SPC 2.1

Tab Entry = Introduction
Centered on Page in 24 point is duplicate entry (see below)
Introduction
Introduction to
Serious Performance
Consulting
Workshop
Version 2.1
http://www.performancedesignlab.com
Design Center: Tucson, Arizona
Admin Center: P.O. Box 215,
Belmont MI 49306-0215
(616)-784-1163 (F)
(616)-881-2488
Serious Performance Consulting Workshop
Introduction
TABLE OF CONTENTS
Introduction
Workshop Map ........................................................................................................................5
Objectives ...............................................................................................................................4
Tab 1 - Performance Consulting Assumptions ............................................................10

Basic Premise .......................................................................................................................11
Assumptions .........................................................................................................................13
Physician Analogy.................................................................................................................14
PC Key Points .......................................................................................................................16
Tab 2 – Anatomy of Performance Framework .............................................................17

Anatomy of Performance (AOP)............................................................................................19
Two Views of an Organization ..............................................................................................21
AOP Mapping........................................................................................................................23
Results Chain........................................................................................................................33
Example ................................................................................................................................40
PC Key Points .......................................................................................................................39
Tab 3 - Performance Design – Job Level ....................................................................48

The Human Performance System (HPS) ..............................................................................53
Troubleshooting the HPS ......................................................................................................55
HPS Drill Downs....................................................................................................................56
HPS Template.......................................................................................................................70
Vertical and Horizontal Alignment .........................................................................................78
Management Model ..............................................................................................................80
Job Results Template ...........................................................................................................86
Job Analysis Worksheet........................................................................................................91
Job Analysis Question Guide ................................................................................................88
Is/Should Job Level Worksheet.............................................................................................92
Variables and Requirements .................................................................................................98
Jobs and Processes..............................................................................................................99
PC Key Points ..................................................................................................................... 102
Tab 4 - Performance Design – Process Level ...........................................................103

Processing System Hierarchy ............................................................................................. 109
Business Process – A Summary ......................................................................................... 115
Linking Processes, Functions, and Jobs ............................................................................. 117
Process Results Template .................................................................................................. 118
Management Template .......................................................................................................119
Process Analysis Worksheet...............................................................................................120
“Is” Process Analysis........................................................................................................... 128
“Should” Process Design .................................................................................................... 129
Process Management .........................................................................................................124
Alignment ............................................................................................................................ 138
Measures ............................................................................................................................ 139
Variables and Requirements ............................................................................................... 142
Why Process Improvement Projects Fail ............................................................................ 145
PC Key Points ..................................................................................................................... 147
ALL CONTENTS Copyright  2005 2

Performance Design Lab – v2.1
Introduction
Tab 5 - Performance Design – Organization Level ...................................................148

“Super-Duper” System ........................................................................................................ 150
Super System Map.............................................................................................................. 152
Organization Results Template ........................................................................................... 152
Organization Analysis Worksheet ....................................................................................... 153
Value Chain ........................................................................................................................ 160
Management System ..........................................................................................................164
Variables and Requirements ............................................................................................... 172
PC Key Points ..................................................................................................................... 174
Tab 6 - Performance Design – Total System ............................................................176

Explaining the Difference in Performance ...........................................................................180
Designing Poor Performance .............................................................................................. 181
AOP and Olympic Medals ...................................................................................................182
Modelling Business Units .................................................................................................... 186
Mapping the AOP................................................................................................................194
PC Key Points ..................................................................................................................... 195
Tab 7 – Performance Analysis – Process & Tools .....................................................197

The Results Improvement Process (RIP)............................................................................ 198
Tools ................................................................................................................................... 199
Tab 8 - Performance Analysis – Cases ......................................................................261

The “Human Side” of Performance ..................................................................................... 262
Attitude Training .................................................................................................................. 267
Off-site Team Building Meeting ........................................................................................... 270
VP’s Play Nice..................................................................................................................... 273
Data Entry Training for Sales Clerks ................................................................................... 277
Tab 9 – Performance Analysis – Reference

Articles on PDL Website ....................................................................................................309
Points of Entry..................................................................................................................... 310
Anatomy of Performance – Key Points and Implications.....................................................313
Performance Analysis for Results and “Numbers” .............................................................. 316
Finding Variability in a Hierarchy of Performers .................................................................. 318
“Exemplary Performance” Analysis ..................................................................................... 319
Stakes and PIP’s................................................................................................................. 321
Performance Logic Maps ....................................................................................................330
Classic Performance Design Challenges ............................................................................ 340
Tab 10 – Performance Department ............................................................................342

Model .................................................................................................................................. 343
Plan and Design.................................................................................................................. 346

Introduction
ASSUMPTIONS ABOUT WORKSHOP PARTICIPANTS
• You are in a function or role with responsibility for assisting a client organization
unit be more effective in producing their product or service.
• You are interested in learning strategies and techniques for improving organization
effectiveness.
WORKSHOP OBJECTIVES
At the end of the Workshop, participants will have:
• A mental model for analyzing factors impacting individual performance and

organization results, as summarized by the Anatomy of Performance.
• A “Three-Levels of Performance” diagnostic framework and templates based on

the Anatomy of Performance.
• A Process for systematically analyzing performance improvement opportunities

and specifying appropriate performance and results improvement applications.
• Tools for analyzing performance problems at each of the Organization, Process

and Job/Performer Levels of Performance.

Introduction
WORKSHOP MAP
3 Job Level
Process
4 Level
Performance
Design
Organization
5 Level
Total
1 2 6 System
Framework
10
Performance Anatomy of
Performance Plan &
Consulting Performance
Department Design
Assumptions Framework
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference

Introduction
ACKNOWLEDGMENTS
The concepts and techniques presented in this workshop have been evolving since 1956
and have involved the input of many people, who I would like to acknowledge. My thanks
to the following for:
Providing me the opportunity to first see “Organizations as Systems” at work

Carl Anderson, Royce Rivard and Richard Rummler (Father), formerly of the
Mitchell-Bently Corporation
Their contributions to the basic concepts
Dale M. Brethower (Western Michigan University), for starting me on this path,
including the General System Model and behavioral analysis.
George S. Odiorne (formerly of the University of Michigan) for making it clear that
it was all about “results”.
Malcolm W. Warren, for teaching me about “systems thinking” before it was a fad
(in 1966, to be exact).
Karen S. Brethower and George L. Geis (formerly of the University of Michigan)
for insights into the “human performance system”.
Thomas F. Gilbert (former partner in Praxis Corporation) for insights into
understanding the economics of performance.
Kai Dozier, for insights into the “human side”.
Carl C. Semmelroth (formerly of the University of Michigan) for help in thinking
about behavior and performance
Their contributions to the continuing development of these ideas and tools through diligent
and innovative application.
Pamela Moulton, Sandra Cowen, Steve Anderson, Rick Rummler (Brother),
Michele Smith and Jim Weber, formerly of Praxis Corporation.
Saura Morgenstern and Carol Panza, formerly of The Rummler Group.
Paul Heidenreich, Alan Ramias, Alison Burkett, Sean McLernon, Mike
Hammer, Roger Proulx, Patrick Murphy, Rick Rummler (Son), Bernie Miller,
and Cherie Wilkins of The Rummler-Brache Group.
Jaime Hermann (Ford Motor Company), Kenneth Massey (formerly of Grupo
Alfa), Roger Addison (formerly of Wells Fargo Bank), and John Swinney
(formerly of Eckerd Drug)
The opportunity to apply and expand this thinking.
Malcolm W. Warren (formerly of AP Parts) for the opportunity to perform the first
“performance audit”.
C. C. Schmidt (formerly of Ford Motor Company) for the opportunity to apply
these ideas to manufacturing productivity.
Kathryn Breen (formerly of Montgomery Ward) and Art Maine (formerly of
Sherwin-Williams) for the opportunity to apply these ideas to retailing.
John R. Murphy (formerly of McGraw-Hill and GTE) for the opportunity to apply
these ideas to publishing and telecommunications.
Bill Wiggenhorn, Carlton Braun, Steve Hanson and Alan Ramias (Motorola) for
the opportunity to influence the thinking and productivity of a
global company from 1982 to 1993.
Lawrence McLernon (formerly of Litel) for the opportunity to apply these ideas in
an entrepreneurial setting.

Introduction
ACKNOWLEDGMENTS (Continued)
Thomas Schnick (Commonwealth Insurance Company) for the opportunity to

apply these ideas to the insurance industry.
Richard Rummler (Brother-Steelcase) for the opportunity to apply these ideas to
the design of a management system.
Denny Taylor (Shell) for the opportunity to apply these ideas in the petroleum
industry.
Maria Hermann and Aubrie Augustus for the opportunity to apply these ideas in
the health services industry.
Steve Hassenfelt (North Carolina Trust Company) for the opportunity to apply
these ideas to the management of a financial institution.
Barry Owens and Ron Mathos (DuPont) for the opportunity to apply the
Performance Logic notion.
Charlie Bishop (formerly of Baxter-Travenol) for the opportunity to introduce the
“systems view” into management training.
Bob Moore (formerly of WesVaCo) for the opportunity to see the “perfect system
for losing money”.
Yvette Montagne (formerly of Louisiana Pacific and Tektronix) and Ken Sperling
(formerly of Warner-Lambert) for demonstrating how OD professionals can have a
significant impact on organization results using this methodology.
Carroll Nelson (formerly of Sematech and VLSI Technologies) for the opportunity
to apply these ideas to Organization Design.
My colleagues in the “Tucson Seven” – Dale Brethower, Bob Carleton, Roger
Kaufman, Danny Langdon, Claude Linberry, and Don Tosti who engaged me
in insightful and challenging interchanges.
The clarification and articulation of the ideas for publication and training.
Alan Brache, co-author of Improving Performance.
Making this particular manifestation of the concepts and tools (the Performance
Consulting Workshop (1)) a reality.
Dale M. Brethower, for making it happen with comments such as “My students would
really find it useful if you would…”
Cherie Wilkins and Kimberly Morrill for their significant contributions to the concepts
and tools.
Rick Rummler (brother), Rick Rummler (son), Matthew Rummler and Sally Lanyon
(Raytheon) for their refinement of the concepts and tools.
W.J. (Mike) Hammer for all the logistical support without which we would not be here
today.
Geary A. Rummler, CPT

Founding Partner, Performance Design Lab
March 2005

Introduction
Geary A. Rummler, Ph.D.

Dr. Geary A. Rummler is the founding partner of the Performance Design Lab, located in
Tucson, Arizona. PDL is a research, training and consulting organization specializing in
the design and development of organization performance systems.
Prior to founding the Performance Design Lab, Geary was

• the founding partner of The Rummler-Brache Group
• president of the Kepner-Tregoe Strategy Group, specialists in strategic decision
making
• co-founder (with Thomas F. Gilbert) and president of Praxis Corporation, an
innovator in the analysis and improvement of human performance
• co-founder (with George S. Odiorne) and director of the University of Michigan’s
Center for Programmed Learning for Business.
Dr. Rummler was a pioneer in the application of instructional and performance

technologies to organizations and brings this experience to the issue of organization
effectiveness. His clients in the private sector have included the sales, service and
manufacturing functions of the aircraft, automobile, steel, food, rubber, office equipment,
pharmaceutical, telecommunications, chemical and petroleum industries; as well as the
retail banking, and airline industries. He has also worked with such federal agencies as
IRS, SSA, HUD, GAO and DOT. Dr. Rummler’s research and consulting have taken him
to Europe, Japan, Korea, Malaysia, China and Mexico.
Dr. Rummler has published a variety of books ranging from labor relations to the
development of instructional systems and his articles have appeared in numerous
professional and management journals and handbooks. In 1988, he co-authored Training
and Development: A Guide for Professionals, with George S. Odiorne. In 1990, he co-
authored Improving Performance - How to Manage the White Space on the Organization
Chart with Alan P. Brache. And in 2004 he published Serious Performance Consulting -
According to Rummler.
Geary received his MBA and Ph.D. from the University of Michigan and has served as
• The president of the International Society for Performance Improvement (ISPI);
• A member of the Board of Directors of the American Society of Training and
Development (ASTD)
• A member of the Editorial Board of Training Magazine.
Dr. Rummler’s professional accomplishments include:

• Induction into the Human Resource Development Hall of Fame in 1986
• The Distinguished Professional Achievement Award from ISPI in 1992
• The Enterprise Reengineering Excellence Award from Enterprise Reengineering
Magazine in 1996
• The Distinguished Contribution Award for Workplace Learning and Performance
from ASTD in 1999
• The Life Time Achievement Award from the Organization Behavior Management
Network in 1999
• Presidential Citation for Intellectual Leadership from ISPI in 2000.
Geary and his wife Margaret reside in Tucson, Arizona.

Introduction
ALAN RAMIAS
Alan Ramias is a Partner of the Performance Design Lab (PDL). He has had twenty-five
years of experience in performance improvement and organization effectiveness.
Alan was employed by Motorola for ten years as an internal consultant on organizational
performance. As a member of the team that founded Motorola University, he was the first
person to introduce Geary Rummler’s pioneering concepts in process improvement and
management to business units within Motorola. Alan advocated and led several of the first
groundbreaking projects in process improvement that evolved to the invention of six sigma
and Motorola’s winning of the first Malcolm Baldrige Award in 1988. Alan was also
involved in major restructuring projects at Motorola, and in job design work, compensation
planning, workplace literacy, and educational program development.
After joining The Rummler-Brache Group in 1991, Alan led major successful performance
improvement engagements within Fortune 500 companies. His experience spanned
several industries and the full spectrum of corporate functions and processes, such as
strategic planning, manufacturing, product development, financial management, and
supply chain. Major clients included Shell, Hewlett-Packard, 3M, Citibank, Motorola,
Steelcase, Citgo, Hermann Miller, Louisiana-Pacific, and Bank One. After leading many
high-profile projects, he became a partner and Managing Director of Consulting Services
at RBG. He led development of much of RBG’s products and services, and was
responsible for selecting, training and mentoring RBG’s consultant teams.
Upon leaving RBG, Alan founded his own consulting company, where he continued to
practice in the field of performance consulting. He was also involved in several
organizational restructuring initiatives in the U.S. and in Asia.
He can be reached at aramias@ThePDLlab.com.

Performance Consulting
Assumptions
Performance Consulting Assumptions
TAB 1 - PERFORMANCE CONSULTING ASSUMPTIONS
3 Job Level
Process
4 Level
• Basic Premise
Performance
• Assumptions
• Design
Physician Analogy Organization
• PC Key Points 5 Level
Total
1 2 6 System
Framework
10
Performance Plan &
Department Design
Process &
7 Tool Kit Manage
Performance
Analysis
8 Cases
9 Reference

BASIC PREMISE
Typical Consulting Situation:
?
B A
Results
Resource E
C
The consulting situation begins with a request from an executive or manager of

some operation who sees or hears something (A) that causes them to believe they
have a “problem”.
The requestor (or worse yet, an intermediary, with their own interpretation of the
problem and solution) then contacts (B) a resource and requests that particular
“solution”, seldom mentioning any gap in job performance or organization results
(C) that might have occurred because of (A).
What will the receiver of the request (i.e., resource) do?
o Follow path (D), saying “yes” to the request and faithfully delivering the
requested “solution”.
o Follow path (E) and:
a. Examine the situation (A) themselves
b. Determine if the apparent problem can be linked to a gap in results (C)
c. Employ a sound analysis methodology and arrive at their own
conclusions regarding the “problem” and “solution”
d. Work with the requestor to define a project that will solve the “problem”
as perceived by the requestor and deliver measurable results (C)

EXERCISE
You have just received the following phone message from the Sales VP of AJAX:
“It has been brought to my attention that some of our Sales Reps continue to submit
incomplete sales orders to Production. Is it possible for you to develop a one-day
refresher training session for the Sales Reps addressing this issue? Maybe something we
can deliver during our quarterly sales meetings – the next one is in six weeks. Please let
me know what you think.”
Please list the factors that determine whether you follow Path “D” or Path “E”, when you
receive a request such as the above:
1.
2.
3.
4.
5.

PERFORMANCE CONSULTING ASSUMPTIONS
1. Performance Consulting is about following Path (E).
2. Performance Consulting is about closing gaps in Results
Example “Is” Result “Should” Result
1. Incomplete Order Forms 13% 0%
2. Time to Receive Orders 30 days 5 days
3. Market Share 48% 60%
3. Performance Consulting is usually a role, not a full-time job.
4. Performance Consultants
• Are “Solution Neutral” during analysis *
• Apply a robust, systematic performance analysis methodology
5. Performance Analysis is done:

• Selectively
• In degrees
* But what about “training” as an intervention?
I value training that effectively addresses a validated knowledge/skill deficiency that

impacts a gap in valued results. I do not care for “training”:
• Whose primary purpose is to entertain.
• That is irrelevant to the learner/performer.
• That insults the trainee/performer by assuming there is a knowledge/skill
deficiency when the culprit is a broken Human Performance System.
• That addresses only a symptom of a real performance problem, thereby creating
the illusion for management that the “problem” has been solved/corrected.
• That is badly designed and inefficiently delivered.
I believe you/we only add value if we improve individual performance and organization
results. But even the best training can’t overcome a bad performance environment.
Therefore to add value, the trainer must be able to determine:
• What performance/results gaps can be successfully addressed by your good
training.
• What is required in the job environment to support your good training.

We see great similarities between the diagnostic work of a physician and that of a
Performance Consultant.
PHYSICIAN PERFORMANCE CONSULTANT
SITUATION Patient feels pain. Patient enters Client feels pain. Client calls with
clinic and asks for help. request for “help” (“ Growing customer
complaints”).
OBJECTIVE Relieve the pain and cause of the Relieve the pain and cause of
health issue. performance issue and obtain
measurable improved results.
ANALYST’S Knowledge of human anatomy which Knowledge of the Anatomy of
FRAMEWORK provides understanding of how Performance, which provides
components that make up the understanding of the factors that
human body/system interact and the determine good individual
consequences of a failure in any one performance and organization results.
of those components. Every
physician knows the factors that
determine good health, the
consequences of a failure in any of
those factors, and what must be
done to correct a failed factor and
return the patient to good health.
They also know that symptoms in
one area may result from problems
in another-this requires taking a
“systems view” of the problem.
DIAGNOSTIC Basic tests include Three Levels of an Organization and
TESTS • X-Ray related Templates
• Blood tests • Job Results Template
• CAT Scan • Process Results Template
• Magnetic Resonance Imagining • Organization Results Template
(MRI)
DIAGNOSTIC 1. Elicit description of symptoms Results Improvement Process:
PROCESS 2. Interview and examine Patient I. Desired Results Determined and
and conduct tests as required Project Defined
3. Review test data and make II. Barriers Determined and
diagnosis Changes Specified
4. Prescribe treatment/procedure or III. Changes Designed, Developed
refer to a Specialist and Implemented
IV. Results Evaluated and
Maintained or Improved
PRESCRIPTION Corrective and preventive action Corrective and preventive action
prescribed to close the gap in prescribed to close the gap in Results
physical well-being
TREATMENT/ Treatment/procedure delivered or Changes designed, developed and
PROCEDURE patient referred to Specialist if implemented, utilizing special
appropriate resources as required.

TWO THINGS TO GUIDE THE PERFORMANCE CONSULTANT
Mental Model (Anatomy of Performance)
Organization Unit
B A
Resource
E
? Results
C
Results Improvement Process
I II III IV
Desired Results Barriers Changes Results

Determined & Determined & Designed, Evaluated &
Request for “Help” Project Defined Changes Developed & Maintained or
or an Opportunity Specified Implemented Improved
What and Where Why the Gap in How are we Did we Close the
is the Gap in Results & What Closing the Gap Gap in Results?
Results? is Required to in Results?
Close it?

Anatomy of Performance Framework
TAB 2 – ANATOMY OF PERFORMANCE FRAMEWORK
3 Job Level
Process
• Anatomy of Performance (AOP)
4 Level
• Two Views of an Organization
Performance
• AOP Mapping
• Results Chain Design
Organization
• Example 5 Level
• PC Key Points
Total
1 2 6 System
Framework
10
Performance Plan &
Department Design
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference

PERFORMANCE CONSULTING KEY POINTS
1. All performance issues occur in an organization context. Therefore you must

always understand the organization context of a performance “problem”.
2. Go Look! You should never trust anyone’s (particularly management’s) description
of an apparent problem, probable cause and preferred solution. The requestor is
usually,
a. Too far removed from the situation (and responding to “hearsay”).
b. Not trained in observation and analysis.
c. Heavily biased as to the probable cause and solution.
3. Who do you consider to be your client? The:
a. “Requestor”?
b. Performer?
c. Organization?

BASIC PREMISE AND EXAMPLE
“It has been brought to my attention that some of our Sales Reps
continue to submit incomplete sales orders to Production. Is it
possible for you to develop a one-day refresher training session for
the Sales Reps addressing this issue? Maybe something we can
deliver during our quarterly sales meetings – the next one is in six
weeks. Please let me know what you think.”
Organization Unit
?
B A
R e s u lt s
R e s o u rc e E
C

THE ANATOMY OF PERFORMANCE*
BUSINESS ENVIRONMENT
Government Economy Culture
RESOURCES ANY BUSINESS

earnings
Capital shareholder Shareholders
capital Management System value
Market
Labor Market human MARKET

resources
Suppliers material/
equipment
products/ Customers
services
Research
Laboratories technology
customer orders
requirements &
feedback
COMPETITION products
*The Anatomy of Performance model is adapted from the Total

Performance System model developed by Dr. Dale M. Brethower. The
origin of both these models was the University of Michigan’s Training
Systems Institute, designed by Rummler and Brethower in 1965.

ANATOMY OF PERFORMANCE SUMMARY
1. A business is a Processing System

a. The business organization transforms customer needs into valued products
or services via a Value Chain of core processes.
2. A Business is an Adaptive System

a. It must adapt to the ever changing components in its Super-System,
consisting of:
i. The consumer marketplace
ii. The capital marketplace
iii. Competition
iv. Resources/Supply Chain
v. The general business environment of:
1. The economy
2. Governmental constraints/benefits
3. Societal expectations
b. Adapt or die
i. “low gear” – adapt to survive
ii. “high gear” – adapt to thrive
3. Organization effectiveness requires alignment at three Levels:

a. Organization
b. Process
c. Function/Jobs/Performer
4. The Anatomy of Performance is a framework which identifies the major variables

impacting organization results.
5. The Anatomy of Performance is a scaleable model. It applies to the:

a. Total company
b. Division or Business Unit
c. Plant or District
d. Department

TWO VIEWS OF AN ORGANIZATION
Organization Structure Organization As A System
R&D MKTG SALES MFG R&D MKTG SALES MFG
Customer
Vertical View Horizontal View
R&D MKTG SALES MFG R&D MKTG SALES MFG
Emphasis
Emphasis
• How work gets done
• Reporting Relationship
• How Value gets added
• Resource Management
• Value-add Management

MAPPING AN ORGANIZATION
Organization Chart – Commercial Aircraft Manufacturer
Advanced Sales & Operations

Product Marketing
Design
Engineering Materials Manufacturing
Relationship Map* - Commercial Aircraft Manufacturer
market needs
Advanced sales efforts

Sales &
technology Product A/C orders
Marketing
Design
design
OPERATIONS
prints Commercial
Engineering Manufacturing aircraft
Airlines
prints
Material orders materials
Materials
Vendors materials
* A relationship map is a picture of the input-output (customer-supplier) connection

among parts of an organization, such as functions, departments, divisions or sites.
Relationship maps can show:
1. What the organization unit produces; that is, its products and services –
the inputs and outputs shown by arrows.
2. How work flows through functional boundaries – the connections
between the arrows and boxes.
3. Internal or external supplier-customer relationships used to provide or
receive products and services – the relationships between the functions
represented by the boxes.
(Source: The Basics of Process Mapping – Robert Damelio)

AJAX EXERCISE 1 – AOP MAPPING
Objective: Understand organizations as processing systems.

Tool: Relationship Map
AJAX, Inc, designs, produces and markets training materials. Specifically, AJAX sells a
series of five-day training courses related to productivity. The training is delivered by an
employee of the customer organization who is trained to conduct the course by AJAX. A
typical sale consists of an order to train several customer instructors and the purchase of
several hundred sets of training materials, or “units”.
AJAX is organized as follows:
CEO
Vice President
Vice President Vice President Vice President Vice President
Research and
Marketing Sales Production Administration
Development
HR
Regions (4)
Regions (4)
Finance
IT
Regions
Districts (4)
(6 per Region)
Regions
Sales Reps(4)
(8 per District)

TASK 1
Using the background information you have just read and the “Function Summaries” that
follow on page 26, develop a Relationship Map for AJAX on the wall chart provided by the
instructor. (Note: The format for the Relationship Map also appears on page 26.)
HINTS:
• Your map should reflect the “is” state (how AJAX presently operates)
• Label all input/output arrows.
• As soon as you have read the Function Summaries, develop the map working as a
total team. You will not have time to complete the map if you work individually
and then try to combine results into a group product.
TASK 2
On your Relationship Map, use a colored marker to:
A. Trace the flow of a customer order (from lead to receipt of material)
B. Trace the development of a new product (from inception to production)

TASK 3
On your flip chart, list three “disconnects” that negatively impact the development
and introduction of a new product at AJAX. (Note: A “disconnect” is any deficiency
that negatively impacts the effectiveness or deficiency of the process.)
A.
1.
2.
3.
TASK 4
In the table below, indicate with an “X” which AJAX functions (according to your flow in
Task 2) are involved in each of the three value adding activities listed.
MAJOR VALUE-ADDING AJAX FUNCTIONS

ACTIVITIES Research & Marketing Sales Pro- Admin-
Development duction istration
1. New Product Development

and Introduction
2. Business Generation
3. Filling Customer Orders

FUNCTION SUMMARIES
MARKETING
Develops and distributes promotional material to the marketplace. Generates new product
ideas and specifications for Research and Development.
RESEARCH AND DEVELOPMENT (R&D)

Designs new products in response to requirements or specifications developed by the
Marketing function. The new product content and layout is forwarded to Production for
printing and shipping. Product support (sales materials and training) are provided to Sales
and Marketing.
SALES
Receives product support from R&D and leads from the market. They respond to leads
from the market by submitting proposals to prospective customers. They receive orders
from the customer and prepare sales orders, which they forward to Finance.
PRODUCTION
Prints and ships training materials to customers in response to customer orders.
Customer orders are received in Production from Finance. It also receives paper for the
printing from outside vendors.
FINANCE
Receives customer orders from Sales and forwards them to Production. Also invoices the
customer and receives the cash in return. Obtains capital for AJAX as required.

AJAX FUNCTION RELATIONSHIP MAP
MARKETING
R&D
SALES MARKET
Prospect
Customer
FINANCE
PRODUCTION

Please stop here until instructed to proceed. Thank you

CONFIRMATION EXERCISE 1 - AOP MAPPING
AJAX Function Relationship Map
product
idea MARKETING product promotion
subject R&D product support

matter
SALES lead MARKET
sales
order
sales effort
& proposal Prospect
customer order
Customer
capital FINANCE invoice
payment
content &
layout
production
order
PRODUCTION educational materials
SUPPLIER materials

AOP MAPPING – EXERCISE 2
Participant Mapping Exercise (Relationship Map)
Objective: Understand your organization as a processing system.

Tool: Relationship Map
TASK
Using the blank relationship template on page 31 and the Relationship Map Guide below,
1. Identify your Function.
2. Identify a typical client organization.
3. Identify any significant functional relationships within the client organization.
4. Identify major outputs of the client organization and their functional recipients.
5. Identify any functional entities between the client organization and the external
customer.
6. Identify the larger organization entity in which you and your client operate.
7. Identify the ultimate external customer of the outputs of your client.
8. Identify the ultimate outputs received by the external client.
9. Identify other internal organization units that provide significant inputs to your client
organization.
10. Identify a few of those significant inputs provided by the organization units
identified in (9).
11. Identify the significant input your function makes to your client organization.
Organization Unit 6
2
Client Organization
10 Input 5 5 7
Output
Product/ External
4 Service Customer
1 3
Your
Your Function Input 8
11
Input 10

Function Relationship Map Template
Replace with 11x17
1 8

THE ANATOMY OF PERFORMANCE AND THE RESULTS CHAIN

earnings
Market
Labor Market human CBI MARKET

resources
Suppliers material/
equipment
products/ Customers
CJI
services
Research CPI
customer orders
requirements &
feedback
Critical Job Issue (CJI) Critical Process Critical Business Issue

Issue (CPI) (CBI)
Definition A gap between desired A gap between desired A gap between desired
and actual results and actual results and actual results
regarding a key job, regarding a key regarding a key
output or outcome process, output or organization, output or
outcome outcome
Example Inaccurate, incomplete Excessive time to Loss of market share
customer data install new service
Situation Business Office If the property access Failure to install service
Representatives in a time is incorrect, the at the time promised
telecom fail to capture installer will have to leads to customers
critical information from a return to the property a defecting to the
new customer regarding second time, causing competition
when they will be home additional expense and
to allow access for a a delay in installation
service person to of the service and
provide the necessary revenues
hook-up

RESULTS CHAIN
“Loss of Market
CRITICAL Share”
BUSINESS
ISSUE Desired Results:
• Market Share of
60%+
Current Results:
• Market Share of 48%
(and dropping)
“Excessive time to
CRITICAL install new service”
PROCESS
ISSUE Desired Results:
(for Installation • All new service
Process) installed within 48
hours.
Current Results:
• 72% of new service
installed within 48
hours.
“Inaccurate,
CRITICAL incomplete customer
JOB data”
ISSUE
(for Business Desired Results:
Office Rep) • Zero Incomplete Data
Forms
• 100% Accurate
Orders
Current Results:
• Between 1 – 10%
Incomplete Order
Forms
• 83% Accurate Orders

PM2
PROJECT DEFINITION DOCUMENT

I. BACKGROUND
A. Requestor of Initiative D. Funding
Name: Brown Cost of preparing initiative charged to:
Title: Director, Business Office Business Office
Organization: Telecom
Cost of recipient time charged to:
B. Sponsor of Initiative Business Office
Name: Smith
Title: VP Business Office
Organization: Telecom E. Project Information
Date Request Received: 3/15/XX
C. Person Accountable for Initiative Date Decision Made: 4/05/XX
Results Project No: 11-32-A
Name: Smith Revision No: R3
Title: VP Business Office
Organization: Telecom
F. Request (Problem Statement and Request as described by requestor)
Accuracy Training for Business Office Sales Staff
II. SCOPE AND IMPACT

GAP IN RESULTS
LEVEL ISSUE SIGNIFICANCE
“Is” Results “Should” Results
CBI: Market share of Market share of 18 – 20% increase in
ORGANIZATION Loss of Market 48% (and 60%+ annual revenues
Share dropping)
CPI: 72% of new All new service • Improve customer
PROCESS Excessive time to service installed installed within 48 satisfaction
install new service within 48 hours hours • Provide competitive
advantage
• Reduce cost and time
to process orders
CJI: • I – 10% • Zero • Reduce installation
JOB Inaccurate, incomplete incomplete cost
incomplete data forms data forms • Improve customer
customer data • 83% • 100% accurate satisfaction
accurate orders
data forms
INDIVIDUAL

WHY BOTHER TO MOVE UP THE RESULTS CHAIN?
1. The project will have greater impact on organization results as you move up the
Results Chain.
2. There will be greater management support for, and during, implementation.
3. If the apparent CJI can’t be linked to a CPI, then that suggests there may not be
much value in pursuing the project and the performance consultant should back
away if at all possible.

THE ANATOMY OF PERFORMANCE

A Basis for Understanding any Organization or Situation
All these situations and organizations have something in common –
Manufacturing "Help! We need human relations training

Organization for our first line production supervisors"
Service
"Help! We need help with our productivity".
Organization
"Help! We need help with our customer

Retail Organization
service levels."
Hospital "Help! Our costs are skyrocketing."
These organizations all have the same fundamental Anatomy of Performance

that determines individual performance and organization results. This common
Anatomy of Performance is the key to unlocking the cause of each of these
situations.

Performance doesn’t “just happen” –

it must be designed
It isn’t magic, it’s science

VARIABLES IMPACTING JOB, PROCESS AND ORGANIZATION

RESULTS
Replace with 11x17

LEVELS VARIABLES REQUIREMENTS
1. Super-System Monitored and Action Taken
1 2. Organization Direction aligned with Super-System
a. Mission/Vision
C. Organization Results b. Strategy
1 2 c. Business Model
Organization 7 Organization d. Goals
Performance Planned Performance Managed 3. Value Chain Outputs and Requirements
1 a. Linked to Organization/Customer Requirements
b. Clear
4. Processes Optimized to achieve desired Value Chain results
Value Chain 6 Value Chain
a. Goals Aligned
Performance Planned Performance Managed
b. Adequate Capacity
1 c. Adequate Capability
5. Process Results, as described in “B”
Value Chain 6A. Value Chain Performance Planned Component
a. In Place
Support 3 1 b. Linked and Aligned
c. Being Executed
5 5
Processes Available Sold Delivered
6B. Value Chain Performance Managed Component
4 a. In Place
b. Linked and Aligned
c. Being Executed
7A. Organization Performance Planned Component
1 a. In place
BUSINESS ENVIRONMENT c. Being Executed
Government Economy Culture 7B. Organization Performance Managed Component
a. In Place
c. Being Executed
6
Process Performance Process Performance 1. Process Outputs and Requirements are
earnings B. Process Results Planned 6 Managed a. Linked to Organization and Customer Requirements
Market capital Management System value b. Clear
c. Communicated
2. Process is designed to meet Output requirements
3. Input/Triggers meet input Standards
resources 4. Necessary Resources available
5 5. Job Results, as described in “A”
6A. Process Performance Planned Component
material/ a. In Place
Suppliers
equipment b. Linked and Aligned
products/ Customers c. Being Executed
CJI
services
Process 6B. Process Performance Managed Component
Research CPI Results a. In Place
3 1
technology
Laboratories b. Linked and Aligned
2 c. Being Executed
customer orders
requirements &
feedback
4
1. Job and Performer Outputs and Requirements are

Job 9 Job a. Linked to Process, Organization and customer requirements
A. Job Results Performance Performance b. Clear
Planned Managed c. Communicated
2. Job is designed to meet Job and Performer output requirements
3. Inputs/Triggers meet input standards and are recognizable by the
performer
5 1 4. Necessary resources are available
6
7 5. Performer has necessary Capacity
4 C+- 6. Performer has necessary Knowledge and Skill
7. The Balance of Consequences supports the desired Performer output
8. There is adequate Feedback on outputs to the Performer
9A. Job Performance Planned Component:
Feedback 8 a. In Place
1 c. Being Executed
3 9B. Job Performance Managed Component:
a. In Place
Job 2 b. Linked and Aligned
c. Being Executed


usually,
a. “Requestor”?
b. Performer?
c. Organization?
4. All Organizations are SYSTEMS (A group of interacting, interrelated or
interdependent elements forming a complex whole). They are both Adaptive and
Processing Systems.
5. There are three critical levels of performance, whose objectives, capacity, and
capability must always be aligned:
a. Organization
b. Process
c. Job/Performer
6. Always look for the Results Chain that links Critical Job Issues to Critical Process
Issues to Critical Business Issues.
7. Performance doesn’t just happen – it must be designed. Fortunately, there are a
finite number (a hand-full) of variables that impact the performance of Individuals
and Job, Process and Organization Results, on which we must focus.

EXAMPLE
NuPlant
“Need Human
Relations Training for
Production Supervisors”
HRM
PC
Results
PS
PC: What’s the problem?

HRM: Supervisors have a poor attitude toward the hourly workers. The result is an
unsigned labor agreement and poor plant performance

FIGURE 3-7. NUPLANT’S ORGANIZATIONAL CHART1
V.P. Human V.P. Stamping V.P. Stamping V.P. Stamping V.P. Stamping
Resources Operations Procurement Mfg. Eng. Industrial Eng.
Plant Manager
New Town
Human Resources Production Plant Eng. Tool & Die Quality Control Materials Control Mfg. Engineering Industrial Eng.
Manager Manager Manager Manager Manager Manager. Manager Manager.
Production
Superintendent
General
Supervisor
Production
Supervisor
1
Serious Performance Consulting, Geary A. Rummler, ©2005

FIGURE 3-8. MAJOR COMPONENTS OF THE NUPLANT PRODUCTION SYSTEM – THE “IS” AOP2
NuPlant
Manager
The Production Management System
I
Production
Manager
Production
Superintendent
General
Supervisor
C
Human
Resources
B Production
Production Supervisor
Scheduling
A
Parts to Ship
Steel
Parts To Scrap
The Production/Press Line
Maintenance Die Set

D E
Die Repair
F
Quality Control
G
Material Handling
H
Materials Management
2

FIGURE 3-10. NUPLANT AND ITS LARGER SYSTEM.3
North American Vehicle Operations - Big Auto
Parts Division
Management
Management
Raw Material Parts Plants Parts
Stamping Division
Management
Other Plants
NuPlant
Management
Production
Assembly Division
Management
Support
Functions
Assembly
Automobiles
Stamped Plants
Parts
Steel
3

RESULTS CHAIN AND PROJECT SCOPE
Results Chain Project Scope
CBI
Plant Productivity
(Bottom of the
Division)
A Study of the
Effectiveness of
Production Supervision
CPI
?
CJI
Supervisors
Training Needs
allegedly behaving
Analysis of Production
inappropriately
Supervisor Position
toward hourly
workers
Request Develop Human

Human Relations Relations Training
Training for Production
Supervisors

LOCATION OF FINDINGS
NuPlant
Manager FINDINGS
The Production Management System (A1) Production supervisors have little control over
the factors critical to plant productivity .
B3 (A2) Production supervisors receive little
Production
Scrap Measured Each Shift
Manager performance feedback on a daily basis .
(A3) The productivity of New Plant will not be
Labor Cost/Part Measured Hourly significantly affected by training production
supervisors.
Production (B1) The production system currently measures and
Superintendent emphasizes an inappropriate performance
variable - direct labor cost.
(B2) There is no data storage that can function as a
B9 “memory” for the production system .
General (B3) There is little or no feedback to production
Supervisor
B10 supervision the consequences to the system of
Human
Resources its poor performance.
A1 A2 A3 (B4) The New Plant scheduling system does not have
the data necessary to realistically and effectively
Production
Production schedule production.
Supervisor
Scheduling (B5) The New Plant Production Scheduling work
environmnet is a contributor to lack of
B2 B4 B5 scheduling effectiveness.
B6 B7 B11
(B6) The first hour line “start -up” is ineffective and
B12 costly.
Steel Parts to Ship (B7) Lines frequently run when it is more cost -
B1 effective to shut them down .
(B8) The indirect budgeting system is flawed and
The Production /Press Line
Parts To Scrap
tends to be counter-productive in times of
stress.
(B9) The organization of responsibilities of the three
Maintenance Die Set lower levels of production management is
B8 inadequate for coping with the current
production problems.
(B10) Knowledge deficiiencies in production
supervision and management.
Die Repair
(B11) The introduction of new production workers into
the production crews during the first hour line
start-up every day is extremly inefficient and
Quality Control
counter-productive.
(B12) Old Plant has an “early -quit” policy that
provides a significant incentive to production
workers for high productivity and yield . There is
no such system at New Plant .
Material Handling
B8

LOCATION OF RECOMMENDATIONS
NuPlant
Manager
RECOMMENDATIONS
1. Measure performance by material yield and
Production
net productivity.
Manager
2. Install a data system which will provide a
production system “memory” function.
3. Provide feedback to all production
supervision.
4. Change production supervision
Production responsibilities.
Superintendent 5. Change the scheduling system.
6. Alter the basis for determining certain
indirect labor budgets.
7. Change current start up procedures.
2
3 8. Provide decision guides for supervisors
General 4 and general supervisors on shutting down
8 lines.
Supervisor
Human 3 9. Train production supervision in new
Resources responsibilities.
9 10. Train production supervisors and general
supervisors in selected topics.
2 7 Production 10
Production Supervisor
5
Scheduling 1
Parts to Ship
Parts To Scrap
Steel
The Production /Press Line
6 Maintenance Die Set
Die Repair
Quality Control
Material Handling

ANALYSIS SUMMARY (Plant/Production Process Scope - NuPlant Example)

OPPORTUNITIES FINDINGS (Barriers to Desired Results) RECOMMENDATIONS (Actions to Remove Barriers)
CBI(s): Gaps in Results (C1) Stamping division emphasis on plant labor costs
“Is” “Should” results in a more costly reduction in material yield.
Stamping (C2) NuPlant’s failure to deliver per the set production
Division schedule is impacting the larger system and further
stressing the NuPlant system.
CPI(s): Gaps in Results (B1) The production system currently measures and 1. Measure performance by material yield and net
“Is” “Should” emphasizes an inappropriate performance variable – productivity.
Production direct labor cost. 2. Install a data system which will provide a production
Process/ (B2) There is no data storage that can function as a system “memory” function.
Plant “memory” for the production system. 3. Change production supervision responsibilities.
Performance (B3) There is little to no feedback to production 4. Alter the basis for determining certain indirect labor
supervision on the consequences to the system of its budgets.
Scrap “X” “Y” poor performance. 5. Change current line start-up procedures.
(B4) The NuPlant scheduling system does not have the
Labor cost “X” “Y” data necessary to realistically and effectively schedule
production.
On-time “X” “Y”
delivery Etc.
CJI(s): Gaps in Results (A1) Production supervisors have little control over the 1. Provide feedback to all production supervision.
“Is” “Should” factors critical to plant productivity. 2. Provide decision guides for supervisors and general
(A2) Production Supervisors receive little performance supervisors on shutting down lines.
Production feedback on a daily basis. 3. Train production supervisors in new responsibilities.
Supervisors (A3) The productivity of NuPlant will not be significantly
affected by training production supervisors.

Performance Design – Job Level
TAB 3 - PERFORMANCE DESIGN – JOB LEVEL

• The Human Performance System (HPS)
• Troubleshooting the HPS
• HPS Drill Downs
• HPS Template
3 Job Level • Vertical and Horizontal Alignment
• Management Model
• Job Results Template
• Job Analysis Worksheet
Process • Job Analysis Question Guide
4 Level • Is/Should Job Level Worksheet
• Variables and Requirements
Performance • Jobs and Processes
Design Organization • PC Key Points
5 Level
Total
1 2 6 System
Framework
10
Performance Plan &
Department Design
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference


earnings
Market

resources
Suppliers material/
equipment
products/ Customers
CJI
services
Research CPI
customer orders
requirements &
feedback
How to Get How to Get How to Get

Job Results - Process Results - Organization Results -
Responding to a Critical Job Responding to a Critical Responding to a Critical
Issue (CJI) Process Issue (CPI) Business Issue (CBI)

GETTING JOB RESULTS – CASE STUDY INTRODUCTION
Your Role:
You are a member of the Performance Support Group (PSG) of the JAX
Corporation, a very diversified conglomerate. The PSG provides training and
performance improvement support to JAX’s many subsidiaries.
A request for help:

You have just received the following phone message from the Sales VP of AJAX,
a JAX subsidiary:
“It has been brought to my attention that some of our Sales Reps continue to
submit incomplete sales orders to Production. Is it possible for you to develop a
one-day refresher training session for the Sales Reps addressing this issue?
Maybe something we can deliver during our quarterly sales meetings – the next
one is in six weeks. Please let me know what you think.”

TWO VIEWS OF AJAX

Organization Chart
CEO
Vice President
Vice President Vice President Vice President Vice President
Research and
Marketing Sales Production Administration
Development
HR
Regions (4)
Regions (4)
Finance
IT
Regions
Districts (4)
(6 per Region)
Regions
Sales Reps(4)
(8 per District)
AJAX Anatomy of Performance (AOP) Approximation I
RESOURCES AJAX CAPITAL MARKET
R&D Marketing Sales Production

Equipment & $ Shareholders
Mater ials VP (JAX)
RM
Technology
DM
CUSTOMER MARKET
Cash SR sales
order ???
?
Human CJI Customer
Resources
Administrat ion Incomplete
(Finance, HR & I T)
Order Forms
COMPETITION

PM2

I. BACKGROUND
Name: Cost of preparing initiative charged to:
Title:
Organization:
B. Sponsor of Initiative
Name:
Title:
Organization: E. Project Information
Date Request Received:
Date Decision Made:
C. Person Accountable for Initiative Project No:
Results Revision No:
Name:
Title:
Organization:

GAP IN RESULTS
CBI:
ORGANIZATION
CPI:
PROCESS
CJI:
JOB
INDIVIDUAL

The Human Performance System
Cornerstone of Performance

THE BASIC MODEL
• Necessary understanding and skill

to perform
• Capacity to perform both physically • Adequate and appropriate criteria

and emotionally (standards) with which to judge
successful performance
• Willingness to perform (given the
incentives available)
INPUT OUTPUT
CONSEQUENCES
PERFORMER
FEEDBACK
• Clear or sufficiently
recognizable indications • Sufficient positive
of the need to perform consequences
• Frequent and relevant (incentives) to
• Minimal interference perform
feedback as to how well
from incompatible or
(or how poorly) the job • Few, if any, negative
extraneous demands
is being performed consequences
• Necessary resources (disincentives) to
(budget, personnel, perform
equipment) to perform
The Human Performance System is a conceptual model first articulated by Geary Rummler in
1964, while at the University of Michigan. It is an amalgam of B. F. Skinner’s work in reinforcement
theory and basic industrial engineering practices. The development of the model was heavily
influenced by Dale M. Brethower and George L. Geis, colleagues at the University of Michigan. The
HPS can be distinguished from other models because it conceptually and graphically recognizes
the underlying principle that the variables impacting human behavior/performance are part of a
system.

TROUBLESHOOTING THE HUMAN PERFORMANCE SYSTEM
B. TASK SUPPORT A. PERFORMANCE C. CONSEQUENCES

SPECIFICATIONS
• Can performers easily • Are consequences
recognize the input • Do performance aligned to support desired
requiring action ? standards exist? performance ?
• Can the task be done • Do performers know the • Are consequences
without interference from desired output and meaningful from
other tasks? performance standards ? performer’s viewpoint ?
• Are job procedures and • Do performers consider • Are consequences
workflow logical? the standards attainable ? timely?
• Are adequate resources
available for performance
(time, tools, staff,
information)?
INPUT OUTPUT
CONSEQUENCES
PERFORMER
FEEDBACK
F. INDIVIDUAL CAPACITY E. KNOWLEDGE/SKILL D. FEEDBACK
• Are performers physically , • Do performers have the • Do performers receive

mentally, and emotionally necessary skill and information about their
able to perform ? knowledge to perform ? performance
• Do performers know why • Is the information they
desired performance is receive:
important ? Timely ?
Relevant ?
Accurate?
Constructive?
Easy to understand ?
Specific

DRILL-DOWN #1 – PERFORMANCE SPECIFICATION

SPECIFICATIONS
• Can performers easily • Are consequences
recognize the input • Do performance aligned to support desired
requiring action ? standards exist? performance ?
• Can the task be done • Do performers know the • Are consequences
without interference from desired output and meaningful from
other tasks? performance standards ? performer’s viewpoint ?
• Are job procedures and • Do performers consider • Are consequences
workflow logical? the standards attainable ? timely?
information)?
INPUT OUTPUT
CONSEQUENCES
PERFORMER
FEEDBACK

Relevant ?
Accurate?
Constructive?
Specific

A. WHERE DO JOB EXPECTATIONS/ SPECIFICATIONS COME

FROM?

earnings
Market

resources
Suppliers material/
equipment
products/ Customers
services
Research
customer orders
requirements &
feedback
• The Customer (via a process)

• The Organization
• ?

B. WHERE IN THE OUTPUT CHAIN ARE WE FOCUSED?
Establish Interview
Objectives and Time
Parameters
Ask Questions
Collect Examples
Diagram Answers
Where Possible
Re-State Points to
Interview Planning Verify
Skills Ask for Other Data
Listening Skills Sources
Probing/ Reinforce Interviewee
Questioning Skills for Talking
Reinforcement Summarize What You Information Gathered
Skills Learned Needs Identified
Summarization State How Interviewee Decision Makers & Qualified Leads
Skills was Helpful Users Identified Appointments
Knowledge of Repeat How Data Will Constraints Opportunities
Interview Be Used Determined Proposal Request
Guidelines Thank Interviewee Credibility Established Proposal Customer Orders/Sales Profits
KNOWLEDGE/SKILL BEHAVIORS TASKS JOB OUTPUTS PROCESS OUTPUT ORGANIZATION

OR OUTPUT
PERFORMER
COMPETENCIES
OTHER HPS
COMPONENTS

C. HOW CAN WE ARTICULATE JOB EXPECTATIONS?
• Role/ Responsibility Matrices
• Job Models

ROLE RESPONSIBILITY MATRIX4
4
Improving Performance, How to Manage the White space on the Organization Chart, Geary A. Rummler, Alan P. Brache, Jossy Bass, 1995

ABBREVIATED JOB MODEL – MARKET RESEARCH ANALYST5
5
Improving Performance, How to Manage the White space on the Organization Chart, Geary A.
Rummler, Alan P. Brache, Jossy Bass, 1995
DRILL-DOWN #2 – CONSEQUENCES

SPECIFICATIONS
• Can performers easily Are consequences aligned to
recognize the input • Do performance support desired performance ?
requiring action ? standards exist? Are consequences meaningful
• Can the task be done • Do performers know the from performer’s viewpoint ?
without interference from desired output and Are consequences timely ?
other tasks? performance standards ?
• Are job procedures and • Do performers consider
workflow logical? the standards attainable ?
information)?
INPUT OUTPUT
CONSEQUENCES
PERFORMER
FEEDBACK

Relevant ?
Accurate?
Constructive?
Specific

A CONSEQUENCE….
1. May be positive or negative.

2. Immediate or delayed.
3. Certain or uncertain.
4. Comes from a variety of sources.
5. May be an event as well as a thing.
6. May be “natural” or “engineered”.
7. Varies in impact depending on the Performer, (Different strokes for different folks).
BALANCE OF CONSEQUENCES
OUTPUT CONSEQUENCES
(DESIRED) +–
INPUT
OUTPUT CONSEQUENCES
(UNDESIRED) +–

DRILL-DOWN #3 – FEEDBACK

SPECIFICATIONS
information)?
INPUT OUTPUT
CONSEQUENCES
PERFORMER
FEEDBACK
• Are performers physically , • Do performers have the Do performers receive

• Do performers know why Is the information they receive:
desired performance is Timely?
important ? Relevant?
Accurate?
Constructive?
Easy to understand?
Specific

FEEDBACK
C
Display and Storage
1. Can the information be
easily interpreted by the
performer?
2. Is the goal displayed?
3. Can improvement or
deterioration of Performance
over time be determined?
A
Measurement
1. Are all relevant
requirements
Delivery being measured?
B
1. Does the performer 2. Are only relevant
receive the information requirements
on time? being measured?
2. Does the performer 3. Is the unit of
receive the information measurement
frequently? meaningful to the
3. Is the information performer?
specific?
4. Is the information free
of "noise"?

CRITICAL DIMENSIONS OF FEEDBACK
A. Measurement
• $ Sales or # of sales calls made?
• $ Sales and percent of proposals accepted
• $ Sales and Sales/Order
B. Delivery
• Sales Reps receive their sales results every quarter:
1. Timely
2. Frequent
• Sales Reps receive the percent profitability of sales only for the
total of all sales
C. Display and Storage
PERFORMANCE INDICATOR M1 M2 M3
Total $ Orders Plan
Actual
Gap
Cum Gap
Total # Orders Actual
$ per Order Actual
Total Orders/ Total Actual
Proposals Submitted
Cum Actual
Total $ Proposals Plan
Outstanding
Actual
Total # Proposals Actual
Outstanding
Total $ Proposals Plan
Submitted
Actual
Total # Proposals Actual
Submitted
$/ Proposal Submitted Actual

DRILL-DOWN #4 - INDIVIDUAL CAPACITY (OR JOB -

PERFORMER MATCH?)

SPECIFICATIONS
information)?
INPUT OUTPUT
CONSEQUENCES
PERFORMER
FEEDBACK
• Are performers physically , • Do performers have the Do performers receive

Accurate?
Constructive?
Easy to understand?
Specific

DRILL-DOWN 5 – INDIVIDUAL OR JOB

SPECIFICATIONS
information)?
INPUT OUTPUT
CONSEQUENCES
PERFORMER
FEEDBACK
Are performers physically , • Do performers have the Do performers receive

Accurate?
Constructive?
Easy to understand?
Specific

WHO/WHAT ARE WE TALKING ABOUT?
Individual Performance versus Job Results
If (A), we are going to conduct a Job Analysis.
If (B), we are going to ask the following questions of the Requestor:
1. What exactly is the “problem”? What does the individual -

• Do that you don’t want them to do? When does it happen? (In what
situation, under what circumstances?)
Or,
• Not do, that you want them to do? When should they do this? (In what
situation, under what circumstances?)
2. What difference does it make? What is the impact of their doing or not doing
what you expect? Is the individual aware of this impact? How do you know?
3. Is the individual clear as to what you expect them to do? How do you know?
4. Is it clear to the individual when they are to perform as you expect? How do
you know?
5. Is the individual aware they are not performing as you expect? How do you
know? What has been done to make them aware? When was it done? How
often was it done?
6. What are the benefits to the individual of acting/performing as you expect? Are
there negative consequences to the individual of acting/performing as you
expect?
7. Does the individual have the necessary knowledge/skill to perform as you
expect? How do you know?
8. Does the individual have the necessary resources, tools and/or information to
perform as you expect? How do you know?

J5
THE HUMAN PERFORMANCE SYSTEM TEMPLATE
FEEDBACK: What feedback do the performers receive?

What Information? What Source? How Often?
IMMEDIATE DELAYED
+ +
– –
DESIRED
OUTPUT CONSEQUENCES TO THE CONSEQUENCES
(What should the PERFORMER(S) TO
performers do?) (What happens to the performers when THE ORGANIZATION
they take the desired action?)
IMMEDIATE DELAYED
INPUT/SIGNAL PERFORMER(S)
(WHAT INDICATES THAT
ACTION IS REQUIRED?) + +
– –
UNDESIRED OUTPUT
(What do the CONSEQUENCES TO THE CONSEQUENCES
performers do?) PERFORMER(S) TO
(What happens to the performers when THE ORGANIZATION
they take the undesired action?)
INPUT/RESOURCES
(What resources are What Information? What Source? How Often?
available
to assist the performers?)
PAD 3-014

HPS TEMPLATE – CONFIRMATION

Don’t Collect $ Manager Per Event

Unhappy Customers Per Event
IMMEDIATE DELAYED
_ _ More $
Collect + +
$30 –
Poor CS
C
M
– Loss of Mkt
u Share
DESIRED
PERFORMER(S) TO
Airline
(What should the
3 performers do?) (What happens to the performers when
THE ORGANIZATION
Bags Ticket
Agent IMMEDIATE DELAYED
(WHAT INDICATES THAT ☺ Cust ☺ Mgr Better CS
ACTION IS REQUIRED?)
Do not + Less work +
Collect
– _ _ – Less $
Form UNDESIRED OUTPUT

INPUT/RESOURCES
available

AJAX EXERCISE 2 - GETTING JOB RESULTS
Situation:
Initial Request (Phone message from AJAX Sales VP):
“It has been brought to my attention that some of our Sales Reps continue to submit
incomplete sales orders to Production. Is it possible for you to develop a one-day
refresher training session for the Sales Reps addressing this issue? Maybe something
we can deliver during our quarterly sales meetings – the next one is in six weeks. Please
let me know what you think.”
TASK 1:
A. Review the project documentation on the following page (AJAX AOP Map and Project
Scope)
B. Is this a request to:

____ Improve the performance of a single “problem” individual?
____ Improve job results?
TASK 2:
During a follow-up phone conversation with an assistant to the Sales VP, a member of your
team received an “OK” to spend two weeks gathering more information about this issue
before committing to a particular plan of action. (“We think we can help you, but we need a
little more information.”)
Who do you want to talk to and what questions do you want to ask?

AJAX Anatomy of Performance (AOP) Approximation I

Materials VP (JAX)
RM
Technology
DM
CUSTOMER MARKET
Cash
SR sales
order ???
?
Human CJI Customer
Resources
Administration Incomplete
( Finance, HR & IT)
Order Forms
COMPETITION

GAP IN RESULTS
CBI:
ORGANIZATION
CPI:
PROCESS
CJI:
JOB Incomplete Sales Order
Forms
INDIVIDUAL

AJAX EXERCISE 2 - GETTING JOB RESULTS CONTINUED
TASK 3:
Read the results of the interviews, summarized in Figure 1 on page 75.
TASK 4:
Update the Scope and Impact Document on page 73.
TASK 5:
Complete the HPS Template on page 76.

FIGURE 1 – INTERVIEW RESULTS
Sales VP
• Has been with AJAX just short of two years. Came from the outside.
• Is concerned about this issue primarily because of pressure from the
Production VP.
• The “problem” (if there is one) really doesn’t impact sales or the sales
organization because the order forms are subsequently processed in a
timely manner.
Representatives from Production

• Verified that incomplete order forms has been an increasing problem for
the past 12-14 months. Has become more critical over the past 9 months
• Incomplete order forms have been running about 8 – 10% for months.
• The incomplete order forms appear to come from all sales districts and for
all products and customers.
• There seems to be a pattern of incomplete order forms increasing near
the end of the month and particularly near the end of a quarter, as the
sales reps try to get all their orders in to meet their targets.
• When incomplete order forms reach Production, clerks in Production try
calling the Sale Rep to get the missing detail (product and market codes,
receiving address, desired shipping date) and frequently end up talking to
the customer to get the information necessary to enter the order.
Although this adds time and cost to the production process and
occasionally irritates the customer, these individual “heroics” have so far
prevented most customer orders from being late or inaccurate.
• Production has sent out several memos to the sales force about this
problem, which seems to help reduce the incidence of incomplete order
forms for a few weeks.
Sample of Sales Reps [Five high performing (top quartile of sales producers)
who were known to frequently submit incomplete order forms.]
• The sales order form was submitted to Sales Administration and then
sent to Production. A sale became “real” for commission purposes as
soon as it was received by Sales Administration.
• Although not hard to complete, Sales Reps found completing all sections
of the form to be time consuming and “a pain”, while on the road. They
believed they could produce healthier sales numbers if they didn’t have
so much paperwork.
• The Reps also thought it a major inconvenience to cart around the order
code manual. They couldn’t keep up with the frequent code changes and
often the information was out of date.
• Infrequently, the Sales VP sent a memo to the four region Sales
Managers urging them to make sure that their Sales Reps understood the
importance of completing the order forms. The order forms usually were
more complete for one or two weeks following one of these memos

J5
HUMAN PERFORMANCE SYSTEM TEMPLATE
IMMEDIATE DELAYED
+ +
– –
DESIRED
IMMEDIATE DELAYED
– –
UNDESIRED OUTPUT

INPUT/RESOURCES
available
PAD 3-014

INCOMPLETE SALES ORDER FORMS - SUMMARY OF FINDINGS
Consequences:
• Positive consequences for undesired behavior/output. (Less time, work. Receive
commission regardless.)
• Inadvertent negative consequences for the desired behavior/output (more time,
work)
• Result: “Mixed signals” as to what is appropriate Sales Rep behavior.
Feedback:
• No specific feedback on undesired behavior/output – just a general “somebody out
there is screwing-up” message.
Resources:
• Because of the current code manual set-up, difficult to complete the job as
desired.
Conclusion:
• The current Human Performance System does not support the desired Sales Rep
behavior/performance.
Questions for discussion:

1. Who is responsible for the design and maintenance of a Human Performance
System that will support the desired behavior/performance of the Sales Reps?
2. In general, who is responsible for the alignment of Human Performance Systems

in organizations?

VERTICAL & HORIZONTAL ALIGNMENT OF THE HPS
The system must be aligned –
a. Vertically (in order for the organization to be effective)
C+
–
C+
–
C+
–
1421 PAR CB 64
Are the Human Performance Systems of the individuals in a hierarchy aligned?
For example, if we are concerned with field sales reps turning in accurate and timely sales
orders, it will be necessary for the performance expectations, measures, consequences
and feedback to be consistent for the sales reps and their superiors - the District Sales
Managers, the Regional Sales Managers and the National Vice President of sales. If we
are to expect consistent, sustainable performance on the part of the field sales rep, it will
be necessary that the HPS’s of all managers in the hierarchy are aligned. In contrast, if we
say we want accurate and timely sales orders from sales reps, but the District Sales
Managers are held accountable (feedback and consequences) only for the number of
orders, the organization is not going to get the desired performance from the Sales Reps
on a consistent basis.

VERTICAL & HORIZONTAL ALIGNMENT OF THE HPS
The system must be aligned –
b. Horizontally (in order for the organization to be effective)
Function A Function B Function C
C +- C +- C +-
C +- C +- C +-
C +- C +- C +-
Are the Human Performance Systems aligned horizontally across functions that must
work together to perform/support a critical cross-functional process?
If, for example, an organization is concerned with developing and introducing new
products but they do not have the expectations, measures, consequences and feedback
aligned for the VPs of Marketing, Research and Development, Sales and Production, they
will never get the desired output from their New Product Development and Introduction
process. If
• The HPS of the Marketing VP emphasizes staff “budget”
• The HPS of the R&D VP emphasizes “time to market”
• The HPS of the Sales VP drives “total revenue” without regard to product mix
• The HPS of the Production VP focuses on “unit cost”,
then you can almost guarantee a new product that is late to market, over budget and does
not meet customer requirements nor its revenues goals after launch.
If we are to expect consistent, sustainable performance from Primary processes, it is

necessary that the HPS’s of all executives whose functions impact the Primary processes
are aligned horizontally. (And then aligned vertically in every relevant department.)

HUMAN PERFORMANCE SYSTEM SUMMARY
“If we put a good performer in a

bad system (HPS), the system
will win every time.” *
* So sayeth Geary Rummler
KEY POINTS:
1. Every Performer exists as part of a Human Performance System
2. There are a finite number of variables (six) to be concerned about regarding
human behavior/performance.
3. Behavior is influenced by its consequences – people continue to exhibit behavior
that leads to positive consequences and will avoid exhibiting behavior that leads to
negative consequences. However, what operates as a negative and positive
consequence is determined by the perception of each individual.
4. Since this is a “system”, it is necessary for all components to be operating at a
minimal level in order to have sustained performance.
5. If there is a human performance problem, then the question is: Where has the
Human Performance System broken down?
6. Poor human performance tends to be the result of a breakdown of more than one
component of the HPS. Therefore it is necessary to check the “health” of all HPS
components before making any changes.
7. It is the responsibility of management to assure that the Human Performance
Systems are properly aligned.
APPLICATIONS:
1. Hypothesizing and diagnosing the cause(s) of poor human performance
2. Designing productive work environments

MANAGEMENT MODEL
Changes in Goals and/or Plans
PERFORMANCE PLANNED PERFORMANCE MANAGED
Plans Set & Plans Performance Deviations Action Taken

Data on Resources/ Operational Behavior Analyzed, Cause (Corrective,
External Expectations Set Support (Resources, Monitored Determined & Preventive,
Events Requirements Structure & Appropriate Sustaining
Action
Determined Support in Place Determined
Resources/ Change in Execution

Structure/
Support Data
Plans
PERFORMANCE
Goals EXECUTED Results

J7
JOB PERFORMANCE PLANNED AND MANAGED TEMPLATE

Expectations Set Plans & Budgets Set Plans & Budgets Performance Monitored Deviations Analyzed Action Taken
Implemented
JOB
A. Job/Tasks/ Behavior A. Plans Developed A. Plans Implemented A. “Performance A. Cause Determined A. Corrective
Expectations linked to 1. Job Design 1. Job Designed Managed” Roles B. Appropriate Action B. Preventive
Process/Function 2. Performers Appropriately Determined and Determined C. Sustaining
Expectations 3. Job Inputs 2. Performers Available Understood
B. Job/Tasks/ Behavior 4. Performance Support - Number B. Performance Data
Goals communicated Systems - Capacity Available
and understood (Consequences, Tools, - Prepared C. Performance Data
C. Job/Tasks/ Behavior Feedback) (knowledge & skill) Communicated/
Expectations are 5. Performance 3. Job Input Requirements Distributed
Attainable Maintenance Systems Met D. Data Monitored
(Benefits, Safety, 4. Performance Support
Compensation) in Place
6. Policies, Procedures and - Consequences
Decision Rules - Feedback
7. Job Support - Job Aids
8. Management System - Tools/resources
B. Budgets Developed 5. Performance
Maintenance in Place
- Compensation -
Benefits
- Safe Conditions
6. Policies, Procedures
and Decision Rules in
Place
7. Jobs Supported
8. Management System in
Place
B. Budgets Implemented
C +-
Job Performance Execution

PERFORMERS AND
THE LARGELY INVISIBLE MANAGEMENT SYSTEM
Function Function
Performance Performance
Planned Managed
JPP JPM
VP Sales
JPP JPM
Region Sales Manager
JPP JPM
District Sales Manager
JPP JPM
Sales Rep

Replace with 11x17
JOB PMMS HIERARCHY FOR AJAX SALES ORGANIZATION
POSITION JOB PERFORMANCE PLANNED JOB PERFORMANCE EXECUTED JOB PERFORMANCE MANAGED
Vice Participates in: • Reviews new product ideas and • Organization performance
President, • Development of organization provides input regarding sales monitored (Market Share,
Sales strategy potential and issues Revenue, Profit, Competition,
(Role as • Development of Process Goals Economic Indicators)
member of for all processes • Deviations from Org goals
Executive • Development of Budget • Provides ideas and analysis of analyzed and corrective actions
Team) potential new markets identified
• Participates in adjustment of
strategy and goals
(Role as • Function goals for Marketing • Provides sales forecasts as input • Business Generation Process
Process and Sales developed in support to manufacturing capacity performance monitored (Sales
Owner of of the Business Generation planning Revenue and Volume by product,
Business Process goals Sales close ratio, # of qualified
Generation leads, Marketing plan to actual)
Process) • Evaluates product sales • Deviations from process
strategies, sales tools, sales performance objectives and
techniques, and sales best corrective actions identified
practices. • Process improvements initiated
and sponsored
• “White Space” issues resolved
(Role as • Function goals (related to any • Determines sales training rqmts • Sales performance and Regional
Functional processes in which Sales and evaluates sales training performance monitored (Sales
Head of participates) obtained and effectiveness Rev by region, Sales close ratio
Sales) agreed to by region, Sales Budget plan to
• Regional objectives developed actual by region)
and communicated • Deviations from Sales and
• Sales Forecasts developed Region objectives analyzed and
• Regional Managers available corrective actions identified
and prepped (hiring, • Regional Manager Performance
development plans in place, Appraisals conducted
succession plans, coaching)
• Sales Support material
available - Provides feedback
and specifications for marketing
materials required to meet
sales goals
• Budget available

THE PERFORMANCE PLANNED AND MANAGEMENT SYSTEM AND THE ORGANIZATIONAL HIERARCHY
ANY BUSINESS market/customer needs/competitor situation
Organization Process goals Process and

strategy and and resource function plans Performance Performance Corrective
goals articulated allocation set and budgets monitored analyzed action taken
and and approved
CEO
communicated communicated
. . .
Organization Process plans

Process goals,
strategy and operational
plans, and
goals relevant to (systems and Performance Performance Corrective
budgets
VP/ process resources in monitored analyzed action taken
Process developed and
articulated and place)
Owner communicated
communicated
. . .
Organization
Function (or sub
and process Function plans
process) goals,
plans, and Performance Performance Corrective
goals relevant to (systems and
Functional budgets monitored analyzed action taken
Manager function resources in
developed and
communicated
communicated . . .
Organization,
process, and
function Job goals, plans
strategy and and budgets Job plans Performance Performance Corrective MARKET
First Line goals relevant to developed and operational monitored analyzed action taken
Supervisor job articulated communicated
and
. . .
communicated
Customers
ANY BUSINESS PROCESS
orders, requirements, and feedback

J1 Performance Design – Job Level
JOB RESULTS TEMPLATE
Variables
Job PP 9 Job PM
5 1
6
7
4 C+-
Feedback 8
1
3 Results
Job 2
Requirements

a. Linked to Process, Organization and customer requirements
b. Clear
c. Communicated
3. Inputs/Triggers meet input standards and are recognizable by the performer
4. Necessary resources are available
5. Performer has necessary Capacity
6. Performer has necessary Knowledge and Skill
a. In Place
c. Being Executed
9B. Job Performance Managed Component:
a. In Place

J2
Job/Position:
JOB ANALYSIS WORKSHEET “Should” Job Result:
“Is” Job Result:
CONCLUSION
VARIABLES REQUIREMENTS ACTION/COMMENT
Yes No ?
Outputs 1. Job and Performer Outputs and Requirements are:
a. Linked to Process, Organization and Customer Requirements
b. Clear and Communicated (Performer has performed as required
in the past.)
Job Design 2. Job is designed to meet Job and Performer Output requirements.
(Tasks are sequenced to optimize desired job outputs, minimize task
interference and performer fatigue, and maximize job satisfaction.)
Inputs 3. Inputs/Triggers:
a. Meet input standards
b. Are recognizable by the performer
Resources 4. Necessary Resources are available to meet Job and Performer

Outputs requirements.
Performer 5. Performer has necessary capacity (physical, mental and emotional) to

Capacity meet Job and Performer Output requirements.
Performer K/S 6. Performer has necessary Knowledge and Skill to meet Job and
Performer Output requirements.
Consequences 7. The Balance of Consequences supports the desired Performer and

Job Output. (There are no “mixed-signals”.)
Feedback 8. Feedback on performance to the performer is adequate to meet Job

and Performer Output requirements (i.e., relevant output dimension
measured and information is timely, specific and accurate).
Management 9A. Job Performance Planned Component:
System a. In Place
c. Being Executed
9B. Job Performance Managed Component
a. In Place
c. Being Executed

J3
JOB ANALYSIS QUESTION GUIDE
VARIABLES REQUIREMENTS QUESTIONS
When possible, it is preferable to observe the job being performed, or if feasible, to perform parts of the job
yourself. In addition, ask exemplary and non-exemplary performers the following:
Outputs 1. Job and Performer Outputs and Requirements are: • How do you know what to do?
a. Linked to Process, Organization and customer • How do you know what is acceptable performance? Are there written standards anywhere?
requirements • Are the expectations consistent? If not, when not?
b. b.Clear • Are the expectations realistic? Do they make sense?
c. c. Communicated • How can you tell when you are doing the job correctly or incorrectly?
• Why is it important to perform the job as expected? What are the negative consequences of the
job not being performed as required?
Job Design 2. Job is designed to meet Job and Performer output As you observe or perform the job, ask yourself:
requirements • Could the job sequence be better designed?
• Are there competing tasks?
• Can the job environment be better designed to enhance performance of the job?
Inputs 3. Inputs/Triggers: • How do you know when you are to perform the various tasks expected of you?
a. Meet input standards • Is it reasonably clear when you are to perform the various tasks expected of you?
b. Are recognizable by the performer • Do the things you are to work on or respond to, vary a great deal?
Resources 4 Necessary Resources are available • Do you have everything you need to do this job accurately and in a timely manner?
• (Based on observation) Wouldn’t it be easier to do this job if you had……?
Performer 5. Performer has necessary capacity As you observe the job being performed, does the job seem to have particular physical, mental, or
Capacity emotional requirements? Does this seem to explain any of the differences between exemplar and non-
exemplar performance?
Performer K/S 6. Performer has necessary Knowledge and Skill The best way to answer this question is to observe the difference in performance of exemplar and non-
exemplar performers and ask each why they are doing certain tasks they way they are. Also ask
performers, “What are the critical things to know in order to do this job well? How did you learn them?” Ask
supervisors, “What do you see as the critical difference between exemplar and non-exemplar performers?”
Consequences 7. The Balance of Consequences supports the As you observe or perform the job, ask the incumbent:
desired Performer output • What happens to you/me when you/I do this task correctly? Incorrectly?
• What is the impact on the organization of you/me doing this task correctly? Incorrectly?
Feedback 8. There is adequate Feedback on outputs to the • How do you know when you are doing this job correctly? Incorrectly?
Performer • Are you able to understand what you need to change/do differently in order to perform correctly
the next time?
• Is the information you receive, timely enough? Specific enough? Frequent enough?
• How do you learn about the impact of doing this job correctly? Incorrectly?
Management 9A. Job Performance Planned Component: (The answers to the above questions should make it possible for you to reach the necessary conclusions
System a. In Place regarding this variable.)
c. Being Executed
9B. Job Performance Managed Component (The answers to the above questions should make it possible for you to reach the necessary conclusions
a. In Place regarding this variable.)
c. Being Executed

J4 Serious Performance Consulting Workshop
IS/SHOULD JOB LEVEL WORKSHEET

PERFORMER IS/ JOB PERFORMER MANAGEMENT
SHLD OUTPUT INPUT JOB RESOURCES CAPACITY K/S FEEDBACK CONSE- SYSTEM
DESIGN QUENCES
IS
SHLD
IS
SHLD
IS
SHLD

AJAX EXERCISE 2 - GETTING JOB RESULTS (CONTINUED)
More data:
Data from interviews with a sampling of District and Region Sales Managers-
• Sales managers are really only concerned with the number of sales made by the
Sales Reps, not the completeness of the order forms.
• Sales volume has become the unspoken priority since the new Sales VP took over
about two years ago.
TASK 6:
Given all the data you now have regarding the Sales Rep Critical Job Issue, complete the
“Conclusions” column of the Job Analysis Worksheet on the following page.
TASK 7:
Complete the “Action” column of the Job Analysis Worksheet and summarize your
recommendations on the flip chart for the design of a “performance system” that will close the
gap in Job results.
TASK 8:
Given a decision that the Sales Reps are to submit accurate sales order forms 100% of the
time, without benefit of an electronic order entry system:
A. Review the partially completed “Is/Should Job Level Worksheet” on page 92.
B. For each performer in the hierarchy, check the cell in the “SHLD” row which offers
the most leverage in supporting the desired output of the Sales Rep. (For example,
for the District Sales Manager, the desired or should output needs to be changed, as
do the consequences. What other change will be critical to supporting the desired
Sales Rep output?)

J2 JOB ANALYSIS WORKSHEET

Job/Position: Sales Reps
“Should” Job Result: Zero order forms incomplete
“Is” Job Result: 8-10% of order forms incomplete
CONCLUSION
VARIABLES REQUIREMENTS ACTION/COMMENT
Yes No ?
Outputs 1. Job and Performer Outputs and Requirements are:
b. Clear and Communicated (Performer has performed as required
in the past.)
(Tasks are sequenced to optimize desired job outputs, minimize task
interference and performer fatigue, and maximize job satisfaction.)

Output requirements.
Performer 5. Performer has necessary capacity (physical, mental and emotional) to

Capacity meet Job and Performer Output requirements.

Management 9A. Job Performance Planned Component:
System a. In Place
c. Being Executed
a. In Place
c. Being Executed

J4

DESIGN QUENCES
IS
SALES VP
SHLD
IS
REGION /
DISTRICT
SALES
MANAGER SHLD
IS There are no The trigger (??) Need to Sales order No problem No problem Feedback is SRs get their There is no plan
SALES REP 10% standards (sale made) is get more form is painful with capacity with K/S – not specific commissions in place for
incomplete regarding what easy to information – to complete; – the SRs the SRs can and not no matter ensuring
order form constitutes a identify don’t know the order can do the do the job timely (a what; there complete sales
good/complete much about code manual job when when they memo here are no order forms and
sales order form the job changes they need to need to and there) negative no one is
design constantly consequences monitoring
and is hard to for not whether sales
carry around completing orders are
their order complete and
forms – there providing
is actually a corrective action
disincentive to
complete them
SHLD Create and Remains the (??) Remove N/A N/A Provide SRs get Monitor
100% communicate the same issues with specific, commissions completeness
complete standards the order detailed, only when of sales order
order forms regarding a code manual timely order are forms and
good/complete feedback complete; provide
sales order form. don’t allow appropriate
Simplify the others to feedback /
order form if complete the consequences
possible. forms for them to performers

VARIATIONS ON THE THEME
A. Competing Environments
Feedback
+
C-
Home
Home Output
Input Job
Output
+
Job Input
C-
Feedback
B. Competing Responses
+
C +-
C +-
C +-
C-
C. HPS Chain
Successful C+
Present
C-
Proposal
Prospect asks Unsuccessful
for Proposal
Not Sales Manager

C+
X
Prepared Presents Proposal
C-
D. Culture Change
+
X C-
+
Y C-
E. Member of a Team
+
C-
+
C-

COMPETING RESPONSES
If we have impressed on our new employees that our record-keeping system is important,
they are likely, initially, to make out their records – to the extent that they can find the time.
Will they continue to be conscientious in all of their record-keeping? That depends.
Consider the experience of the sales person described below.
In general, she completes all her reports on time and accurately, but the
following exceptions occur:
1. Her Report 903A is two days late, but she doesn’t get any flack about it.
2. She makes an error on the Business Management Statement, and it is sent
back to her for correction, rework, and resubmission.
3. She loses her New Business Call Forms, so she sends in the rest of her
reports without them. Nobody comments on the omission.
4. She requests another set of New Business Forms. She gets them five (5)
weeks later.
5. She faithfully turns in her agenda each Monday for the first three (3) weeks. No
one calls her while she is on rounds. Her agenda is preempted by two sales
meetings scheduled after her agenda was submitted.
6. Her Sales Manager calls to ask her where her special tear slips are for the
particular model that has a special campaign on this month.
7. She spends her own money for expenses, and doesn’t get reimbursed until the
expense report is submitted.
Rate the importance of each item as you think the salesperson would rate it after six
weeks on the job:
(Low or High)
Report 903A
Business Management Statement
New Business Call Forms
Weekly Agenda
Tear Slips for Special Campaigns
Expense Report
As she is given more and more responsibility and becomes more strapped for time, which
items is she not likely to complete, if she judges some have to go?
(List the numbers)

THE HPS AND TEAMS
(or Does the HPS Work with Teams?)
We all are always individuals:

• We learn as individuals
• We all behave as individuals
• And we are all responsible for our individual performance
But frequently we play the role of a team member:

• As individuals we perform in a team context.
• And frequently, this requires that we act differently.
For an INDIVIDUAL to be productive, the For a TEAM to be productive, or for there

following is needed: to be effective team work around a task,
project or process, the following is needed:
1. Clear expectations (what is to be 1. Clear expectations:
produced, when, and why). - What the organization needs to
accomplish( the business
proposition).
- What the team needs to produce
(what, when and why).
- What individual members of the
team need to produce (what,
when and why)
2. Specification/understanding of how 2. Specification/understanding of how

the task is to be performed. the team is to work (Ground rules
and leadership).
3. Tools and resources 3. Tools and resources
4. Feedback on performance 4. Feedback on performance (of the

team and each individual)
5. An appropriate balance of 5. An appropriate balance of

consequences consequences (to the team – but
more importantly to the individual as
a “team member”).

CULTURE
Macro or Anthropological View (Defining “culture”)
“To an anthropologist, culture is a ‘shared system of beliefs, values, and traditions that
shape a person’s behavior and perception of the world’”. (University of Arizona Natural
History Museum)
Micro or Behavioral View (Changing “culture”)
“Organization Culture is the prevailing expectations-consequence relationships (per the

HPS) that exist in a particular work environment or work social environment.” (Rummler
and Brethower)
Behavior X C-
Situation A
Behavior Y C+
That is, if given Situation A, Behavior X is always punished and Behavior Y is nearly
always rewarded, the performer will do Y. That is the prevailing expectations-
consequence relationship in this particular work environment.
If we want this same performer to begin doing X instead of Y given Situation A, we must:
1. Communicate the change in desired behavior (from Y to X, given A)
2. Modify the consequence pattern;
a. Minimally, not punish for new behavior X
b. Minimally, not reward for old behavior Y
c. Ideally, reward for new behavior X
3. Make other changes in the performer’s HPS as required to support the new
behavior (e.g., different tools, more resources, different skills and specific
feedback on performance).
This second, behavioral view is totally consistent with the first view/definition, but is one
that speaks to how a culture is formed (i.e., “expectation-consequence” relationships that
form “reinforced behavior patterns”). If we understand the elements that form a culture,
then we have an understanding of what is required to change a culture.

POTENTIAL CHANGES
for Overcoming Deficient Components of the Human Performance System
HPS DEFICIENCY POTENTIAL CORRECTIVE ACTION

Performance Specification • Change the output and criteria expected
• Clarify/articulate the criteria
• Communicate the criteria
• Obtain performer acceptance of criteria
• Administer criteria consistently
Task Interference • Change the input and criteria

• Change the volume of input
• Clarify the “signal” to perform
• Redesign the job
• Change the job procedures
• Obtain necessary resources (tools, labor, budget,
information)
• Develop performance support systems
Imbalance of Consequences • Remove negative consequences for desired output

• Remove positive consequences for undesired
outputs
• Provide positive consequences for desired output
Faulty Feedback • Measure different output requirements

• Select meaningful units of measurement
• Reduce lag time in flow of information
• Increase frequency of information
• Increase specificity of information
• Add or modify tracking documents to improve ease
of monitoring performance
• Add guides for “troubleshooting” poor performance
Lack of Knowledge/Skill • Inform

• Provide guidance
• Develop skills
Individual • Select different performer(s)

• Facilitate performer adaptation to the job
• Alter balance of consequences

Variables impacting Job, Process and Org results
Replace with 11x17
C. Organization
Results

earnings
B. Process
Capital
Market capital Management System
shareholder
value
Shareholders
Results
resources
Suppliers material/
equipment
products/ Customers
CJI
services
Research CPI
customer orders
requirements &
feedback
A. Job Job PP 9 Job PM

b. Clear
Results c. Communicated
6
4 C+- 7. The Balance of Consequences supports the desired Performer output
c. Being Executed
3 a. In Place
c. Being Executed
Job 2

ANALYSIS SUMMARY (AJAX – CJI Scope)

CBI(s): Gaps in Results
“Is” “Should”
CPI(s): Gaps in Results

CJI(s): Gaps in Results • Sales commission available upon submission of order A. Investigate implementation of an electronic order entry
“Is” “Should” form, regardless of accuracy of submission. system. If that is not feasible,
Sales Rep • Incomplete sales order forms are subsequently B. Investigate having the sales reps initiate the order form,
Job completed by order entry personnel in Production after with the bulk of the form completed by someone in
contacting the sales rep and/or customer. Production. If that is not feasible,
Incomplete 8-10% of Zero order • Number of incomplete order forms not tracked and C. Make the following set of changes:
Sales Order forms forms therefore no feedback to individual sales reps. 1. Simplify and restructure the form.
Forms incomplete incomplete • The Code Manual used by sales reps to complete 2. Redesign the Code Manual
order forms is unwieldy in size, not user-friendly and 3. Change the commission system so that sales
frequently out of date. commissions are not available until a complete
• The incidence of incomplete order forms increases sales form has been processed.
near the end of each quarter. 4. Provide monthly feedback to sales reps and all
levels of management on the
accuracy/completeness performance of all
sales reps.
5. Hold District and Region Sales Managers
accountable for the accuracy/completeness
performance of all sales reps.

JOBS AND PROCESSES
Jobs (by themselves) do not add value – just cost. Job outputs need to be linked to a
primary process that delivers value to a customer.
When focusing on Jobs:

• Understand their process context
o What they contribute to the process(s) and how
o How the process affects their ability to perform as required.
• Determine how they contribute to the value delivered to the customer
o Only here can you begin to assess the ROI (Return on Investment) of any
improvement you might make
• Understand that improvements of a single Job or Job family, in isolation:
o Could sub-optimize the performance of the Primary Process of which they
were a part.
o Won’t make much difference unless all key Jobs in the Primary Process
are properly aligned with the process
SPECIAL POINTS
1. Some jobs can be confused with a process – e.g., the Sales Rep Job
• On the surface, the sales process and the sales rep job look the same – just a
series of tasks.
• Also, it looks like what is done is unique to the individual performer – “I am the
process!”
• But actually, the sales process looks more like this:
Sales Rep
Sales Process
Completed
Leads Lead Opportunity Proposal Order
Sales Order
Qualified Identified Made Taken Form
Sales Support Process

2. Supervisor/Management jobs
• When focusing on supervisory or management jobs, you must establish:
o How they impact and provide value to the process to which they
contribute.
o What it is exactly that must be managed.
Example: The District Sales Manager:
District Manager
Recruiting Process Sales Reps
Sales Rep
Sales Process
Lead Completed
Lead Opportunity Proposal Order
Generation Leads Sales Order
Qualified Identified Made Taken
Process Form
Sales Support Process
• What does the Sales Manager manage?

o The Sales person?
o The Sales process?
o The Sales person/process?
o The Sales Rep Recruiting process?
o The Lead Generation process?
o The Sales Support processes?


usually,
a. “Requestor”?
b. Performer?
c. Organization?
Processing Systems.
a. Organization
b. Process
c. Job/Performer
8. Everybody in an organization is in a Human Performance System, which must be
aligned for sustained behavior/performance/results.
9. Management must do the aligning of the HPS’s
10. Always understand Jobs in their Process context.

Performance Design – Process Level
TAB 4 - PERFORMANCE DESIGN – PROCESS LEVEL

• Processing System Hierarchy
• Business Process – A Summary
• Linking Processes, Functions, and Jobs
• Process Results Template
• Management Template
• Process Analysis Worksheet
• “Is” Process Analysis
3 Job Level • “Should” Process Design
• Process Management
• Alignment
• Measures
Process
4 Level
• Variables and Requirements
• Why Process Improvement Projects Fail
Performance • Why Organization-wide Process
Improvement/ Management Initiatives Fail
Design Organization • PC Key Points
5 Level
Total
6 Framework
1 2 System
10
Performance Plan &
Department Design
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference


earnings
Market

resources
Suppliers material/
equipment
products/ Customers
CJI
services
Research CPI
customer orders
requirements &
feedback


BUSINESS IS A PROCESSING SYSTEM
1 “I am investing in the “It” business”
ANY BUSINESS
“I am
receiving a
2 return on my
investment”
Shareholders
Value Chain
2 “I got It”
Customers
1 “I want It”
1. A business organization exists to meet a customer need.

2. A business organization must also meet investor needs.
3. The business organization transforms the customers “want it” into “gets it” via a Value
Chain of core processes. This occurs regardless of whether the business is providing
a product or service.
4. In the process of transforming “want it” to “gets it”, the business consumes resources
such as capital, human resources, technology and raw materials.
5. A business organization may be a “social system” and other good things, but it is first
and foremost a PROCESSING system

VALUE CHAIN MODEL – MACRO
ANY BUSINESS
Organization Performance Planned & Managed $ Capital Market

Capital
Human
Resources Value Creation System
Product / Service
Market
“It” Available “It” Sold
Raw Materials /
Supplies
Support
Customer
Processes
Technology “It”
“It” Delivered
“It” Ordered

VALUE CHAIN MODEL – DETAIL FOR ONE TYPE OF BUSINESS
RESOURCES THE “It” BUSINESS THE CONSUMER MARKET
Organization Performance Planned and Managed THE CUSTOMER BUYING PROCESS
1. Need Exists
“It” Available Market “It”
“It” “It” Sold 2. Need Recognized

Developed
and Demand for “It” Customer
Order for “It” 3. Alternative Solutions to
Launched “It” Relationship
Obtained Meet Need Identified
Developed Maintained
“It” Sell “It” 4. Alternative Solutions &

Enhanced Sources Evaluated
“It” Delivered
“It” Ready for 5. Commitment to Acquire

Delivery “It” from a Particular
“It” Source Made
Sunsetted I Got “It”
“It” Order
“It” Order “It” Order Shipped / “It” Order 6. “It” Received
Processed Filled Distributed/ Closed
Tools/Materials Available Installed
7. “It” Used or Consumed
Resources Available
Technology Available
Facilities Available “It” 8. “It” Evaluated &
“It” Customer Serviced
Supported Conclusion reached to
Cash Available
Drop or Expand /Repeat
and/or Refer
I Want “It”

Examples of the Generic Value Chain Processes

VALUE CHAIN
EXAMPLES “IT” AVAILABLE “IT” SOLD “IT” DELIVERED
Generic Description: Three parts: Description: Three parts: Description: At least two parts:
1. Finding or inventing a 1. “Demand Developed”. Creating 1. Processing the Order, from
Product/Service/Offering that demand for the P/S, usually done by “Order entered” to “payment
will satisfy a customer need. Marketing. Output is usually a “lead”. received” and “warranty
2. Enhancing existing product 2. “Customer Committed”. administered”.
through redesign, re-pricing or Frequently requires a sales 2. If a Product – Making and
repositioning. organization to convert “interest” into Delivering.
3. “Sunsetting” or discontinuing a commitment to purchase. If a Service – Customizing and
products that are no longer 3. “Relationship Maintained.” Delivering.
viable. Enhancement and maintenance of the 3. May also include installation
Input: Customer Need to be Satisfied. customer relationship. and servicing.
Output: Product/Service/Offering ready Input: Input:
to be Sold, Delivered, and Supported. 1. A Product/Service/Offering ready 1. Product/Service to be delivered.
to be Sold. 2. Customer Order.
2. Potential Customers. Output: Delivered Produce/ Service,
Output: An Order for a Product/Service. ready for use by customer.
Consumer Goods Designs a new safety razor – Model Advertises new razor and sell through Manufactures and distributes razors to
Manufacturer A100. retail outlets, supported by a field sales retail outlets.
Enhances Model A100 with additional organization. Makes repairs under warranty.
features.
Discontinues Model A100.
Restaurant Chef develops new dish. Attracts customers and promotes special Wait-person takes customer order which
“dishes” through marketing. is prepared by the kitchen and served by
wait-person.
Telecom Company Develops new service. Promotes the new service via TV Enters customer in their system to
advertising and attempts to get customer provide the service and bill the customer.
commitment via telemarketing (sales).
Petroleum Company Discovers crude oil deposits. Promotes its fuel via TV. Extracts and refines crude oil and
Develops processes to refine crude into distributes product to service stations for
products. transfer to customer vehicles.
Retail Store Obtains new line of merchandise. Promotes new line via TV and print media, Customer selects merchandise from rack
“merchandises” the line by special in-store and is “checked-out” by cashier.
displays and sales associates answer
customer questions.

PROCESSING SYSTEM HIERARCHY

Replace with 11x17
Processing System
Hierarchy
- Environment - Geo-Political - Regulatory/Legal - Economy - Culture
Any Business
Investments
Resources
Management System
2003 Performance Design

Capital Returns Financial
Stakeholders
Processing Consumer Market
Lab
Labor
System
Customers
Available Sold Delivered Product/
Suppliers Service
©
Research Support/Enabling Processes
Order for Product/Service
Products/
Resources Competition Services
Product /
Product Product/
Product Product
Product /
Internal Value Chain Servic
/
Service Servic
/
Service Servic
/
Service Product/
e
Availabl Sole e
Delivere Service
Available Sold Delivered
e d d
“It” Deman Custome

Develope Demand Order for Customer “It”
Developed
Developed “It” “It” d r
Relationshi Ready
d Enhance for “It” “It” Relationship Ready For
and Enhanced Sunsetted Develope p For
Launche d Developed Obtained Maintained Delivery
Launched d
d
“It”
“It” Order “It”
“It”Order
Order Shipped/ “It” Order
Processe Fille Close
Processed Filled Delivered/ Closed
d d d
Installed
Macro Process
“It”
“It” Customer Serviced Supported
High & Mid Level Processes
Nee
•
dOpportunity
Proposa
Opportunitie
Opportunities Opportunitie
Opportunities Capabilitie Proposal • Order
Order
Captured
• Developed and Prepared
l
Prepared and
s
Generated Qualifie
s
Qualified Communicate
s
Proposal Sale Closed Taken
and
and
Presente
and
d Proposa d Communicated • Communicated
Entered
• Requested d
Requeste
l
d
• Information Gathered
• Needs Identified
Task/Sub-Task • Deciders and Users Identified
• Constraints Determined
• Credibility Established
Information Gathered
• Relevant Data Sources Identified
Input
• Interviews Scheduled
• Interviews Conducted
• Conclusions Reached and Recorded Output
Work Station
Level Six - Procedure and Data Flow Views

PROCESSES AND FUNCTIONS
AJAX
Management
RESOURCES
$ Jax
Marketing R&D Sales Finance Production
“It” Available
(New Product Development & Introduction)
MARKET
“It” Sold
(Business Generation)
Customers
“It” Delivered “It”
(Order Fulfillment)

“IS” CROSS-FUNCTIONAL VALUE CHAIN MAP
"IT "AVAILABLE "IT" SOLD "IT" DELIVERED
15
MARKETPLACE/ 4 13
5 7 Invoice
CUSTOMER Promotional Promotion Buy?
No Order Received &
Received &
Materials Inquiry Instructors Trained
Received Paid
1 3
New Product Promotional Yes
Ideas & Product Materials
MARKETING Specifications Specs Developed &
Developed Distributed Lead
Proposal
Ideas 2
Product
RESEARCH & New Product Support
DEVELOPMENT Developed
Payment
Training
• Product Specs 8 Materials

SALES 6
OPERATIONS
• Training Order
Proposal Made Invoice
Completed
FIELD
10
TECH Order Instructors
SUPPORT Trained
New Product Content & Layout 11

PRODUCTION Order Printed
& Shipped
Order
Order
ADMINISTRATION
FINANCE 9 14 16
Notification of
Order Shipment
Customer Payment
Processed Invoiced Received
Paper
Supplies
PERSONNEL
12
SUPPLIERS Paper Shipped
by Paper
Vendor

LOOKING FOR PERFORMANCE IMPROVEMENT OPPORTUNITIES

MARKETPLACE/ 15
4 13
CUSTOMER 5 7 Invoice
Promotional Promotion No Order Received &
Inquiry Buy? Received &
Materials Received Instructors Trained
Paid
1 3
MARKETING Ideas & Product Materials

Specifications Specs Developed &
Proposal
Ideas 2
RESEARCH & New Product
Payment
Training
Product Specs 8 Materials

SALES 6
OPERATIONS
Training Order Order

Completed
FIELD
10
TECH
Instructors
SUPPORT Trained

& Shipped
Order
Order
9 14 16
ADMINISTRATION
Notification of
FINANCE Order Shipment Customer Payment
Processed Paper
Invoiced Received
Supplies
PERSONNEL
12
Paper Shipped
SUPPLIERS by Paper
Vendor
STEP 1 STEP 2 STEP 3 STEP 4

STRATEGIC CHECK – Competitive
Advantage?
Disadvantage?
OPERATIONAL CHECK – Impact on
Revenue?
Cost?
Quality?
Customer Satisfaction?

AJAX CUSTOMER ORDER PROCESS “IS” MAP

Replace with 11x17
Customer
Order Clarified Materials Invoice

Proposal Accepted w/ Customer Received Received
1 9 29 30
Credit Problem
Solved
13
Order Order
Sales
Reps
Completed Submitted
2 3
Sales
Admin
Sales
Order Logged
4
Order
Entry
Order Order Clarified Order

Order Logged OK?
Checked No w/ Customer Corrected
5 7
6 8 10
Finance
Invoicing
Credit Order Referred Order Order

Credit &
OK?
Yes Checked No to Sales Rep Entered Invoiced
12
11 14 15 27
Yes
Yes
Production
Control
Order Inventory Print Order Order

Available?
Logged Checked No Placed Scheduled
18
Production
16 17 19 21
& Shipping Production
Production Materials
Special?
Scheduled Printed No
24
20 22
Yes
Assembly
Order Assembled
Materials 25 Order
PreAssembled Shipped
23 Specials Picked & 28
Assembled 26

VALUE CHAIN MATRIX
Organization Value Chain

“It” Available “It” Sold “It” Delivered
Goals
Process
Capability
Resources
When looking at the internal organization system (i.e., Value Chain) we are
concerned about two things, as illustrated in the Matrix below:
1. Are the three Primary Processes aligned horizontally across the Value
Chain? (Are the Process Goals aligned with the Organization Goal and
with the other Processes? Do all Processes have the capability to meet
their and the organization’s goals?)
2. Is each of the Primary Processes effective in achieving their goals,

performing to the organization’s expectations?
Organization Value Chain

“It” Available “It” Sold “It” Delivered
Goals
2 2 2
Process
Capability
Resources

BUSINESS PROCESSES – A SUMMARY
WHAT IS A PROCESS?
“A Process is a series of planned activities that convert a given input into a

desired output.”
“Some processes (such as programming) may be contained wholly within

a function. However, most processes (such as order fulfillment) are cross-
functional, spanning the “white space” between the boxes on the
organization chart.” (1)
WHY ARE PROCESSES IMPORTANT?

• Processes are the clearest articulation of the work that must be done by an
organization to add value to the customer
• The work an organization does only has value when it reaches the customer/end
user (and they send a check). And in all cases, that work is delivered through a
cross-functional process. The process integrates all the creative, professional work
done in functions, as part of jobs. PROCESSES are the mechanism that delivers
value (or not). FUNCTIONS/JOBS provide the expertise (and cost).
• An Organization is only as good as its internal processes. An individual’s
performance will be only as good as the processes they have to work with or the
processes they are part of.
• There will be no sustained change in an organization until processes are changed
(and the changes maintained).
• Processes are the link between Individual performance and Organization results.
• Cross-functional processes are largely invisible, hard to fix (there are few
mechanisms in most organizations for improving cross-functional processes), and
seldom managed.
(1)
Improving Performance: How to Manage the White Space on the Organization Chart – Rummler
and Brache (1995)

WHY ARE PROCESSES IMPORTANT TO THE PERFORMANCE

CONSULTANT?
• Improving results is all about WORK – getting value-add work done effectively
and efficiently.
• Understanding an organization’s work processes is the fastest/surest way to
understand
o What value-add work is critical to the success of an organization
o The performance context of any performance improvement request you will
ever receive.
• Frequently the greatest variability in performance is at the process level – and
therein lies the greatest opportunity to improve performance/results.
• The process level frequently provides the greatest leverage for results
improvement – changes at the process level will drive other changes (which most
likely will require Human Performance System changes to successfully
implement). If you can fix only one thing……
PROCESS VIEW – A LOOK INTO THE VERY ESSENCE OF AN

ORGANIZATION
• Nothing provides more insight, quicker, into an organization than observing one of
its primary processes. While trying to model the “is” state, you will learn about an
organization’s:
o Strategy (Do they have one, and if so, is it appropriate and is it understood
throughout the organization?)
o Understanding of their business (What variables and operations are critical
to success?)
o Management (Systems, competence, discipline, accountability)
o Business Values and Practices (What they really think of customers,
employees and suppliers)
o Leadership (Is there any?)
o Chances of survival

LINKING PROCESSES, FUNCTIONS, AND JOBS
Cutomer Order Flow
Customer
Sales
Credit and
Invoicing
Production
Control
Cross-Functional Roles/Responsibilities Matrix

Function Sales Credit and Production Production Assembly
Process Invoicing Control and Shipping
Step
Order •
•
Taken •
Order
• •
Entered • •
• • •
•
•
Order
Processed
Functional Roles/Responsibilities Matrix
Function: Assembly and Shipping
Assembly and Shipping Roles

Assembly and and Responsibilities
Customer Order Shipping
Process Step Subprocess Steps Assembly Role Shipping Role Mgmt. Role
•
A. Order Recieved •
Order Assembled •
and Shipped •
B. Order Assembled •
•
Job Model
Job: Assembler
Outputs Critical Measures Standards Performance Support

Dimension Requirements
Incoming Order
Received & Reviewed

P1 Serious Performance Consulting Workshop
PROCESS RESULTS TEMPLATE
Variables
Process Performance Process Performance

Planned 6 Managed
Process
Results
3 1
2
Requirements
1. Process Outputs and Requirements are

a. Linked to Organization and Customer Requirements
b. Clear
c. Communicated
4. Necessary Resources available
5. Job Results, as described in “A”
a. In Place
c. Being Executed
6B. Process Performance Managed Component
a. In Place
c. Being Executed

P3 PROCESS PERFORMANCE PLANNED AND MANAGED TEMPLATE

Implemented
PROCESS
A. Process Expectations A. Plans Developed A. Plans Implemented A. “Performance A. Cause Determined A. Corrective
linked to Organization, 1. Process Design and 1. Process Designed Managed” Roles B. Appropriate Action B. Preventive
Value Chain and Improvement and/or Improved Determined and Determined C. Sustaining
Customer Expectations 2. Process Inputs 2. Process Inputs Met Understood
B. Process Goals 3. Process Resources 3. Process Resources B. Performance Data
Communicated to 4. Policies and Decision Available Available
Functions and Jobs Rules 4. Policies and Decision C. Performance Data
C. Process Goals 5. Process Support Rules in Place Communicated/
translated into Function 6. Roles/Jobs 5. Processes Supported Distributed
and Job Goals and 7. Management System 6. Necessary Roles/Jobs D. Data Monitored
Communicated B. Budgets Developed in Place
Place
Process Performance Execution

P2
Process:
PROCESS ANALYSIS WORKSHEET “Should” Process Result:
“Is” Process Result:
VARIABLES REQUIREMENTS CONCLUSION ACTION/COMMENTS

Yes No ?
Outputs 1. Process Outputs and Requirements are:
b. Clear
c. Communicated
Process 2. Process is designed to meet Output requirements

Design
Inputs 3. Inputs/Triggers meet input Standards
Resources 4. Necessary Resources are available
Job Results 5. Job Results as described in “A” for Job ………
Management 6A. Process Performance Planned Component:

System a. In Place
c. Being Executed

a. In Place
c. Being Executed

AJAX EXERCISE 3 – MOVING UP THE RESULTS CHAIN
There are likely to be substantial costs in making the following changes to address the CJI
of “Incomplete Sales Order Forms”:
• Clarifying expectations of all relevant performers
• Modifying the Sales Order Form
• Developing an alternative to the code manual
• Modifying consequences so Sales Reps will not be automatically paid for not
meeting standards.
• Feedback to all relevant performers regarding actual performance against
standards.
These recommendations hardly represent the “slam-dunk” training solution requested by

the Sales VP.
TASK 1:
A. Do you think the argument for change needs to be strengthened by looking for a
Critical Process Issue?
B. If the answer to “A” is “yes”,
a. What process/processes is/are candidates?
b. What would you hypothesize as possible CPI’s?

More Data:
In addition to performing the Sales Process, the Sales Reps are also part of the Customer
Order Process. A principle output of the Sales Rep job – the completed Sales Order Form
– is also a critical input to the Customer Order Process, the process that ultimately
delivers the product (and value) to the customer.
Further, it has recently come to light that customers are increasingly unhappy about the
time it takes to receive their orders from AJAX. Apparently it takes 20 days on average to
receive orders from AJAX compared to an average of five days from some competitors.
TASK 2:
Update the AJAX AOP below, indicating the location of the process you have identified
and Critical Process Issue.

Materials VP (JAX)
RM
Technology
DM
CUSTOMER MARKET
Cash SR
sales
order
?
Human CJI Customer
Resources
Administration Incomplete
( Finance, HR & IT) Order Forms
COMPETITION

TASK 3:
Update the Project Scope document below.

LEVEL ISSUE GAP IN RESULTS SIGNIFICANCE
CBI:
ORGANIZATION
CPI:
PROCESS
CJI: 8 – 10% of Zero Order Forms • Reduce cost and time to

JOB Incomplete Sales Order Order Forms are incomplete process orders
Forms submitted are • Improve customer
incomplete satisfaction
INDIVIDUAL

AJAX EXERCISE 4 - GETTING PROCESS RESULTS
We have successfully moved the scope of this project up the Results Chain to a CPI, as
shown below.

CBI:
ORGANIZATION
CPI: • Order Cycle • Order Cycle • Improve customer

PROCESS Drop in customer Time of 20 Time of 5 days satisfaction (and
satisfaction days • 100% accurate increase sales from
• 85% accurate shipments existing customers)
shipments • Reduce cost and time to
process orders
CJI: 8 – 10% of Order Zero Order Forms are • Reduce cost and time to
JOB Incomplete Sales Forms submitted are incomplete process orders
Order Forms incomplete • Improve customer
satisfaction
INDIVIDUAL
TASK 1: “Is” Analysis
A small cross-functional task force developed the cross-functional process map of the
Customer Order Process (“It Delivered”) shown on page 125.
A. Review the cross-functional “is” map of the Customer Order Process. Note where
the Sales Rep participates in this process.
B. Read the memos on pages 126 and 127.
C. Identify four to five disconnects in the “is” Customer Order Process that impact the
delivery cycle time and/or order accuracy. (Note: a “disconnect” is any deficiency
in the process that negatively impacts the effectiveness or efficiency of the
process.) List and number each disconnect on the Flip Chart. Then put the
number of each disconnect on the process map, indicating where it occurs in the
process.
D. Summarize your conclusions and actions regarding the Customer Order Process
on the Process Analysis Worksheet on page 128.

AJAX CUSTOMER ORDER PROCESS “IS” MAP

Replace with 11 x 17
re
m
o Order Clarified Materials Invoice
Credit Problem Received Received
t
s Proposal Accepted w/ Customer
u Solved 29 30
1 9
C 13
s s
e s p
al e e Order Order Credit Problem
S a lR Completed Submitted Solved
S
2 3 13
s
p n
O i
m Order Logged
d d
e lA 4
i
F
r y
e
dtr Order Order Clarified Order
r O n E
Order Logged
Checked
OK?
No w/ Customer Corrected
5 7
6 8 10
e
c
n
a
n & n g
iF Credit Order Referred Order Order
t ici OK?
d i Yes Checked No to Sales Rep Entered Invoiced
e o 12
11 14 15 27
rC v
n
I Yes
n Yes
o l
t iro
c
ut n Order Inventory Print Order Order
n d o Available?
o oC Logged Checked No Placed Scheduled
r P 18
ti 16 17 19 21
c
u n
d o
o i
rP t
c
u Production Materials
Special?
d Scheduled Printed No
o 24
r P 20 22
Yes
y g
l n
b Order Assembled
m p i
p Materials 25 Order
e i
h PreAssembled Shipped
s
s S 23 Specials Picked& 28
A & Assembled 26

MEMORANDUM
To: Cycle Time Task Force
From: V.P. Production
Subject: LATE DELIVERIES
Historically, we have told customers we would ship their materials within 20 days
of receipt of the order. We have not done that consistently for several years now.
These are some of the issues:
1. Receipt of the order by whom? Sales, Finance, or Production? According to

our records, Sales may take 5-10 days to get an order from the customer to
Finance.
2. Finance takes another 2-8 days to process an order (including credit checks,
etc.) and forward it to Production.
3. Best case, Production now has less than 13 days to process and ship the
order. In the past, this might have been feasible, but now we have these
factors to deal with:
A. We are printing more and more orders (about 60%) as they come in
rather than filling from inventory because of pressures on inventory cost.
(The inventory we have is frequently not what is being ordered because
of the field’s inability to forecast product mix accurately. The total unit
forecast is reasonably accurate; the forecast by product is terrible.) It
takes us just one day to print an order. However, our print job backlog is
such that it takes us 8-10 days to get an order through the print shop.
Production Control takes an additional day to get the order entered into
the production/assembly process.
B. The Sales organization increasingly wants mixes in the orders (e.g., ten
of P100 and ten of P101, which is below our standard order size of 20
units). In some cases, the field wants parts of P100 and P104 combined.
The result of all these exceptions is special assembly of orders. This
increases our order assembly time from one day for standard orders to
3-5 days for these specials.
The Sales organization would have us ship these orders by air, but we
continue to ship by surface delivery because of our budget. We ship the
same day we get the order from Assembly. The shipping time is usually
4-5 days.

MEMORANDUM
To: Cycle Time Task Force
From: V.P. Finance
Subject: ORDER PROCESSING
The time to process an order varies considerably, depending on how well the
Sales Reps do their jobs.
Our people log an order and check it for accuracy and completeness. If there are
no problems, the order moves to “Credit”. All “OK” orders are handed over to
Credit at the end of each day. However, if an order is not “OK”, we have to
contact the Sales Rep or customer for clarification. This can easily take another
one to three days. I would estimate that 20 percent of the orders these days are
incomplete or inaccurate and require our seeking clarification. It seems to be
getting worse. Those Sales Reps need training. Also, a sale becomes “real” for
commission purposes as soon as it is received by Sales Administration.
The next thing our people do is a credit check on each customer, new or old. This
activity is a nuisance, so we accumulate the orders and do the checks on the last
two days of the week (the clerks are doing other financial transactions the first of
each week). We clear each order through Credit in a day. If there is a problem,
we send the order back to the Sales Rep for discussion with the customer.
Order handling time also is affected by the Sales organization. Usually, the Sales
Reps turn in all their orders on Friday. After Sales Administration processes them,
we usually get big batches of orders from all the Regions on the following
Wednesday or Thursday.

Process:
P2 AJAX Customer Order Process
“Should” Process Result:
PROCESS ANALYSIS WORKSHEET • Order Cycle Time of 6 days

• 100% accurate shipments
• Order Cycle Time of 20 days
• 85% accurate shipments
VARIABLES REQUIREMENTS CONCLUSION ACTION
Yes No ?
b. Clear
c. Communicated

Design
Resources 4. Necessary Resources are available
Job Results 5. Job Results as described in “A” for Job ………

System a. In Place
c. Being Executed

a. In Place
c. Being Executed

P8 PROCESS REDESIGN STRATEGIES
“Is" Process
X
X
X
X
X
Disconnects
CPI/Project Assumptions/
Goals Constraints
“SHOULD” DESIGN Stakeholder

CBI
SPECIFICATIONS “Wants/
Needs/
Wishes”
Yes Fix No
Disconnects
OK?
Fix Radical
Disconnects Redesign
Evaluate Process
Against:
• “Should” Design
Specs
• Disconnect List

PROCESS DESIGN AND MANAGEMENT MODEL

PHASES
DESIGN
DIMENSIONS I II III IV
DEFINITION ANALYSIS DESIGN IMPLEMENTATION
Process
1.1 Objectives and Scope Definition
Information
2.2 Should Strategy Development
3.3 Implementation Organization

3.1 Process Design and Testing
Technology
2.1 Process Analysis
4.1 Implementation
Process
Process Improvement
Management Request or
Opportunity
1.2 Project Organization
Change
Assessment and
Management
3.2 Change
Planning
Project
Management

TASK 2: “Should” Design

The task is to develop an improved Customer Order Process for AJAX.
Approach A:
The goal is to improve the Customer Order Process so that the average cycle time from
receipt of a sales order by AJAX Sales to receipt of materials by the customer is a
maximum of five days.
1. Modify the “Is” process map (using “stickies” or a colored marker) to depict the
improved process.
2. Annotate your improved process map with the improved cycle times you expect.
3. List your expected expenditures and total cost.
You have an “out of pocket” budget of $100,000 to achieve your improvement goal.
Approach B:
You have an “out of Pocket” budget of $1,000,000. The goal is to redesign the Customer
Order Process and reduce the average cycle time by as much as you can, given your
budget.
1. Create your “Should” process and map.

2. As you create your map, list on a flipchart any assumptions you are making (e.g.,
“The sales commission system will be changed to….”)
3. Annotate your “Should” map with the cycle times you expect of the redesigned
process.
4. List your expected expenditures and total cost.

6
P5
PROCESS DISCONNECTS* AND “ROOT-CAUSE” GUIDE
The failure of a process to perform as required may result from one or more of the
potential “disconnects” in column one, below. The location of the likely cause of that
disconnect, and its subsequent correction, is indicated in columns two through four.
PROCESS PERFORMANCE
PROCESS MANAGEMENT SYSTEM
POTENTIAL DISCONNECTS
DESIGN PERFORMANCE PERFORMANCE
PLANNED MANAGED
ORGANIZATION LEVEL
1. Organization Goals X X
2. Organization Business Model X
3. Organization Strategy X X
4. Process Goals and Requirements X X
5. Organization Priorities X X
6. Value Chain Alignment X X
7. Operating Policies X X
8. Functional measures, goals and rewards X X
9. Reporting Relationships/Organization Structure X
10. Business Values and Practices X X
11. Resource Availability and Allocation (Capital, X X
Human Resources, Material/Equipment,
Technology, Facilities)
12. Accountability for results X X
PROCESS LEVEL
13. Process Strategy X X
14. Process Priorities X X
15. Process Flow, including X X
a. Batch versus continuous flow X X
b. Serial process flow versus parallel X X
c. Unnecessary (non-value added) steps X X
d. Redundant (non-value added) steps X X
e. Bottleneck operation X X
16. Missing, sub-standard input from another X X X
process
17. Unclear or conflicting spec. of process output X X
18. Underlying Business Models X X
19. Decision Rules X X
20. Lack of information on process step performance X X X
21. Resource availability and allocation for process X X X
steps
22. Not clear who is responsible to Perform, Manage X X X
or Support a process step
JOB/PERFORMER LEVEL
24. Performance Expectation not clear X X
25. Job Design not supportive X X
26. Job Support (resources, tools) not adequate X X X
27. Consequences not supportive X X X
28. Feedback on performance not adequate X X X
29. Performer not adequately trained X X X
30. Performer does not have basic capacity to X
produce required outputs.
*Disconnect: Any deficiency in the process that negatively impacts the effectiveness and
efficiency of the process
ALL CONTENTS Copyright © 2005 132
AJAX EXERCISE 5 - GETTING PROCESS RESULTS (ALIGNMENT)
TASK 1: Aligning Jobs with Processes
A. Referring to your analysis of the “Is” Customer Order Process, in what ways is the
job of the Sales Rep not aligned with the process?
1.
2.
3.
B. What changes are required to properly align the sales rep job with the “should”
customer order process (Approach A).

TASK 2: Aligning the HPS Horizontally across a Cross-Functional Process
Below is a schematic of the Anatomy of Performance related to the “It Delivered” process
(Customer Order Process) for AJAX.
Management System

JAX
$
“It” Available
(New Product Development & Introduction)
Resources
“It” Sold
(Business Generation) Customers

(Customer Order Process)
A. Read the memo on the following page from the VP Production.

B. What should AJAX management do to align the relevant HPS components for the
VP’s of Production and Sales?
RELEVANT COMPONENTS
POSSIBLE MANAGEMENT ACTIONS
OF HPS
Performance Expectations
Feedback
Consequences

MEMORANDUM
To: Special Task Force
Subject: Production Cost
As a follow-up to our discussion, I wanted to reiterate two critical cost issues:

1. Cost of inventory. Our inventory costs are high because of all the product
that was forecast in past years and has not sold. However, we have still
managed to reduce our costs considerably this year by my putting a “cap”
on inventory costs and trying to print orders as they come in. Of course,
this has extended our ship time from ten days to three or four weeks in
many cases.
2. Cost of handling the product. Our problem is that the field sales
organization does not respect our lead time requirements for orders (we
need 20 days, they give us 5-10 days in many cases). Also, they
increasingly want mixes in the orders (e.g., ten of P100 and ten of P101,
which is below our standard minimum order size of 20 units). The result of
all these expectations is short lead time and special handling, including
shipping by air rather than truck or rail.

TASK 3: Job – Process – Culture Alignment
Given what you have learned about the AJAX organization, how would you go about
changing its “culture” to be more sensitive to customer expectations?

Measures and Goal Alignment
Management must keep the

organization aligned
• AJAX EXAMPLE
• MEASURES CHAIN TOOL
• MEASURES CHAIN – AJAX EXAMPLE

ALIGNING GOALS AND MEASURES – AJAX EXAMPLE
SALES FINANCE PRODUCTION
“Is” • $ Revenue • % Bad debt • Inventory cost

Function • Cost of sales • Meet labor budget • Labor cost
Goals • Material cost
• Shipping cost
“Should” • Accurate and timely order • Accurate and timely invoice • Timely order scheduling
Process submission preparation • Timely and accurate production of • Cycle Time = 6 days
Goals • Accurate and timely order entry • Accurate and timely credit orders • Avg. Cost/Unit = $48
• Order processing cost checks for new accounts • Timely shipment of orders • Order Accuracy =
• Invoice processing cost • Unit production and shipping costs 99.5%
“Should” • Revenue by region/district/rep • % Bad debt • % Orders scheduled on time

External end of
Function • Cost of sales as % of revenue by • % Invoices prepared on- • % Orders printed on time
region/district/rep time • % Orders assembled on time
process measures
Measures • % on-time delivery
• Sales $/Units by product plan to • # Invoice errors by error • % Orders shipped on time
actual by region/district/rep type • Print quality • Customer
• % Orders entered on-time by • Cost per invoice • % Orders assembly errors Satisfaction Index
region/district/rep • Labor budget • Avg. cost per unit by product:
• # Order errors by error type and materials, labor, shipping
source
• Sales Forecast accuracy by
region/district/rep/ product
“Should” Sales Rep Finance Admin Asst. Scheduler

Job • Revenue • % Invoices prepared on- • % Orders scheduled on time
Measures • Sales $/Units by product, by acct time
plan to actual • # Invoice errors by error
• % Orders entered on-time type
• # Order errors by error type and • % Credit checks completed
source on-time (new accts)
• Sales Forecast accuracy by
product

MEASURING PERFORMANCE/DESIGNING A MANAGEMENT SYSTEM
ORGANIZATION
M1 M1
Internal External
MARKET
New Product
Dev elopment M2 M2 M2
Process
M3 M3
New Products

P7
MEASURES CHAIN
End-of-Sub-Process Measures End-of-Process Measures Related
(M2) (M/I) (M/E) Enterprise
Measure
Company Customer
Quality Quality
Variable
M1 Measure
Variable Variable
M2 Measure M1 Measure
Time Time
$ $
Other Critical Other

Dimensions
Sub-
process
Inputs: Sub- Sub- Sub- Sub- Outputs: To:

Triggers Process Process Process Process
Outputs: Outputs: Outputs: Outputs:

MEASURES CHAIN - AJAX CUSTOMER ORDER PROCESS

M2 Measures End-of-Process (M1) Related Enterprise
Measures Measure
Company Customer
Quality Quality
Order entry Pick/Print order Print errors Assembly Incorrect orders Market share
errors errors errors ship’d Cost
Invoice errors Ship errors Errors by type
Invoice errors
Time Time
Cycle time Cycle time print Cycle time Cycle time Customer satisfaction
order % filled from assembly to order to ship Market share
processed inventory ship
$ $
Handling Units printed Assembly # units ship Revenue
cost/unit Print cost/unit cost/unit # orders ship Cost
Inventory Ship cost/unit Cost per unit Profit
Other Critical Dimensions Other
Pick Order & Invoice
Order taken Order

processed Order
Materials
and invoiced Assembled
Produced
and Shipped
Sales Forecast
Triggers: Order Pick Order Order Order To:

Standard Print Order Materials w/Invoice w/Invoice Customer
Order Invoice
Input:
Sales
Forecast

Replace with 11 x 17

PERFORMANCE
C. Organization
Results

earnings
B. Process Process Performance
Planned 6
Process Performance
Managed 1. Process Outputs and Requirements are
Capital
Market capital Management System
shareholder
value
Shareholders
Results b. Clear
c. Communicated
human CBI
Labor Market MARKET
resources
material/ a. In Place
Suppliers
equipment b. Linked and Aligned
products/ Customers c. Being Executed
CJI
services Process 6B. Process Performance Managed Component
Results
a. In Place
3 1
Research CPI
technology
Laboratories b. Linked and Aligned
2 c. Being Executed
customer orders
requirements &
feedback
4
A. Job Job PP 9 Job PM

b. Clear
Results c. Communicated
5 1
6 4. Necessary resources are available
1 c. Being Executed
a. In Place
c. Being Executed

ANALYSIS SUMMARY (AJAX – CPI Scope)

CPI(s): Gaps in Results • Internal cycle time and accuracy of order goals have never 1. Redesign the process (per the attached cross-functional
“Is” “Should” been linked to customer expectations and made explicit. “should” process map) .to meet customer expectations,
Customer • The current process is incapable of consistently meeting including an order to delivery cycle time of six days and 100%
Order customer order cycle time expectations for a number of accurate shipments.
Process reasons, including: 2. Address all process disconnects identified in the “is” analysis
- Sales reps frequently hold orders and submit them 3. Implement the following recommendations to support the
Drop in Order cycle Order cycle at the end of the week. “should” process:
customer time of 20 time of 6 - Sales reps submit incomplete order forms, resulting a. Electronic order entry from sales rep laptop
satisfaction days days in additional processing time and errors. b. New customer credit check done automatically as part
- Orders from new and existing customers both of order entry by sales rep
85% 100% undergo credit checks. c. Orders go simultaneously to sales administration,
accurate accurate - Credit checks batched and done once a week. production, finance and shipping.
shipments shipments - Multiple order log-ins d. Lot size of one.
- Inventory cost pressures have resulted in a de e. Minimum order size of 10 units.
facto policy of “produce to order”. f. One demand printing of orders
- Etc.. g. Etc..
CJI(s): Gaps in Results Sales Rep Job

“Is” “Should” • Real-time entry of orders on laptops, using electronic order entry.
• New account credit checked on-line.
• Inventory checked on-line.
• Commissions not activated until order shipped.
• Receive weekly electronic order status report.
Sales Administration - Commissions
• .
• .
• .
Finance – Accounts Receivable

• .
• .
• .

PM9
Macro Implementation Plan
AJAX CUSTOMER ORDER PROCESS (excerpt)
Recommendation Dimension Period
Bundle 1 st
Quarter 2nd Quarter 3rd Quarter 4th Quarter
Month 1 Month 2 Month 3
Activity • Standard • Reps begin Web • Proposals
A - Accurate and Timely Proposals to submit development On-line
Orders: Developed proposals • Sales Order
• Laptops Commission Software in
3 - Sales Reps submit
issued change in use via web
proposals to all new
customers. • Reps submit effect
orders daily
7 - Sales orders capture via fax
software will require
orders to be complete Cost $100,000 $80,000 $40,000
before submission. Impact • • Payroll • • • Payroll • Payroll
reduction reduction reduction
8 - Sales orders are
$25,000 $50,000 $50,000
submitted daily or at
time of order • Increase in • Cycle time
order reduction of
10 - Commission on the accuracy & 7 days
sales is not paid completenes
until the order has s
shipped
24 - Standard
proposals will be
available on-line for
sales reps

WHY PROCESS IMPROVEMENT PROJECTS FAIL
1. Process improvement NOT tied to the organization’s strategy or issues.

For a process to be accurately designed and successfully implemented, the process
improvement/redesign must be linked to the strategy or a Critical Business Issue
(CBI). Without this link, there will be no meaningful performance targets for
redesigning the process and measures to validate improvement. Also, without a
compelling business reason to improve the process, the intended process
improvements are rarely implemented.
(Corollary to #1: Teams starting out to “map” processes rather than to improve
processes. No process mapping efforts should be started unless it is clear that the
objective is to improve performance in support of the strategy or a CBI. Such efforts
typically end in countless hours of meetings and flowcharting, no tangible results, and
frustrated and disillusioned “team” members.)
2. Not having a clear charter, objectives, measures, and sponsorship (i.e., process
owner)
In effect, not having the results of a robust project definition (see Phase 1.1 and 1.2).
3. Scope of the project is not adequate or appropriate to achieve the improvement

objective
The project may focus too narrowly on one sub-process or one function, when in fact
most of the root causes are upstream or outside ot the scope. Similarly, if the
management system is out of scope, many root couases will fail to be addressed.
4. Lack of clear accountability for results.

What is required is a Process Owner accountable for improved process performance,
a Steering Team (or equivalent) who is accountable for implementation, and a Design
Team accountable for the design of an appropriate “should” process.
5. No agreed upon approach or methodology for analyzing and improving

processes.
The team makes it up as they go along. Or each “facilitator” tries to follow an approach
they read about in a book or magazine. If these projects ever succeed in developing a
viable “should” process, they won’t really fit together because everybody was using a
different approach, language, etc.
For an overall, coordinated effort, it is crucial that teams have a common approach to
BPI. If they adopt the PDL PD&M methodology, they will be using a time-tested
methodology, which PDL is willing to teach them. The methodology also is robust
enough and flexible enough to accommodate modifications by various teams, so they
won’t feel like they are in a methodology “straight jacket”.

6. A tendency to over-analyze the “is” process.

(Taking weeks, rather than a day or two.) This tendency is usually because the teams
don’t have a sound methodology and are unsure of how to approach the design of a
“should” process. The result is everybody hiding-out in the “is” analysis.
7. No agreed upon success criteria to guide the “Should” process design (A

subtle, but key point.)
Without this, the teams will seldom design a “should” process that achieves the
desired performance outputs.
8. Failure to drive the redesign down to the Performer Level, redesigning key jobs
and their performance support systems.
9. No methodology for implementation.

Again, the team makes it up as they go along.
10. Failure to anticipate implementation resource requirements at the outset of the

project.
Some assumptions need to be made and some budget reserved. Failure to do so
causes implementation to be delayed, or abandoned, leaving behind a demoralized
improvement team and raising doubts in the organization.
11. Failing to understand that improved processes need to be managed.

They do not manage themselves. Failure to put in a place a Performance Planned and
Management System (PPMS) for all key processes is to pour all the process
improvement effort down the drain.


usually,
a. “Requestor”?
b. Performer?
c. Organization?
Processing Systems.
a. Organization
b. Process
c. Job/Performer
9. Management must do the aligning of the HPS’s.
11. The source of much of organization disfunctionality is the unmanaged conflict
between the vertical organization (functional structure) and the horizontal
organization (value-add processes).
12. Improving results is all about WORK. Understanding an organization’s work
processes is the fastest/surest way to understand the performance context of any
performance improvement request you will ever receive.
13. Frequently the greatest variability in performance is at the process level – and

Performance Design – Organization
Level
Performance Design – Organization Level
TAB 5 - PERFORMANCE DESIGN – ORGANIZATION LEVEL
3 Job Level • “Super-Duper” System

• Super System Map
• Organization Results Template
• Organization Analysis Worksheet
Process
4 Level
• Value Chain
• Management System
Performance • Variables and Requirements
• PC Key Points
Design
Organization
5 Level
Total
1 2 6 System
Framework
10
Performance Plan &
Department Design
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference


earnings
Market

resources
Suppliers material/
equipment
products/ Customers
CJI
services
Research CPI
customer orders
requirements &
feedback


SUPER – DUPER SYSTEM MAP
GENERAL BUSINESS ENVIRONMENT
Political - Regulatory - Economic - Cultural
CAPITAL MARKET
ANY BUSINESS
RESOURCES Analysts
Earning
Dividends Market Activity
Capital Share-
(Actual vs.
Buy or Sell and Share Price
holders
Forecast)
Potential
Human Investors Buy
Resources
Raw
Materials
PRODUCT/SERVICE MARKET
Need for “It”
Technology
“It”
Customer
Ordered “It”
COMPETITION

MANAGING BUSINESS AS A SYSTEM
• Effectively adapting to the super-system

• You cannot control any of the elements of the Super-System
• Adapt or Die
• Adapt to survive
• Adapt to thrive
• Effective adaptation requires “managing” adaptation which requires:
• Identifying critical elements in the Super-System
• Monitoring these elements and
Anticipating change
Influencing change where possible
Taking action to limit the potential negative impact of change
Exploiting the change to improve organization results
• The Super-System Map – Tool for managing adaptation
• A common management view of the external factors impacting the business
• Capture assumptions and trends in each critical component of the Super-
System
• Perform a “what if. . .” analysis
• Periodic check of assumptions and trends in each critical component

O1 ORGANIZATION RESULTS TEMPLATE
Variables
1
1 2
7
Organization Performance Planned Organization Performance Managed
1

1
Value Chain
Support 3 1
Processes Available
5
Sold
5
Delivered
Requirements
2. Organization Direction aligned with Super-System
a. Mission/Vision
b. Strategy
c. Business Model
d. Goals
3. Value Chain Outputs and Requirements
a. Linked to Organization/Customer Requirements
b Clear
a. Goals Aligned
c. Adequate Capability
6A. Value Chain Performance Planned Component
a. In Place
c. Being Executed
a. In Place
c. Being Executed
a. In place
c. Being Executed
7B. Organization Performance Managed Component
a. In Place
c. Being Executed

O2 Organization Unit:
ORGANIZATION ANALYSIS WORKSHEET “Should” Organization Result:
“Is” Organization Result:

Yes No ?
Super-System 1. Super-System Monitored and Action Taken
Organization 2. Organization Direction Aligned with Super-System

Outputs a. Mission/Vision
b. Strategy
c. Business Model
d. Goals
Value Chain 3. Value Chain Outputs and Requirements
Outputs a. Linked to organization/Customer Requirements
b. Clear
Value Chain 4. Processes Optimized to achieve desired Value Chain results

Design a. Goals Aligned
Process 5. Process Results, as described in “B”, for process……
Results
Value Chain 6A. Process Performance Planned Component:

Management a. In Place
System b. Linked and Aligned
c. Being Executed
a. In Place
c. Being Executed
Organization 7A. Process Performance Planned Component:
c. Being Executed
a. In Place
c. Being Executed

O5 Serious Performance Consulting Workshop
RJAX RETAIL CHAIN STORE SUPER-SYSTEM MAP
BUSI NESS ENVIRONMENT

Gover nmen t: Phar macy & food m ust me et gover nment stan dards
Econ omy: Eco nomi c slum p i s good for Sup er-Stores - peop le wa nt goods chea p
C ul tur e: Fast-paced Am eri can culture m eans peopl e ap preci ate bei ng abl e to buy many neces sary goods i n on e store
RESOURCES RJAX Retail Store
S t ock pric e u p
JAX 50% thi s year JAX
capi ta l
(C apital M arket)
M ana gers ,
L abor Mar ket S t ock ers,
MARKET
Checkers , etc.
F ood,
Food , Cl othing , C ustome rs:
Cl ot hin g,
etc. Su ppli ers E lectroni cs, e tc. H ead s of
la rge
F ood, Cl othi ng, househol ds-
E lec troni cs, et c. 80 % repeat
Com puter
custome rs
Techn olog y: Sy st em s
100 Mi ll i on Rev enues l ast y ear

CO MPETITION
Walm art, C ostco, Safeway , Kroger , Best Buy, C i rcui t C ity, Food, Clot hin g,
Wa lgr eens, 7- Eleve n, Re stau rants, D epartmen t Stor es E l ect ron ics , et c.

AJAX EXERCISE 6 - GETTING ORGANIZATION RESULTS

(SUPER-SYSTEM)
TASK 1: Understanding the Super-System

A. Review the AJAX Super-System map on page 157. Note that some data on the
AJAX already appears on the map.
B. Read the background information on AJAX on page 158 with the objective of
further annotating the AJAX Super-System map.
C. Annotate the AJAX Super-System map.
D. What are three apparent external threats (i.e., in the Super-System) to the
continuing success of AJAX.
1.
2.
3.
E. What appears to be the greatest potential external opportunity (i.e., in the Super-
System) for AJAX?
F. What is a CBI that links to the CPI we have already identified?
G. Complete the “Conclusion” column for questions one and two on the Organization
Analysis Worksheet.

H. What is a CBI that links to the CPI we have already identified?
II. PROJECT SCOPE

CBI:
ORGANIZATION
CPI: • Order Cycle • Order Cycle • Improve customer

PROCESS Drop in customer Time of 20 Time of 6 days satisfaction (and
satisfaction days • 100% accurate increase sales from
• 85% accurate shipments existing customers)
shipments • Reduce cost and time to
process orders
CJI: 8 – 10% of Order Zero Order Forms are • Reduce cost and time to
JOB Incomplete Sales Forms submitted are incomplete process orders
Order Forms incomplete • Improve customer
satisfaction
INDIVIDUAL
I. Complete the “Conclusion” column for questions one and two on the Organization
Analysis Worksheet on page 159.

AJAX SUPER-SYSTEM MAP
RESOURCES AJAX
Capital Shareholders
Market (JAX)
Labor Market MARKET
Suppliers Industry
Training Materials
for 5 Courses growth = 6-8%
& Instructor per year for
Training
last 5 years
Research
Laboratories
COMPETITION
products

AJAX BACKGROUND
AJAX designs, produces and markets training materials related to productivity. There are
currently five different courses, targeting different audiences, including executives,
managers and supervisors. The training is delivered by an employee of the customer
organization, who is trained by AJAX to conduct the course. A typical sale by AJAX
consists of an order to train several customer instructors and the purchase of several
hundred sets of training materials, to be used by the trained instructors. AJAX will
typically have a three to ten year relationship with a customer, as they complete the
training of appropriate audiences.
AJAX, Inc., was founded 15 years ago and was a pioneer in the teaching of productivity
principles and practices. It has long been the dominant supplier of training materials in
this area. The “productivity and quality training” industry has been growing an average
of 6-8% a year for the past five years. AJAX was acquired by JAX Corporation (a
highly diversified conglomerate) five years ago. AJAX has always been profitable and
has enjoyed almost complete operating independence within JAX.
Revenues for the last year were $40,000,000 and after-tax profits have dropped below
15% for the first time. Revenues have been level for the past three years. Sales to
new customers continue to grow at about 8% a year. Sales to existing customers have
decreased over the past two years.
AJAX has some new competition from “imitators” who are selling similar (but technically
inferior) products at lower prices. Many customers and potential customers seem
unable or unwilling to note the difference in quality of the new competitors. The result
has been a steady decline in market share (from 60% to 48%) for the past three years.
In addition, there are several new, small competitors in the market who have video
and internet based productivity training products. Currently, no competitors are
emphasizing on-the-job results of their training, long a strong point of AJAX.
There is Federal legislation pending regarding providing significant incentives for the
training of employees by U.S. corporations. The North American Society for Training
predicts this legislation could result in a 5% – 10% boost in expenditures for training.
JAX senior management recently turned down a request by AJAX for additional capital.
JAX management said they wanted to see a plan for getting AJAX after-tax profits
back to 15% before they would decide on additional funding.
AJAX has lost several key sales reps to competition and is having trouble finding
comparable “new hires”.
AJAX consumes a lot of paper for its products. As a result, they are concerned about
recent labor unrest in the paper industry that could lead to a strike and a shortage of
supplies, and most certainly will lead to increased cost of raw materials.

O2
Organization Unit:
AJAX
“Should” Organization Result:
Market Share of 60%
ORGANIZATION ANALYSIS WORKSHEET “Is” Organization Result:
Market Share of 48%
VARIABLES REQUIREMENTS CONCLUSION ACTION

Yes No ?

b. Strategy
c. Business Model
d. Goals
b. Clear

Results

c. Being Executed
a. In Place
c. Being Executed
c. Being Executed
a. In Place
c. Being Executed

EXERCISE 7 - GETTING ORGANIZATION RESULTS (VALUE

CHAIN)
TASK 1:
Assess the level of alignment between the primary processes making up the AJAX
Value Chain (shown below) by reading the two memos that follow and answering the
questions below.
AJAX Value Chain
“It” “It” Sold

Available B (Mktg & Sales)
(NPD)
A
C
“It”
Delivered
(Production)
A. List one or more ways that “It” Sold (and the customer) and “It” Delivered are out
of alignment (E.g., “Sales promises short lead times that Production can’t meet”.)
B. List one or more ways that “It” Available and “It” Sold are out of alignment.
C. List one or more ways that “It” Available and “It” Delivered are out of alignment.

TASK 2:
How could possible misalignment of the AJAX Value Chain impact the CBI on this
project?
TASK 3:
Complete the “Conclusion” column for questions 3 - 5 on the Organization Analysis
Worksheet on page 159.

MEMORANDUM
To: AJAX President
Subject: PRODUCTION COST MEETING
As we discussed in our meeting last week, these are our major cost concerns:
1. Cost of product. This has been rising steadily, over time, but hardly
faster than the cost of paper and shipping. (In fact, our labor cost as a
percent of total cost has declined over the past five years through
increased automation and work design.)
However, a major area for improvement is in the basic design of new

courses (and revisions of old courses) to make them less expensive to
manufacture. Our new course, P104, is a case in point. If Production
had been involved in the design of the course (its presentation, not
content) the cost to manufacture the product could have been 25-30%
less.
2. Cost of handling the product. Our problem is that the field sales
organization does not respect our lead requirements for order time (we
need 30 days, they give us 5-10 days in many cases). Also, they
increasingly want mixes in the orders (e.g., ten of P100 and ten of
P101, which is below our standard order size of 20 units). In some
cases, the field wants parts of P100 and P104 combined. The result of
all these expectations is special handling. The result of the short lead
time also is special handling plus rush shipping by air rather than truck
or rail. This alone is becoming increasingly expensive.
3. Cost of inventory. As you know, our inventory costs are high because
of all the product that was forecast in past years but has not sold. (Our
total unit forecasts are accurate, but the product mix estimates are way
off.) However, we have still managed to reduce our inventory costs
considerably this year by keeping new inventory as low as possible
and trying to print orders as they come in. Of course, this has
extended our ship time from ten days to three or four weeks in many
cases.

MEMORANDUM
To: AJAX President
From: V.P. Research and Development
Subject: SALES PERFORMANCE OF P104
I am as concerned as any one about the slow start we are experiencing with
P104. In that regard, there are three issues that I feel should be addressed in
the next staff meeting:
1. The lack of response/input from the field on new products. We

carefully solicited field input (both technical and sales) in the need for
and design of P104. The response from the field was nearly non-
existent.
2. The technical support people have received very little training in how to
support this new product, which is considerably different than our
traditional core courses (P100 – P102). This is a result of our training
budget being cut drastically just prior to product launch. (Which seems
to happen every time we launch a new product.)
3. Marketing has been required to do very little to market test, introduce

and support this new product. We have good people in marketing who
could be of assistance, but they really aren’t being effectively utilized
by the organization, and primarily the field organization.
Despite these problems, I want to point out again that Research and
Development did meet its objective to have the product designed and ready for
production in six months.

Management System
Management must keep the

organization aligned

VALUE CHAIN PERFORMANCE PLANNED AND MANAGED TEMPLATE

Implemented
VALUE CHAIN
A. Value Chain A. Plans Developed A. Plans Implemented A. “Performance A. Cause Determined A. Corrective
Expectations consistent 1. Primary Processes 1. Primary Processes Managed” Roles B. Appropriate Action B. Preventive
with Organization a. Process Effective Determined and Determined C. Sustaining
Requirements and Requirements for 2. Support Functions Understood
Customer expectations each Effective B. Performance Data
B. Value Chain I. Output Rqmts 3. Resources Available Available
Expectations and II. Operating 4. Management Systems C. Performance Data
priorities communicated Rgmts in Place Communicated/
and understood III. Resource B. Budgets Implemented Distributed
C. Value Chain Rqmts D. Data Monitored
Expectations translated b. Policies & Decision
into Primary Process Rules for each
and Function 2. Resources
Expectations a. Capital
b. Human Resources
c. Materials
d. Technology
3. Management Systems
B. Budgets Developed
Value Chain Performance Execution

ORGANIZATION PERFORMANCE PLANNED AND MANAGED TEMPLATE

Implemented
ORGANIZATION
A. Organization A. Plans Developed A. Plans Implemented A. “Performance A. Cause Determined A. Corrective
Expectations and 1. Organization System 1. Organization System Managed” Roles B. Appropriate Action B. Preventive
Strategy Consistent a. Value Chain Set Designed Determined and Determined C. Sustaining
with Super-System b. Organization 2. Primary Processes/ Understood
Requirements and Structure Set Value Chain Effective B. Performance Data
Realities 2. Primary Processes/ 3. Support Processes Available
B. Organization Value Chain Effective C. Performance Data
Expectations and a. Process 4. Resources Available Communicated/
Strategy communicated Requirements for 5. Management Systems Distributed
and understood each in Place D. Data Monitored
C. Organization b. Output Rqmts B. Budgets Implemented
Expectations and c. Operating Rgmts
Strategy translated into d. Resource Rqmts
Value Chain and e. Policies & Decision
Support Function Rules for each
Expectations 3. Support Processes
Requirements for each
a. Output Rqmts
b. Operating Rgmts
c. Resource Rqmts
d. Policies & Decision
Rules for each
4. Resources
a. Capital
b. Human Resources
c. Materials
d. Technology
Organization Performance Execution

MANAGEMENT DETAIL FOR AJAX
1
Management
Admin Field Ops

(Finance) Marketing R&D (Sales) Production
$ JAX
3 3 3 3 3
“It” Available 4
2 (New Product Development & Introduction)
Resources
“It” Sold
2 (Business Generation) 4 Customers
“It”
“It” Delivered
2 (Order Fulfillment)

THE PERFORMANCE PLANNED AND MANAGED SYSTEM

AND THE ORGANIZATIONAL HIERARCHY
ANY BUSINESS market/customer needs/competitor situation

b
a a a b a a a
Organization Process goals Process and
strategy and and resource function plans Performance Performance Corrective
goals articulated allocation set and budgets monitored analyzed action taken
and and
CEO
communicated communicated
approved
e
c . . .
Organization Process plans

Process goals,
plans, and
goals relevant to (systems and Performance Performance Corrective
budgets
VP/ process resources in monitored analyzed action taken
Process developed and
Owner communicated
communicated
. . .
d
Organization
Function (or sub
and process Function plans
process) goals,
plans, and Performance Performance Corrective
goals relevant to (systems and
Functional budgets monitored analyzed action taken
Manager function resources in
developed and
communicated
communicated . . .
Organization, f f f
process, and
function Job goals, plans
strategy and and budgets Job plans Performance Performance Corrective MARKET
First Line goals relevant to developed and operational monitored analyzed action taken
Supervisor job articulated communicated
and
. . .
communicated
Customers
ANY BUSINESS PROCESS
orders, requirements, and feedback

COMMON FAILURES OF MANAGEMENT SYSTEMS
a. One or more components of Performance Planned and/or Performance Managed

are missing or badly performed at any level. For example:
PERFORMANCE PLANNED
Expectations Set • Goals and Strategy not clearly
articulated and/or communicated
• Strategy not aligned with super-system
Plans Set and Resources/ • Plans and Budgets not adequate to
Support Requirements Determined accomplish stated goals and implement
strategy
Plans Operational • Adequate funds not released to
implement Plans
PERFORMANCE MANAGED
Performance Monitored • Appropriate Performance Data not
available
• Roles for who is to monitor what, when,
not clear
Deviations Analyzed and • Who responsible to analyze what, when,
Cause Determined not clear
Action Taken • What Action to be taken when not clear
• Who takes what Action, when, not clear
b. There is no link between Performance Planned and Performance Managed. Goals

and plans are set, but there is no monitoring of “actual” or systematic attempt to
close a gap between “plan” and “actual”. When plans goals and plans are
developed for the next period, there is no systematic “look-back” at what the
“actual” was for the past period.
c. Planning is not systematically linked “down” through the organization
d. Goals are not set for Processes before they are set for Functions, leading to sub-
optimization of the critical processes that deliver value.
e. Performance data is not systematically linked “up” through the organization.
f. It is not clear “who” does “what”, “when”, regarding monitoring performance data,
diagnosing deviation in performance and taking necessary action, at any level.
Beyond failures in the components of the Management System, there is always the real
problem of the actual content that flows across the components being flawed. (e.g., the
appropriateness of goals, the adequacy of plans and the accuracy and timeliness of
performance data.)

O9 Performance Design – Organization Level
AJAX MANAGEMENT CALENDAR (ANNUAL)
ANNUAL
1
JAX
2 3 8 9 10 11
Super
System
Review and Scan
AJAX Update 3 Performance
EXECUTIVE Year Goals, Goals, Plans
Review
TEAM Parameters & and Budgets
Annual
Assumptions Goals Set Finalized
Scan
Strategy
Performance,
Updated
Goals, Strategy
VC Priorities Process
& Priorities
Set Goals
Reviewed
Negotiated
Preliminary
4 5 7 Process
Process Goals
Budget
& Parameters
Negotiated
Communicated
(All Primary Process
PROCESS Processes Performance Steps 3
MANAGEMENT Reviewed through 8
TEAM Annual Goals Conducted
Set for Support
Planning Processes
Completed
Process Goals Functional
& Plan Goals Goals, Plans,
Reviewed Negotiated Budgets,
Function 6 Functional Communicated
Requirements Budget
Communicated Negotiated
Functional
FUNCTIONAL Goals Set
EXECUTIVES Plans Set
AND Budget
MANAGERS Developed
INDIVIDUALS

O9 Performance Design – Organization Level
AJAX MANAGEMENT CALENDAR (QUARTERLY – DAILY)
QUARTERLY MONTHLY WEEKLY/DAILY

19
JAX
12 15 20 24 28 29 32
Super
AJAX Performance
System Key Company, Key Process
EXECUTIVE Review Changes
Scan Process & Indicators Monitored
TEAM Communicated Trends Noted Trends Noted
Performance Function (ex. Sales (X Sold)
Review Questions Asked Questions Asked
Process Indicators and Product Shipped
Changes Monitored (X Delivered)
Required Review
Changes in Performance
Goals & Reviewed
Resources Answers
Made as 21 25 Reviewed
13 Required 16 Request
Cross- Reviewed &
Process Acted-on
Super Optimization Action Taken
PROCESS System Issues
MANAGEMENT Scan Resolved Process Key Process
Trends Noted
TEAM Process Changes Made Indicators
Questions Asked
Performance as Required Monitored
Review
Issues?
14 17 22 26 30 33
Deviations
Managed
FUNCTIONAL Key Function Questions Deviations
Issues Functional Key Function/
EXECUTIVES Job Indicators Asked Analyzed
Reviewed and Changes Made Job Indicators
AND Monitored Action Taken Action Taken
Resolved as Required Monitored
MANAGERS Assistance
Requested
18 23 27 31 34
Deviations
Job Changes Key Job Managed Key Job Deviations
INDIVIDUALS
Made as Indicators Action Taken Indicators Analyzed
Required Monitored Assistance Monitored Action Taken
Requested


RESULTS
LEVELS VA
C. Organization Results
1 2
Organization
Performance Planned
Pe
1
Va
Support
Processes

Process Perfo
earnings B. Process Results Planned
Market

resources
Suppliers material/
equipment
products/ Customers
CJI
services
Process
Research CPI
3
technology
Laboratories
customer orders
requirements &
feedback
4
Job
A. Job Results Performan
Planned
6
4

ANALYSIS SUMMARY (AJAX – CBI Scope)

CBI(s): Gaps in Results • AJAX goals and strategy not aligned with customer • Align Value Chain goals with Super-System reality. Specfically, set
“Is” “Should” expectations and competitive reality. New Product Development goals, Marketing and Sales, and
- Current products not meeting customer needs. Customer Order process goals consistent with market reality and
AJAX - Current order process not meeting customer customer expectations.
Market Share 48% 60% expectations. • Develop a Value Chain Management System, including a Super-
• Super-System not being systematically monitored. System monitoring system.
- Failing to detect changing customer expectations • Etc.
regarding product performance and order
processing and act accordingly.
- Failing to detect emerging customer competitive
advantages and react accordingly.
- Failing to detect developing critical resource issues
and act accordingly.
CPI(s): Gaps in Results • Internal cycle time and accuracy of order goals have never 4. Redesign the process (per the attached cross-functional
“Is” “Should” been linked to customer expectations and made explicit. “should” process map) .to meet customer expectations,
Product • The current process is incapable of consistently meeting including an order to delivery cycle time of six days and 100%
Delivered customer order cycle time expectations for a number of accurate shipments.
reasons, including: 5. Address all process disconnects identified in the “is” analysis
- Sales reps frequently hold orders and submit them 6. Implement the following recommendations to support the
at the end of the week. “should” process:
- Sales reps submit incomplete order forms, resulting a. Electronic order entry from sales rep laptop
in additional processing time and errors. b. New customer credit check done automatically as part
- Orders from new and existing customers both of order entry by sales rep
undergo credit checks. c. Orders go simultaneously to sales administration,
- Credit checks batched and done once a week. production, finance and shipping.
- Multiple order log-ins d. Lot size of one.
- Inventory cost pressures have resulted in a de e. Minimum order size of 10 units.
facto policy of “produce to order”. f. One demand printing of orders
Etc.. g. Etc..
------------------ -------------- --------------- ---------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------
Product • Products not meeting evolving customer needs. 1. Redesign the process (per the attached cross-functional
Available • Products on the verge of being non-competitive “should” process map) .to meet organization and customer
expectations,
2. Etc..
CJI(s): Gaps in Results Sales Rep Job

“Is” “Should” • Real-time entry of orders on laptops, using electronic order entry.
• New account credit checked on-line.
Product • Inventory checked on-line.
Delivered • Commissions not activated until order shipped.
• Receive weekly electronic order status report.
Sales Administration - Commissions
Etc..


usually,
a. “Requestor”?
b. Performer?
c. Organization?
Processing Systems.
a. Organization
b. Process
c. Job/Performer
Continued . . .

PERFORMANCE CONSULTING KEY POINTS (CONTINUED)
14. In the final analysis, an organization is a giant Value Creating System or machine.
In order to be effective the components of the machine/system must be aligned:
• Organization with the Super-System
• Value Chain with the Organization
• Processes with the Value Chain
• Jobs with Processes
15. Management must do the aligning of the Value Creating system.
16. A major source of poor organization performance is the misalignment and sub-
optimization of the Value Chain (“It” Available, “It” Sold, “It” Delivered) – a direct
result of the failure to manage this level of the organization.

Performance Design – Total System
TAB 6 - PERFORMANCE DESIGN – TOTAL SYSTEM
3 Job Level
• Explaining the Difference in
Performance
Process • Designing Poor Performance
4 Level
• AOP and Olympic Medals
• Modelling Business Units
Performance • Mapping the AOP
Design • PC Key Points
Organization
5 Level
Total
6 Framework
1 2 System
10
Performance Plan &
Department Design
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference

THE ANATOMY OF PERFORMANCE

earnings
Market

resources
Suppliers material/
equipment
products/ Customers
services
Research
customer orders
requirements &
feedback

PERFORMANCE PLANNED AND MANAGED SUMMARY
REPLACE WITH 11X17


Expectations Set Plans & Budgets Set Plans & Budgets Performance Deviations Analyzed Action Taken
Implemented Monitored
ORGANIZATION
Expectations and 1. Organization 1. Organization Managed” Roles B. Appropriate Action B. Preventive
Strategy Consistent System System Designed Determined and Determined C. Sustaining
with Super-System a. Value Chain 2. Primary Understood
Requirements and Set Processes/ Value B. Performance Data
Realities b. Organization Chain Effective Available
B. Organization Structure Set 3. Support C. Performance Data
Expectations and 2. Primary Processes/ Processes Communicated/
Strategy Value Chain Effective Distributed
communicated and a. Process Rrmts 4. Resources D. Data Monitored
understood for each Available
C. Organization i. Output 5. Management
Expectations and Rqmts Systems in Place
Strategy translated ii. Operating B. Budgets Implemented
into Value Chain Rgmts
and Support iii. Resource
Function Rqmts
Expectations iv. Policies &
Decision
Rules for
each
3. Support Processes
a. Process Rqmts
for each
i. Output
Rqmts
ii. Operating
Rgmts
iii. Resource
Rqmts
iv. Policies &
Decision
Rules for
each
4. Resources
a. Capital
b. Human
Resources
c. Materials
d. Technology
5. Management
Systems
VALUE CHAIN
Expectations 1. Primary Processes 1. Primary Managed” Roles B. B. Appropriate B. Preventive
consistent with a. Process Rqmts Processes Determined and Action Determined C. Sustaining
Organization for each Effective Understood
Requirements and i. Output 2. Support Functions B. Performance Data
Customer Rqmts Effective Available
expectations ii. Operating 3. Resources C. Performance Data
B. Value Chain Rgmts Available Communicated/
Expectations and iii. Resource 4. Management Distributed
priorities Rqmts Systems in Place D. Data Monitored
communicated and iv. Policies & B. Budgets Implemented
understood Decision
C. Value Chain Rules for
Expectations each
translated into 2. Resources
Primary Process a. Capital
and Function b. Human
Expectations Resources
c. Materials
d. Technology
3. Management
Systems
PROCESS
A. Process A. Plans Developed A. Plans Implemented A. “Performance A. Cause Determined A. Corrective
Expectations linked 1. Process Design 1. Process Designed Managed” Roles B. Appropriate Action B. Preventive
to Organization, And Improvement And/Or Improved Determined and Determined C. Sustaining
Value Chain and 2. Process Inputs 2. Process Inputs Understood
Customer 3. Process Resources Met B. Performance Data
Expectations 4. Policies And 3. Process Available
B. Process Goals Decision Rules Resources C. Performance Data
Communicated to 5. Process Support Available Communicated/
Functions and Jobs 6. Roles/Jobs 4. Policies And Distributed
C. C. Process Goals 7. Management Decision Rules In D. Data Monitored
translated into System Place
Function and Job B. Budgets Developed 5. Processes
Goals and Supported
C i t d 6 N


REPLACE WITH 11X17

Expectations Set Plans & Budgets Set Plans & Budgets Performance Deviations Analyzed Action Taken
Implemented Monitored
ORGANIZATION
Expectations and 1. Organization 1. Organization Managed” Roles B. Appropriate Action B. Preventive
Strategy Consistent System System Designed Determined and Determined C. Sustaining
with Super-System a. Value Chain 2. Primary Understood
Requirements and Set Processes/ Value B. Performance Data
Realities b. Organization Chain Effective Available
B. Organization Structure Set 3. Support C. Performance Data
Expectations and 2. Primary Processes/ Processes Communicated/
Strategy Value Chain Effective Distributed
communicated and a. Process Rrmts 4. Resources D. Data Monitored
understood for each Available
C. Organization i. Output 5. Management
Expectations and Rqmts Systems in Place
Strategy translated ii. Operating B. Budgets Implemented
into Value Chain Rgmts
and Support iii. Resource
Function Rqmts
Expectations iv. Policies &
Decision
Rules for
each
3. Support Processes
a. Process Rqmts
for each
i. Output
Rqmts
ii. Operating
Rgmts
iii. Resource
Rqmts
iv. Policies &
Decision
Rules for
each
4. Resources
a. Capital
b. Human
Resources
c. Materials
d. Technology
5. Management
Systems
VALUE CHAIN
Expectations 1. Primary Processes 1. Primary Managed” Roles B. B. Appropriate B. Preventive
consistent with a. Process Rqmts Processes Determined and Action Determined C. Sustaining
Organization for each Effective Understood
Requirements and i. Output 2. Support Functions B. Performance Data
Customer Rqmts Effective Available
expectations ii. Operating 3. Resources C. Performance Data
B. Value Chain Rgmts Available Communicated/
Expectations and iii. Resource 4. Management Distributed
priorities Rqmts Systems in Place D. Data Monitored
communicated and iv. Policies & B. Budgets Implemented
understood Decision
C. Value Chain Rules for
Expectations each
translated into 2. Resources
Primary Process a. Capital
and Function b. Human
Expectations Resources
c. Materials
d. Technology
3. Management
Systems
PROCESS
A. Process A. Plans Developed A. Plans Implemented A. “Performance A. Cause Determined A. Corrective
Expectations linked 1. Process Design 1. Process Designed Managed” Roles B. Appropriate Action B. Preventive
to Organization, And Improvement And/Or Improved Determined and Determined C. Sustaining
Value Chain and 2. Process Inputs 2. Process Inputs Understood
Customer 3. Process Resources Met B. Performance Data
Expectations 4. Policies And 3. Process Available
B. Process Goals Decision Rules Resources C. Performance Data
Communicated to 5. Process Support Available Communicated/
Functions and Jobs 6. Roles/Jobs 4. Policies And Distributed
C. C. Process Goals 7. Management Decision Rules In D. Data Monitored
translated into System Place
Function and Job B. Budgets Developed 5. Processes
Goals and Supported
C i t d 6 N

EXPLAINING THE DIFFERENCE IN PERFORMANCE

All external factors being equal, 95% of the difference in measurable output between two units* in
the same organization, can be explained by the variables and requirements identified in the
Anatomy of Performance.
AOP Requirements Unit A* Unit B*

a. Mission/Vision
b. Strategy
c. Business Model
d. Goals
b. Clear
Organization
a. Goals Aligned
a. In Place
c. Being Executed
a. In Place
c. Being Executed
a. In place
c. Being Executed
a. In Place
c. Being Executed
b. Clear
c. Communicated
Process

a. In Place
c. Being Executed
a. In Place
c. Being Executed
b. Clear
c. Communicated
Job/Performer

a. In Place
c. Being Executed
a. In Place
c. Being Executed
*Units might be plants, stores, sales districts, departments, call centers, supervisors, sales reps or
customer service reps

DESIGNING POOR PERFORMANCE
If you want to create “low morale” and poor results in an organization.
1. Provide no clear or consistent direction on where the organization is going or why.
2. Make it unclear who is responsible for doing what, when.
3. Have unclear and inconsistent expectations for employees.
4. Provide negative or inconsistent consequences for doing what the employee thought
they were supposed to do.
5. Provide positive consequences for doing an inadequate or incomplete job.
6. Provide no specific, objective, or timely information on how well employees are

performing.
7. Be unclear or inconsistent on how things are done.
8. Always be short on time, tools, and material to do the work.
9. Make it impossible for employees to get clear direction or decisions from their bosses
(because of all of the above).
10. Don’t hold anyone accountable for performance- at any level.
11. Do not fully prepare employees to be competent at their job, thereby setting them up
for abuse from con-workers, bosses, and customers.
12. When employees ask for direction and assistance, tell them that it is their
responsibility to solve the problem or to “work it out”. (You might even mention that
they are empowered to do so.)
In short, really screw-up the Anatomy of Performance.

Application of the
Anatomy of Performance Framework to
Building a World-Class
Olympic Swim Team*
*Excerpted from
“From ‘Scratch’ to ‘Qualified
Olympic athletes in Athens 2004’:
The Olympic Road to Performance
Improvement”
Michiel Bloem and Arnoud Vermei
Source: Performance Improvement: page 7, Volume 44, Number 6, July, 2005, International
Society for Performance Improvement

THE NINE PERFORMANCE VARIABLES WITH QUESTIONS
GOALS DESIGN MANAGEMENT

ORGANIZATION GOALS ORGANIZATION DESIGN ORGANIZATION MANAGEMENT
• Has the organization’s strategy/direction been • Are all the relevant functions in place? • Have appropriate function goals been set?
articulated and communicated? • Are all functions necessary? • Is relevant performance measured?
• Does this strategy make sense, in terms of • Is the current flow of inputs and outputs • Are resources appropriately allocated?
ORGANIZATION external threats and opportunities and internal between functions appropriate? • Are the interfaces between functions being
strengths and weaknesses? • Does the formal organization structure managed?
LEVEL • Given this strategy, have the required outputs support the strategy and enhance the
of the organization and the level of efficiency of the system?
performance expected from each output been
determined and communicated?
PROCESS GOALS PROCESS DESIGN PROCESS MANAGEMENT

• Are goals for key processes linked to • Is this the most efficient/effective process • Have appropriate process sub goals been
customer/organization requirements? for accomplishing the Process Goals? set?
PROCESS LEVEL • Is process performance managed?
• Are sufficient resources allocated to each
process?
• Are the interfaces between process steps
being managed?
JOB GOALS JOB DESIGN JOB MANAGEMENT
• Are job outputs and standards linked to • Are process requirements reflected in the • Do the performers understand the Job
process requirements (which are in turn linked appropriate jobs? Goals (outputs they are expected to
to customer and organization requirements)? • Are job steps in a logical sequence? produce and standards they are expected
• Have supportive policies and procedures to meet?)
been developed? • Do the performers have sufficient
• Is the job environment ergonomically resources, clear signals and priorities, and
sound? a logical job design?
• Are the performers rewarded for achieving
JOB/PERFORMER Job Goals?
LEVEL • Do the performers know if they are meeting
the Job Goals?
• Do the performers have the necessary
knowledge and skill to meet the Job Goals?
• If the performers where in an environment
in which the five questions listed above
were answered “yes,” would they have the
physical, mental, and emotional capacity to
achieve the Job Goals?
From Improving Performance – How to Manage the White Space on the Organization Chart by Geary Rummler and Alan P. Brache, 1990.

In order to understand the current situation we analysed performance at three levels

(Rummler & Brache, 1995). We had expert meetings with athletes, board members of the
Dutch Olympic Committee and the Dutch Swimming Federation and “Team van den
Hoogenband”, two times Olympic gold winner in the Sydney 2000 Olympic Games. We
discovered performance barriers at all three levels of performance, including:
• Organisation level: the Dutch Swimming Federation had no clear strategy to

develop talent to the highest standards. In the mindset of the federation executives
elite swimming was a responsibility of local swimming clubs. Occasional
successes were the result of coincidence involving exceptional talented coach
meeting the exceptional young talent at the club level by chance. Despite a very
successful exception to this rule –the private swim initiative built around Olympic
gold medallist Pieter van den Hoogenband – no comparable initiatives had been
launched or supported;
• Process level: Federation and Swimming Clubs organised around key functions
(i.e. Technical Training, Facilities, Medical support, Communication). Though
policies were in place to optimise performance within these functions, we found no
structures in place to manage performance cross-functionally;
• People level: athletes considered achieving A-status (Dutch Olympic standard to
receive a financial income) as the most important goal. There was a lack of career
perspective within the swim coach profession; current swim coaches were only
involved in water training. Very limited attention was given to land training and the
application of other fields like mental training and education for athletes.

TSA Performance design

Goals Design Management
Organisation O ly mpi c Swi mm in g
final s i n A th ens 2004
Functi on s i n TSA : TSA Managm e nt team
Me dic al TSA A dvisory Board
Oly m pic me dals in Phys ic al /training
Be ijin g 2008
Nutr ition
Me ntal
Logi stic s
Comm uni cation &
rel ationship m gt.
Process L agging i ndi cator s:

Oly m pic li m its, Euros
Ke y pr oces se s i n TSA :
Traini ng
K ey proce ss es
m anage d by a structure
rais ed of proce ss team s and
Comm uni cation
L eadin g indic ators : proce ss owners
Fundraisi ng
sc ore s in ph ys ical
he al th te sts, # injurie s,
l enght of spons or longlist
Indi vidual Individual A thle te Pe rformanc e
Resource pe rform ance goal s tr ai nin g/ studyi ng Manage m ent (E XA CT )
program s

Modeling Business Units

(or Distributed Operations)
Variability indicates
opportunity for performance
improvement

PDL BUSINESS UNIT MODELING METHODOLOGY
APPLIED TO….
MANUFACTURING PLANTS
• Ford
• Frito-Lay
• Motorola
• Warner-Lambert
RETAIL OUTLETS
• Calico Corners
• Eckerd Drugs
• Farmer Jack’s
• Federated
• Gino’s
• Montgomery Ward
• Pizza Hut
• Sherwin-Williams
PROPERTIES
• Holiday Inn
• Marriott
DISTRICTS
• Capital Holding Corporation
• Public Finance
COMPANY
• North Carolina Trust Company
• Hylsa Steel (Grupo Alfa – Mexico)
• AG Consulting

LIST OF DIMENSIONS THAT MIGHT* 7 BE MODELED

FOR AN ORGANIZATION
1. The Super-System
2. Variables
3. Assumptions
4. A Market Model
5. Variables
6. Assumptions
7. Strategy (or how we plan to achieve a sustainable competitive advantage).
8. Product/Services to be offered.
9. Organization of the Value Creation System to achieve competitive advantage
(including decisions about organizing by LOB’s, etc.)
10. Much more
11. Physical layout
12. Economic Model
13. Revenue (by product/service, customer, etc.)
14. Cost (by…..)
15. Profiles of Key Roles
16. Outputs and accountabilities
17. Measures
18. Roles/responsibilities for key interfaces
19. Critical HPS components
20. Competencies (?)
21. Profiles of Key Processes
22. Process Outputs
23. Process Steps
24. Process measures
25. Role/responsibility matrices
26. Key process step definition
28. Process steps
29. Measures
30. Roles/responsibilities (Management Calendar)
31. Performance Tracking System
32. Staffing Models
33. By Role and Situation
34. Performance Logic Map(s)
35. Leadership/Management Models
36. Relationship to external functions of the organization
* Each dimension modeled represents a set of variables that impact performance of the
organization unit. Not all dimensions will be appropriate for any given type of business
Modeling Business Units

(or Distributed Operations)
Medical Supply Example

MEDICAL SUPPLY EXAMPLE

Key Relationships
“IS” situation: Optimal situation:

Major variability in performance Small variability in District
District and operation mode performance and operation mode
District
District District
District
RVP Role District
District District
District
District
Failing Sub-par Moderate Good Better Best Failing Sub-par Moderate Good Better Best
“IS” Variability Between Districts “Optimal” Variablity Between Districts

“IS” situation: Optimal situation:

Major variability in performance Small variability in District
District and operation mode performance and operation mode District
District
District
District District
6 7 8 9
District
RVP Role
District
District Assess each Develop Manage
District against individual movement
District model. District plans toward optimal
Do “gap” to move
analysis toward optimal
Start
Research & Design Implementation
1 2 3 4 5
Determine Analyze Build models Pilot models or Finalize

desired exemplary of optimal components of Models*
“Medtronic units & Districts. models in
Way” performers. •Operations select Districts
Work with Factors behind •Roles
Dan & select “optimal” •Process
managers. understood. •Economics *Provision for continuous improvement.
•Staff Could designate three Districts for
•Management continuous research and testing of new
System approaches

KEY RELATIONSHIPS
Districts (93)
DM Role
Admin / Scheduling Role Practice

Scheduling Process
Practice
District Management Process
Admin
Hospital/
Account
Sales CS Manager Role Referring
Team Physician
Role Hospital
Admin
SR Role TFE Role CS Role
Implanting
Physciam
Sales Process
Delivery Process Clinical Buying Process
Support Process Economic Buying Process


Dimensions of the Sales District to be Modeled
1. Economic Models for District, Territory, Team and Accounts

a. Budget Profiles
i. Sales by product
ii. Costs
2. Profiles of key roles (including Team roles)
a. Outputs and accountabilities
b. Measures
c. Roles/Responsibilities for key interfaces
d. Critical Human Performance System (HPS) components
e. Competencies
3. Profiles of key processes
a. Process outputs
b. Process steps
c. Process measures
d. Role/Responsibility matrices
e. Key process step definition
a. For District, Territory, Teams, Key Roles, Accounts
b. Will include
i. Process Steps
ii. Measures
iii. Roles/Responsibilities (Management Calendar)
5. Staffing models
a. Number of individuals in key roles
6. Performance Variable Map, identifying variables key to District success and their
relationship
7. Key external (to the District) interfaces impacting Sales Organization performance
a. New Product Development
b. Marketing
c. TSS Organization
d. FCE Organization

MAPPING THE ANATOMY OF PERFORMANCE
Super-System Map
(O5)
Management Calendar
(O9)
Function Relationship
Map
(O6)
earnings
Capital shareholder
Market capital Management System value
Shareholders Process versus
Function Map
(P6)
resources Cross-Functional
Value Chain Map
(O7)
Suppliers material/
equipment
products/ Customers Cross-Functional
services Process Map
Research
technology (P5)
Laboratories
Role/Responsibility
customer orders
requirements & Matrix
feedback (J8)
Job Model
(J6)
Human Performance
System Template
(J5)


usually,
a. “Requestor”?
b. Performer?
c. Organization?
Processing Systems.
a. Organization
b. Process
c. Job/Performer

PERFORMANCE CONSULTING KEY POINTS (CONTINUED)
14. In the final analysis, an organization is a giant Value Creating System or machine.
In order to be effective the components of the machine/system must be aligned:
• Organization with the Super-System
• Value Chain with the Organization
• Processes with the Value Chain
• Jobs with Processes
15. Management must do the aligning of the Value Creating system.
16. A major source of poor organization performance is the misalignment and sub-
optimization of the Value Chain (“It” Available, “It” Sold, “It” Delivered) – a direct
result of the failure to manage this level of the organization.
17. Variability in performance is the performance consultant’s friend. It indicates an
opportunity for performance improvement.

Performance Analysis – Process &
Tools
Performance Analysis– Process & Tools
TAB 7 – PERFORMANCE ANALYSIS – PROCESS & TOOLS
3 Job Level
Process
4 Level • Results Improvement Process
Performance • Tools
Design
Organization
5 Level
Total
6 Framework
1 2 System
10
Performance Plan &
Department Design
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference

THE RESULTS IMPROVEMENT PROCESS (RIP)
I
II III IV
DESIRED
Request for BARRIERS CHANGES RESULTS
RESULTS
"Help" or an DETERMINED DESIGNED, EVALUATED &
DETERMINED
Opportunity & CHANGES DEVELOPED & MAINTAINED
& PROJECT
SPECIFIED IMPLEMENTED OR IMPROVED
DEFINED
Why the Gap
How are we
What and in Results & Did we Close
Closing the
Where is the What is the Gap in
Gap in
Gap in Results Required to Results
Results?
Close it?

SERIOUS PERFORMANCE CONSULTING TOOLKIT

Phase & Level Name Tool Page
# #
I Problem Pentagon PM1 208
Project Definition Document (PDD) PM2 210
Variables and Requirements Impacting PM3 217
Generic Data Sweep Model PM4 218
Data Sweep Template PM5 219
II Planning Data Gathering Planning Worksheet PM6 221
Interview Guidelines PM7 223
Analysis Summary Template PM8 224
Job Level Job Results Template J1 226
Job Analysis Worksheet J2 227
Job Analysis Question Guide J3 228
Is/Should Job Level Worksheet J4 229
Human Performance System Template J5 230
Job Model Template J6 231
Job Performance Planned and Managed Template J7 232
Role/Responsibility Matrix Template J8 233
Analysis Summary – Job Level J9 234
Process Level Process Results Template P1 236
Process Analysis Worksheet P2 237
Process Performance Planned and Managed P3 238
Template
Cross-Functional Process Map Template P4 239
Process “Disconnect” and “Root-cause” Guide P5 240
Process versus Function Map Template P6 241
Results/Measures Chain Template P7 242
Process Redesign Strategy Guide P8 243
Analysis Summary – Process Level P9 244
Organization Organization Results Template O1 246
Level Organization Analysis Worksheet O2 247
Organization Performance Planned & Managed O3 248
Template
Value Chain Planning and Management Template O4 249
Super-System Map Template O5 250
Functional Relationship Map Template O6 251
Cross-functional Value Chain Map Template O7 252
Value Chain Analysis Worksheet O8 253
Management Calendar Template O9 255
Analysis Summary – Organization Level O10 256
Analysis Summary – Phase II O11 257
III Macro Design & Implementation Template PM9 260

RESULTS IMPROVEMENT PROCESS

Insert 11x17
I II III IV
Request for Desired Results Barriers Changes Designed Results Evaluated &
“Help” or an
Determined & Determined & Developed & Maintained or
Opportunity Project Defined Changes Specified Implemented Improved
I Ii III IV
PROCESS
DESIRED RESULTS DETERMINED BARRIERS DETERMINED AND CHANGES DESIGNED, DEVELOPED, RESULTS EVALUATED AND
PHASES
AND PROJECT DEFINED CHANGES SPECIFIED AND IMPLEMENTED MAINTAINED OR IMPROVED
Objective • Determine if there is a significant • Determine what variables in the • Design, develop and implement the • Determine if the Results Gap has
Results Gap to be closed Anatomy of Performance must be interventions necessary to close been closed and if not what must
• Determine the Point of Entry (CJI, addressed to close the Results Gap the Results Gap and assure be done to do so
CPI, CBI) • Specify the changes required in the continuous improvement
• Determine the feasibility of closing Anatomy of Performance variables
the Results Gap to close the Results Gap
• Prepare a Project Plan and
Proposal for closing the Results
Gap
Outputs • Project Definition Document • Job, Process and or Organization Implemented Changes Continuously Improved Performance
• Project Plan Analysis Worksheets
• Proposal • Macro Design and Implementation
Plan
Major 1. What and where is the Gap in Why the Gap in Results and what is How are we closing the Gap in Did we close the Gap in Results?
Questions Results? required to close if ? Results?
to Answer 2. Is the Gap significant?
3. Is it feasible to close the Gap?
I II III IV
CBI
“What’s
Scope and
happening or not Project Design CPI
Hypothesis
happening ...?
CJI
Out

RIP PHASE I
Replace with 11x17
Requestor “ - - - -“ “ - - - -“ “ - - - -“
3
“Can I go Look?”
1 Go to Phase III
5
Request for X content
2
O analysis P/O Clarification 8 10 11
4 9
“What’s happening P Constraints
or not happening Data Gathering & Project Plan &
Hypo I ? Hypo II ?
Analysis Strategy Proposal
that suggests ‘X’?” J/P 7 Results Gap/Chain
Resource ? AOP Details
Bail Bail
Go To 6
Phase III
• Problem Pentagon (PM1) • AOP Variables & • Data Sweep Model (PM4) • Project Definition
Tools • Project Definition Requirements (PM3) • Data Sweep Template Document (PM2)
Document (PM2) (PM5)
1. At what level are things not 7. Need more info

happening? 8. Next cut at
2. First cut at - where AOP Broken
- Where AOP Broken - Likely solutions
Notes - Likely solutions 9. Last Chance to . . .
3. “I believe I can help , but 10. This is how we plan to
need more info”. undertake our investigation.
4. Moment of Truth Project Design
5. Path E 11. The Assumptions & Plan
6. Path D

PHASE II – BARRIERS DETERMINED AND CHANGES SPECIFIED

POINT OF DATA SWEEP I DATA SWEEP II DATA SWEEP III DATA SWEEP IV “SHOULD” SPECIFICATIONS
ENTRY
• Relevant AOP • Business Unit and Value • Processes analyzed • Critical Jobs • “Should” design
confirmed/identified Chain(s) analyzed • Management systems analyzed specifications developed
• Relevant Super-System, • Critical processes and analyzed for
Business Unit, Value management systems - Value Chain
Chain(s) understood confirmed/identified for - Process(es)
CBI • Critical Value Chains, analysis - Process
Processes, and Management
Management Systems Systems
identified for analysis - Critical Jobs
• Results Gap and impact
confirmed
• Evaluation criteria confirmed
• Relevant AOP • Process(es) analyzed • Value Chain issues • “Should” design
confirmed/identified • Process Management analyzed specifications developed
• Value Chain or Process Systems analyzed • Additional Process(es) for
understood • Additional Process(es) analyzed - Value Chain
• Results Gap and impact requiring analysis • Relevant Jobs analyzed - Process(es)
confirmed identified - Process
CPI • Results Chain Scope tested • Value Chain issues Management
• Process performance and requiring analysis Systems
design constraints identified - Critical Jobs
understood
• Related Processes identified
for possible analysis
• Relevant AOP • Relevant Jobs analyzed • Additional Jobs analyzed • “Should” Job
confirmed/identified • Additional Jobs requiring • Process(es) analyzed specifications developed
• Process context of Job analysis identified
understood • Process(es) requiring
• Results Gap and Impact analysis identified
confirmed
CJI • Job performance and design
constraints understood
• Related Jobs identified for
possible analysis
• Results Chain Scope tested

O11
ANALYSIS SUMMARY (PHASE II)

Organization

Process
OUTPUT OF PHASE II
CJI(s): Gaps in Results

Job/Performer

PM9
MACRO DESIGN AND IMPLEMENTATION PLAN TEMPLATE
PERIOD
RECOMMENDATION DIMENSION First Quarter Second Quarter Third Quarter Fourth Quarter
Month One Month Two Month Three
A. ///////// Activity
Cost
Impact
B. ///////// Activity
Cost
Impact
C. ////////// Activity OUTPUT OF PHASE II

Cost
Impact
D. ////////// Activity
Cost
Impact
E. ////////// Activity
Cost
Impact
1422-69-5.2.61

PHASE III – PHASE IV –

CHANGES DESIGNED, DEVELOPED & RESULTS EVALUATED AND MAINTAINED
IMPLEMENTED OR IMPROVED
• “Readiness” and “disruption” assessed • Results monitored

for each recommendation • Results communicated
• Implementation strategy developed • Management behavior monitored
• Solutions developed as specified in • Effective solutions institutionalized
Phase II • Ineffective solutions modified, evaluated
CBI • Solutions modeled and/or piloted as and institutionalized
appropriate
• Evaluation system designed
• Solutions implemented in accordance
with the implementation strategy
• Evaluation system implemented
CPI
CJI

I
II III IV
DESIRED
RESULTS
DETERMINED
& PROJECT
DEFINED
Why the Gap
How are we
Closing the
Gap in
Results?
Close it?

RESULTS IMPROVEMENT PROCESS PHASE I
REPLACE WITH 11X17
Requestor “ - - - -“ “ - - - -“ “ - - - -“
3
“Can I go Look?”
1 Go to Phase III
5
Request for X content
2
O analysis P/O Clarification 8 10 11
4 9
“What’s happening P Constraints
or not happening Data Gathering & Project Plan &
Hypo I ? Hypo II ?
Analysis Strategy Proposal
that suggests ‘X’?” J/P 7 Results Gap/Chain
Resource ? AOP Details
Bail Bail
Go To 6
Phase III
• Problem Pentagon (PM1) • AOP Variables & • Data Sweep Model (PM4) • Project Definition
Tools
• Project Definition Requirements (PM3) • Data Sweep Template Document (PM2)
Document (PM2) (PM5)
1. At what level are things not 7. Need more info

happening? 8. Next cut at
2. First cut at - where AOP Broken
- Where AOP Broken - Likely solutions
Notes - Likely solutions 9. Last Chance to . . .
3. “I believe I can help , but 10. This is how we plan to
need more info”. undertake our investigation.
4. Moment of Truth Project Design
5. Path E 11. The Assumptions & Plan
6. Path D

PM1 Serious Performance Consulting Workshop
TOOL 1 - THE PROBLEM PENTAGON

WH
T ER
W HA E
WH E
W HO
N
WORTH
WHAT Is There a Problem?

What do you observe that indicates there is a problem?
Unacceptable Response
Acceptable Response
Morale is low.
Reports are rarely submitted on time.
Probe further for identification of

For further analysis, ask:
deficiency:
What do you mean by rarely? 2 out of 10; Give me an example of what someone
5 out of 10? Can you give me a specific does that indicates to you that morale
number or range? is low.
How will you know when the problem is solved? (What will be different?)
Acceptable Response Unacceptable Response

Things will run smoother.
The accident rate will decline by X%.
The grievances will decrease by X
number.
The rejects will decrease by X%. Probe with:
The production will incrase by X%.
Customer complaints will be reduced What do you mean by smoother? That
by X%. is, if you have two departments one
Sales will increase by X dollars. running smoothly and one not so
The time required will be reduced by smoothly, how do you know the
X%. difference? What do you look at that
The index will reach objective. tells you there is a difference?
WHERE
How general a problem is it?
1. Where does it occur? (e.g.

region,department?
2. Is it restricted to a particular place
within the area?
3. Is that the only place it occurs?
4. Where doesn't it occur?

WHEN When is it a Problem?

What do you observe that indicates there is a problem?
1. When does it occur? (e.g.third shift, start-up, new product

introduction)
2. Does it always ocur at the same time?
3. When doesn't it occur?
4. How frequently does it ocur? (e.g., once a day, week, month,
year)
5. How long has this been a problem?
WHO Who is the Problem?
1. Who is the performer in question?
2. What is the desired performance?
3. What specifically is the performer doing
wrong?
Acceptable statement Unacceptable Response

PRESENT DESIRED PRESENT DESIRED
INCORRECT BEHAVIOR INCORRECT BEHAVIOR
BEHAVIOR BEHAVIOR
Not answering Answer customer Have poor Have good
customer questions or refer attitude toward attitude toward
questions. to supervisor who customer. customer.
can answer
questions
Probe with:
Assume we have two sales clerks, one

with what you describe as a good
attitude and one with a poor attitude. I
approach them as a customer. How
would each sales clerk respond.
4. Does the performer ever perform If YES, when?

correctly? If NO, has anyone ever performed
correctly?
WHO? WHEN? WHERE?
WORTH Is it Important?
1. Does the incorrect performance impact the following

The Product or Service? The Performer or his/her Department?
Quality Safety
Cost Ease of Work
Quantity Performance Measures
The Organization? Other Workers or Departments?
Procedures Safety
Image Ease of Work
Revenue Performance Measures
Profitability
2. How much is the problem costing the organization per year?
IS THE PROBLEM WORTH PURSUING?

PM2

I. BACKGROUND
Name: Cost of preparing initiative charged to:
Title:
Organization:
B. Sponsor of Initiative
Name:
Title:
Organization: E. Project Information
Date Request Received:
Date Decision Made:
C. Person Accountable for Initiative Project No:
Results Revision No:
Name:
Title:
Organization:

GAP IN RESULTS
CBI:
ORGANIZATION
CPI:
PROCESS
CJI:
JOB
INDIVIDUAL

III. BUSINESS CASE

A. Project Goals
Issues Current Performance Targeted Performance By When?
B. Project Benefits
1. How will this proposed project benefit the business?
- More revenues because:
- Less cost because?
- Other, because:
2. How will this/these benefit(s) be measured?

C. Projected cost of project
Costs to Provider Costs to Recipient

Organization Organization
1. Analysis
2. Design/Development
3. Production
4. Delivery
5. Initiative Maintenance/Support
Year One
Year Two
Year Three
6. Evaluation
7. Management Support
Year One
Year Two
Year Three
D. Potential Return of Project
Year One Year Two Year Three

Benefit
Cost
Net
Cumulative Net

IV. FEASIBILITY ASSESSMENT
A. Stakeholder Profile
Stakeholder Relationship to this How this Project may How they may impact
(group or project impact them (+/-) Project (+/-)
individual)
B. Other Organization Efforts / Initiatives that may Impact Performance Outcomes of

this Project
Effort/Initiative Potential Impact on this Project

C. Risk Analysis and Management
Project Phases Factors that represent a threat to the Action that will be taken to
success of this phase of the project minimize these risks
D. Project Constraints and Assumptions

1. What constraints limit the scope of the project?
2. What assumptions have been made regarding the scope and effectiveness of this
project?

V. ANALYSIS PHASE PROJECT MILESTONES
MILESTONE DATE
1. Project Introduction and Start-up
2. Commence Data Gathering
Data Sweep #1
Data Sweep #2
Data Sweep #3
Data Sweep #4
3. Interim Review
4. Presentation of Findings and

Recommendations

VI. PROJECT BUDGET
Activity Location Time Frame Staff Time

PL

PM4
SUMMARY OF VARIABLES AND REQUIREMENTS IMPACTING

ORGANIZATION, PROCESS AND JOB PERFORMANCE
VARIABLES REQUIREMENTS
1 2. Organization Direction aligned with Super-System
a. Mission/Vision
b. Strategy
1 2 c. Business Model
Organization 7 Organization d. Goals
Performance Planned Performance Managed 3. Value Chain Outputs and Requirements
1 a. Linked to Organization/Customer Requirements
b. Clear
6 a. Goals Aligned
Organization
Value Chain Value Chain

1 c. Adequate Capability
Value Chain 6A. Value Chain Performance Planned Component
a. In Place
Support 3 1 b. Linked and Aligned
Available c. Being Executed
5
Sold
5
Processes Delivered
4 6B. Value Chain Performance Managed Component

a. In Place
c. Being Executed
1 a. In place
c. Being Executed
a. In Place
c. Being Executed
6
Process Performance Process Performance 1. Process Outputs and Requirements are
Planned 6 Managed a. Linked to Organization and Customer Requirements
b. Clear
c. Communicated
Process

a. In Place
c. Being Executed
Process 6B. Process Performance Managed Component
Results a. In Place
3 1 b. Linked and Aligned
2 c. Being Executed

Job 9 Job a. Linked to Process, Organization and customer requirements
Performance Performance b. Clear
Planned Managed c. Communicated
3. Inputs/Triggers meet input standards and are recognizable by the
Job/Performer
performer
6
1 c. Being Executed
a. In Place
c. Being Executed

PM4 GENERIC DATA SWEEP MODEL

DATA FOCUS DATA GATHERING DATA ANALYSIS AND SOLUTION SPECIFICATION
SWEEP # OBJECTIVE CONCLUSIONS
(& TOOLS) (& TOOLS)
1 A. Business System 1. What is current 1. Confirm the Results Gap. Early hypotheses
1. Direction performance? 2. Determine variability, which
2. Performance Logic/ 2. How does the organization suggests where to look closer.
Variables work? 3. Determine Variables affecting
3. Economic Model Gap
4. Business Values (Super-System Map, Process 4. Identify processes impacting
B. Organization System Relationship Map, Function Variables and how.
1. Super-System Relationship Map, Cross- 5. Identify processes that appear
2. Organization Structure Functional Value Chain Map) broken
3. Value Chain
C. Management System (Organization Results Template,
1. I.Q. System (at Performance Logic Map, Economic
Organization Level) Model)
2 B. Organization System How target processes work and 1. Where are processes broken? Preliminary thoughts on what is
1. Processes how they are performing 2. Why are they broken? required to improve process
Contributing to the 3. What Jobs and Processes should performance.
Results Gap (Process Maps) be examined closer?
C. Management System
1. I.Q. System (at Process (Process Analysis Worksheet,
Level) Process Impact Matrix)
2. Management Culture
3. Leadership
3 B. Organization System 1. How target processes work 1. What Jobs and Processes should Draft recommendations for the
1. Jobs Contributing to and how they are be examined closer? “should”
the Results Gap performing. 2. Why poor performance of the 1. Organization Level
C. Management System 2. How relevant Jobs work and Jobs? 2. Process Level
1. I.Q. System (at Job how they are performing. 3. Why poor performance of the I.Q. 3. Job/Performer Level
Level) 3. How relevant I.Q. Systems Systems
D. Performer System work and how they are
performing. (Job Analysis Worksheet,
Role/Responsibility Matrix, HPS
Template, Is/Should Job Level
Worksheet
4 1. Clarifying Data 1. Validating Findings 1. Factor data into previous analysis Final recommendations for the
2. Testing Conclusions and 2. Test reactions to 2. Modify conclusions “should”
Preliminary conclusions and Preliminary 3. Specify changes required to 1. Organization Level
Recommendations Recommendations achieve desired Results 2. Process Level
Analysis Summaries – Organization, 3. Job/Performer Level
Process, Job

DATA SWEEP TEMPLATE
Changes Specified
Data Sweep One Data Analyzed (First
DATA SWEEP ONE Data Gathered
Planned Approximation)
Changes Specified
Data Sweep Two Client Update and
DATA SWEEP TWO Data Gathered Data Analyzed (Second
Planned Discussion
Approximation)
Data Sweep Three Client Update and Changes Specified

DATA SWEEP THREE Discussion Data Gathered Data Analyzed (Third
Planned
Approximation)
Client Update and Changes Specified

Data Sweep Four
DATA SWEEP FOUR Discussion Data Gathered Data Analyzed (Fourth
Planned
Approximation)
Final Phase &

PHASE II COMPLETED Presentation to
Client
1. Summary of Recommendations
2. 1.Feasibility
SummaryReview
of Recommendations
2.a.Feasibility
ReadinessReview
a. Readiness
b. Current Initiatives
3. ROI b. Analysis
Current Initiatives
& Prioritization
3. ROI Analysis
4. Recommendations & Prioritization
organized &
4.Macro
Recommendations
Implementationorganized
Plan &
Macro
developedImplementation Plan
developed
5. Recommendation Prototypes
5.developed
Recommendation Prototypes
as appropriate
developed as appropriate

I
II III IV
DESIRED
RESULTS
DETERMINED
& PROJECT
DEFINED
Why the Gap
How are we
Closing the
Gap in
Results?
Close it?
Data Gathering Data Gathering

& Analysis & Analysis
Strategy Execution

PHASE II – BARRIERS DETERMINED AND CHANGES SPECIFIED

ENTRY
confirmed
understood
confirmed
constraints understood
possible analysis

DATA GATHERING PLANNING WORKSHEET

Phase
Need to Learn the Following Likely Source of Data Method/Tools Comments

PM7 Performance Analysis– Process & Tools
INTERVIEW GUIDELINES
PRE-INTERVIEW PREPARATION – Describe:

✔ Purpose and objectives of project and interview
✔ Time guidelines for interview
✔ What questions will be asked, what data requested
✔ Clearance for access to data, copies of records
✔ Interview to take place at or near work area
INTRODUCTION – Describe:
✔ Who you are
✔ Purpose of project
✔ Purpose of interview
✔ How data will be used; confidentiality
✔ Time expectations
✔ How you want to proceed
✔ Note taking
DATA GATHERING:
✔ General to specific
✔ Don't interrupt
✔ Ask for examples, copies
✔ Give examples of what you want
✔ Flow chart or diagram information
✔ Re-state points to verify
✔ Ask for other data sources
✔ Reinforce interviewee for talking
END:
✔ Summarize what you learned
✔ State how interviewee was helpful
✔ Repeat how data will be used
✔ Get OK for future contact with interviewee or staff

PM8
ANALYSIS SUMMARY TEMPLATE
ANALYSIS SUMMARY TEMPLATE (And Related Tools)

OPPORTUNITIES FINDINGS (Barriers to RECOMMENDATIONS TOOLS
Desired Results) (Actions to Remove Barriers)
CBI(s): Gaps in Results • Organization Analysis Worksheet (O2)
“Is” “Should” • Organization PPMS Template (O3)
• Value Chain PPMS Template (O4)
Organization
• Super-System Map Template (O5)

• Functional Relationship Map Template (O6)
• Cross-Functional Value Chain Map
Template (O7)
• Management Calendar Template (O9)
• Analysis Summary – Organization Level
(O10)
CPI(s): Gaps in Results • Process Analysis Template (P2)

“Is” “Should” • Process PPMS Template (P3)
• Process “Disconnects” and “Root-cause”
Process
Guide (P4)
• Cross-Functional Process Map Template
(P5)
• Results/Measures Chain Template (P7)
• Analysis Summary – Process Level (P9)
CJI(s): Gaps in Results • Job Results Worksheet (J2)

“Is” “Should” • Job Analysis Question Guide (J3)
Job/Performer
• Is/Should Job Level Worksheet (J4)

• HPS Template (J5)
• Job PPMS Template (J7)
• Analysis Summary – Job Level (J9)

PHASE II – BARRIERS DETERMINED AND CHANGES SPECIFIED – CJI

ENTRY
confirmed
understood
confirmed
(J4) Is/Should Job Level Worksheet
constraints understood (J1) Job Results Template
(J5) Human Performance System Template
• Related Jobs identified for (J2) Job Analysis Worksheet
(J6) Job Model Template
possible analysis (J3) Job Analysis Question
(J7) Job Performance Planned and Managed
• Results Chain Scope tested Guide
Template
• Evaluation criteria confirmed (J4) Is/Should Job Level
(J8) Role/Responsibility Matrix Template
Worksheet
(J9)-Analysis Summary – Job Level
(J5) Human Performance
(PM2) Project Definition Document (PM9) Macro Design and Implementation Plan
System Template
(PM5) Data Sweep Template T l t
(J7) Job Performance Planned
(PM7) Interview Guidelines and Managed Template

JOB RESULTS TEMPLATE
Variables
Job PP 9 Job PM
5 1
6
7
4 C+-
Feedback 8
1
3 Results
Job 2
Requirements

d. Linked to Process, Organization and customer requirements
e. Clear
f. Communicated
a. In Place
c. Being Executed
a. In Place
c. Being Executed

J2
Job/Position:
JOB ANALYSIS WORKSHEET “Should” Job Result:
“Is” Job Result:
VARIABLES REQUIREMENTS CONCLUSION ACTION/COMMENT

Outputs 1. Job and Performer Outputs and Requirements are: Yes No ?
b. Clear and Communicated (Performer has performed as
required in the past.)
(Tasks are sequenced to optimize desired job outputs, minimize
task interference and performer fatigue, and maximize job
satisfaction.)
Output requirements.
Performer Capacity 5. Performer has necessary capacity (physical, mental and emotional)
to meet Job and Performer Output requirements.
Management System 9A. Job Performance Planned Component:
a. In Place
c. Being Executed
a. In Place
c. Being Executed

JOB ANALYSIS QUESTION GUIDE

VARIABLES REQUIREMENTS QUESTIONS
When possible, it is preferable to observe the job being performed, or if feasible, to perform parts of the job
yourself. In addition, ask exemplary and non-exemplary performers the following:
Outputs 1. Job and Performer Outputs and Requirements are: • How do you know what to do?
a. Linked to Process, Organization and customer • How do you know what is acceptable performance? Are there written standards anywhere?
requirements • Are the expectations consistent? If not, when not?
b. Clear • Are the expectations realistic? Do they make sense?
c. Communicated • How can you tell when you are doing the job correctly or incorrectly?
• Why is it important to perform the job as expected? What are the negative consequences of the
job not being performed as required?
Job Design 2. Job is designed to meet Job and Performer output As you observe or perform the job, ask yourself:
requirements • Could the job sequence be better designed?
• Are there competing tasks?
• Can the job environment be better designed to enhance performance of the job?
Inputs 3. Inputs/Triggers: • How do you know when you are to perform the various tasks expected of you?
a. Meet input standards • Is it reasonably clear when you are to perform the various tasks expected of you?
b. Are recognizable by the performer • Do the things you are to work on or respond to, vary a great deal?
Resources 4. Necessary Resources are available • Do you have everything you need to do this job accurately and in a timely manner?
• (Based on observation) Wouldn’t it be easier to do this job if you had……?
Performer 5. Performer has necessary capacity As you observe the job being performed, does the job seem to have particular physical, mental, or
Capacity emotional requirements? Does this seem to explain any of the differences between exemplar and non-
exemplar performance?
Performer K/S 6. Performer has necessary Knowledge and Skill The best way to answer this question is to observe the difference in performance of exemplar and non-
exemplar performers and ask each why they are doing certain tasks they way they are. Also ask
performers, “What are the critical things to know in order to do this job well? How did you learn them?” Ask
supervisors, “What do you see as the critical difference between exemplar and non-exemplar performers?”
Consequences 7. The Balance of Consequences supports the desired As you observe or perform the job, ask the incumbent:
Performer output • What happens to you/me when you/I do this task correctly? Incorrectly?
• What is the impact on the organization of you/me doing this task correctly? Incorrectly?
Feedback 8. There is adequate Feedback on outputs to the • How do you know when you are doing this job correctly? Incorrectly?
Performer • Are you able to understand what you need to change/do differently in order to perform correctly
the next time?
• Is the information you receive, timely enough? Specific enough? Frequent enough?
• How do you learn about the impact of doing this job correctly? Incorrectly?
Management 9A. Job Performance Planned Component: (The answers to the above questions should make it possible for you to reach the necessary conclusions
System a. In Place regarding this variable.)
c. Being Executed
9B. Job Performance Managed Component (The answers to the above questions should make it possible for you to reach the necessary conclusions
a. In Place regarding this variable.)
c. Being Executed

J4

DESIGN QUENCES
IS
SHLD
IS
SHLD
IS
SHLD
IS
SHLD

J5 Performance Analysis– Process & Tools
THE HUMAN PERFORMANCE SYSTEM TEMPLATE

IMMEDIATE DELAYED
+ +
– –
DESIRED
IMMEDIATE DELAYED
– –
UNDESIRED OUTPUT
INPUT/RESOURCES
available
PAD 3-014

J6
THE JOB MODEL TEMPLATE
JOB: Claim Supervisor

JOB PURPOSE: Claims Processing
ACCOMPLISHMENTS CRITICAL
SUB ACCOMPLISHMENTS DIMENSIONS MEASURES STANDARDS
CLAIMS QUALIFIED
• Loss Notice received • % of cases of Recovery potential • 75% of caes of Recovery Potential
identified
• Claim type identified Accuracy • % of coverage issues identified later
• Additional or corrected coverage
• Coverage determined • % of Loss Notices entered in correct
issues identified in less than 5% of
claim category.
– recovery potential identified cases
– legal trends identified & considered • All Loss Notices entered. Loss Notice
• Missing/Inaccurate information identified entries reported by claim category
Timeliness • Average Loss Notice processing/ • 15 min. per Loss Notice
• Claims progress tracked confirmation time
Accuracy • % of adequate justification of method • All method mix variances greater than
CLAIMS ASSIGNED mix variances greater than 5% 5% adequately justified
• Economic assignment determined
• Average size of outside assigned • Outside assigned claims $1000 or
– $ exposure estimated claims more
– Settlement variance potential estimated • % of cases coinspected/reinspected • 10% of cases
coinspected/reinspected
– Method option availability determined
Volume • # cases in caseload • Average caseload -25 cases

REP PROCESS SUPERVISED
Timeliness • Average settlement time • Average settlement time - 20 working
• Claim Progress Log reviewed
days
• Files reviewed as diaried
Accuracy • % of payout variance • Payout varience on post audit on asd
• Coinspections/Reinspection conducted as or less in no more than 2% of thsaer
scheduled cases
• Rep performance opportunities indentified Any Reps performing below werjerjewr
identified and appropxsdfa

JOB PERFORMANCE PLANNED AND MANAGED TEMPLATE

Implemented
JOB
A. Job/Tasks/ Behavior A. Plans Developed A. Plans Implemented A. “Performance A. Cause Determined A. Corrective
Expectations linked to 1. Job Design 1. Job Designed Managed” Roles B. Appropriate Action B. Preventive
Process, Value Chain 2. Performers Appropriately Determined and Determined C. Sustaining
and Function 3. Job Inputs 2. Performers Available Understood
Expectations 4. Performance Support - Number B. Performance Data
B. Job/Tasks/ Behavior Systems - Capacity Available
Goals communicated (Consequences, Tools, - Prepared C. Performance Data
and understood Feedback) (knowledge & Communicated/
C. Job/Tasks/ Behavior 5. Performance skill) Distributed
Expectations are Maintenance Systems 3. Job Input D. Data Monitored
Attainable (Benefits, Safety, Requirements Met
Compensation) 4. Performance Support in
6. Policies, Procedures and Place
Decision Rules - Consequences
7. Job Support - Feedback
8. Management System in - Job Aids
place - Tools/resources
B. Budgets Developed 5. Performance
Maintenance in Place
Compensation – Benefits
Safe Conditions
6. Policies, Procedures
and Decision Rules in
Place
7. Jobs Supported
Place
C +-
Job Performance Execution

J8
ROLE/RESPONSIBILITY MATRIX TEMPLATE
Cutomer Order Flow
Customer
Sales
Credit and
Invoicing
Production
Control
Cross-Functional Roles/Responsibilities Matrix

Function Sales Credit and Production Production Assembly
Process Invoicing Control and Shipping
Step
Order •
•
Taken •
Order
• •
Entered • •
• • •
•
•
Order
Processed
Functional Roles/Responsibilities Matrix
Function: Assembly and Shipping
Assembly and Shipping Roles

Assembly and and Responsibilities
Customer Order Shipping
Process Step Subprocess Steps Assembly Role Shipping Role Mgmt. Role
•
A. Order Recieved •
Order Assembled •
and Shipped •
B. Order Assembled •
•
Job Model
Job: Assembler
Outputs Critical Measures Standards Performance Support

Dimension Requirements
Incoming Order
Received & Reviewed

ANALYSIS SUMMARY – JOB LEVEL
ANALYSIS SUMMARY – JOB LEVEL

JOB: CJI: “IS” RESULTS: “SHOULD” RESULTS:
FINDINGS RECOMMENDATIONS

PHASE II – BARRIERS DETERMINED AND CHANGES SPECIFIED – CPI

ENTRY
confirmed
understood
(PM2) Project Definition Document
(PM5) Data Sweep Template
• Evaluation criteria confirmed (P1) Process Results Template
(PM7) Interview Guidelines
• Relevant AOP • Relevant • (P3) Process
• Performance Planned and
(P1) Process ResultsJobs analyzed
Template Additional Jobs analyzed “Should” Job
confirmed/identified • Additional
(P2) Process AnalysisJobs requiring
Worksheet • Process(es) analyzed Managed Templatedeveloped
specifications
(O4) Value Chain Planning and
• Process context of Job (P3) Process analysis identifiedPlanned
Performance (P7) Results Chain Template
Management Template
understood • Managed
and Process(es) requiring
Template (P8) Process Design Strategy Guide
(O7) Cross-functional Value Chain
• analysis identified
Results Gap and Impact (P4) Cross-Functional Process (J4) Is/Should Job Level Worksheet
Map Template
confirmed Map Template (J5) Human Performance System Template
(O8) Value Chain Analysis
CJI • Job performance and design (P5) Process “Disconnect” and (J6) Job Model Template
Worksheet
constraints understood “Root-cause” Guide (J7) Job Performance Planned and
(J1) Job Results Template
• Related Jobs identified for(P6) Process versus Function Map Managed Template
(J2) Job Analysis Worksheet
possible analysis (J8) Role/Responsibility Matrix Template
Template (J3) Job Analysis Question Guide
(J9) Analysis Summary – Job Level
• Results Chain Scope tested (J4) Is/Should Job Level
(PM9) Macro Design and Implementation
Plan Template
(P9) Analysis Summary – Process Level

P1
PROCESS RESULTS TEMPLATE
Variables
Process Performance Process Performance

Planned 6 Managed
Process
Results
3 1
2
Requirements

2. Linked to Organization and Customer Requirements
3. Clear
4. Communicated
1. In Place
2. Linked and Aligned
3. Being Executed
1. In Place
2. Linked and Aligned
3. Being Executed

P2 Process:
PROCESS ANALYSIS WORKSHEET “Should” Process Result:

Yes No ?
d. Linked to Organization and Customer Requirements
e. Clear
f. Communicated

Design
Resources 9. 4. Necessary Resources are available
Job Results 10. 5. Job Results as described in “A” for Job ………

System a. In Place
c. Being Executed

a. In Place
c. Being Executed

P3
PROCESS PERFORMANCE PLANNED AND MANAGED TEMPLATE

Implemented
PROCESS
A. Process Expectations A. Plans Developed A. Plans Implemented A. “Performance A. Cause Determined A. Corrective
linked to Organization, 1. Process Design and 1. Process Designed Managed” Roles B. Appropriate Action B. Preventive
Value Chain and Improvement and/or Improved Determined and Determined C. Sustaining
Customer Expectations 2. Process Inputs 2. Process Inputs Met Understood
B. Process Goals 3. Process Resources 3. Process Resources B. Performance Data
Communicated to 4. Policies and Decision Available Available
Functions and Jobs Rules 4. Policies and Decision C. Performance Data
C. Process Goals 5. Process Support Rules in Place Communicated/
translated into Function 6. Roles/Jobs 5. Processes Supported Distributed
and Job Goals and 7. Management System 6. Necessary D. Data Monitored
Communicated B. Budgets Developed Roles/Jobs in Place
7. Management System
in Place
Process Performance Execution

P4
CROSS-FUNCTIONAL PROCESS MAP TEMPLATE
CUSTOMER
Proposal Order Materials Invoice

accepted clarified received received
1 9 29 30
Credit
problem
resolved
FIELD OPERATIONS
SALES Order Order

REP completed submitted
2 3 13
order
order with credit issues

Order
ADMINISTRATION logged
4
order
order
7
Order Order No Order clarified Order
ORDER ENTRY OK with customer
logged checked corrected
5 6 ? 8 10
FINANCE
Yes
order
12 Order
Credit No Order Customer
CREDIT AND OK referred to
INVOICING checked Sales Rep entered invoiced
11 ? 14 15 27
Yes
Yes
18 Order
PRODUCTION Order Inventory Avail- No Print order scheduled
CONTROL logged checked able placed for Assembly
notice of shipment
16 17 ? 19 21
order filed
PRODUCTION
24
Production Materials Yes
PRODUCTION Special
scheduled printed
20 22 ?
No
Materials
pre- Order Order
assembled assembled shipped
23 25 28
ASSEMBLY
AND SHIPPING
Specials
picked and
assembled
26
88-607

PROCESS DISCONNECTS* AND “ROOT-CAUSE” GUIDE

The failure of a process to perform as required may result from one or more of the
potential “disconnects” in column one, below. The location of the likely cause of that
disconnect, and its subsequent correction, is indicated in columns two through four.
PROCESS PERFORMANCE
PROCESS MANAGEMENT SYSTEM
POTENTIAL DISCONNECTS
DESIGN PERFORMANCE PERFORMANCE
PLANNED MANAGED
ORGANIZATION LEVEL
31. Organization Goals X X
32. Organization Business Model X
33. Organization Strategy X X
34. Process Goals and Requirements X X
35. Organization Priorities X X
36. Value Chain Alignment X X
37. Operating Policies X X
38. Functional measures, goals and rewards X X
39. Reporting Relationships/Organization Structure X
40. Business Values and Practices X X
41. Resource Availability and Allocation (Capital, X X
Human Resources, Material/Equipment,
Technology, Facilities)
PROCESS LEVEL
43. Process Strategy X X
44. Process Priorities X X
45. Process Flow, including X X
a. Batch versus continuous flow X X
b. Serial process flow versus parallel X X
c. Unnecessary (non-value added) steps X X
d. Redundant (non-value added) steps X X
e. Bottleneck operation X X
46. Missing, sub-standard input from another X X X
process
47. Unclear or conflicting specification of process X X
output
48. Underlying Business Models X X
49. Decision Rules X X
50. Lack of information on process step performance X X X
51. Resource availability and allocation for process X X X
steps
52. Not clear who is responsible to Perform, Manage X X X
or Support a process step
JOB/PERFORMER LEVEL
54. Performance Expectation not clear X X
55. Job Design not supportive X X
56. Job Support (resources, tools) not adequate X X X
57. Consequences not supportive X X X
58. Feedback on performance not adequate X X X
59. Performer not adequately trained X X X
60. Performer does not have basic capacity to X
produce required outputs.
* Disconnect: Any deficiency in the process that negatively impacts the
effectiveness and efficiency of the process.

P6
PROCESSES AND FUNCTIONS
AJAX
Management
RESOURCES
$ Jax
“It” Available
( New Product Development
& Introduction)
MARKET
“It” Sold
( Business Generation
)
Customers
( Order Fulfillment
)

P7 Performance Analysis– Process & Tools
MEASURES CHAIN
End-of-Sub-Process Measures End-of-Process Measures Related
(M2) (M/I) (M/E) Enterprise
Measure
Company Customer
Quality Quality
Variable
M1 Measure
Variable Variable
M2 Measure M1 Measure
Time Time
$ $
Other Critical Other

Dimensions
Sub-
process
Inputs: Sub- Sub- Sub- Sub- Outputs: To:

Triggers Process Process Process Process
Outputs: Outputs: Outputs: Outputs:

PROCESS REDESIGN STRATEGIES
“Is" Process
X
X
X
X
X
Disconnects
CPI/Project Assumptions/
Goals Constraints
“SHOULD” DESIGN Stakeholder

CBI
SPECIFICATIONS “Wants/
Needs/
Wishes”
Yes Fix No
Disconnects
OK?
Fix Radical
Disconnects Redesign
Evaluate Process
Against:
• “Should” Design
Specs
• Disconnect List

P9
ANALYSIS SUMMARY – PROCESS LEVEL
ANALYSIS SUMMARY – PROCESS LEVEL

PROCESS: CPI: “IS” RESULTS: “SHOULD” RESULTS:

PHASE II – BARRIERS DETERMINED AND CHANGES SPECIFIED – CBI
ENTRY
identified for analysis (J1) Job Results Template - Critical Jobs
(J2) Job Analysis Worksheet
(J3) Job Analysis Question
confirmed
Guide
(J4) Is/Should Job Level
• Relevant AOP • Process(es) analyzed • Value Chain issues Worksheet • “Should” design
confirmed/identified
(PM2) Project Definition Document • Process Management analyzed (J5) Human Performance System specifications developed
(PM5) Data• Sweep
Value Chain or Process
Template Systems analyzed • Additional Process(es) Template for
(PM7) Interviewunderstood
Guidelines • Additional Process(es) analyzed (J7) Job Performance Planned - Value Chain
• ResultsMap
(O5) Super-System GapTemplate
and impact requiring analysis • Relevant Jobs analyzed and Managed Template - Process(es)
(O6) Functionalconfirmed
Relationship Map identified - Process
CPI •
Template Results Chain Scope tested • Value Chain issues Management
(O1) Organization Results Template
• Process performance and requiring analysis Systems and Management
(O3) Organization Planning
design constraints identified (P1) Process Results Template Template- Critical Jobs
understood (P2) Process Analysis Worksheet (O4) Value Chain Planning and Management
• Related Processes identified (P3) Process Performance Planned and Template
for possible analysis Managed Template (O9) Management Calendar Template
• Evaluation criteria confirmed (P4) Process “Disconnect” and “Root- (P1) Process Results Template
• Relevant(O1)
AOPOrganization Results
• Template
Relevant Jobs analyzed cause”
• Guide
Additional Jobs analyzed (P3) Process
• Performance
“Should” Job Planned and Managed
(O2) Organization Results
confirmed/identified • (P5) Cross-Functional
Additional Jobs requiring • Process
Process(es) Map
analyzed Templatespecifications developed
• Process context Worksheet
of Job analysis identified Template (P7) Results Chain Template Worksheet Template
understood(O3) Organization Planning
• and
Process(es) (P6) Process versus Function Map
requiring (P8) Process Design Strategy Guide
• Results Gap and Management
Impact Templateanalysis identified Template (J4) Is/Should Job Level Worksheet
confirmed (O4) Value Chain Planning and (P7) Results Chain Template Worksheet (J5) Human Performance System Template
CJI • Job performance Management
and designTemplate Template (J6) Job Model Template
(O7)
constraints Cross-functional Value Chain
understood (J7) Job Performance Planned and Managed
Map Template Template
(O8) Value Chain Analysis (J8) Role/Responsibility Matrix Template
possible analysis
Worksheet (PM9) Macro Design & Implementation Plan Template
(O9) Management Calendar (J9) Analysis Summary – Job Level
Template (P9) Analysis Summary – Process Level
(O10) Analysis Summary – Organization Level

O1
ORGANIZATION RESULTS TEMPLATE
1
1 2
7
Organization Performance Planned Organization Performance Managed
1

1
Value Chain
Support 3 1
Processes Available
5
Sold
5
Delivered
Variables
Requirements
a. Mission/Vision
b. Strategy
c. Business Model
d. Goals
b Clear
a. Goals Aligned
a. In Place
c. Being Executed
a. In Place
c. Being Executed
a. In place
Being Executed
a. In Place
c. Being Executed

Organization Unit:
O2
ORGANIZATION ANALYSIS WORKSHEET “Should” Organization Result:
“Is” Organization Result:

Yes No ?

b. Strategy
c. Business Model
d. Goals

b. Clear

Results

c. Being Executed
a. In Place
c. Being Executed
c. Being Executed
a. In Place
c. Being Executed

ORGANIZATION PERFORMANCE PLANNED AND MANAGED TEMPLATE

Implemented
ORGANIZATION
Expectations and 1. Organization System 1. Organization System Managed” Roles B. Appropriate Action B. Preventive
Strategy Consistent a. Value Chain Set Designed Determined and Determined C. Sustaining
with Super-System b. Organization 2. Primary Processes/ Understood
Requirements and Structure Set Value Chain Effective B. Performance Data
Realities 2. Primary Processes/ 3. Support Processes Available
B. Organization Value Chain Effective C. Performance Data
Expectations and a. Process 4. Resources Available Communicated/
Strategy communicated Requirements for 5. Management Systems Distributed
and understood each in Place D. Data Monitored
C. Organization b. Output Rqmts B. Budgets Implemented
Expectations and c. Operating Rgmts
Strategy translated into d. Resource Rqmts
Value Chain and e. Policies & Decision
Support Function Rules for each
Expectations 3. Support Processes a.
Process
Requirements for each
a. Output Rqmts
b. Operating Rgmts
c. Resource Rqmts
d. Policies & Decision
Rules for each
4. Resources
a. Capital
b. Human Resources
c. Materials
d. Technology
Organization Performance Execution

VALUE CHAIN PERFORMANCE PLANNED AND MANAGED TEMPLATE

Implemented
VALUE CHAIN
Expectations consistent 1. Primary Processes 1. Primary Processes Managed” Roles B. Appropriate Action B. Preventive
with Organization a. Process Effective Determined and Determined C. Sustaining
Requirements and Requirements for 2. Support Functions Understood
Customer expectations each Effective B. Performance Data
B. Value Chain I. Output Rqmts 3. Resources Available Available
Expectations and II. Operating 4. Management Systems C. Performance Data
priorities communicated Rgmts in Place Communicated/
and understood III. Resource B. Budgets Implemented Distributed
C. Value Chain Rqmts D. Data Monitored
Expectations translated b. Policies & Decision
into Primary Process Rules for each
and Function 2. Resources
Expectations a. Capital
b. Human Resources
c. Materials
d. Technology
Value Chain Performance Execution

SUPER-SYSTEM MAP
RESOURCES AJAX
earnings
Market capital Management value

resources
Suppliers material/
equipment
products/
services
Research

O6
FUNCTION RELATIONSHIP MAP (FRM)
CORPORATE
SEMICONDUCTOR DIVISION
order
report
Product Marketing
Operations
order Market
report
order
Sales
order Customer
order acknowledgement
Manufacturing
financial data
invoice Finance
Manuf acturing
QA Engineering Facilities
Vendors/ payment
Suppliers Accounts instructions
support
Pay able inspection specs
mfg.
pl an
payment materials
Accounts Materials Production
invoice Receiv able product
product
materials
invoice
payment

O7
CROSS-FUNCTIONAL VALUE CHAIN MAP
MARKETPLACE/ 15
4 13
5 7 Invoice
CUSTOMER Promotional Promotion Buy?
No Order Received &
Received &
Materials Inquiry Instructors Trained
Received Paid
1 3
Ideas & Product Materials
MARKETING Specifications Specs Developed &
Proposal
Ideas 2
Product
RESEARCH & New Product Support
Payment
Training

SALES 6
OPERATIONS

Completed
FIELD
10
TECH Instructors
SUPPORT Trained

& Shipped
Order
Order
ADMINISTRATION
FINANCE 9 14 16
Notification of
Order Shipment
Customer Payment
Processed Invoiced Received
Paper
Supplies
PERSONNEL
12
SUPPLIERS Paper Shipped
by Paper
Vendor

VALUE CHAIN ANALYSIS WORKSHEET

MARKETPLACE/ 15
4 13
CUSTOMER 5 7 Invoice
Promotional Promotion No Order Received &
Inquiry Buy? Received &
Materials Received Instructors Trained
Paid
1 3
MARKETING Ideas & Product Materials

Specifications Specs Developed &
Proposal
Ideas 2
RESEARCH & New Product
Payment
Training

SALES 6
OPERATIONS

Completed
FIELD
10
TECH
Instructors
SUPPORT Trained

& Shipped
Order
Order
9 14 16
ADMINISTRATION
Notification of
FINANCE Order Shipment Customer Payment
Processed Paper
Invoiced Received
Supplies
PERSONNEL
12
Paper Shipped
SUPPLIERS by Paper
Vendor
STEP 1 STEP 2 STEP 3 STEP 4

STRATEGIC CHECK – Competitive
Advantage?
Disadvantage?
OPERATIONAL CHECK – Impact on
Revenue?
Cost?
Quality?
Customer Satisfaction?

MANAGEMENT CALENDAR (ANNUAL)
ANNUAL
1
JAX
2 3 8 9 10 11
Super
System
Review and Scan
AJAX Update 3 Performance
EXECUTIVE Year Goals, Goals, Plans
Review
TEAM Parameters & and Budgets
Annual
Assumptions Goals Set Finalized
Scan
Strategy
Performance,
Updated
Goals, Strategy
VC Priorities Process
& Priorities
Set Goals
Reviewed
Negotiated
Preliminary
4 5 7 Process
Process Goals
Budget
& Parameters
Negotiated
Communicated
(All Primary Process
PROCESS Processes Performance Steps 3
MANAGEMENT Reviewed through 8
TEAM Annual Goals Conducted
Set for Support
Planning Processes
Completed
Process Goals Functional
& Plan Goals Goals, Plans,
Reviewed Negotiated Budgets,
Function 6 Functional Communicated
Requirements Budget
Communicated Negotiated
Functional
FUNCTIONAL Goals Set
EXECUTIVES Plans Set
AND Budget
MANAGERS Developed
INDIVIDUALS

O9
AJAX MANAGEMENT CALENDAR (QUARTERLY – DAILY)
QUARTERLY MONTHLY WEEKLY/DAILY

19
JAX
12 15 20 24 28 29 32
Super
AJAX Performance
System Key Company, Key Process
EXECUTIVE Review Changes
Scan Process & Indicators Monitored
TEAM Communicated Trends Noted Trends Noted
Performance Function (ex. Sales (X Sold)
Review Questions Asked Questions Asked
Process Indicators and Product Shipped
Changes Monitored (X Delivered)
Required Review
Changes in Performance
Goals & Reviewed
Resources Answers
Made as 21 25 Reviewed
13 Required 16 Request
Cross- Reviewed &
Process Acted-on
Super Optimization Action Taken
PROCESS System Issues
MANAGEMENT Scan Resolved Process Key Process
Trends Noted
TEAM Process Changes Made Indicators
Questions Asked
Performance as Required Monitored
Review
Issues?
14 17 22 26 30 33
Deviations
Managed
FUNCTIONAL Key Function Questions Deviations
Issues Functional Key Function/
EXECUTIVES Job Indicators Asked Analyzed
Reviewed and Changes Made Job Indicators
AND Monitored Action Taken Action Taken
Resolved as Required Monitored
MANAGERS Assistance
Requested
18 23 27 31 34
Deviations
Job Changes Key Job Managed Key Job Deviations
INDIVIDUALS
Made as Indicators Action Taken Indicators Analyzed
Required Monitored Assistance Monitored Action Taken
Requested

O10
ANALYSIS SUMMARY – ORGANIZATION LEVEL
ANALYSIS SUMMARY – ORGANIZATION LEVEL

ORGANIZATION: CBI: “IS” RESULTS: “SHOULD” RESULTS:

O11
ANALYSIS SUMMARY (PHASE II)
Organization

Process
CJI(s): Gaps in Results

Job/Performer

I
II III IV
DESIRED
RESULTS
DETERMINED
& PROJECT
DEFINED
Why the Gap
How are we
Closing the
Gap in
Results?
Close it?

PHASE III – PHASE IV –

CHANGES DESIGNED, DEVELOPED & RESULTS EVALUATED AND MAINTAINED
IMPLEMENTED OR IMPROVED
• “Readiness” and “disruption” assessed • Results monitored

for each recommendation • Results communicated
• Implementation strategy developed • Management behavior monitored
• Solutions developed as specified in • Effective solutions institutionalized
Phase II • Ineffective solutions modified, evaluated
CBI • Solutions modeled and/or piloted as and institutionalized
appropriate
• Evaluation system designed
• Solutions implemented in accordance
with the implementation strategy
• Evaluation system implemented
(J1) Job Results Template
(J4) Is/Should Job Level Worksheet
CPI (J5) Human Performance System Template
(J6) Job Model Template
(J7) Job Performance Planned and Managed
Template
(J8) Role/Responsibility Matrix Template
(P1) Process Results Template
(P3) Process Performance Planned and Managed
Template
(P4) Cross-Functional Process Map Template
CJI (O1) Organization Results Template
(O3) Organization Planning and Management
Template
(O4) Value Chain Planning and Management
Template
(O7) Cross-functional Value Chain Map Template
(O9) Management Calendar Template

PM9 Performance Analysis– Process & Tools
MACRO DESIGN AND IMPLEMENTATION PLAN TEMPLATE
PERIOD
RECOMMENDATION DIMENSION First Quarter Second Quarter Third Quarter Fourth Quarter
Month One Month Two Month Three
A. ///////// Activity
Cost
Impact
B. ///////// Activity
Cost
Impact
C. ////////// Activity
Cost
Impact
D. ////////// Activity
Cost
Impact
E. ////////// Activity
Cost
Impact
1422-69-5.2.61

Performance Analysis – Cases
TAB 8 - PERFORMANCE ANALYSIS – CASES
• The “Human Side” of Performance

3 Job Level • Attitude Training
• Off-site Team Building Meeting
• VP’s Play Nice
• Data Entry Training for Sales Clerks
Process
4 Level
Performance
Design Organization
5 Level
Total
1 2 6 System
Framework
10
Performance Plan &
Department Design
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference

FINDING PERFORMANCE IN A REQUEST FOR “HELP”

Example One – The “Human Side” of Performance
Situation:
During a meting to discuss why it was taking so long for AJAX to get new products to
market, several Project Managers commented on the apparent “low morale” of those
employees engaged in product development and introduction. The Vice President of
Research and Development was alarmed at the specter of “low morale” and hired a
consultant to look into the matter. The consultant specialized in understanding the
“human side” of performance
Request:
After several weeks of interviews of individuals and managers, the consultant presented
the results of their “situation analysis”. Among the findings were the following.
1. "The managers don't work well as a team."
2. "Decision making is terrible. They 'delegate-up.'"
`3. "There is no 'continuous improvement' mindset."
4. "They have terrible 'leadership penetration.'"
5. "They don't do 'root-cause' analysis."
6. "Employees report that they do a lot of 'non-value added' work (correcting the
work of others)."
Task:
Using the format provided on the following two pages, record your hypothesis as to the
Anatomy of Performance explanation of each of the observations. (A hypothesis has
already been developed for Observation 1, as an example/model/

THE PERFORMANCE ANATOMY RESPONSE TO THESE

OBSERVATIONS
OBSERVATION HYPOTHESIS OF ANATOMY OF PERFORMANCE
BREAKDOWN
1. "The • No clear expectations of what response is required and
managers appropriate. (See discussion on Team Work in
don't work "Performance Anatomy and Teams.") Most likely the work
well as a and management processes have not been articulated so it
team." is not clear how and when a manager is supposed to
behave to support a process.
• No process has been articulated for working as a team.
• There are insufficient positive consequences for working as
a team member as compared to an individual function
manager.
• The manager does not have a model for what it means to
participate as a member of a team.
• The manager does not have the skills to be an effective
team member.
2. "Decision
making is
terrible. They
'delegate-up.'"
3. "There is no
'continuous
improvement'
mindset."


BREAKDOWN
4. "They have
terrible
'leadership
penetration.'"
(This means
that all the
"leading" is
coming from
the "top."
Second and
third tier
managers are
not exhibiting
"leader-ship"
behavior.)
5. "They don't do
'root-cause'
analysis".
6. "Employees
report that
they do a lot
of 'non-value
added' work
(correcting the
work of
others)."

THE PERFORMANCE ANATOMY RESPONSE TO THESE

OBSERVATIONS
BREAKDOWN
1. "The • No clear expectations of what response is required and
managers appropriate. (See discussion on Team Work in
don't work "Performance Anatomy and Teams.") Most likely the work
well as a and management processes have not been articulated so it
team." is not clear how and when a manager is supposed to
behave to support a process.
• No process has been articulated for working as a team.
• There are insufficient positive consequences for working as
a team member as compared to an individual function
manager.
• The manager does not have a model for what it means to
participate as a member of a team.
• The manager does not have the skills to be an effective
team member.
2. "Decision • The Organization, Process, and Job Performance

making is Measurement and Management Systems have never been
terrible. articulated so it is not clear who in the organization should
They be making what decisions, when. So, there are no clear
'delegate- expectations as to when an individual is to make a
up.'" particular decision.
• There is a lack of data for making effective decisions. Thus
the risk of making a wrong decision is high. This in turn
means negative consequences for making decisions. And
this in turn provides the incentives for subordinates to
"delegate-up" and superiors to "delegate-down." Nobody
wants to make the decision.
• There is no process for making decisions; specifying
appropriate data gathering, analysis, decision criteria, and
post-decision follow-up and modification.
3. "There is no • There is no expectation that individuals should

'continuous "continuously improve." Expectations should be set around
improvement' specific processes and roles, in contrast to a "general
mindset." notion" of continuous improvement.
• The consequences, feedback, and resources don't support
this goal.
• The individuals don't have a model and the training
necessary to "continuously improve."


BREAKDOWN
4. "They have • Leadership is about "direction" and "decision making." The

terrible Organization, Process, and Job Performance Measurement
'leadership and Management Systems have never been articulated so
penetration.'" it is not clear who in the organization should be providing
(This means direction for what and making what decisions, when. Thus
that all the it is not clear who is to exert what "leadership." when.
"leading" is Unclear roles regarding direction and decisions. No clear
coming from expectations as to when to exhibit these important
the "top." behaviors.
Second and
third tier • The consequences don't support lower level "leadership."
managers
are not
exhibiting • There is inadequate data available for acting like a "leader"
"leader-ship" at lower levels.
behavior.)
5. "They don't • There are no expectations to do "root-cause" analysis.
do 'root- • There is inadequate data to perform "root-cause" analysis.
cause' • Individuals do not have a model and necessary skills for
analysis". performing "root-cause" analysis.
• The consequences and feedback do not support
performing "root-cause" analysis.
6. "Employees • Work processes are not articulated.

report that • Work process standards are not set, measured, or
they do a lot managed, In a word, the Process Performance
of 'non-value Measurement and Management System is defective.
added' work
(correcting
the work of
others)."


Example Two –“Attitude Training”
Situation:
The Bell Telephone System company serving the New York metropolitan area
was approaching a major “melt down” in service due to phenomenal growth in
demand and aging equipment. Although the long-term issue of capacity was
being addressed, there was an immediate, short-term, crisis in the area of “repair
service”. More and more customers were experiencing “trouble” with their phone
service and calling in requests for service. As this demand for service escalated,
the response time expanded from a day to several days, to nearly a week. And
many times when a repair person appeared at the customer’s premises, the
customer was not there, requiring a further delay and another visit by the repair
person. In such a case, the customer, already upset at the delay in getting
service, would be infuriated by the additional delay. Needless to say, the next
phone call between the customer and the Repair Service Clerk who took the call
was likely to be very unpleasant. In fact a large percentage of the calls taken by a
RSC could be quite abusive. In an increasing number of cases, the RSCs were
“breaking” under the strain of this barrage of insults and “returning fire”, as it
were. This behavior (and in particular, some of the language) on the part of the
RSCs was alarming management and attracting some attention from the FCC.
What to do?
Request/Symptom:
Management requests “attitude training” for Repair Service Clerks.
Your Hypotheses as to what is going-on here?

EXAMPLE TWO, Continued
Our Hypotheses as to what is going-on here

• The Repair Service Clerk’s “attitude”/behavior is quite predictable and even
reasonable, under the circumstances.
• The behavior in question is not going to be changed through an infusion of
knowledge and skill; It can only be changed by changing the circumstances
that cause it.
Critical Business Issues and Gap in Results

• The CBI and one Result Gap is the time to successful restore telephone
service.
• Another Gap in Results is between the “is” and “should” accuracy of “trouble
tickets” submitted by the RSCs.
Relevant AOP
REPAIR SYSTEM
System Repair
Trouble
Ticket System Check
Customer RSC
Repair on
Dispatch
Premise

EXAMPLE TWO, Continued
Project Design:
A. Proposal:
The consultant undertook a “Repair Clerk Training Needs Analysis”.
B. Process:
1. Analyzed the Repair System
2. Analyzed the Repair Clerk Job
Project Findings and Recommendations:
1. Recommendations regarding the Repair System and redesigning the Repair Clerk
job. (e.g., “Putting the RSC in charge of the call interaction”)
2. Recommendations for training Repair Clerks
3. Recommendations for managing the Repair Clerk job.
Results:
1. Dramatic improvement in Trouble Ticket accuracy, “call backs” and time to restore
service
2. Multi-million dollar savings in Repair costs due to changes in the process


Example Three – “Off-site Team Building Meeting”
Situation:
• Like the leaders of the many Human Resource organizations which face the specter of
being outsourced, the Vice President of Human Resources of XJAX is under pressure to
reduce administrative costs and add more “professional value”. Two of her responses to
this pressure were aimed at the Human Resource Generalist staff and included:
o Reducing their administrative support by 50%, requiring every two HRG’s to
share an administrative resource.
o Urging the HRG’s to add more value by acting more as “performance
consultants” to their clients, not just the expediter of the many HR transactions
emanating from the field organizations.
• However, nine months after announcing the change in the priorities of the HRG’s, the VP
HR is disappointed and frustrated with the progress of the HRG’s toward acting as
performance consultants to their clients.
Request:
In an effort to try and get this effort back on track, the AJAX Vice President of Human
Resources has requested assistance from the OD staff in organizing an off-site team building
session for her HR Generalist staff of 10.
Task One:
Using the Job Analysis Worksheet, what would you hypothesize are the reasons for the HR
Generalists not providing “performance consulting” services?
Task Two:
Using the Job Analysis Worksheet and the IS-Should Worksheet as guides, describe what
action you recommend to increase the performance consulting activity of the HRG’s from the
“is” of Zero to a “should” of 15 – 20% over the next 18 – 24 months.

Basis for Discussion:
A – Gap in Results
Current behavior/performance:
HRG’s provide whatever solutions their clients ask for, including a lot of
transactional HR tasks.
Desired behavior/performance:
HRG’s will probe requests of clients, evaluate the worth of the requests and the
appropriateness of the requested intervention, propose alternative solutions and
either carryout or manage the design, development and implementation of the
alternative solutions.
B – Applying the Job Results Template
Expectations:
There are two issues here regarding expectations; the client’s Expectations of
the HRG and the clarity of the new HRG expectations.
First, the client’s expectations: I would hypothesize that clients expect the HRG’s
to do just exactly what they are doing now – “When I say jump, you say ‘how
high?’”. What is being done or will be done to change client expectations of the
HRG’s?
Second, what exactly are the HRG’s now supposed to do differently? Is there a
Job Model for the old HRG job that can be compared to a Job Model for the new
HRG job? Something that is explicit about what has changed? Something that
says I’m no longer expected or required to do “X”, since “Y” is now being added
to the job?
Resources:
Will the necessary resources (time and tools) be available to help the HRG’s with
their new set of job responsibilities?
Consequences:
Unless something extraordinary is done to realign the expectations of the HRG
clients, there are bound to be some significant immediate negative
consequences to the HRG for going into “performance consulting” mode. The
client will expect/demand that their requests be responded to ASAP. And even if
the HRG persists through this first level of immediate negative consequences for
“pushing back” and questioning, they will eventually run into the delayed negative
consequences of having to design, develop and implement interventions for
which they are not adequately trained and experienced. In addition, developing
such an unfamiliar intervention will consume vast amounts of the HRG’s most
scarce resource – time. Given this array of predictable consequences, it is hard
to imagine any but the most zealous performance consultant wannabe’s not
quickly dropping back into their familiar and comfortable behavior patterns.
Of course these highly predictable negative consequences could be off-set to a

degree by the HR organization managing the expectations of the client managers

and putting in place some positive consequences for the HRG’s for emitting the
new behaviors.
Feedback:
What will be in place to track and inform the HRG’s, the HR organization and the
client managers on the benefits of the new HRG job requirements?
Knowledge/Skill:
No doubt, the new HRG job requirements do require additional HRG
knowledge/skill. But would you spend a lot of time and money on this before the
other components of the HRG HPS are addressed, per the above? And as
alluded to above, the new HRG performance consulting job requirements are
pretty sophisticated, requiring more than learning some new models and doing a
couple of role plays. A sound instructional design would most likely include
behavioral modeling and coaching.
C – Conclusion/Solution:
In light of the above, if we were serious about HRG’s being effective performance consultants
(in addition to their other job requirements) we might design a pilot in one division, where the
clients are supportive of the new HRG role. The new job could be defined and expectations
made clear to all parties. (Maybe client managers learn some of the basic analysis models, so
they can do a better job articulating their needs.) HRG’s would be provided with some modeling
by exemplary performers and coached as they move up a very challenging learning curve –
getting better at both identifying root-causes and selling clients on doing the “right thing”. Based
on the pilot, the approach would be modified as necessary (tools refined and training
developed) and rolled out through the organization.
As part of doing the knowledge/skill analysis for the above, Human Resources would have to
contribute to the completion of a matrix such as this:
TYPICAL REQUESTS OF HRG DESIRED HRG RESPONSE

Who? (What When/Circumstances? The Request Immediate Subsequent Appropriate
Manager/executive (e.g. Staff meeting, (Manager/ response(s) process to Solutions in
position?) phone call, memo) executive expected of be followed response to
says….) HRG by HRG to the initial
determine request.
root-cause
and
appropriate
solution
1.
2.
3.
4.
5.
6.
Etc.

PROCESSING A REQUEST FOR “HELP”

Example Four – “Getting Vice Presidents to ‘Play Nice’”
Situation:
Big Electronics Firm

Big Defense Contractor
Big Telecom
Big Aircraft Manufacturer
Big Network Systems Provider
In each case, two vice presidents of the firm were continually at odds with one another.
Their behavior was disruptive to effective senior leadership meetings and their
respective organizations were increasingly engaging in “silo” behavior that was
detrimental to customers and the total organization. In all cases, the “boss” of the VPs
had engaged their subordinate VPs in “team building” exercises, but to no apparent
avail. In one case, the “boss” had engaged a consultant who monitored meetings and
provided the VPs one-on-one feedback on their meeting behavior, off-line. In this case
the meeting behavior changed (i.e., they “played nice” in front of the boss), but the
“back-stabbing” behavior and distrust throughout their respective organizations remained
the same.
Request/Symptom:
“Can’t you do something?!”
Your Hypotheses as to what is going on here?


Example Four, Continued
Our Hypotheses as to what is going-on here
Traditionally, this type of situation is viewed as a “lack of cooperation” or “interpersonal

problem”. The Anatomy of Performance model would suggest an alternative explanation,
involving misalignment of the Organization System and the HPS, and a failure of
management to make the necessary alignment. Specifically, I would hypothesize the
problem to be primarily a function of
• No common objective/goals for the two units
• No articulated process for how the units are to work together and the handoffs to
take place, and therefore no clear roles/responsibilities between the units.
• Conflicting performance goals for the two vice presidents, which drives them toward
maximizing the performance of their functions and sub-optimizing the organization’s
Value Chain
• Unwillingness or inability of the “boss” to align the Value Chain or “manage the white
space” between these two units.
There may also be some serious “interpersonal” issues between the individuals at this
point, which may have to be addressed. But changes in the attitudes of the two vice
presidents, or even a change in vice presidents, won’t make much of a difference until
the systemic issues listed above are addressed.
(Note: Our hypothesis about “play nice” situations is influenced by two underlying beliefs
we have about “culture” and “trust”. A brief description of these beliefs can be found at
the end of this case study.)
CBI and Gap in Results
Before a “play nice” issue can be constructively addressed, a CBI and Gap in Results must be
established. In the case of two warring vice presidents, a CBI involving the Value Chain and
impacting the customer and/or the total organization performance is essential. Examples include
“time to get new products to market” and “time, cost and quality of order fulfillment”.
Relevant AOP
See the diagram on the next page.

ANY BUSINESS


Example Four, Continued
Project Design:
A. Proposal:
The proposal could be to conduct “team building”, redesign a critical
cross-functional work process, align and optimize the Value Chain or
redesign the goal setting and performance measurement system. But the
goal is the same in all cases – get the Value Chain producing the desired
results and have each organizational component contributing as required.
B. Process:
Regardless of the “cover” in the proposal, all the issues listed in the
above hypothesis must be addressed.
1. The CBI must be identified and common performance goals

established for the two vice presidents and their units.
2. The critical process(es) that link(s) the two units and impacts the
common goal(s) must be articulated and roles and responsibilities
of all parties clarified. The core process may need to be jointly
redesigned by employees of both units in order to optimize the
process and achieve the common goal.
3. The goals of all the functions/vice presidents in the Value Chain
must be balanced to achieve the desired optimization of the entire
Value Chain. The necessary resources must be in place for each
unit to meet its goals.
4. A Performance Planned and Managed System for the Value
Chain must be in place and include clear accountability and
consequences for desired performance of all units in the Value
Chain.
Project Findings and Recommendations:
N/A
Results:
In all situations where the above approach was undertaken, the desired Value Chain
results were achieved within a year. In some cases there subsequently was a change in
one of the two vice president positions.


Example Five – “Data Entry Training for Sales Clerks”
Situation:
Big Retailer is a 300-store retail chain. Historically decisions on what merchandise to
purchase and in what volumes, has been the responsibilities of each of the 30 plus
department managers in each store. However, in order to remain competitive, Big
Retailer is moving toward a centralized purchasing or “replenishment” system, where
decisions as to what styles and volumes of merchandise will be made by product
managers at regional Central Merchandising Units (CMU). Key to this system is the
accurate entry of merchandise data into the electronic cash register by sales clerks at
the time of the sale. (This situation was before the advent of the bar code and scanning
technology and all information had to be read by the sales clerk off the merchandise
label and keyed into the register.)
This new system had been pilot tested in four departments in 15 stores and was about
three months away from a full “roll-out” across the entire system. There was only one
problem – in order for the new system to be effective, the accuracy of the input data via
the cash registers and sales clerks (the “retrieval rate”) had to be at 98.5% and the
average during the pilot period was 66%. This discrepancy put the implementation of this
critical initiative in jeopardy.
Request:
The Vice President of Automation of Big Retailer is demanding that corporate training
immediately launch a massive training program for all sales clerks regarding the proper
entry of merchandise data into the system.
Where do we begin?

Project Overview
I II III IV
Desired Results Determined Barrier Determined and Changes Designed, Results Evaluated and
and Project Defined Changes Specified Developed and Implemented Maintained or Improved
Data Sweep 1 (Exec. Level)

° “IS” AOP
CBI: Maintain Competitive Parity ° “Should” AOP ° Performance System Design
CPI: Effective Replenishment Data Sweep 2 & 3 (Field) ° Implementation Plan
CJI: Correct Entry of Data ° “IS” AOP analysis Developed
Data Sweep 4
° “Should” Performance Specs
“Where are we?” “What is required to get

and maintain the ‘Should’
“Where are we performance?”
trying to get to?”
“How do we close the gap
“What prevents us
between ‘Is’ and ‘Should’?”
from getting to the
‘Should’?”
“What is required to get
and maintain the
‘Should’ performance?”
Data Sweep #1:
• Develop a rough relationship map of what you hypothesize to be the relevant

components in the “Is” AOP.
• Discuss the “Is” AOP.

• Discuss the “Should” AOP.

Please stop here until instructed to proceed. Thank you

“IS” State – 300 Stores
Region Management
Stores
Store Manager
Order
Merchandise Manager
Department Manager
Vendors
Vendors
Vendors
Vendors
Shipping and
Vendors Merchandise
Receiving
Sales Clerk
Merchandise
Cash Register
Display
Customer

“SHOULD” State
4 Regional Merchandising Units
Replenishment Information
Merchandiser
Data Data
Base
Region Management
Order
Stores
Store Manager
Merchandise Manager
Department Manager
Vendors
Vendors
Vendors
Vendors
Shipping and
Vendors Merchandise
Receiving
Sales Clerk
Merchandise
Cash Register
Display
Customer

Statement by Big Retailer CEO in Business Week:
“Solving inventory problems for the entire chain calls for a six-year, $300-million program
that will link each store’s electronic cash registers into one of four national computer
centers servicing a group of stores. There, one person will be responsible for ordering
merchandise in a number of high-volume departments for perhaps 30 to 50 stores. This
is a departure from the Sears’ approach, where individual store managers must approve
each order.
“By encouraging the department manager to develop a line of communication

with his reorder people we will accomplish the same thing.” (Emphasis added.)
Data Sweep #2 (Field)
• What are we looking for?
• Discuss findings.

“IS” Analysis Findings
Central Merchandising Unit

Replenishment Information
Merchandiser
Data Data
Base
Region Management
Order
Stores
C
Store Manager
Merchandise Manager
Department Manager
Vendors
Vendors
Vendors
Vendors
Shipping and A
Vendors Merchandise
Receiving
Sales Clerk
Merchandise
Cash Register
Display
Customer

Summary of Preliminary Findings from Data Sweep #2
WHERE WHAT
• 7 Digit code
• Takes time
A
• Code not always marked or accurate
Sales Clerk
• Code not always legible
• Learned the “9999999” work-around
• New procedure cuts the “heart” out of the job

B
• Accountable for sales revenues (Local tastes)
Department
• Accountable for “out of stocks”
Manager
• “Emergency” orders
C • Accountable for sales revenue

Store Manager

Per the “Should” state diagram on page four (4), what are your preliminary thoughts on
what needs to be done at each level to improve the retrieval rate and the chances of a
successful implementation of the Automated Merchandising System?
WHERE PRELIMINARY THOUGHTS

Central
Merchandising
Unit
Region
Management
Store Manager
Department
Manager
Sales Clerk
• Which of the above rolls do you consider the most critical to the successful
implementation of the Automated Merchandising System?

Data Sweep #3 (Field)
• Observation: “It is possible to achieve improvements in the retrieval rate by

implementing only those recommendations for improving retrieval rate. We feel,
however, that there will be greater long-term gains for Big Retailer if changes are
made in the operation and implementation of the entire Automated
Merchandising effort.”
• Conclusion: A two-level Study

o Recommendations for improving Retrieval
o Recommendations for improving the Automated Merchandising System
• The Results Chain:

Results Results
CBI:
ORGANIZATION Competitive
Advantage
• Market Share
CPI:
PROCESS Automated
Merchandising
System
• Inventory
levels
• Merchandizing
turns
• Out-of-Stock
conditions
• Sales
• Customer
Service
CJI:
JOB Retrieval Rate 66% 98.5%
INDIVIDUAL
• Discuss findings

SUMMARY OF RECOMMENDATIONS FOR IMPROVING

RETRIEVAL
Key:
(1) Solutions that the Training Department, given permission, can design relatively independently and
present to the field for use.
(2) Once the decision has been made to follow the recommendations, the Training Department can
provide valuable resources to the Field/Buying Office by working closely with them to design and
implement the solution
(3) Recommendations that require significant organization changes beyond the domain of the Training
Department.
OBSERVATIONS RECOMMENDATIONS KEY

The Retrieval Standard and A. Include the Standard with the
Retrieval Rate are not known 2
Retrieval Rate Report.
by all relevant store
B. Print Retrieval Rates on the front
personnel. 2
of the Error Report.
C. Provide feedback on retrieval to
the Department Manager from the 2
Replenishment Merchandiser.
D. Assign responsibility for retrieval
to someone at the corporate or field 3
level.
E. Assign responsibility for retrieval
2
to someone in the store.
F. Structure the information flow to
the Department Manager by putting
cover sheets on the front of all 2
reports indicating what action is
required.
G. Post feedback graphs on retrieval
2
in the department.
H. Give sales personnel regular
2
feedback on errors.
There are insufficient A. Demonstrate the relationship
consequences to the store for between retrieval and department
responding to below standard 2
volume and profitability in economic
Retrieval Rates terms.
B. Include Retrieval Rate on the
Department Manager’s Evaluation 3
Form.
C. Use non-commission cashiers to
3
ring registers on heavy sale days.

Continued from previous page
SUMMARY OF RECOMMENDATIONS FOR IMPROVING

RETRIEVAL
Key:
Department.
Some store personnel A. Provide instruction on how

question the accuracy of Retrieval Rates are determined, how
retrieval data the department can contribute to 1
faulty data, and how the department
can correct faulty data.
B. Provide a central telephone
number for reporting inaccurate
2
information or asking questions
about the data given on reports.
New clerks, or cashiers A. Provide a job-aid reference for
assigned temporarily to the teaching the use of “Encoding
department, do not know how Wheels”. 1
to use the “Encoding
Wheels”.

SUMMARY OF RECOMMENDATIONS
IMPROVING THE AUTOMATED MERCHANDISING SYSTEM
Key:
Department.
OBSERVATIONS RECOMMENDATIONS
Some Department Managers A. Provide the Department Managers
do not know what the “new with performance-oriented job
descriptions based on
2
job” of Department Managers
entails.. accomplishments.
B. Provide training for Department
Managers in areas that affect their 2
use of the system.
Some Store Managers and A. Design and implement a “Change
Implementation System”.
2
Department Managers do not
understand how to use the B. Provide job aids for using reports. 1
new system and are therefore
C. Provide a central telephone
unable to support the
number for getting quick answers to 2
Department Manager in using
questions about the system.
the system.
D. Provide a list of “Questions and
Answers” about the system and 1
ways to solve common problems.
There are insufficient A. Define areas of control and
consequences to the store for responsibility, particularly for 3
using the system correctly. merchandising decisions.
B. Provide store management with a
list of people to talk to in order to get 2
things done regarding the system.
C. Reduce the number of ways of
going outside the system to get 3
things done.
D. Provide and “interim adjustment”
3
period.
Some Department Managers A. Structure the communication
do not know what information between the Replenishment
the Replenishment Merchandiser and the Department 2
Merchandiser needs. Manager. Use forms and checklists.

The evaluation system for the A. Use Performance Indices to evaluate

Department Manager should Department Manager performance. Use
them on a monthly report to Department 2
be revised to take new
responsibilities into account. Managers.

Sample Prototypes to Support Recommendations
D. Replenishment Merchandiser Tools:
1) Retrieval Performance Tracking Sheet

2) Individual Store Retrieval Rate Tracking Sheet
Replenishment Merchandiser
C. Department Manager & Replenishment Merchandiser Interface
1) Department Manager/Replenishment Communication Process

2) Variables Check List
3) Replenishment Merchandiser Call Reminder
4) Guidelines for Communicating with Replenishment Manager
5) Guidelines for Communicating with the Department Manager
B. Department Manager Tools:
1) Monthly Retrieval Performance Record

2) Department Manager Performance Report
Department Manager
3) Department Manager Performance Measurement System
A. Department Manager Job Analysis and Design
1) Impact of system Change on Department Manager

2) Portrait of an Exemplary Department Manager
3) Department Manager Job Model
Store Clerk

A. 1
Impact of a Systems Change on the Department Manager

(See explanation on following page.)
2A
Assortment
suggested by 3A 4A
1A
buyer Department Merchandise
Basic System Store
Reviewed by Manager writes Manager
Budget
Metro order review orders
Merchandise
Mngr.
Input from
Department
Manager
2B
4B
Assortment
3B Department
Replenishment 1B determined by
Computer Manager spots
System Store Budget replenishment
writes orders problems /
Merchandiser /
changes
Buyer

A. 1
SUMMARY OF SYSTEM CHANGES AND THEIR

IMPACT ON THE DEPARTMENT MANAGER
OLD SYSTEM NEW REPLENISHMENT SYSTEM IMPACT ON DEPARTMENT

MANAGER
1A 1B None
The store budget is determined The store budget is determined in
essentially the same manner
2A 2B The Field may appear to be losing
The Buying Office “suggests” the The determination of the some control over merchandising
merchandise assortment. The merchandise assortment and other decisions – control not readily
proposed assortment is reviewed, merchandising decisions are now relinquished. This may mean some
and frequently changed by the Field. undergoing change. Decisions are initial lack of support for the new
still pending regarding who controls system. During the transition stages,
what merchandising decisions. (E.g., there is conflict over whom to contact
Should the merchandise assortment to make certain decisions. The
be mandatory? Who should Department Manager is caught
determine promotional buys?) between the needs and desires of
their story and those of the Buying
Office – sometimes with little support
from either.
3A 3B Freed from the clerical job of
Under the old system, the Big Retailer now has a sophisticated counting Basics and writing orders,
Department Manager wrote the point-of-sale retrieval system. The the Department Manager can now
merchandise orders for their computer writes many of the emphasize a more important aspect
department. In this way, they merchandise orders, particularly of their job – helping the system
provided a “primitive” form of point-of Basics. function properly. Two important
– sale information. There was also aspects of their job have been
“informal” channels to communicate formalized: 1) providing information
sales and fashion trends. to the system that is used to make
merchandising decisions, and 2)
validating decisions already made
(e.g., making sure that the mix is
correct for their store) and ensuring
that the system has accurate data
about their department. Old methods
of evaluation are no longer
appropriate. New ones are needed.
4A 4B The new system is unfamiliar to the
The role of the Merchandise The role of the Merchandise Merchandise Manager, so they may
Manager is clearly defined: They Manager is less clearly defined. A tend to avoid it, spending more time
review the orders written by the new element – the Replenishment with other responsibilities. The
Department Manager Merchandiser – enters the scene. Department Manager receives less
The Replenishment Merchandiser in-store support for using the new
does some of the reviewing of the system correctly and tends to revert
Department, as does the to olds ways. They must change their
Merchandise Manager. The orientation from initiating orders to
Department Manager does more evaluating decisions and spotting
reviewing than initial ordering. and predicting problems. The
Department Manager is told to
“communicate” with the
Replenishment Merchandiser, but
does not know how to, what to, or
when to communicate.

A. 2 PORTRAIT OF AN EXEMPLARY DEPARTMENT MANAGER
EXEMPLARY MANAGER NON-EXEMPLARY MANAGER
1. “I can impact the system.” 1. “I can’t do anything about the

system.”
2. “I know how to impact the system.” 2. “I don’t know how the system
works.”
3. “The Merchandiser works with me. 3. “The Merchandiser is a ‘go-

It’s in their interest that my between’, cutting communications
department does well.” between me and the Buyer.”
4. Uses reports and understand them. 4. Doesn’t understand reports or how

to use them.
5. Likes the mechanized system and 5. Thinks the system is hurting them.
sees how it saves time and Blames the system for problems.
expedites merchandise receipt.
6. Checks the Open-Order File often. 6. Checks the Open-Order File

infrequently.
7. Checks the Closed-Order File (to
make sure no errors were made). 7. Does not check the Closed-Order
File.
8. Rechecks goods when received 8. Assumes that Shipping and

from Shipping and Receiving to Receiving has counted
make sure right amount received. merchandise accurately. Does not
recheck the count.
9. Knows Merchandise “data”, such 9. Does not know basic merchandise

as turn, mark-up. information.

A. 3 Department Manager Job Model
ACCOMPLISHMENT/SUB-ACCOMPLISHMENTS
PURCHASE REQUESTS MADE

• Merchandise Mix Validated
• Sales Predictions Made
• Merchandise Needs Determined
• Sales Predictions Revised
• Merchandise Accepted/Rejected
• Receipt Verified
• Prices Changes Made
AUTOMATED MERCHANDISING SYSTEM INFORMATION FLOW MAINTAINED

• Sales Data Retrieved
• Information Provided
• Data and Decisions Validated
LABOR CONTROLLED
• Labor Assignments Made
• Performance Evaluations Made
• Career Plans (Employee) Made
• Development Plans Made
• Personnel Relations Maintained
SALES EFFORT MAINTAINED

• Display Tactics Determined
• Maintenance Assignments Made
• Maintenance Priorities Set
MERCHANDISE PROMOTED
• Items Selected for Local Advertising
• Merchandise Ordered
CUSTOMER HANDLED
• Sales Tactics Determined
• Complaints Handled
CASH AND CREDIT HANDLED

• Sales and Receipts Balanced
SECURITY AND SAFETY MAINTAINED

• Security Procedures Monitored
• Maintenance Assignments Made

B. 1 Prototype Monthly Retrieval Performance Record

To be maintained by Department Manager
Store: Franklin Department: 24

%
100 Standard
90
Actual Performance
80
70
60
50
40
30
20
10
0
Jan Feb March April May June
Provide feedback to sales people on the retrieval rate and on their errors. One means of
providing feedback is to post a graph of the department’s retrieval rate in the department.
A prototype feedback graph is shown above.

B. 2 Department Manager Performance Report
Month / Year Department Manager
Direct Labor DL
Controllable Budget* CB
Markdowns MD
Controllable Budget CB
Controllables C
Net Earnings NE
Sales Turn
Inventory
# of times in stock in Basics IS
# of times checked TC
$ Sales Reported Retrieval
*Controllable budget = Net Sales -

Uncontrollables

B. 3
Performance Index Accomplishments

Mission/Accomplishments
Which Impact
A. Purchase requests made

Sales
a. Merchandise mix validated
b. Sales predictions made
Inventory
c. Merchandise needs determined
A4, A7 B1, B2, B3
d. Sales predictions revised
e. Merchandise accepted/rejected
f. Receipt verified
g. Price changes made
B. Automated merchandise system

Net Earnings
information flow maintained
A1, A4, A7, B1-3
a. Sales data retrieved
Controllable Budget C1, D1, F1
b. Information provided
c. Data and decisions validated
C. Labor controlled
Controllables
a. Labor assignments made
A1, A4, A7, B1-3 b. Performance evaluations made
Controllable Budget
C1, D1, E c. Career plans (employees)
made
d. Personnel relations maintained
D. Sales effort maintained

# times in stock in
a. Display tactics determined
Basics
A1, A4, A6 B1-3, D2 b. Maintenance assignments
made
# times checked
c. Maintenance priorities set
E. Merchandise promoted
Markdowns
A3, A4, A7, D1, B1, a. Merchandise ordered
F1 b. Items for local advertising
Controllable Budget
selected
F. Customers handled
$ Sales Reported
a. Sales tactics determined
B1
b. Complaints handled
$ Sales Made

G. Cash and credit handled

Direct Labor
a. Sales and receipts balanced
C1, F1
Controllable Budget
H. Security and safety maintained

Department Manager/Replenishment Merchandiser Communication Process

C. 1
Department Replenishment
Manager Merchandiser
Checks variables that Checks department sales
1 influence sales, such as 1 data reports an analysis,
weather, holidays, fashion incorporating informaton
trends, according the the: from Department Manger
the the:
Variables Check Variables Check

Schedule Schedule
Records necessary changes Records problems indicated

2 in merchandise orders, 2 by computer data in
problems sales potentials all preparation for call to the
week on the : Department Manager.
Replenishment
Merchandiser Call
Reminder
Talks to Replenishment Talks to Department

3A Merchandiser, following the: 3B Manger, following the:
Guidelines for Guidelines for

Communicating Communicating
with the with the
Replenishment Department
Merchandiser Manager
Replenishment
4 Merchandiser decides what
corrective action is
necessary, provides
feedback to Department
Manger on action take, and
record this on the:
Merchandiser
Feedback Recorder

C. 2 Prototype Variables Check Schedule - Example

For Department Manager and Replenishment Merchandiser
Checked By
D.M. R.M.
Daily
Volume of certain item
Weather
Availability of merchandise
Day of the week
Weekly
Promotions scheduled
Special events
Storage space availability
Mark-up and mark-down schedule
Merchandise on-order
Merchandise on-hand
Delivery schedules
Check-outs
Basic fill-ins needed
Sales potentials
Monthly
Season
Holidays
Special events
Competition
Budgets and plans
Seasonal
Climate
Weather
Fashion trends
Annual
Change in department size from last year
Budgets and plans
Economics: national and local
Demographic information about customers
As needed / Infrequent
New competition
Department / store management changes
Change in store or department size
C. 3 Prototype Replenishment Merchandiser Call Reminder
Keep this reminder handy all week to make notes as you think of them. Show date call
completed and then file this sheet for future reference. If you cannot complete your call
in the time allotted, ask your Merchandiser to call you again.
Sales of best four items received this week

(Write down sales/quantity received and any quantity you want to reorder.)
Basic fill-ins needed

(Make a note whenever you miss a sale due to out-of-stock on basic items. Note size
and color where necessary.)
Problems you need handled

(Purchase request, follow-up, quality problems, others.)
Sales Potentials
(Identify requests for merchandise you couldn’t sell due to out-of-stock or not carried by
your department. Identify checkouts.)

Prototype
C. 4
Department Manager
Guidelines for communication with the Replenishment Merchandiser
Use the Replenishment Merchandiser Call Reminder form as a place to jot down ideas
as you think of them. (i.e., record your ideas and problems so that you have them all in
one place and ready when you talk to the Replenishment Merchandiser).
Set up a regular time for your phone call, and try to be in your department at the time of
the call.
The Merchandiser does not have available sales by style for your store. You must be the
one to identify check-outs (new items that sell better than average) and slow movers for
the Merchandiser.
Ask your Merchandiser to call back if you run out of time and your call is not yet
completed.
Don’t hesitate to call the ____________________ if there are problems that the
Replenishment Merchandiser can’t handle; that is, get help right away.
Keep your Reminder Forms in a folder. Each should be dated, and dated when action is
competed. This will be a reference for you to make sure that action is taken and record
of any problems you are having so you may discuss them with your Merchandise
Manger / Store Manager.

C. 5 Prototype
Replenishment Merchandiser
Guidelines for communication with the Department Manager
Ask the manager to refer to the Replenishment Merchandiser Call Reminder form.
Encourage him to use the form and reinforce them for having ideas, problems, and data
collected you call.
Set up a regular time for your phone call, and encourage the manager to be in his
department at the time by asking: “Are you in your department?”
Do not discourage him by “punishing” them for telling you about problems. Accept
complaints and thank them for telling you. Discuss the problem with them so that you are
certain they understand. If you can’t answer a question immediately, jot yourself a note
to remind yourself to call back. Use your Merchandiser Feedback Recorder form.
If the Department Manager runs out of time and the call is not completed, determine a
time when you can call back.
Keep Variables Check Schedule handy. Refer to the schedule to determine what specific
information you should request.
Refer to the department’s retrieval rate. Compliment improvement.

D. 1 Prototype Retrieval Performance Tracking Sheet

To be maintained by Replenishment Merchandiser
(Information on this chart transcribed from individual store retrieval rate sheet.)
Store: Franklin Department: 24

%
100 Standard (98%)
90
80
70
60
50
40
30
Average National Retrieval Rate
20 Average Retrieval Rate Within Replenishment Merchandiser Area
10
0
Jan Feb March April May June
Prototype Individual Store Retrieval Rate
D. 2 To be maintained by Replenishment Merchandiser
Jan Feb Mar Apr May Jun
#23 64.5 66.0

#28 72.8 73.8
#32 77.3 78.0
#45 75.4 76.5
Total 290.0 294.3

# Stores 4 4
Store Avg. 72% 74%
Standard 98% 98%
SUPPORT REQUIREMENTS FOR THE SUCCESSFUL

IMPLEMENTATION OF THE AUTOMATED MERCHANDISING
SYSTEM (AMS)
Replace with 11x17
“SHOULD” State
7. Support Systems
1. Department Manager
• Define decision-making responsibilities so that • Provide feedback on retrieval rates.
store personnel know the proper channels for 4 Regional Merchandising Units • Incorporate new job responsibilities in job descriptions
getting things done (e.g., merchandise and job evaluation criteria.
requests). 6 Replenishment Information
Merchandiser • Provide training and guidance in the use of the AMS
• Provide a central telephone number and contact • Provide support systems, such as a problem contact
person (“ombudsman”) for special problem-
7 person for additional resources both inside and
solving assistance. Data Data outside the store, training materials for sales clerks,
• Establish an “Automation Implementation Data Base
etc..
Collection System” for collecting and
• Provide follow-up soon after AMS is installed to five
coordinating information from all stores on
Region Management feedback, answer questions, hear complaints, help
problems encountered during implementation of
solve problems.
the AMS. Disseminate information to • Structure the information flow to the Department
appropriate person(s). Manager to help sort massive input.
• Ensure that Retrieval Reports are received by
• Structure communication between Department
the stores on a timely basis and that the
Manager and Replenishment Manager .
retrieval rate and standard are clearly visible.
O rde r
• Provide training for Department Managers transferring
Stores
into store after initial introduction
Store Manager
6. Regional Merchandising Unit /

Merchandise Manager
Replenishment Merchandiser 1
2. Sales Clerk
• Structure communication between the
Department Manager
Replenishment Merchandiser and the Department Vendors 5 • Provide feedback to clerks on retrieval rates and
Manager by providing guides, check sheets and Vendors register ringing errors.
instructions for contacts. Vendors • Provide consequences for good and poor
Vendors Shipping and
• Train Replenishment Merchandisers in “start-up” Vendors Merchandise performance in relation to retrieval.
Receiving
procedures for introduction of AMS into store. • Provide training in proper register ringing
• Train Replenishment Merchandisers in procedures, error correction, and supplying
techniques for giving feedback to stores on 2 information to the Department Manager.
retrieval and provide checklists to record Sales Clerk
progress.
Merchandise
Cash Register
Display
Customer
5. Shipping and Receiving 3. Merchandise Manager

4. Store Manager
• Represented on the System Management Group to • Receive sufficient training in operation of the AMS
help solve problems which may impact the AMS • Should introduce and manage introduction so that they can monitor and assist the Department
(e.g., ticketing) of the AMS into the store with guidance from Manager.
Corporate Staff. • Provided with performance-based job description to
• Establishes System Management Group to use in training, guiding and evaluating Department
co-ordinate all departments and sub- Managers.
functions impacting the AMS • Trained in use of new performance evaluation
• Receives sufficient training in specific procedures for Department Managers.
operation of AMS so that they can monitor
its performance.

Implementation Countdown
Replace with 11x17

Performance Analysis – Reference
TAB 9 – PERFORMANCE ANALYSIS – REFERENCE
• Articles on PDL Website

• Points of Entry
•
3 Job Level Anatomy of Performance – Key Points
and Implications
• Performance Analysis for Results and
“Numbers”
Process • Finding Variability in a Hierarchy of
4 Level Performers
• “Exemplary Performance” Analysis
Performance • Stakes and PIP’s
Design • Performance Logic Maps
Organization
5 Level
• Classic Performance Design Challenges
Total
1 2 6 System
Framework
10
Performance Plan &
Department Design
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference

ARTICLES FOUND UNDER “PUBLICATIONS” AT

PERFORMANCEDESIGNLAB.COM
“Know Your Client’s Business”, (Rummler and Morrill), Performance

Improvement, (Published by the International Society for Performance
Improvement) March, 2004; (Volume 43, Number 3).
“The Results Chain – A Tool for Serious Performance Consultants”, (Rummler

and Morrill), T + D Magazine, (Published by ASTD) February, 2005.

RESULTS IMPROVEMENT PROCESS – POINTS OF ENTRY
The Three Levels of the Organization System (Organization, Process, and Function/Job)
suggest three likely “entry points” into an organization when trying to improve
performance (as illustrated by the three issues at AJAX). Chances are you are going to
be called upon to respond to issues that start with one of those three entry points.
Following are some conclusions we have made regarding these potential “starting
points”.
Three likely “entry points” into an organization:

JOB LEVEL (or Critical Job Issue)
Job Level “problems” are almost always symptoms of issues elsewhere. You can (or may
have to) start there, but don’t expect to find the answer/solution there. Move as quickly as
possible to the Process or Processes of which the Job (or role) is a part. Then you can
establish a Critical Process Issue (CPI) and figure out the performance context of the Job
and determine if there is any value in addressing the initial issue (i.e., can the CPI be
linked to a CBI?).
AJAX example: The Vice President of Field Operations contacts us because the VP of
Production is complaining about Sales Reps not completing sales order forms properly.
He/she want us to “look into the matter” and make some recommendations. Our first
order of business is to determine the significance of this “problem”. We need to establish
a link between the apparent CJI and a CPI or CBI. We do the following:
1. Gather data on the type, frequency and location of errors to learn if this is a
widespread problem. (i.e. Many or a few orders, in every District or
concentrated in a few, by many Sales Reps, or just a few.)
2. Confirm our hypothesis that the Sales Rep is the starting point of the
Customer Order Process. Then develop a quick, high-level cross-functional
map showing the trail of a sales order and all the areas it touches until the
customer receives their order.
3. Establish the fact that there is a serious Critical Process Issue (CPI) regarding
customer dissatisfaction, which is possibly linked to a CBI of loss of market
share.
4. Suggest to the VPs of Field Operations and Production that the real
opportunity to make a difference is to address the CPI of customer
dissatisfaction. Point out that fixing the “incomplete order form” issue will not
significantly impact the “customer dissatisfaction” issue, but addressing the
“customer dissatisfaction” (i.e. Customer Order Process) issue will either fix or
eliminate the “incomplete order form” issue.

In addition to the potential for “making a difference”, a reason for our pursuing
“significance” is to assure implementation of our recommendations. If we stay at the Job
Level (Sales Reps and sales order forms) we are engaged in an inter-functional debate
between two Vice Presidents, with little incentive for the VP of Field Operations to
actually implement what we might recommend. However, if we can move the “problem” to
the Process Level, with a CPI (and possible CBI of “market share”), we will have the
attention of the AJAX President (and perhaps of JAX executives) and thereby will have
greatly increased the probability of successfully implementing painful, but necessary,
changes.
PROCESS LEVEL (or Critical Process Issue)
The Process Level is always a good place to start. This Level will quickly lead you to
something of value or significance you can measure (a CPI that can be linked to a CBI). It
will also ultimately lead you to the Job Level (process execution issues), Organization
Level (Strategy, policy, Value Chain alignment and/or organization structure issues that
impact process performance) and Management (maintaining alignment at, and between,
all Levels). The Process Level also provides quick insight into an organization’s strategy,
management, business values and practices, leadership and chances of survival.
AJAX example: Vice President of Marketing contacts us because of increased customer

dissatisfaction with the time to receive orders. Preliminary discussions with the VP
confirm the hypothesis that “customer dissatisfaction” is a Critical Process Issue for the
Customer Order Process and that it is strongly linked to the CBI of “loss of market share”.
We do the following:
1. Given input from customers and the AJAX leadership, convert the CPI of
“customer satisfaction” into specific, measurable gaps in results (customer
satisfaction ratings, delivery cycle time, error rates). These gaps form the
process improvement goals.
2. Map and analyze the “is” Customer Order Process, identifying the disconnects
that impact the CPI.
3. Redesign the Customer Order Process
4. Support the redesigned work process with changes
5. At the Job Level, such as changing the requirements of Sales Reps regarding
order submission
6. At the Organization Level regarding setting process goals that are aligned with
customer expectations, balancing the goals of functional vice presidents,
providing needed resources, and measuring and managing process
performance.

ORGANIZATION LEVEL (or Critical Business Issue)

The Organization Level is also a good place to start since at that Level you are usually
starting with a CBI. However, these opportunities are much less frequent. If you start at
that Level, you need to quickly identify those processes that impact the CBI and follow
that trail to the Job Level, Process Level and Management, as outlined in #2 above.
AJAX example: The Vice President of Marketing contacts us for assistance in reversing a
loss of market share over the past three years. We confirm that the CBI is “loss of market
share” and the results gap is between the current market share of 48% and the desired
market share of 60% or better. Then we do the following:
1. Assess how each of the primary processes in the Value Chain (“IT” Available,
“IT” Sold and “IT” Delivered) impact “market share” and determine in which
order the processes should be analyzed and improved. It is decided that the
first process to analyze and improve is the Customer Order Process. Part of
the rationale is that there is no sense building and selling better products
when the delivery system is incapable of meeting customer expectations.
2. Perform steps 1- 4, from scenario #2 above.
3. Repeat the preceding step for “IT” Available and “IT” Sold.
No matter where you start, the key is to identify and understand the relevant Performance
Anatomy. The Performance Anatomy provides the blueprint or roadmap for
understanding “cause” and identifying the changes necessary for improving results.

ANATOMY OF PERFORMANCE – KEY POINTS AND

IMPLICATIONS
Key Points Implications for Performance

Consultants (PC’s)
A. A business is an Adaptive System Knowledge of a client’s super-system
1. It must adapt to the ever changing can assist the PC in several ways:
components in its Super-System, • It may explain current pressures you
consisting of: see inside the organization.
a. The consumer marketplace • It could provide insight into potential
b. The capital marketplace challenges your client will be facing,
c. Competition suggesting ways in which you can
d. Resources proactively assist them in the future.
e. The general business environment • It may allow you to link inside issues
2. Adapt or die to outside realities that will lead to
a. “Low gear” – adapt to survive necessary management support for
b. “High gear” – adapt to thrive change.
The super-system components act as a
template for gathering data on a client’s
super-system. You can ask yourself,
“What do I know about my client’s
customers. What do I know about my
client’s critical resources? My client’s
competition?
B. A business is a Processing System. The The quickest and most reliable way to
business organization transforms customer understand an organization is to identify
needs into valued products or services via the primary processes that create, sell
a Value Chain of core processes. and deliver its products or services.
Knowledge of these basic processes
provides a blueprint for how the
organization delivers value to the
customer. Virtually all performance
improvement ultimately is about
increasing value to customers.
C. Jobs/roles and functions exist to The link between job and process is
support processes. Functions and jobs critical and very often a major issue
represent non-value added cost until they impacting organization results. Reality is
are linked to processes that deliver value that jobs and departments are highly
to customers. visible compared to processes, which
tend to be invisible in most
organizations. That leads to jobs
evolving in ways that don’t efficiently or
effectively support the processes that
are supposed to be delivering value to
customers. In effect, jobs take on a life
of their own.


D. All performers exist in a Human If an individual is not performing as
Performance required, the PC must ask themselves
System (HPS). Each individual exists in where the HPS of that individual is
their own unique Human Performance deficient and what must be changed In
System that includes resources, the HPS to get the desired
expectations, consequences, feedback, performance. The vast majority of the
capability and capacity. time poor performance among a group
or class of individual performers is a
function of deficiencies in the HPS. The
cause of the HPS deficiencies may
ultimately be traced to other variables in
the organization, but the trail starts with
the individual HPS.
E. Organization effectiveness requires A likely contribution to poor organization

alignment at Three Levels: results is failure of:
1. Organization • The goals of key processes to
2. Process be aligned with those of the
3. Function/Job/Performer organization.
• The goals of key jobs to be
aligned with those of the
processes they are supposed to
support (as described in “C”,
above).
The alignment of organization, process
and job goals is a variable that should
always be examined by a PC.
F. The role of Management is to keep all The PC should understand that failure
these system components aligned. of an organization to be aligned at any
Their task is to see that point in the Anatomy of Performance
1. The organization goals and strategy (AOP) framework is a failure of
are aligned with the reality of its Super- management. Therefore, just correcting
System a misalignment in the AOP is not
2. The internal processing system goals enough. For a more permanent “fix”, the
are aligned with the corporate goals. PC must also address the flaws in the
3. Function and Job goals are aligned management system that allowed the
with process goals misalignment to take place.
4. The components of the Human
performance System are aligned
vertically, horizontally and for the
individual


G. The Results Chain shows the link When a PC gets a request for “help”,
between individual performance and they should
organizational results. (Critical Job Issue • Establish a relevant Results
– Critical Process Issue – Critical Business Chain
Issue) • Locate the request on the
Results Chain
Then they should see if they can move
the request/issue up the Results Chain.
• Why? The higher up the Results
Chain,
- The greater the impact
on organization results
- The greater the support
for implementation
• A Critical Process Issue (CPI)
should always be linked to a
Critical Business Issue (CBI).
• A Critical Job Issue (CJI) should
always be moved to a Critical
Process Issue.
H. The Anatomy of Performance is a The Anatomy of Performance
scaleable model. It applies to a: framework will help the PC understand
1. Total company the performance context of a request
2. Division or Business Unit regardless of the size of the
3. Plant or District organization unit involved.
4. Department
I. Summary: The Anatomy of Performance The Anatomy of Performance is a
is a summary of the variables that impact framework for understanding the
individual performance and organization performance context of a request for
results. help.

PERFORMANCE ANALYSIS FOR RESULTS AND “NUMBERS”
OVERVIEW
1. We are always improving performance in this context:
Business Environment
E.
(1) Capital Market/

----------- Shareholders
$
Resources ------ Any Business
A.
B. (2)
----------- Product/Service
P/S Market
D.
Competition --------------------
C.
2. Performance issues can emanate from:

A. Resource cost, quality, and or availability
B. The efficiency and effectiveness of internal processes (Primary, Support,
Management)
C. Actions of competitors
D. Shifts in the marketplace
E. Changes in the Business Environment
3. All Results Improvement projects must be pushed to (1) – something to do with earnings to
shareholders, or (2) – something to do with the sales of the Product or Service offered. (2)
can be pushed to (1) if necessary.
4. There is a definable network or hierarchy of factors that impact (1) and (2).
5. There is always variability in how these factors are performed. It is this variability that causes
the Results Gaps in (1) and (2).
6. It is the job of the Performance Improver to identify and remove the cause of this variability
in the factors that impact (1) or (2)

THE PROCESS
A. Determine the Critical Business Issue (CBI) in (1) or (2). Establish the GAP between current Results
and desired Results.
B. Determine the SIGNIFICANCE of the Gap in Results.
1. Is it worth attempting to close the Gap? (ROI)?
2. Will the necessary changes be implemented?
3. What priority will this effort receive?
4. What are our expectations in closing the Gap and how will we evaluate the success of the
effort?
C. Where is the LOCATION of the Gap(s)?
1. Identify the network of factors that impact the Gap. (Tool – Performance Logic Map)
2. Locate “when” and/or “where” there are Gaps in performance of the factors. (Techniques –
“Exemplar Analysis” and “PIP Analysis”)
a. “When” – Time
• Season
• Annually/Quarterly/Monthly/Weekly/Daily/Hourly
• Shift
b. “When” – “Trigger” (Type of input)
• Customer
• Product or Service
c. “Where” –
• Customer/market
• Supplier
• Product/Service
• Location
• Country/Region/District
• Branch/Store/Plant
• Shift
• Manager
• Individual Performer
• Organization System
• Value Chain
• Process
• Process Step
D. What is the CAUSE of the Gap?
1. External?
2. Internal?
a. What Process?
b. What Process Step?
c. Performance Planned?
d. Performance Managed?
e. What Performers?
f. What HPS component?
E. What are the RESULTS of closing the Gap? To what degree have we impacted the Critical Business
Issue?
In summary, “numbers” help us determine:

1. GAP
2. SIGNIFICANCE
3. LOCATION
4. CAUSE
5. RESULTS

FINDING VARIABILITY IN A HIERARCHY OF PERFORMERS
Background:
Six months ago, AJAX introduced a new product through their sales organization, which looks
like this:
President
VP Sales
Region I Region II
District 1 District 2 District 3 District 4 District 5 District 6 District 7 District 8
Sales Sales Sales Sales Sales Sales Sales Sales

Reps (6) Reps (6) Reps (6) Reps (6) Reps (6) Reps (6) Reps (6) Reps (6)
In summary, AJAX has:

• Two Sales Regions
• Four Sales Districts in each of the two Regions (Total of eight Districts)
• Six Sales Representatives in each District (Total of 48 Sales Reps)
Assume no difference in the sales potential for the product in all Districts.
Exercise:
The variability in To whom would you look
If during the six months that the new product
performance is at what for an explanation of the
was introduced…
level in the organization? poor performance?
1. Only one Sales Rep in the company had
failed to meet the minimum sales
expectations for the product.
2. Four of the six Sales Reps in District 3 are
the only Sales Reps in the company who
had failed to meet the minimum sales
expectations
3. 20 Sales Reps had failed to meet the
minimum sales expectations for the
product. 18 of those Sales Reps were in
Region I
4. 36 of 48 Sales Reps in the company had
failed to meet the minimum sales
expectation for the product.
5. Five of the six Sales Reps in District 6 are
the only Sales Reps in the company
meeting their sales targets for the product.
6. Sales are 40% less than projected across
all Districts, the cost of producing the
product is 30% over plan and Sales Reps
complain the new product competes with
existing AJAX products.

“EXEMPLARY PERFORMANCE” ANALYSIS
1. Find Exemplary Performance (See “Where is Exemplary Performance”)

2. Identify the cause of Exemplary Performance
3 3
1
1
2 2
At the Unit Level

3. Establish what measurable performance distinguishes the “good” performing Units from the “not-so-
good” performing Units
4. What are the differences in processes, systems, policies that contribute to, or explain differences in
Unit performance measures? (Organization and Process Level variables.)
5. For key jobs, what are differences in job accomplishments, outputs, tasks, and behavior that
contribute to, or explain differences in Unit performance measures?
(BASICALLY COMPARING THE PERFORMANCE ANATOMY OF THE “GOOD” PERFORMING

UNIT AGAINST THAT OF THE “NOT-SO-GOOD” PERFORMING UNITS.)
At the Job/ Performer Level
6. Establish what measurable performance distinguishes the “good” performers from the “not-so-good”
performers.
7. Observe a range of performers, from “good” to “not-so-good”.
8. Based on the performance data and observations, develop an “exemplary model” (Accomplishment
Model) for the job and job hierarchy. (Develop an exemplary model of the underlying process, if
necessary.)
9. Validate the Exemplary Model with management and “good” performers.
10. Establish the sub-accomplishments, tasks, and behavior (if appropriate) to support the
Accomplishments.
11. Build a Performance Table identifying the support required for Exemplary performance
12. Develop the support specified in the Performance Table.

WHERE IS EXEMPLARY PERFORMANCE?

REGION I
DISTRICT A
AREA 1
TERRITORY A
TERRITORY B
TERRITORY C
AREA 2
AREA 3
AREA 4
AREA 5
AREA 6
DISTRICT B
DISTRICT C
DISTRICT D
DISTRICT E
DISTRICT F
REGION II
REGION III

13. STAKES
(AS IN “WHAT’S AT STAKE”)
• Revenues?
• Expenses
•?

MANUFACTURING ECONOMICS OF A TYPICAL PLANT
Description Total Product A Product B
Market Value $16,000,000 $8,000,000 $8,000,000

Ingredient Cost $3,600,000 $1,400,000 $2,200,000
Packaging Materials Cost 2,000,000 1,050,000 950,000
Total Materials Cost 5,600,000 2,450,000 3,150,000
Total Direct Labor $760,000 $375,000 $390,000
Manufacturing Expenses (+13%)
Cost of Manufacturing $8,560,000 $3,925,000 $4,640,000
Pounds Produced 22,400,000 12,000,000 10,400,000
Equipment
• Fryer (large) 6 4 2
• Packaging Machines 16 8 8
Relevant Personnel
• Machine Operators 16 8 8
• Cooks 12 8 4
Other
Two 8-hour shifts; 5-day week;
52 weeks per year;
260 days per year

PIPS
(PERFORMANCE IMPROVEMENT POTENTIAL)
a)
0 100
b)
0 50 100
c)
0 50 100

SUMMARY OF INDIVIDUAL PERFORMANCE DATA-MODEL PLANT
I Average MUF’s
1. Packaging Machine Operator $12.00
2. Product A Cooks 5.00
3. Product B Cooks 6.00
II Frequency of MUF’s per day for typical performers
Performance Class Packaging Product A Product B
Cooks Cooks
Machine
Operators
High Performers 10 10 10
Standard Performers 40 25 30
Low Performers 60 30 40

SUMMARY OF INDIVIDUAL PERFORMANCE DATA-MODEL PLANT
I Economic Impact of Changing Individual Performance (One Year)
Change in Packaging Product A Cook Product B Cook

Performance
Level
Low to Std. $25,000 $15,000 $15,000
Std. To High 37,500 45,00 30,000
Low to High 62,500 60,000 45,000
II Economic Impact of Changing Performance Profile in the Plant

A Distribution of Performers – At present vs. how Plant would like it –
Class Packaging Product A Cook Product B Code

Present Planned Present Planned Present Planned
High 3 12 1 3 2 6
Std. 5 4 2 1 4 2
Low 8 0 1 0 2 0
Total 16 16 4 4 8 8
B Economic Impact of Changing Distribution of Performance
Packaging Product A Cook Product B Total

Cook
Savings $537,500 $105,000 $90,000 $735,500

IDENTIFYING PIPS
The PIP is determined by examining the spread in performance between two sets of performers
– the best or master performers, and average performers. A large spread indicates a large
potential for improved performance, or a large PIP.
For example, if the best clerk in the department consistently turned out 60 claims per day and
the average clerk in the department turned out 30 claims per day and if all the clerks were
operating under the exact same circumstances, then we can justifiably compare their
performance as follows:
60
= 2
30
In this case the PIP is 2, or in other words, the best clerk is performing 2 times as well, or 100%
better than the average clerk.
Another example might be the case where the best clerk in the department averages a 10%
error rate, while the average for the department is 13%. Once again we would examine the
relationship between their rates to determine how significant the difference between them is, or
How big is the PIP?
13%
= 1.30
10%
The PIP, therefore, is 1.30. Another way of stating this relationship is that the difference
between performers is 30%.

IDENTIFYING PIPS (Cont)
As a general rule, when you are calculating PIP’s for those measures involving value we form
the equation as follows:
Master Performer 60
= PIP or =2
Average Performer 30
For those measures involving cost we form the equation as follows:
Average Performer 13%

= PIP or = 1.3
Master Performer 10%
The result of either of these equations is that the spread in performance can be expressed in a
number greater than one.
Generally, we consider PIP’s larger than ten percent or 1.10 to be significant.

EXERCISE 1 –
IDENTIFYING PIPS
Attachment A, on the next page, contains performance data on three branches. Based on a
comparison of the Operation Indicators for the three branches in the region, we have identified a
significant PIP in the area of customer complaints/total claims processed: Branch #14 (the
master performer) at 11.0% compared to the average of the branches – 16.5%
The resulting PIP in the area of customer complaints/total claims processed between the
average branch and the best branch in the region, Branch #14, is 1.50, or 50%. Since we
generally consider PIP’s larger than 10% to be significant, this PIP is certainly significant
enough to warrant further consideration.
Review the other Operation Indicators on page 13 and simply check off those performance
areas in which significant PIP’s exist between the best branch and the other branches in the
region:
a. Customer complaints/total claims processed ________
b. Adjustments/total claims processed ________
c. Processing cost/claim ________
d. Processing cost/adjustment ________
e. Processing cost/customer complaint ________

OPERATION INDICATORS BRANCH BRANCH BRANCH REGION

#13 #14 #15 AVERAGE
a. Customer Complaints/ 17.0% 11.0% 21.5% 16.5%
Total Claims Processed
b. Adjustments/Total Claims 8.5% 4.2% 12.5% 8.4%
Processed
c. Processing Cost/Claim $5.00 $4.90 $5.08 $4.99
d. Processing Cost/ $3.00 $3.10 $3.12 $3.07
Customer Complaint
e. Processing $10.00 $10.00 $10.02 $10.00
Cost/Adjustment

PERFORMANCE LOGIC
I – PREMISE
1. The success of every business organization is based on a set of identifiable variables. If

these variables are identified and understood, they can be managed and/or influenced by an
organization. The identification and documentation of these variables and their relationship is
what has been missing in the management of organizations. Failure to identify and document
this Logic is a major contributor to why financial measures and operational measures have
never been linked and why the "balanced score card” is seldom integrated.

CHART A - PUBLIC WORKSHOP PERFORMANCE LOGIC MAP
Mailing Lists
Capacity
Message
Price
Promotions
Registrations Awareness Presentations Frequency
Publications
Content Timing
Dates
Schedule
Revenue Location
Product
Available
Profit Workshop Instructors
Delivered Available
Facilities
Cost Available
Fee

PERFORMANCE LOGIC, (Cont’d)
II – PRINCIPLES
1. Some of these variables are outside the direct control of the organization (they are
influenced by factors in the Super System), and therefore not controllable by the
organization. However, if the organization has identified these variables and
understands their impact, it is frequently possible for the organization to observe,
anticipate, influence, and quickly react to them
2. The key is identifying and understanding these variables and their relationship to one
another.
3. We call these variables and their relationship a Performance Logic. We identify these
variables and display them in a chart called a Performance Logic Map.
4. The Performance Logic Map shows the hierarchy of variables from the ultimate
Enterprise variable of PROFIT to the last identifiable variable. This chain or hierarchy of
variables makes it possible to distinguish between "lagging" variables such as profit and
"drivers" such as "quality" and "price". Then it is possible to link these variables from the
Enterprise or "lagging" level to the "drivers", which exist in processes (that impact or
influence those variables).

PERFORMANCE LOGIC

ORGANIZATION LEVEL PERFORMANCE LOGIC MAP

(and Related Processes)
EAGLE, INC.
Product (Product
Available Development)
Market (Market
Available Development)
Leads (Market
Sales Made
Generated Development)
Proposals
(Sales)
Made
REVENUES Price Sales
Closed (Sales)
Order (Order
Shipped Fulfillment)
Orders
Invoiced (Billing)
PROFITS
(Before Payments Payment (Accounts
Taxes) Received Received Receivable)
Collections (Collections/
Made Accounts Rec.)
Research and
Development
Marketing
EXPENSES Sales
Manufacturing
Administration
Overhead

PERFORMANCE LOGIC – CUSTOMER ORDER PROCESS

Order Shipped &
Order Submitted Credit Pre-Approved Carrier Approved
Invoice Sent
Credit Data Complete Data Requested
Personnel Trained
Credit Checked Current Credit Data Data Requested
Order Entered Order Data Complete Order Heard

Order Recorded Personnel Trained
System Operation
Order Data Correct Order Heard
Order Recorded Personnel Trained
System Operation
Order Scheduled Inventory Checked Inventory Data Correct
Material Ordered Approved Suppliers Available Approval Procedure

Supplier Perf.
Specifications Known
Production Scheduled Print Capacity Equipment

Personnel
Assembly Capacity Equipment

Personnel
Invoice Prepared Order Stopped Credit Disapproved.
Order Data Complete
Order Produced Material Printed Raw Material Available Supplier Performance

Equipment Operational Inventory Located
Personnel Available
Specifications
Order Assembled Raw Material Available Supplier Performance

Equipment Operational Inventory Located
Personnel Available
Specifications
Order Shipped Order Picked Inventory Available Forecast

Production Rate
Order Packaged Packing Mail Available
Packing Instructions
Ship to Info
Personnel Available
Invoice Inserted Invoice Available
Order Loaded and Dispatched Carrier Available

Loaders Available
Equip. Available

II – PRINCIPLES, (Con'd)
5. There is usually a basic underlying "logic" for each industry, such as the petroleum or
grocery industry. The logic for that industry remains the same. "Points of Optimization"
vary depending on an individual organization's strategy. The "leverage points" for a given
organization in a given industry vary
• depending on the strategy of that organization
• depending on the strengths and weaknesses of a given organization, compared to
competitive moves and leverage points (e.g., a cost of raw material advantage or
distribution advantage, or a technical innovation advantage).
• over time, because of changes in the Super-System (markets, suppliers,
environment.)
But the INDUSTRY LOGIC remains the same for all players.
6. There are Organization, Process, and Job Level Performance Logic's. The Organization
Performance Logic shows the relationship between the organization's ultimate outputs,
including earnings, and operations (specifically processes). This logic remains
unarticulated in most businesses and is the reason why the relationship between various
financial meters and operational knobs remains a mystery.
The Process Performance Logic is implicit in the input-output relationship of a work

process flow. However, in many cases it is beneficial to make the Process Logic explicit
with a Process Performance Logic Map. Through process improvement work, many
businesses have begun to understand process level performance logic. However, it has
done little good because the processes were not linked to "top level" business measures
because the Organization Performance Logic was not apparent.
The Job Performance Logic is implicit in accomplishment/sub-accomplishment based Job
Models. There is a logic in the accomplishment/sub-accomplishment format of the Job
Model
7. There are "is" and "should" PLMs.
8. No Strategy, no Performance Logic Map. You can identify the variables, but you cannot
develop the logical relationships between the variables without clear decisions about the
goals and what variables are to be optimized.


III – DEFINITIONS
Performance Logic (PL): The variables that impact the performance and their relationship to
each other. (This could refer to the performance of an organization-company, unit, or district-a
process, or a job.)
Performance Logic Map (PLMp): A tool to display the logic, the variables and their relationship.
The PLMp is used to validate the logic, identify "lagging" and "driving" variables, determine
"leverage points", and identify key measures. In the context of Peter Senge's work on "learning
organizations" (Reference 1990 HBR article), the PLMp is a powerful tool for:
• gaining insight into the nature of complexity in organizations
• seeing where "high leverage" lies
• understanding "current reality" and restructuring the view of reality
• developing shared visions
• articulating and communicating "mental models"
• aligning "espoused theory" with "theory in use"
• designing "scenario analysis" exercises
Performance Variable: A variable can be an output or outcome of a system, process, process

step, and input to a process step, a material, an agreement, information, etc..
Point(s) of Optimization: the set(s) of variables that are optimized/should be optimized (e.g., by
region, by market, by product lines, etc.).
Leverage Points: Those variables in the Performance Logic which will have the greatest impact
on the performance of the organization and should therefore be measured, monitored, and
managed. They can be:
• variables that have the biggest impact on performance goals (in the experience/estimation
of the organization)
• variables that are a source of current pain and errors
• variables for many compensating sub-processes or "work-arounds"
• crunch points, bottlenecks
• "weak" variables-variables that currently have no infrastructure or support that we must
have in order to achieve the strategy/performance goals. Example: current supplier base
not big enough to support growth goals
• variables whose performance or condition is unpredictable or out of control
Leading Indicator ("Driver"): The variable

• you would watch in order to predict performance (of the performance goal) with enough
lead time to be able to manage, mitigate, correct, or compensate for that predicted
performance
• that is the "root cause" of missing the goal
• that you would "drive" to get the desired performance
Performance Logic Management (PLMt): Using the Performance Logic to formulate an

organization's strategy, design an organization structure that will optimize performance, establish
a performance measurement and management system and "manage the organization as a
system".

IV – APPLICATIONS AND IMPLICATIONS

A. Competitive Analysis
B. Mergers
C. Business Analysis
D. Performance Analysis/Training Analysis
1. Determine the significance and scope of a request for "help"
2. Prioritizing requests for "help"
3. Evaluating the effectiveness of interventions to "help"
4. Education of a client about the variables impacting their business
E. Strategy Formulation
F. Organization Design and Structure
G. Planning
H. Goal Setting
I. Measurement System
J. Performance Management System
K. Education and Communication
L. Supporting becoming a "Learning Organization"
M. Measuring and Managing by Logic
• Assumption. The Training Department or other "helping" staff organization has developed a
Master Organization Level PLM for the business or businesses and has developed Process
Level PLMs for most of the business. Further, the potential leverage points and the levers
currently being manipulated are known to the "help" department.
• Given the existence of these PLM's, these are four possible applications:

Determine the significance and scope of a request for "help".

– Get a request for "X". Use the PLM to see how "X" impacts organization
performance. Does it have significant impact? Does something else under the
control of the requestor have greater impact on organization performance?
– For example: Get a request to train shipping supervisors in "X". Using the PL,
determine how the shipping process impacts organization performance. What are
the ways and the "numbers"? Next, how does the shipping supervisor impact the
shipping process? Now we have the links between the shipping supervisors and
organization performance. Next, does the "X" that has been requested have
relationship to the linkage that has just been established? If yes, then there is a
way to establish if there is a gap in performance and a way to evaluate if the gap
has been closed by the training. If no, then could there be some training other than
"X" that could have an impact on the performance of the shipping supervisor and
the company? If there is no apparent link between the request for training in "X"
and organization performance, then the PL should provide a tool and rationale for
declining to waste valuable company resources on training in "X".
Prioritizing requests for "help".
Assume that a training manager has eight requests for training. Using the PL, the training
manager should be able to determine the relative potential impact each requested training
will have on the performance of the organization and prioritize accordingly.
Evaluation of effectiveness of an intervention to "help".
If the PLM has been used to asses the significance of a request for "help" as described in
the first bullet above, then it will be clear what variables will be affected by the requested
intervention. Knowing the variables in advance, baseline data can be gathered prior to the
intervention and compared to data generated during and following the intervention. Issues
of "other variables" affecting the performance will be more manageable because the PLM
will have identified all those potential influencers while scoping the project initially.
Education of a client.
The PLM will provide a great tool for discussing a request for "help" with the requestor. It
can be used to explain why a request is being accepted or not. It will show the
opportunities for evaluation. Ideally, it will help a requestor better understand their
business and how they impact organization performance. In all subsequent requests, the
PLM can become the framework for discussing impact and priorities.
• Relationship of PLM to PIPS and Stakes: the PLM, via Leverage Points, will lead to "high
stakes" areas. Then you look for variability in performance for those high-stakes leverage
points and determine the Performance Improvement Potential

CLASSIC PERFORMANCE DESIGN CHALLENGES
Job Level
1. An individual performer
2. A single job classification
3. A work team
4. A series of jobs that need to

work together
5. A manager of others
6. A manager of managers
7. VP’s don’t “play nice”

Process Level
8. A process that is performing
poorly
9. A Value Chain that is Available Sold Delivered

performing poorly
Organization Level
10. A single department/function/

entity that is performing poorly
11. Two or more departments/

functions that need to work
together
12. Multiple units with variability in

performance
13. Broken management system

PP PM
PP PM
PP PM
14. Organization redesign
15. “Clean sheet” design of an

organization
?

Performance Department
TAB 10 – PERFORMANCE DEPARTMENT
3 Job Level
Process • Model
4 Level • Plan and Design
Performance
Design
Organization
5 Level
Total
6 Framework
1 2 System
10
Performance Plan &
Department Design
Process &
7 Tools Manage
Performance
Analysis
8 Cases
9 Reference

INTERNAL PERFORMANCE CONSULTING MODEL
The Institution
1
1
1
2 2
“Help” Requested
“Help” Provided
3 3
PC Organization Client Organization
Per the diagram above, the internal performance consultant has a multi-level client
management challenge:
1. Establish a long-lasting, strategic business partnership with their client

organization.
2. In the process of (1), develop strong working relationships with key individual
managers.
3. Accomplish (1) and (2) through the work they do – the specific improvement
projects
Basic Principles
• Long-term goal: Strategic Business Partnership with client organization
• Deliver results
• Be responsive
• Have patience – It takes time to move the client organization up the learning
curve
• Be selective when and where you do serious performance analysis
• Every project is an opportunity for you to:
o Educate the client – to move them up the learning curve
o Learn more about the client’s performance reality
• “You gotta know the territory”
• Don’t forget what you already know about the business
• Deliver and Learn

BUILDING A “PERFORMANCE CONSULTING” DEPARTMENT/FUNCTION
TYPICAL WORKING MODEL
INTERNAL CONSULTING DEPARTMENTS ORGANIZATION
Training
Human Resources
Selection, Compensation, Benefits, Appraisal
Information Systems
Quality
Engineering
Organization Development

IDEAL WORKING MODEL
INTERNAL
CONSULTING
DEPARTMENTS PERFORMANCE ORGANIZATION
DEPARTMENT
Training
Performance Analyst
and Architect
Human Resources
• Analyze
• Design Performance
Information Systems System
• Assemble Multi-Discipline
Systems Development
Team
Quality
• Oversee/Manage System
Development and
Implementation
Engineering
Organization
Development

PLANNING FOR THE TRANSITION FROM TRAINING TO

PERFORMANCE IMPROVEMENT
Geary A. Rummler*
Fundamentally, your task in transitioning from a Training Department to a Performance

Department is to move from an “is” performance infrastructure (i.e. Performance Matrix)
that supports a training organization to a “should” performance infrastructure that
supports a performance organization, as shown below.
---------->
To Support To Support
Training Organization Performance Organization
You need to rebuild each of the cells in the Performance Matrix to support your new
organization.
Developing a Plan
This transition is going to be a complex and difficult task and will take you at least 3-5
years to accomplish. You are going to need persistence, patience, and a plan. To help
you with this transition task, we suggest the planning format shown in Figure 1 on page
348. The column at the far right represents requirements that our experience tells us you
will need to have in place in order to have an effective Performance Department. (This is
not an exhaustive list of requirements. You may wish to add to this list to reflect your
special circumstances. We will discuss these components below.) The column at the far
left provides space for you to describe the current status of each of the requirements
listed at the far right. The columns in between denote the periods of time you have to
move from the “is” state (far left) to the “should” state (far right). The number of columns
shown here are illustrative. I recommend that the first four columns in this section
represent the first four quarters of the first year of the transition. Then I would
recommend a column for each six months of the next two years (four more columns).
This covers the first three years. If you think it is going to take you longer to accomplish
your PD development goals, add columns accordingly.
* Some of these thoughts originally appeared in Moving form Training to Performance, edited by Dana
Gaines Robinson and James Robinson, and published by ASTD.

Some of the benefits we have found for developing such a plan include:
• Forcing you to think through in some detail, and on a time-line, just what is
involved in achieving your goal of a PD.
• Providing you with a mechanism for setting goals for key results to be
accomplished. Lack of goals significantly reduces the likelihood of success.
• Providing you with a roadmap, because we guarantee you are going to get
temporarily lost on such a long, complicated journey.
• Providing you a “progress plotter”, so you can see that you are making progress.
You are going to suffer set-backs and become frustrated and discouraged.
Referring to this plan will help you see that not all is lost and that you are making
important strides toward your goal.
• Assisting you to manage set-backs and modify your plan to work around
temporary road-blocks.
• Assist you in communicating to others that you know where you are going-and
what you need from them to make it happen.
Components of the Plan
There are four major requirements for successfully deploying a PD and the top-to-bottom
sequence of the requirements shown in Figure 1 on page 348 reflects their relative order
of implementation.
• Leadership. You can’t go anywhere without leadership. If you don’t have it, don’t
even attempt this journey.
• Performance Infrastructure (basically those components in the Performance
Matrix). You need to make these decisions and build this capability before you
can deliver results.
• Credibility. This work begins as soon as you have capability. You need to show
results and build support ASAP.
• Formal Charter. This comes last. To a large degree, you “earn it”, through the
results you deliver. We have seen instances where this item was put at the top of
the list, as the first thing to be accomplished. The result was a disaster of
definition of “performance” and turf wars. Attempting to start the transition by first
securing a formal charter is a sure way to doom this effort from the outset.

FIGURE 1 - TRANSITION TO A PERFORMANCE CONSULTING DEPARTMENT

– A PLANNING GUIDE
PLAN
REQUIREMENTS CURRENT YEAR ONE YEAR TWO YEAR THREE DESIRED STATE (End of
STATE Q1 Q2 Q3 Q4 Year Three)
A. LEADERSHIP
• Internal
• Sponsor
B. INFRASTRUCTURE
• Goals & Strategy
• Processes
• Policies
• Structure
• Capability & Capacity
• Funding
• Management System
• External Reporting
Relationship
C. CREDIBILITY
D. FORMAL CHARTER

Following is a brief explanation of each of the requirements shown in the Figure 1.
Leadership. Two sources of leadership are required for the successful implementation
of a Performance Department:
Leadership within the PD. There has to be a leader within the PC movement to get
this effort off the ground and keep it moving. The requirements include:
• a Vision of what needs to be accomplished and why
• ability to get others (within and without PD) to believe in this vision and to
follow them in its implementation.
• an understanding of PC-what it is, what it requires, how you do it.
• energy. It will take a lot.
Leadership within the host organization. There are several possible levels.
• ideally, the CEO or COO of the host organization realizes the contribution
a PD can make and personally sponsors the implementation of such an
institution. This happens, but not enough. Still, your goal should be to try
to get such sponsorship.
• The next level of leadership/sponsorship is at the business unit or
function level. Shoot for General Managers, vice presidents, and
department heads.
We are assuming that the reader of this book is going to perform the internal (to PD)
leadership role. For the external leadership,
• identify who are the current leaders and sponsors and determine what
you need to do to enhance or maintain their support.
• identify who you want to be leaders and sponsors and determine what
you need to do to gain their support. (See discussion of Credibility.)
Performance Infrastructure. These are basically the components that make up the
Performance Matrix. They can be summarized for purposes of a plan, as follows:
Goals and Strategy

Identify the “should” state goals and then establish appropriate intermediate
goals for each time period and related strategic initiatives for achieving them.
Processes
What processes (Primary and Support) do you need in place? When does
each need to be in place?
Structure
What functions do you want in place in the “should” state and when over time
are they going to be implemented? What reporting relationships are
appropriate as you move from the “is” state to the “should” state? (They will
need to change as the organization evolves and takes shape.)
Policies
What policies do you want in place in the “should” state and when is each
going to be implemented?

Capability and Capacity

How many people, with what skills, will be required at each phase in the
transition from “training” to “performance”. One challenge may be
redistributing existing headcount, from “delivery” jobs to “analyst” and
“designer” jobs.
Funding
What is the “should” state source of funding for the PD? What are the
desired approximations to that state, over the three year period?
Management System
Build one early and use it well, or you may never get to the “should” state.
Historically, “management” has not been a strength of trainers. A PD will
need strong management to successfully navigate the transition, deliver
results, and serve as a “model” for client-managers.
Credibility. There are two goals here-gain acceptance for what you are trying to do and
create “demand” for your services. This needs to be planned for and managed, it
won’t just happen. Identify individuals or organizations that have influence in the host
organization and target them for certain projects and results in various blocks of time
in your plan. Think of initiating a “demonstration” project in some influential part of
the host organization each quarter.
Formal Charter. Such a thing might not even be necessary. The primary reason to put it
on the plan is to stress the point that unless you have extraordinary circumstances,
you should not attempt to get such a thing at the outset of your journey to a PD. As
we said earlier, this is something that you earn, that will be bestowed on your PD
simply to confirm the “should” state. This is not to say that you don’t want to garner
sponsorship and informal support from the outset. You need that. But don’t try for the
big formal announcement that you are now the “grand-pu-ba” of the newly formed
Performance Fiefdom. If that happens, you will spend more time fighting turf wars
than implementing Performance Consulting.

REFERENCES
Chapter Five, “Performance Analysis and the Internal Consultant”,

in Serious Performance Consulting According to Rummler; Geary A. Rummler.
Published by the International Society for Performance Improvement.
Chapter 15, “Creating a Performance-Based Human Resource Development

Function”, in Improving Performance – How to Manage the White Space on the
Organization Chart”; Geary A. Rummler and Alan P. Brache. Published by
Jossey-Bass.


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Tab Entry = Introduction

Centered on Page in 24 point is duplicate entry (see below)

Tab 1 - Performance Consulting Assumptions ............................................................10

Tab 2 – Anatomy of Performance Framework .............................................................17

Tab 3 - Performance Design – Job Level ....................................................................48

Tab 4 - Performance Design – Process Level ...........................................................103

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Tab 5 - Performance Design – Organization Level ...................................................148

Tab 6 - Performance Design – Total System ............................................................176

Tab 7 – Performance Analysis – Process & Tools .....................................................197

Tab 8 - Performance Analysis – Cases ......................................................................261

Tab 9 – Performance Analysis – Reference

Tab 10 – Performance Department ............................................................................342

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ASSUMPTIONS ABOUT WORKSHOP PARTICIPANTS

At the end of the Workshop, participants will have:

• A mental model for analyzing factors impacting individual performance and

• A “Three-Levels of Performance” diagnostic framework and templates based on

• A Process for systematically analyzing performance improvement opportunities

• Tools for analyzing performance problems at each of the Organization, Process

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Providing me the opportunity to first see “Organizations as Systems” at work

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Thomas Schnick (Commonwealth Insurance Company) for the opportunity to

Geary A. Rummler, CPT

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Geary A. Rummler, Ph.D.

Prior to founding the Performance Design Lab, Geary was

Dr. Rummler was a pioneer in the application of instructional and performance

Dr. Rummler’s professional accomplishments include:

Geary and his wife Margaret reside in Tucson, Arizona.

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He can be reached at aramias@ThePDLlab.com.

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TAB 1 - PERFORMANCE CONSULTING ASSUMPTIONS

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Typical Consulting Situation:

The consulting situation begins with a request from an executive or manager of

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PERFORMANCE CONSULTING ASSUMPTIONS

1. Performance Consulting is about following Path (E).

2. Performance Consulting is about closing gaps in Results

Example “Is” Result “Should” Result

1. Incomplete Order Forms 13% 0%

2. Time to Receive Orders 30 days 5 days

3. Market Share 48% 60%

3. Performance Consulting is usually a role, not a full-time job.

5. Performance Analysis is done:

* But what about “training” as an intervention?

I value training that effectively addresses a validated knowledge/skill deficiency that

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PHYSICIAN PERFORMANCE CONSULTANT

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TWO THINGS TO GUIDE THE PERFORMANCE CONSULTANT

Mental Model (Anatomy of Performance)

Results Improvement Process

Desired Results Barriers Changes Results

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TAB 2 – ANATOMY OF PERFORMANCE FRAMEWORK

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PERFORMANCE CONSULTING KEY POINTS