member of staff to rate you using this assessment to make sure that you have not been too generous to yourself. How to use your results. Use this assessment for direction in personal change. Look at your scores—select all the questions where you scored less than three. One by one, starting with the lowest score, install personal changes to lift your ranking. In six month’s time, fill in the assessment again. © The Learning Company Ltd Publishing Group New Zealand 42 For more learning resources, visit: http://www.thelearning.co.nz
  • 43. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Lethal Leadership The late Gordon Lippitt, professor at George Brown University, after studying the subject of leadership for years, concluded: “Leadership is the worst defined, least understood, personal attribute sometimes possessed by human beings.” Lethal Leadership Effective Leadership Staff are seen as malleable, Staff are seen as self-directing, controllable, and expendable capable of assuming responsibility for commodity by the leader their own decisions. The leader understands that results are obtained through people. Leader tells staff what to do and how Leader discusses ways of reaching to do it. objectives set with the staff. Leader employs strategies including Staff set their own realistic veiled threats to increase production,. production targets with the leader to meet needs of customers. Leader puts production first above Leader puts staff first understanding quality and safety. Encourages the that staff health is necessary for use of “short cuts.” business health and that “short cuts” normally turn out to be “long cuts.” The leader considers training a waste Leader understands that training is a of time which causes production vital on-going process. Leader delays. realizes that it is more effective to train and make less mistakes than it is to fix errors. The leader frequently shows that it is The leader understands clearly that necessary to punish people by encouragement and respect for the making them lose. individual will help people to do their very best. As you can see this point by point contrast reflects a dramatic shift in thinking about leader/staff relationships. Is the leadership in your organisation lethal? © The Learning Company Ltd Publishing Group New Zealand 43 For more learning resources, visit: http://www.thelearning.co.nz
  • 44. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Chapter 10 Set mutually agreed expectations. Performance Expectations. We live in a world of expectations. People have expectations of us, we have expectations of them and we have expectations of ourselves. Normally, we have higher expectations of our performance than the expectations held by others. This is part of human nature. In the work environment, there are all sorts of expectations, however, they are not always discussed. These expectations are only voiced when they are not met. This situation is extremely common. How can people meet expectations if they don’t know what they are and have had no input to them? Expectations that are not discussed create a very difficult situation in the workplace. They only become known when they are not met. At this stage, emotion starts to creep into the situation closely followed by resentment. You must have heard some say at one stage, “But I didn't know I was supposed to do that.” The amount of frustration this causes is unbelievable. On one hand we have a leader who has clear expectations and has not communicated them and will be frustrated when his people do not perform. On the other hand we have a staff member who is doing their best and failing because they didn't have the necessary direction. This is clearly a recipe for resentment and a lack of cooperation. Not the ideal environment if you want to build increased productivity. If people do not know what is expected of them, how can they perform to the desired standard? Successful leaders always share their expectations with their people so that they can work towards them. What would happen if our people have unrealistic expectations of us as leaders? What if we have unrealistic expectations of our people? If you look closely at some of the problems in the workplace, you can often trace the basic cause of the problem to a lack of real understanding of expectations. It is vital to comprehend that it is the quality of the relationships which determines the ability of the team to work together or work apart. © The Learning Company Ltd Publishing Group New Zealand 44 For more learning resources, visit: http://www.thelearning.co.nz
  • 45. The Key to Productivity A step by step guide to improve workplace productivity. http://www.thekeytoproductivity.com Too often, the team does not function well because the leader has not discussed expectations with his or her team. A failure to discuss expectations will have a profoundly negative effect on individuals and teams. We know that our expectations of our own performance are often greater than the expectations others have of our performance. When you think about this from a leadership perspective, the best people to set their own targets, KPI’s or performance objectives should be the people doing the job. If this provokes you to say, “but they will set low targets,” try it. You will be pleasantly surprised when they set targets which are not easy and higher than yours would have been. To summarise: the failure to set mutual expectations will severely hamper any attempts to improve productivity. It could be said that it is a clear requirement prior to any strategies and tactics designed to lift productivity. How to Set Expectations. How can you create and develop a mutual understanding of expectations? After all, expectations change because we live in a changing world. To start to introduce the concept of setting expectations, it is suggested that the following be carried out in the sequence shown. There is a very important reason why you must ask for the expectations of your team first. The reason is that once you have completed that exercise, you have permission to give them your expectations and they will be much more receptive. Firstly Meet with your team, either as individuals or as a team and ask them what their expectations are of you in your rôle as the leader. Make note of these expectations. Let them see you making notes so that they understand you are listening and taking their expectations seriously. Carefully consider if you are able to meet them. If you are, communicate this to your team but remind them that part of their responsibility is to let you know if your performance is dropping below these agreed expectations. If you believe that you are unable to meet any of these expectations let your team know and give them clear reasons. In some cases, it may be possible to negotiate these expectations. Imagine what it would be like if your team had unrealistic expectations of your performance as a leader and your performance was below what they expected. What sort of effect would this have on their productivity, quality, co-operation and safety? © The Learning Company Ltd Publishing Group New Zealand 45 For more learning resources, visit: http://www.thelearning.co.nz