1 Introduction to OPD-SHRM v2.2

Strategic

management of

human

performance to

increase

satisfaction and

profits

INTRODUCTION

TO OPD-SHRM

Introduction to the OPD-SHRM system of human capital

development and assess its potential to improve satisfaction

and increase EBIT.

OPD International Limited, 2/91B Roseberry Avenue, Birkenhead Auckland 0626, New Zealand

Phone: +6421909310 Email: [email protected] web: www.opdcoach.com

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Executive summary

OPD-SHRM has the potential to considerably increase profits and staff satisfaction.

However the potential gains will not be acknowledged without letting go of all prior views on organizational design, leadership, management and human resources. OPD-SHRM is different, but uses much of the same language, therefore unless approached in-depth, with an open mind, its potential will be missed.

If it was simple to link people to the organization effectively, it would have been done already. This extensive overview, backed by a clear and tight due diligence process offers easy access into a new way of thinking about human capital without over simplifying or complicating it. It is essential to follow the proposed due diligence to gain insight into what is a new way of thinking.

Human performance is a strategic factor in profitability. OPD-SHRM a comprehensive system for improving strategic management of human performance offering payback in increased profit (40% to 60%, see the paper) and satisfaction, justifying the due diligence effort.

Committing to improve human capital development is likely the best business opportunity with the greatest payback for organization and staff.



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Contents

Due diligence process ........................................................................................................................... 3

Summary of OPD system ..................................................................................................................... 4

Executive insight .................................................................................................................................. 5

Calculating the profit gain .................................................................................................................... 6

Estimating financial and stakeholder payback ................................................................................... 10

Why can’t we do it ourselves? ............................................................................................................ 11

The next step ....................................................................................................................................... 12

Appendix 1: Would you like to double profits? ................................................................................. 13

Discussion questions........................................................................................................................... 14

Appendix 2: The HP&OC questionnaire ............................................................................................ 58

Appendix 3: Background on the HP&OC audit ................................................................................. 59

Appendix 3: Implementation overview .............................................................................................. 62

Appendix 5: Non-disclosure statement............................................................................................... 64



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Due diligence process

OPD is a new way of thinking about organizations and linking them to people so that both the person and the organization benefit. But, OPD is a total way of thinking, a complete ‘mind set’.

OPD cannot be ‘added’ to an organization. This is fully discussed in the appendix.

The Executive and Governance policy decision is to stay with the traditional approach or to adopt OPD system.

Any ‘mixed’ thinking will result in performance with only minor change from that which is achieved now. Again, see the appendix.

Because of the extent OPD thinking sits outside current ideas, this due diligence process is essential.

1. Stage 1: 10 minutes.

a. Reread the Executive summary and this page. Place to one side existing views of HR, roll out of strategy, leadership, management, engagement, satisfaction audits, and the extent human performance can/cannot be improved.

b. Flip through the pages and satisfy yourself the material is comprehensive.

c. On a piece of paper, calculate the gain in profits if sales were increased 3% and costs reduced 3%.

d. Reread point 1a.

e. Reflect on whether improved human performance could deliver such a result while simultaneously increasing satisfaction.

f. Decide if to go to stage 2.


a. Distribute this paper to key executives. Have them complete stage 1.

b. At the next Executive meeting, consider if the team regard sufficient potential to go to stage 3.


a. Read the summary of OPD below.

b. Scan the section calculating financial payback.

c. Go to the appendix 1 Would you like to double profits? Read first two pages and contents, scan the rest of the paper. Select questions from discussion questions, plus any others you think appropriate, that if answered would satisfy you that OPD is worth examining fully.


a. Hold a meeting with the OPD consultant who will address all the questions from the team.

b. Decide to go to stage 5.

5. Stage 5: Due diligence for proposal covering plan, cost and payback. Fee of $575 recovered in first invoice if the decision is to proceed.

6. Stage 6: Decision.



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Summary of OPD system

1. OPD is a system of designing and operating organizations so that the both the organization and people benefit. OPD is a way of thinking. OPD-SHRM a technology derived from OPD.

2. Key organization principles.

a. Idea A. Goal → action: The actions needed to achieve a goal (KPI) are called ideal actions.

b. Idea B. Strategy: Is able to be separated into many ‘small’ goals.

c. Ideas A and B are irrefutable and lead to the OPD theory.

d. Terminology: A role specification is KPI plus the ideal actions. The behavioral structure is a set of ideal actions relative to a group of KPIs, hence a behavioural structure consists of multiple role specifications. The time budget is the distribution of time across the ideal actions in the role specification.

e. OPD theory: That underlying every strategy is a behavioral structure.

3. Understanding psychology.

a. Understanding ideas on frames. Buy and burgle.

b. Emotions associated with ideas and add energy to the actions derived from the frame.

4. Applying the principles.

a. We can choose to make our work life more satisfying for ourselves.

b. If it clearer in mind there is greater chance of doing it better without having to try harder.

c. Work performance can be made clearer if the time budget is located on a frame in mind. The time budget in mind is made personal and called the game plan.

d. Performance is enhanced if the game plan is filled with positive energy, so we need have fun while doing that which we need do.

e. We can work on the time budgets and make them more apt and accurate. Aim for perfect game plans.

f. We can have fun, find flow and enjoy doing that which we need do to be successful at work. Seek the perfect game.

5. Improve human performance.

a. Imagine a job being done as well as one can imagine. This is perfect performance.

b. Now imagine what actually happens. Any difference is the performance gap.

c. Improved human performance is actual→ perfect performance.

d. Aim of OPD-SHRM: Perfect game plans perfectly delivered.

e. Personal success: Delivery of agreed game plans to standard.

f. Organization success: Achievement of the goals.

6. The multiplier effect.

a. Profit is the small difference between two much bigger numbers.

b. Small improvements in sales and costs can double profits.

7. The impact of OPD-SHRM.

a. Improve human performance by a minimum of 10%.

b. Improvement in sales and costs.

c. Substantial gain in profits due multiplier effect.



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Executive insight

Assuming the strategy is agreed and the business plan for next year is drafted:

• Are there any HR initiatives for the coming year that would suggest human performance next year will be better than last year?

• Will this gain in human performance increase the financial results?

• Have HR initiatives in the past succeeded in achieving measurable financial results? (Such as a 20% improvement in profits over that projected in the budget.) Will any latest HR initiatives be different?

• OPD focus: If the KPIs in each role are accurately derived from the business plan/strategy, and ideal actions that offer greatest chance of greatest success derived accurately from the KPIs, and if actual behavior moved closer to perfect behavior, would you expect results to improve?

• Having scanned the material, and addressed the discussion questions, is the OPD system different from the HR approach applied in the past?

• If this KPI-ideal action approach is implemented within existing thinking on leadership, performance management and engagement, etc., what would you predict will happen? – conduct of team leaders? – conduct of team members? – conduct of Executive?

• Is this OPD process effectively the process for rollout of strategy/tactics/policy?

• Who is responsible for making this happen?

• Will Executive behavior influence the result?

• Given agreement on these questions, what should be the priority on ensuring this OPD process happens?



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Calculating the profit gain

Audit of 26 HCV factors: The HP&OC audit assesses 26 human capital value (HCV) factors across the organization rating them against predetermined standards.

Potential HCV improvement: The variance between standard and actual score represents the potential gain in human capital value.

Calculation of the immediate gain in HCV: OPD-SHRM will typically improve human capital value 25% to 35% in a year. The working figure of 30% is adopted for purposes of financial projection.

Gain in human performance: The projected gain in human performance in a year is therefore taken as 30% of the total potential gain in HCV across the organization as calculated in the audit. The 30% gain in HCV typically amounts to a projected increase in human performance between 8% and 12%.

OPDPPL: The audit also explores Executive judgment of the OPD profit profile link between gains in human performance and the financial results. There is a separate OPDPPL for each factor of sales, direct costs and overheads.

OPDPIF: The OPD profit improvement factor is then the profit profile link multiplied by the gain in human performance.

Financial projections: The OPDPIF is then applied to calculate the increase in sales and reduction in costs due the application of the OPD-SHRM. Due the multiplier effect small gains in sales and reduction in costs can have major increases in profits (40% to 60%).



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Audit of 26 factors, variance and calculation of HCV improvement

Human capital development factor Std Score

(A)

Variance

(B)

Target

(A+0.3B)

1. Clarity of goal link back to strategy Ex (9.3)

5.3 -4.0 6.6

2. Clarity of goals Ex (9.3)

5.5 -3.8 6.7

3. Leaders clear on goals Ex (9.3)

6.2 -3.1 7.2

4. Working in the business G (8.5)

5.2 -3.3 6.3

5. Clarity of ideals Ex (9.3)

5.6 -3.7 6.8

6. Performance monitoring & guidance G (8.5)

4.5 -4.0 5.8

7. Match of actual behaviour to standards Ex (9.3)

4.5 -4.9 6.1

8. Commitment G (8.5)

6.6 -1.9 7.2

9. Match actual behaviour to ideals G (8.5)

5.5 -3.0 6.5

10. Improving business processes Ex (9.3)

6.3 -3.0 6.3

11. Team climate and cultural management G (8.5)

5.9 -2.6 6.8

12. Working on the business G (8.5)

5.5 -3.0 6.5

13. Leadership strategic planning G (8.5)

6.1 -2.4 6.9

14. Developing and sharing good ideas Ex (9.3)

6.2 -3.1 6.3

15. Improving customer service G (8.5)

6.0 -2.5 6.8

16. Improving competitive advantage G (8.5)

6.2 -2.3 6.9

17. Strategic HR focus from top Ex (9.3)

7.2 -2.1 7.9

18. Overall staff engagement Ex (9.3)

5.8 -3.5 7.0

19. HR and leadership as business processes Ex (9.3)

5.7 -3.6 6.9

20. Strategic relevance of leadership and HR Ex (9.3) 7.4 -1.9 8.0

21. Clarity of models and linkages to profits Ex (9.3) 6.3 -3.0 6.3

22. Clarity of HR processes Ex (9.3) 6.7 -2.6 7.5

23. Belief models and resulting processes will work

G (8.5) 6.5 -2.0 7.3

24. Belief in return for effort G (8.5) 7.9 -0.6 8.1

25. Intensity of application G (8.5) 7.6 -0.9 7.9

26. Assessment of current human performance G (8.5) 6.0 -2.5 6.8

Averages 6.1 6.8



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Validation of the audit

Internal consistency (IC): the extent questions answered consistently. Std 1.5 max. 1.3

Spread: the difference rating between team members. Std 1.5 max. 1.0

Calculation of gain in human performance

Target increase in human performance (current plus 30% of variance) 11.5%

Calculation of OPDPPL

Factor Description Audit

F28 Potential $ increase in sales

If sales behaviour is improved 10% what would be the increase on sales dollars?

15.2%

F30 Potential $ decrease in direct costs

If direct costs behaviour is improved 10% what would be the decrease in direct costs?

14.4%

F32 Potential $ decrease in overheads

If overhead behaviour is improved 10% what would be the decrease in overheads?

13.2%

OPDPPL is normalised to the impact of a 1% improvement in goal focused performance.

Multiple sources to estimate OPDPPL

Information source of OPDPPL Sales Direct costs Overheads

From audit (F28; F30; F32 divided by 10) 1.52 1.44 1.32

From finance summary audit (Q5, 6, 7) 0.30 0.30 0.00

From OPD research/experience 0.35 0.30 0.20

OPDPPL to be used in the financial projections 0.30 0.30 0.05

Calculation of the OPDPIF

Projected increase in human performance 11.5%

Sales D/costs Overheads

OPDPIF (OPDPPL times % increase in human performance) 3.5% 3.5% 0.6%

Example of financial projections based on the HP&OC audit data

Projections OPD-SHRM company Staff number 38

Revenues 15,000,000$ GP% 36.0% O/Head % 30.0%

Year 1 Range

Human performance increase Actual closer to ideal actions 11.5% 10%-20%

Sales profit profile link OPDPPL sales 0.30% 0.3%-0.5%

D/cost profit profile link OPDPPL direct costs 0.30% 0.2%-0.4%

Overhead profit profile link OPDPPL overhead 0.05% 0.1%-0.3%

Before OPD % OPDPIF After OPD %

Revenues 15,000,000$ 100.0% 3.5% 15,517,500.00$ 100.0%

Direct operating costs 9,600,000$ 64.00% -3.5% 9,588,573.60$ 61.79%

Gross profit 5,400,000$ 36.00% 5,928,926.40$ 38.21%

Overhead 4,500,000$ 30.00% -0.6% 4,474,125.00$ 28.83%

OPD cost 84,000.00$

OPD year 1 set up cost 15,000.00$

Profit 900,000$ 6.00% 1,355,801.40$ 8.74%

Profit after OPD 455,801.40$ 3.04%

Financials in $. Tax not included.

In the coming accounting period profits projected to increase 50.6% as a result of conscientious implementation of OPD-SHRM. The profit gain due improved strategic management of human performance. The profit gain is after OPD costs.

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Estimating financial and stakeholder payback

Actual → perfect human performance by the percentage calculated from the HP&OC audit.

If the human capital value data from the HP&OC audit improves, would you expect staff satisfaction to simultaneously reduce?

Projected profit gain

Estimate sales and costs for the business. Increase sales 3%, reduce costs 3%. Calculate the gain in EBIT.

Could this gain be achieved by improving human performance across the organization?

Would you expect existing HR processes to achieve the result?

List the benefits of the OPD system to major stakeholders of the organization.

Team leaders

Team members

Shareholders

Customers

Financiers

Executive



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Why can’t we do it ourselves?

If the OPD concept is applied to the organization, to what extent would you expect it to change current HR policy and processes? (The changes are summarised in appendix 1.)

If significant aspects of current HR policy and processes are not changed to be coherent with the OPD concept, what would you predict will happen? (Considered in appendix 1.)

How long would you judge it would take to work through all the interactions and linkages of HR policy and processes to ensure they are all coherent? In short, how long do you think it would take to learn that which OPD already knows? (8 years of commercialisation.)

It makes no sense to build propriety accounting and reporting system. And there is typically policy and business processes integrated with the reporting system. Why would an organization build its own SHRMIT system with associated issues of policy and business processes?

Imagine the OPD system fully implemented, and delivering results. Key staff are facilitating the team leader-team member relationship development, and the person leaves. What can be done to ensure continued smooth operation?

If the OPD system delivers significant and measurable annual profit gains after OPD costs, and the OPD consultant provides regular focus on improvements and audits implementation quality, why wrestle with doing it all internally? Should a business stay focused on its business...?



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The next step

Stage 5: Due diligence for proposal covering plan, cost and payback. Fee of $575 recovered in first invoice if the decision is to proceed.

Up to a day and a half of interviews, planning of implementation, the HP&OC audit, and calculation of costs and profit gains.

The proposal then delivered/reviewed with the Executive team for final decision to proceed.



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Appendix 1: Would you like to double profits? Results and implications arising from the practical implementation of the OPD system

Recommended due diligence

The OPD system offers precision and coherence of effort in relation to business goals beyond any other system. Second, it is new, different, and people do not yet have the skills or insight. Given legitimate scepticism, due diligence is essential. We suggest the process: (1) Read the first two pages and contents - 5 minutes. (2) Scan rest -15 minutes. (3) Then select say 8-10 question from page 2 that would settle in your mind the system is viable and will payback as projected. Use the questions to reflect and engage with the ideas. Given the potential gains, due diligence will not waste your time.

Introduction

If human performance can be improved 10%, the OPD system will achieve that. When performance is improved 10% because of the multiplier effect profits improve 30% to 60% (see the section on the OPD system and the multiplier effect).

The three critical questions for a CEO/Senior Executive are: Is a 60% gain in profits real? Why will OPD technology deliver it? Why can it not be done with our internal resources? With the answers:

• A 60% gain in profits is realistic and can be achieved.

• Because OPD theory is globally the only theory built on scientific fundamental thinking, only the technology for strategic management of human performance derived from it, OPD-SHRM, can achieve this level of result, and only then by careful and thorough implementation.

• The thinking is new, not yet widely distributed, and no company yet has the internal resources that understand it or with the insight or skill to implement it (read the section on the critical success factors of implementation).

OPD system derived from OPD theory is focused on the link between strategy and the mind of those who must act to deliver the strategy. OPD theory breaks human resources into administration and compliance, covering current HR policy and practice; and strategic HR focused on building clear and well defined link between strategy and the mind of each person in the organization such that they act in the manner offering greatest chance of greatest success. Within OPD, HR emerges as the primary driver of strategy roll out and organizational success.

The paper has as its core client actual working documents. Using those documents, their development and implementation, the paper explores how all key performance aspects of HR are changed. There are three critical elements in applying OPD system in an organization.

1. Political: The insight and understanding of the CEO that once strategy is agreed then roll out success depends on identifying the ideal actions that constitute the behavioral structure and delivery of those actions to standard.

2. Management: The management process whereby ideal actions (role specifications) required to achieve team goals (KPIs) are defined, refined and accepted.

3. Leadership: The adoption of the role specifications as game plans of ‘what I do at work’ by team members and the ongoing performance management by team leaders to support delivery of the game plans by team members each day at work.

The OPD theory is covered in essays at the LinkedIn profile, www.linkedin.com/in/grahamrlittle, and supporting books. The appendix contains a suggested reading program on OPD theory and system.



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Discussion questions

1. Calculate the profit gain in your business if sales increased 4% and costs reduced 4%. 2. If the CEO and/or Executive are not committed to the OPD process, what will happen? 3. What are the critical factors when aiming to have people adopt new ideas? 4. Describe the model of psychology used in OPD? 5. Discuss motivation and flow within OPD and how it differs from existing thinking? 6. Why is choice so important and how is it developed in OPD? 7. Describe the key points of OPD theory. 8. Discuss how politics, management and leadership are structured under OPD. 9. Within OPD management is presented as more important than leadership. Discuss why, and how

would you use the insight? 10. What is a role specification and how does it differ from current job descriptions? 11. What is ‘balanced effort’ and why is it important? How is it achieved Under OPD? 12. Why must the CEO finally sign off all role specifications? 13. Within OPD system what are the two functions of HR? 14. Describe the relationship between HR and team leaders under OPD. What key skills need to be

developed in HR? 15. Define engagement with OPD. Discuss how it differs from existing ideas on engagement. 16. People are asked to commit to their own work life success. How is this different from existing

thinking? Why is this commitment important? 17. Why is it important to integrate business processes into role specifications? 18. Discuss what is likely to happen when a team is asked to work on its time budgets. 19. Describe the key role of senior executives under OPD. 20. What are the key features of team performance management under OPD? How does it differ

from current thinking on performance management? 21. OPD emerges as the system of strategic roll out. Discuss why and how this occurs. 22. Describe the idea of a ‘professional’ culture. How does it evolve? 23. What is the HCD Committee and why is it important? 24. What is the OPDPPL and why is it important? How would you establish the OPDPPL in your

business? How could you use it? 25. How would you implement change under OPD? Do you think this easier or harder? 26. How would you guide a team to refine and develop the role specifications in the team? Discuss

the issues you would expect to emerge? 27. Discuss ‘go out and find people doing something right’ as it applies in OPD system? 28. Discuss OPD cultural audits. How are they different and how would you use them? 29. How would you identify talent under OPD? Once identified, how would you develop it? 30. How does OPD system alter: Recruiting, induction and training? 31. Discuss standing and dynamic human capital. Are they important? How would you use them? 32. Discuss the idea of the learning firm under OPD. 33. Describe working ‘on’ the business under OPD. 34. How would you describe creativity within a role specification? 35. Discuss ‘people do not react well to being told what to do’ as it applies to OPD. 36. Describe the difference between HRIS and SHRMIS. 37. List the steps to implement OPD in a team. 38. Describe how you would implement ongoing profit improvement under OPD. 39. Discuss the term organization development under OPD. 40. Is any aspect of the operation of the organisation missing within OPD?



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Contents OPD system..................................................................................................................................................... 17

Points arising............................................................................................................................. 18

Critical success factors of OPD system implementation ................................................................................ 19

OPD cannot be ‘added on’ ........................................................................................................ 19

OPD theory of organization design ................................................................................................................ 20

The general theory of psychology ................................................................................................................... 22

Linking organizational design to the mind of each person to improve performance ..................................... 23

The idea of perfect performance and organizational learning ....................................................................... 25

Judging the level of human performance .................................................................................. 25

The multiplier effect and the impact of OPD-SHRM system on results .......................................................... 26

Applying the results to the profit and loss ................................................................................ 27

Results to date ................................................................................................................................................. 27

Master of Business thesis .......................................................................................................... 28

Results with clients ................................................................................................................... 28

Role specifications, time budgets, and game plans ......................................................................................... 28

Role specifications development .............................................................................................. 29

Key points arising ..................................................................................................................... 30

Examples of actual client documents .............................................................................................................. 32

1 Time Budget Report Service Manager .................................................................................. 32

2 Time Budget Report Groomer ............................................................................................... 35

3 Time Budget Report Warranty Administration ..................................................................... 36

4 Time Budget Report Sales Consultant ................................................................................... 37

Politics ............................................................................................................................................................ 40

Policy guidelines for strategic human performance ................................................................. 40

Delegation to HR Department .................................................................................................. 40

The Human capital development committee ............................................................................ 40

Verbal-ready Executive ............................................................................................................ 41

Signing off the role specifications ............................................................................................ 42

Team leader-team member relationship ................................................................................... 42

Seeing the big picture ............................................................................................................... 42

Management.................................................................................................................................................... 43

Integrating business processes .................................................................................................. 43

Converting role specifications into time budgets ..................................................................... 43

Converting time budgets into game plans................................................................................. 43

Capturing and distributing organizational learning .................................................................. 44

Managing social attitudes to work ............................................................................................ 44



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Leadership ...................................................................................................................................................... 45

The key determinant of all human behavior is choice .............................................................. 45

People must choose their relationship with work ..................................................................... 45

Redefining engagement ............................................................................................................ 45

Motivation ................................................................................................................................. 46

Flow .......................................................................................................................................... 46

Working ‘on’ the business ........................................................................................................ 46

Working ‘in’ the business ......................................................................................................... 46

The nature of culture and its emergence ......................................................................................................... 47

Performance management .............................................................................................................................. 48

Team leader activity.................................................................................................................. 48

Notes of caution ........................................................................................................................ 49

Organization and team development .............................................................................................................. 50

Key performance expertise invested in HR Department .......................................................... 50

Management training ................................................................................................................ 51

Leadership training ................................................................................................................... 51

Technical training ..................................................................................................................... 51

Managing change ...................................................................................................................... 51

Ongoing profit improvement .................................................................................................... 51

Fundamental factors underlying all high level performance .................................................... 51

Cultural audits ........................................................................................................................... 51

Identifying and managing talent ............................................................................................... 51

Recruiting.................................................................................................................................. 52

Induction ................................................................................................................................... 52

Inter-personal relations ............................................................................................................. 52

Human capital ........................................................................................................................... 52

HRIS and SHRMIS ................................................................................................................... 52

Appendix: Available reading on OPD and the intellectual foundation .......................................................... 54

On OPD theory and SHRM system .......................................................................................... 54

To review the intellectual foundation ....................................................................................... 56



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OPD system

The key diagram is below.

Strategy

Organization structure, roles defined by KPIs

Current effort Current game plan Current result

Improved Improved Improved Improved efforteffortefforteffort

Better game plan Improved result

Much improved results

Greatly Greatly Greatly Greatly improved improved improved improved resultresultresultresult

Satisfaction in success. Engaged. Finding flow and having fun.

Perfect Perfect Perfect Perfect game game game game



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Points arising

These points are elaborated in the main body of the essay below.

• The organization is formed in relation to achieving a strategy.

• The organization structure formed from the goal cascade and ideal actions in each role.

• The current game plan could consist of current job descriptions, ideas on the role in mind of the team leaders, ideas on the role in mind of the team member.

• Better game plan → to perfect game plan as per developments outlined below.

• The idea of perfect performance is to imagine the ideal actions in the role specification enacted perfectly.

• Actual human performance is the quality with which they are currently enacted relative to perfect performance.

• Improving human performance is then moving actual human performance closer to perfect human performance.

• On the left of the diagram is team leader effort at ensuring people are having fun each day, finding flow at work, and fulfilled by their efforts.

• Management is defined as development of game plans and have them accepted and adopted by the people expected to deliver the results.

• Leadership is imbuing the frame on which the game plans sits with positive energy so people deliver the actions on the frame with zest and verve.

• Team management and leadership are exactly the same at all levels, namely identify quality role specification, determine balanced effort and set up apt time budgets, then guide people prioritise and embrace the time budgets internalising them as game plans.

• Team leaders supported by HR department, culminating in a culture where all people are striving for perfect game plans perfectly delivered.

• It is the logic in this diagram that management is more important than leadership.

• OPD cultural aim: Perfect game plans perfectly delivered.

• People are expected to exhibit the cultural aim.



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Critical success factors of OPD system implementation

The critical success factors of OPD are (1) creation of apt time budgets that if delivered offer greatest chance of greatest success. (2) Building focus and clarity in mind of people accepting a role. (3) People guided to hold an objective relationship between them and the ideal actions they agree to as the necessary actions in the role. Unless these occur, then the human performance is not improved, and the projected results do not eventuate.

Improved results are not achieved without people actively choosing to participate. Only the individual has access to their mind and only they can reorganise their mind.

The development of an objective relationship with ideal actions we describe as ‘professional’ and is exactly the same as a top sports person holds as regards their necessary actions on the sports field. Professionalism is very much an emotional relationship between self and task.

It is the team leader who must guide this development in the mind of every team member. The skills are developed in the OPD eighteen months of monthly team leader workshops.

These critical success factors of OPD are very much aligned with ‘emotional intelligence’ skills at exercising self-disciplined attention on selected tasks. These skills of self-management can be learned, and are quite systematic, as are the skills of structuring the organization. For these reasons we refer to the OPD system as a ‘technology of mind’.

OPD cannot be ‘added on’

The difficulty we have found is people not adopting the new manner of thinking to the extent needed. For example, below is reviewed OPD performance management. If, for instance, an organization adopts some part of OPD, but retains its existing performance management approach and philosophy. Senior executive follow up on that which they know namely the existing system of performance management. Team leaders will do that which is followed up on, therefore they do not pursue the OPD system of performance management with the necessary commitment. The consequence is the critical success factors are eroded, namely the clarity is not developed in minds of team members, and the professionalism does not evolve to the degree necessary. The consequence is the results are not as projected.

This issue applies across the board, from recruitment and induction, to training and coaching, engagement, organization development, leadership and management.

If the senior executive do not let go of previous systems and philosophies and be verbal ready with OPD, then the cumulative impact on the team leader is to negate OPD, and the improved results and staff satisfaction from OPD will not occur.

People will do that which senior executives follow up on. The discussion above illustrating the crucial issue of executive focus and its impact on results. (Refer The Mind of the CEO.)

The clarity of what to do when in the minds of staff and team leaders and the precision of the sequence of implementation is crucial to achieving the level of result possible with OPD-SHRM. This is exactly equivalent to the achieving high quality result with a sales or marketing policy, if it is not clear in the minds of those to do it, and/or if it delivered in an arbitrary, loose sequence then results will be less than they could have been.



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OPD theory of organization design

OPD theory is derived from the intellectual foundation in The Origin of Consciousness. The two theoretical components are the construction of the organization and the general theory of psychology. The construction of the organization is then linked to the mind of those in the organization using the general theory of psychology.

• An organization is an idea influencing mood and conduct (derived from the general theory of psychology).

• Every organization is formed to realise an overarching aim referred to as strategy.

• Goals are derived from strategy and cascaded through the organization.

• Goals are grouped like with like to build divisional and team structure.

• Teams consist of roles, each role defined by the goals expected to be achieved by the role. A role is unique set of thoughts and actions derived from assigned goals. For example, sales manager and marketing manager, production manager and production planner or quality assurance manager, administration manager and IT manager.

• For every goal, there are actions (called ideal actions) that must be acted out for the goal to be achieved.

• Ideal actions have two critical qualities: (1) they ‘belong’ to the goal not to the person. Hence doing them is an act of self-disciplined focus. (2) Doing ideal actions does not guarantee success but not doing them guarantees failure.

• Every role is defined relative to strategy by the role specification stating the KPIs (goals) and ideal actions necessary to achieve the goal.

• Available time is distributed across the ideal actions in the role specification to form the time budget. As appropriate, time is first distributed between multiple roles in the job (refer to the book Time Budgeting, in the appendix).

• Business processes are acted out when someone does something. The role specification also must integrate the role into the business processes within the team, and between teams.

• For any set of goals there is an underlying set of ideal actions. The set of underlying ideal actions relative to a set of goals is referred to as the ‘behavioral structure’ of the goals.

• The behavioral structure describes those the actions that enable the greatest chance of greatest success at achieving the goals.

• The OPD process elaborates and defines the behavioral structure in multiple time budgets which in turn, in order to be enacted, are converted to multiple game plans.

• It follows there is a behavioural structure relative to every strategy. The behavioral structure is the judgement by the leadership of the behavioural best practice necessary to achieve the strategy.

• The ideal actions are prioritised in relation to crucial situations referred to as ‘moments of truth’. The time budget identifies where ‘extra’ attention to quality performance is necessary.

• The time budget guides ‘balanced effort’ (1) to ensure all ideal actions are enacted to the highest standard in the time available, hence enabling the greatest KPI achievement in the time available. (2) Balances effort between roles in the same job, for example sales manager and marketing manager, or production supervisor and production planner.

• Time budgets are agreed and ‘signed off’ ultimately by the CEO who is accountable for the roll out of strategy.



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• The priority focus of the CEO is to ensure the behavioural structure accurately and aptly identified and delivered with zest.

• Management is defined as the development and refining of the time budgets and having the time budget adopted by the person as their game plan of what they need do in the role.

• Leadership is guiding time budgets be adopted as game plans and delivered with zest.

• All managers at all levels have the exact same ‘management task’, to guide accurate and apt role specifications for every role they oversee.

• The more apt and effective the time budget the higher the opportunity for the company to succeed.

• The collection of all time budgets is defined as the ‘standing human capital’ of the organization.

• Standing human capital is owned by the organization, hence can be capitalised.

• Dynamic human capital is that which in minds, it is not owned by the company and cannot be capitalised.

• The time budgets specified in the standing human capital are the judgement of the leadership of the behavioral structure necessary to ensure the organization has the greatest chance of greatest strategic success.

• The set of all time budgets = standing human capital = the behavioral structure relative to the strategy accepting the current market position, operations philosophy, framework of business processes, hence assuming the current goal cascade and team structure.

• Change any aspect of policy or strategy and time budgets will change.

• Change time budgets and game plans in minds of people change. Changing game plans and having people adopt new thinking and conduct is often slow and difficult.

• Understanding the historical conservative nature of organizations is to understand the link between consolidated game plans enabling habit, and the time required to change thinking and develop new habits. Rewriting such things as operations manuals and policy directives does not change that which is embedded in minds of people and the habits arising.

• The HR aim is split into (1) administration and compliance, largely that which HR does now. (2) Strategic HR, delivered fully by OPD, with the aim of identifying and delivering the behavioural structure relative to strategy.

• In identifying the behavioral structure there are two crucial intellectual steps involving significant skills of conceptualisation. (1) Deriving the goal cascade beginning with strategy. (2) Deriving the ideal actions relative to the goals in a role. It is unlikely for managers to have these conceptualisation skills to the degree required. These intellectual skills are part of the skill set invested in the HR department.

• HR partners with every team leader, providing the two key conceptualisation skills supporting team leader identify the perfect game plan. And then supporting the team leader in guiding delivery of those game plans and building the culture where team members are striving for perfect game plans perfectly delivered.



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The general theory of psychology

(Refer The Origin of Consciousness in the appendix).

• People act on the ideas they hold and the emotions associated with those ideas.

• A simple model of human psychology is to imagine a box of power point frames in front of mind. The box of frames is the fixed structure of our psychology. What is on each frames define the individual. Emotions are associated with each frame further defining the individual giving force to what they think, and giving momentum to the purpose and direction of their existence.

• Frames are linked, so the frame ‘what I do at work’ is linked with the overall frame ‘what does society think about work’ and the frame ‘what do my peers think about work’. It may also be linked with ‘do I like my boss’, and ‘do I respect the company’, etc.

• The frame with the strongest emotion will ‘taint’ all linked frames.

• Attitude is a blend of ideas and emotions.

• All humans interpret current events by using ideas they acquired in the past. Hence a person’s understanding of current events is determined by their history.

• Human nature is defined as the evolved capacity to create ideas and apply them in survival. There is no single synaptic response in humans.

• Humans have the capacity to create ideas and apply them in survival to a level greater than any other known species. It is this capacity that accounts for human dominance.

• Habit is understood as the neural energy flowing along paths determined by entropy.

• Habit reflects historical values and beliefs.

• Only current attention can offer current values and beliefs.

• All social causality is via the individual mind. There is no social causality in a group.

• The primary role of culture is to distribute ideas relative to survival from the individual, who first developed the idea, to the group so that the group survival is increased arising from an individual’s learning and experience.

• The down side of culture is it can become directive and restrictive, with the authority structure in the group requiring compliance.

• All sub-group culture which includes organizational culture, is a subset of broader social culture.

• In any situation there are likely multiple ideas applicable, therefore people chose the ideas they apply.

• Motivation is understood as the intensity of emotion associated with the ideas on a frame.

• Humans are able to choose between alternative ideas. Free will is a major aspect of human emergence and survival.

• There is no ‘unconscious’ (in the sense of Freud) there is only the mind and the brain.

• The human spirit is the core aspect of our psyche, those frames with ideas and emotions that describe the most significant aspects of how we think about ourselves and how we think about the most telling people and life circumstances we have experienced.

• The summary is that the major determinant of all human mood and action is personal choice.



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Linking organizational design to the mind of each person to improve performance

• People review the time budget with their team leader until they agree the ideal actions offer the greatest chance of greatest success.

• The time allocated to the role specification is distributed across the ideal actions to build the time budget.

• To have the time budget acted out requires it be accepted by the person and located by them on a frame summarised by ‘this is what I do at work’.

• The person goes through the ideal actions and asserts they have no emotional resistance to acting them. This is defined as positive engagement and is the application of the well-established sports skill of visualisation as applied to work.

• The person is guided to ‘see’ the role specification in mind as objectively ‘what they do at work’.

• The relationship between the person and the work roles is exactly as for any ‘detached’ but committed activity, such as sport or attending the local school board meeting, etc.

• Any frame of ‘What I do at work’ will be linked with various other frames that may or may not emotional support effort in the key work frame. The organization and/or the team leader supports the person reconcile any inherent conflicts between the work frame and linked frames.

• If the plan is made clearer, results improve.

• If the plan is clearer in mind people have to opportunity to be more effective.

• To act out the plan daily, people need keep the plan top of mind.

• People are expected to integrate their time budget into their personal weekly work planning.

• The person adapts the time budget to fit frames in mind. That which is adapted and able to be recalled by the person is referred to the game plan for that person in that role.

• The natural personality is expressed through the game plan and not at the expense of it. Hence different people will deliver ideal actions with different style as consistent with their intrinsic personality.

• It is very important people accept ideal actions as the best way of achieving the best result. That they see and understand how what they do fits into the broader team and organization plan and direction.

• Once the game plan accepted, then the person acts out the game plan with integrity as in relation to their spirit and their personality. Integrity is seldom an aspect of discussion in organizations, but is a crucially felt to exist or felt missing.

• Working ‘on’ the role is the person creatively reviewing their time budget and contributing to refining and evolving it so it is sharper and more effective.

• Motivation is understood as emotion through a frame, so the ideas on the frame are acted out with zest and commitment.

• Leadership is ensuring the frame for each team member ‘of what I do at work’, is imbued with positive emotions.

• The team leader ensures the person is having fun every day while acting in a self-disciplined manner to do the things agreed and needed according to the game plan.



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• Performance management is team leader activity of walking around the team thanking them act out their agreed game plans; interacting with people to ensure they laugh, have some fun; supporting people find flow; ensuring people recognised for the effort, and that their effort is important in the team gaining its results.

• The team leader is ‘there’ supporting team members deliver their game plans such that people feel supported.

• The business processes are accepted as effective and people understand why they are important.

• There are regular (every four months) team cultural audits that monitor clarity of goals, clarity of ideal actions, extent people feel supported by their team leader, extent they are committed and extent they feel the business processes assist them do a quality job.

• Team leader is expected to undertake agreed team development such as to improve the team audit each time, with associated gain in team results.



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The idea of perfect performance and organizational learning

The idea of perfect performance is to imagine the time budget being acted out as well as one can imagine, with perfect balanced effort, the role integrated smoothly with the other roles in the team and with other teams in the organization.

Actual human performance will fall short of perfect performance, the difference being the performance gap.

The OPD system moves actual human performance is closer to perfect human performance, results improve (refer tables 1 and 2).

The situation is not static. People learn how to do it better, how to be more effective, team leaders learn how to guide people more effectively, and the team works on its ideal actions, refining and polishing them. The improved ideal actions are then captured in the role specifications. Then the ideal of perfect human performance is sharpened, since it now includes the ideal actions refined from experience. The team leader now works with the team members to guide them develop refined game plans in mind based on the refined time budget. Results further improve.

The effect of this rolling development is to move the organization to the right in table 2 above, with the company enjoying progressively improving results.

The learning is twofold.

1. Dynamic human capital.

a. People learn what works and how they can best act out the ideal actions to get the greatest result.

b. Team leaders learn the best way for them to achieve the greatest result and professionalism in their team.

2. Standing human capital.

a. The refined time budgets are captured in the OPD-SHRMIS as the start point for any new team member or new team leader. This captured learning, the refined time budgets, is defined as organizational learning, fully owned by the organization. Costs associated with it, and the quality of it can be capitalised (the quality can be assessed and capitalised exactly as one may revalue an asset in light of the latest circumstances).

Judging the level of human performance

Perfect human performance is imagining the perfect set of ideal actions perfectly delivered.

Actual human performance is what actually happens relative to perfect human performance.

Within OPD improving human performance is moving actual closer to perfect.



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The multiplier effect and the impact of OPD-SHRM system on results

Profit is the small difference between two very much larger numbers. It follows that small changes in either of the larger numbers will produce large changes in the profit. Table 1 illustrates this point.

Table 1

Change % Start 2% 4% 6% 8% 10%

Revenues/sales $100.00 $102.00 $104.00 $106.00 $108.00 $110.00

Costs $90.00 $89.96 $89.86 $89.68 $89.42 $89.10

EBIT $10.00 $12.04 $14.14 $16.32 $18.58 $20.90

% gain in EBIT N/A 20% 41% 63% 85% 109%

Note: It has been assumed all costs vary directly with sales. Any fixed costs relative to sales increases the percentage gain in EBIT. Second, the percentage gain depends on the start percentage EBIT to sales. For a company with a 36% gross margin, and a starting 5% profit to sales ratio, profits are comfortably doubled by a 6% change in sales and costs.

Applying OPD system will typically improve performance between 10% and 20%. Current initial empirical research on companies in Auckland establishes that OPD will improve human performance a minimum of 12% (see the Masters of Business thesis result in the following section).

The crucial question is if human performance is improved, say 10%, what will be the increase in sales and reduction in costs.

Within the OPD system the link between ideal actions and the profit profile is defined as the OPD profit profile link (OPDPPL). This link cannot be established by theory, it is a fully empirical link determined by the industry, the processes within the company, the market position of the company, and overall company policy.

The OPDPPL is the numerical link between ideal actions derived from the goal and the level of achievement of the goal. This link can be quantified. For example, if sand saves at golf are improved by 10%, then the improvement in the golf score can be calculated. Exactly the same, if the ideal actions of making sales are improved, this will increase closed sales, and the extent of the improvement can be researched.

With clients to date, it is found that the OPDPPL varies between sales, operations, and administration. The greatest link being with sales, the least with administration. This means that improvements in human behavior has the greatest impact on sales and the lowest impact in administration, with operations falling between the two. Based on client results to date, for every 1% gain in human performance then the OPDPPL link to the profit profile is as follows. Sales, 0.3%-0.4% increase in revenues. Operations, 0.2%-0.3% decrease in direct costs. Administration, 0.1%-0.2% decrease in overhead costs.

To get the overall impact on the profit and loss, then the OPDPPL is multiplied by the percentage improvement in human performance to calculate the OPD profit improvement factor (OPDPIF)).

In table 2 below shows the OPD profit improvement factors (OPDPIF) for different profit profile links and at different gains in human performance. For example, a 10% gain in human performance with a 0.3 profit profile link, the profit improvement factor (3.0%) is in the 10% column, third row down. The 3.0% OPDPIF is arrived at by multiplying the gain in human performance (10%), by the



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OPDPPL, which is the improvement in result for every 1% gain in human performance. This would be applied to the profit profile on the business to project the impact of OPD on the bottom line, by increasing sales by 3% and/or reducing costs by 3%.

Table 2

Gain in human performance 1% 8% 10% 12% 14% 16% 18% 20%

OPDPPL in 1% column.

The OPDPIF calculated by multiplying OPDPPL by the gain in human performance.

0.1 0.8 1.0 1.2 1.4 1.6 1.8 2.0

0.2 1.6 2.0 2.4 2.8 3.2 3.6 4.0

0.3 2.4 3.0 3.6 4.2 4.8 5.4 6.0

0.4 3.2 4.0 4.8 5.6 6.4 7.2 8.0

The shaded area is the range that has been most encountered with clients to date. The top shaded line with modest changes in the results was administration. The bottom shaded line with significant changes in results was sales. The middle two lines then reflected largely operations, warehousing, and manufacturing. The shaded area as related to sales, administration and operations is not definitive, but indicates the trends.

Applying the results to the profit and loss

In the example below, the OPD profit improvement factor in sales is 5%. If you locate 5% in the table above, then identify the gain in human performance and the OPD profit profile link applicable (a 12-14% gain in human performance with the profit profile link of 0.4).

Direct costs are reduced 3% (gain in human performance of 10%, with OPD profit profile link of 0.3). Administration overheads are reduced 2% (gain in human performance 10%, with profit profile link of 0.2).

The result is a 64% improvement in profits.

scale as needed Before OPD-SHRM OPDPIF After OPD-SHRM

Sales 100,000$ 100.0% 5.0% 105,000$ 100.0%

Direct costs 61,000$ 61.0% -3.0% 62,129$ 59.2%

Gross profit 39,000$ 39.0% 42,872$ 40.8%

Overheads 32,000$ 32.0% -2.0% 31,360$ 29.9%

EBIT 7,000$ 7.0% 11,512$ 11.0%

Profit gain from better SHRM 4,512$ 64.5%

When doing the initial projections of payback from applying the OPD system, we suggest erring on side of caution, and assume the lowest likely links will apply, with modest gains in human performance.

Results to date

There are two levels of result. First is formal research by a Masters student which proved the OPD-SHRM system improves human performance by at least 12%.

The second are results achieved over the last five years with clients in Auckland.



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Master of Business thesis

The research was by a Unitec student for the degree Masters of Business. The research was conducted in 2014, the thesis presented early 2015. The thesis title was An Analysis of How HR

Policies and Procedures Impact on Employees’ Performance in New Zealand Organizations

The study was conducted in eleven New Zealand service based organizations in Auckland, with staff up to several hundred. The study assesses the effectiveness of SHRM then explored the extent human performance improved by adding OPD elements and/or strengthening those elements of OPD system already being applied.

The conclusion was that implementing OPD results in an increase of 12% in human performance.

The limitation of the study was that ‘adding’ OPD elements is a tactic with low impact and results. The implication being that the 12% in human performance from OPD is at the lower end of the result achievable.

This is the first formal academic study on the OPD system and confirms the theoretical position and the results achieved in clients.

Results with clients

OPD-SHRM commercialised over last five years. Fully refined mid-2014. No client has yet had the advantage of the fully refined and commercialised system. Over the last seven years, results include the following. Client names withheld. References available when at stage of considering a proposal.

1. Increased profit to sales from 2.5% to 4.8%, on revenues of $35,000,000.

2. Improved effectiveness and efficiency of project management team enabling reduction in team from 12 to 7. Annual cost reduction of $600,000.

3. Increased gross profit from sales team from 37% to 38.9% and improved consistency of monthly result. Sales of $40,000,000.

4. Increased gross profit on parts team from 26% to 29%. A ‘good’ industry standard is 26%, 29% regarded as excellent.

5. Increased profits by 22%, cash increase of $700,000/year.

6. Small business increased gross profit from 48% to 52%.

These results achieved by what is understood now as ‘partial’ application of the OPD system. These results confirmed by the thesis, and demonstrates that even under less than satisfactory circumstances, the OPD system will improve human performance (as actual moved closer to perfect performance) and as a result there is an improvement in goal achievement. The minimum length of time a client engaged was 15 months, with the average being 2.5 years, the longest being 7 years.

All results accompanied by increased engagement and team satisfaction. As a consequence of OPD ‘satisfaction’ emerges after achievement. In all cases satisfaction in achievement was increased.

Role specifications, time budgets, and game plans

Below are the formal definitions of key terms. This is followed by examples of actual client documents.

Role specification: The formal term referring to the specification of the KPIs and actions judged needed to achieve the KPIs. This is the ‘technical term’ and implicates the strategy of the business since the role specification is technically derived from the strategy and is those actions in this role necessary for strategy to be achieved.



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Time budget: Is the role specification that includes an assessment of how much time is judged necessary each month to be allocated to each ideal action. The time allocations are not set in stone, but there is now consistent experience that if some ideal action is ignored for too long then something usually falls over. The idea of time budgeting is to identify the actions needed and assign time across them. See the book Time Budgeting, www.lulu.com/spotlight/grahamlittle. This book is part of the implementation and goes to all staff, who then attend one day workshop on these principles. People make their choice about the nature of the relationship they will adopt with work and with the role they have agreed to accept. Each person’s insight and skill with emotional intelligence and ‘professionalism’ are considered crucial foundations to high level professional performance of any task. Note, executive attend the Time Budgeting workshops, which are not streamed, so they are seen to attend, and to accept the same ideas and personal tools as all staff. Where appropriate the time budget is used as the basis for planning weekly diaries.

Game plan: That which is held in mind by the person assigned and accepting the role. The game plan is derived from the time budget, and is located on a ‘frame’ in the mind of the person via which they are able to assess their own actions relative to the agreed role specification. The time budget provides the full structure to the actions in the role, and game plan is the thinking the person uses to guide their activities on a daily/weekly basis. The regular meetings between team leader and team member is to explore the current clarity and effectiveness of the game plan, and how well the person is delivering the ideal actions.

Role specifications development

The examples illustrate how the OPD-SHRMIS captures the behavioral structure that needs delivered if the strategy is to be achieved. The capturing of this in the OPD-SHRMIS system is the standing human capital of the business, fully owned by the business, the effort extended in developing this is then able to be capitalised on the firm’s balance sheet. Also, there are the means to judge the quality of the standing human capital value, hence the value on the balance sheet can reflect that value, not merely the expenditure in building and capturing the behavioral structure. See the book Human Capital, at www.amazon.com/author/grahamlittle, for a full discussion on human capital in business.

The documents below are actual client working documents. They are drawn from two motor vehicle franchise clients since that enabled selection of role specification/time budget at different levels in the organization and at different stages of development. The teams involved varied from 22 people to 5 people. The organizations themselves having 45 and 42 staff respectively. Within OPD the crucial organizational unit is the team hence it does not matter if the overall organization is 40 or 40,000, focus is on each team, each team leader and the relationship of that team leader with the team members and how them manage that relationship to guide the team member develop the appropriate mental frames.

1. Service manager. This is at an early stage of development, with only one or two reviews. The sort of definition and emerging time budget after say 4 months of work with the client.

2. Groomer. A quite simple role, with clear and well defined actions, but none the less a very important role in that the quality of the groomers work leaves a lasting impression with the client. In this case it is a service groomer, hence if the car is returned to the client in a dirty or unkempt state, then they often do not return for service. There are always such roles in a business with the OPD system identifying those roles and giving them the ‘weight’ they deserve. For example, the checkout operator in a super market is the last person to interact with the customer and often the only person to interact with the customer.



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3. Service warranty: This is merely part of a person’s job. 30 hours/month. It shows how OPD define unique roles in a job. Again, a very important role, since if the service warranty not administered correctly, then it can impact cash flow by hundreds of thousands of dollars each month. We regard it as crucial that such ‘occasional’ roles are clearly defined, and are given the appropriate weight of attention they deserve, kept top of mind especially when they are ‘part time’ roles with such potential impact on the business success.

4. Sales consultant: This is a highly refined definition of the role. This level of definition is after some two years of regular review and discussion. It is very deeply consolidated in the minds of the sales manager, the CEO, and the sales team. In practice, by this stage, sales had improved within the team by over 30%, and gross margin per sale had improved by over 20%. The team had very high morale and enjoying the success.

The service manager specification is close to what OPD would expect to provide as the ‘start point ‘in the drafting role specifications.

The sales consultant is the well-defined, well understood, accepted and agreed role specification a team and its manager had developed after some two years of thinking through those actions that offer the greatest chance of greatest success. This was guided by OPD consultant, and actively reviewed and discussed in the team about every three months. It took about 4-6 months of raising it monthly at team meetings before the team members began to actively contribute, and to think about what they needed to do each day to have greatest chance of greatest success.

Once the process begun, then two new people coming into the team quickly contributed, since by then it was part of ‘what the team did’... and was positively reinforced in casual team discussions... that it was now the ‘culture’ of the team. Second, good ideas on how to find leads, how to close, etc., were readily exchanged in the team, this supported by team bonuses related to overall team sales. And prospects exchanged if the initial sales person felt the ‘face’ did not quite fit.

Key points arising

• Each team leader role has two time budgets. One in relation to their ‘work’ in the organization. Second, the team leader time budget guiding their leadership/management of the team.

• Team leaders are not skilled at building role specifications from scratch. The skills at deriving team goals from higher goals, deriving ideal actions from goals and the writing skills in drafting the role specification are all extremely variable, inconsistent, and often unused for years at a time and therefore even when skills exist they are not practiced to ensure effective implementation when required. Facilitation of drafting role specifications is an important HR skill, in the HR Department or appropriate consultant (such as the OPD consultant).

• Team leaders will readily critique and change any role specification draft to make it more effective and more in line with their image of perfect game plans. Hence the process always begins with a first draft.

• When first offered the opportunity to critique the time budget team members offer little. It takes patience and persistence to draw out their creativity.

• The development of role specification and time budget is significantly ‘administrative’, that is often not taken to heart in the team.

• The development of the game plan in each mind emerges over time, it is not ‘administrative’.

• The commitment of the team leader and they being ‘verbal ready’ with OPD system, philosophy, and the benefits to the team member are crucial to the process.

• This ‘verbal readiness’ is an important political elements that must flow from the CEO.



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• The game plan begins to take effect in the mind of the team members after several months. It becomes part of the person’s psyche, developing the necessary psychological depth to shape daily actions. This mental depth reinforced by the emerging team culture, the policy structure of the organization, the alignment of both with the business processes, and the political reinforcement filtering down from the senior executives.

• Frequently there will be a ‘tipping point’. This is often when a respected person in the team achieves unusual success and declares they followed the process, and results turned up.

• The system is well supported by ‘pay for performance’ bonuses. This topic is not covered in these notes, but is available on request.



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Examples of actual client documents

1 Time Budget Report Service Manager

'Sign off' means psychological acceptance and people 'see' what to do; it is not merely administrative. The team leader is responsible for guiding the sign off for each team member.

Personal Details

Position title/Job title Service Manager (service manager)

Team members name Service Manager

Position level

4 - Manager, budget responsibility, member of the management team of a div.

Hours/month

available 150 hrs.

Plannable time 85% (127.5 hrs./mth)

Aim

Achieve levels of customer service to standard set by CEO from CSS. Service - Achieve 60% Gross margin, with an annual labor growth of 25%. Ensure plan for lead generation to achieve necessary volume of qualified leads to achieve budgets.

KPI's

Finance: (1) Gross profit 65%; (2) monthly gross profit/employee $10,000; (3) growth in labor hours 10%. (4) ratio chargeable hours to non-chargeable 3:1 (5) GP of $2400-00 per day (6) Prod and Efficiency of 100%

Customer satisfaction: Value for money 75%; quality 85%; service support 93%; technical competence 93%; communications 93%; administration 93%.

Staff satisfaction and training: (1) cultural audit for all factors not less than 85%. (2) Staff training in place to ensure all staff able to complete all task to standard.

No open work orders over 60 days.

Standards: (1) Service area maintained to standard at all times, (2) all work completed to standard, (3) all customer communication conducted according to agreed protocols.

Ideal behavior hrs./mth

Daily operational review: Check all areas i.e. workshop forward bookings, customer service levels, coordination with parts and sales, completion and quality of jobs, presentation and cleanliness. All the operational procedures are being maintained. (15%)

19.1 hrs.

Customer service: (1) Receive customers as required, contact customers regarding additional work, and ensure satisfied customer sign off of the account when they collect vehicle. (2) Weekly review that all forward promises, service follow ups, and other customer service actions are completed. (3) Weekly review with both the Sales and Parts Dept. to assess the level of service given by the service dept. the results from this make actions to improve. (10%)

12.8 hrs.



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Staff review: Staff efficiencies and productivity with each technician, development of foreman, development of service advisers. Delivery of ideal actions and achievement of standards. (10%)

12.8 hrs.

Sales planning: Review and assess effectiveness of lead generation plans to increase service levels. Discuss with GM. (5%)

6.4 hrs.

Performance review: Review weekly with the GM performance and implement performance improvement plans. Identify other opportunities to improve. (10%)

12.8 hrs.

Dealership internal customer review: Weekly review with Parts and sales Departments of any issues e.g., vehicle storage, workshop loading and closing off, pick up and collection and parts delivery on time, additional jobs for sales without the correct notification. Follow this up with monthly corrective service performance action plans. (20%)

25.5 hrs.

Admin: (1) ensure all necessary information prepared accurately enabling service staff to complete work to the agreed standard of timeliness, accuracy and completeness. (2) Review all administration competed, WIP's to agreed standard, warranty work and administration completed and up to date. (10%)

12.8 hrs.

Prepare for the monthly meetings with all service staff sharing the dept. performance and any changes for the coming month. (5%)

6.4 hrs.

Team development: Plan and implement team development, skills and ability of team to deliver the expected performance. (10%)

12.8 hrs.

Other meetings as required. (5%) 6.4 hrs.

Time Budget: Diary reminders (daily)

1.) Visually check on areas i.e. workshop bookings, completion and quality of jobs.

Days: Monday, Wednesday, Friday.

2.) Is the workshop prep schedule completed to the required standard?

Days: Monday, Tuesday, Wednesday, Thursday, Friday.

4.) KPI's are they being met? measure the actual achievement


5.) Discuss WIP with relevant operational staff.


Time Budget: Diary reminders (weekly)

1.) Check that the administration of all warranties and WIP's, they are all up to date and closed off.

2.) Review all MTD performances - efficiencies and productivity. report to GM with the numbers

3.) Service Loan cars - are they up to standard and update mileages

4.) Review with Sales and Parts their perception of how the service dept. is treating them?

Time Budget: Diary reminders (monthly)



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1.) Review staff efficiencies, and productivity with each technician.

2.) Review Lead Generation Plans, was it effective did it give me the desired results?

3.) Get all relevant month end reports out to the manufacturers and GM

4.) Training Plan for the month. Notify relevant staff

5.) Monthly meetings with all Service staff to review their performance and discuss actions plans to change

6.) Lead Generation Plan for the month - advertising and Promo, discuss with GM

Time Budget: Diary reminders (1st quarter: Jun - Aug)

1.) Review performance against 1) Budget and 2) Business Plan

2.) Review current goals for staff and put in place performance improvement plans

3.) Check all OSH requirements are being met.

Time Budget: Diary reminders (2nd quarter: Sep - Nov)




Time Budget: Diary reminders (3rd quarter: Dec - Feb)




Time Budget: Diary reminders (4th quarter: Mar - May)






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2 Time Budget Report Groomer

'Sign off' means psychological acceptance and people 'see' what to do; it is not merely administrative. The team leader is responsible for the sign off for each team member.

Personal Details Position title/Job title Groomer (Groomer)

Team members name Groomer

Position level 2 - Senior or experienced person.

Hours/month available 170 hrs.

Plannable time 85% (144.5 hrs./mth)

Aim

• Daily and weekly monitoring: Each day check presentation of yard and showroom is to standard. Every car yard ready.

KPI's

• Customer satisfaction six monthly survey: Value for money 75%; quality 85%; technical competence 93%; communications 93%; administration 93%.

• Internal customer audits 85%.

• All vehicles on yard to standard at all times.

• Presentation of yard and showroom to standard at all times.

• Dashboard score of 90%


• Daily - (1) Ensure that work area is clean. (2) Check in the Grooming Book. (3) Liaise with sales manager on work priority. (4) Check groomed cars for fuel. (5) Park cars in the allocated spaces. (80%)

115.6 hrs.

• Weekly - (1) Check cleaning materials. (2) Check and maintain cleaning equipment. (20%)

28.9 hrs.

Time Budget: Diary reminders (daily) 1.) Liaise with Sales Manager as to the workload for the day.


2.) Is my work area clear of clutter?


3.) Do all the loan cars have enough fuel?


4.) What sales cars are needing grooming?


5.) Check with Sales Manager what cars need to be collected outside the dealership.


Time Budget: Diary reminders (weekly) 1.) Do we have enough cleaning materials for the week ahead? 2.) Is the cleaning equipment clean and ready for use?



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3 Time Budget Report Warranty Administration

'Sign off' means psychological acceptance and people 'see' what to do; it is not merely administrative. The team leader is responsible for the sign off for each team member.

Personal Details

Position title/Job title Warranty/Administrator (Warranty Administrator)

Team members name Warranty Administrator

Position level 2 - Senior or experienced person.


Plannable time 80% (24 hrs./mth)

Aim

Administration: Ensure all administration completed to standard and on time. Maintain strong customer relations. Warranty claims and payments are all up to date. All service customer contact is up to date and to standard.

KPI's

Standards: (1) Service area maintained to standard at all times, (2) all work completed to standard, (3) all customer communication conducted according to agreed protocols.

Customer satisfaction: Value for money 75%; quality 85%; service support 93%; technical competence 93%; communications 93%; administration 93%.

Service clients followed up every Monday and emailed to Data Collection Company

General Manager to be kept informed of any customer complaints


Note: Times reflect the time required either thinking about the issues (mental preparation and focus) or actually doing the action needed. (%)

0 hrs.

Professionalism: Arrive at work professionally presented with self-disciplined focus. Background basics as below. Be able to summarize: - priority ideal actions that achieve KPIs; - ensure plan for warranty completion and payment. - keep warranty payment owing to agreed budgets. - maintain weekly warranty reconciliation. - maintain warranty admin to standard. (%)

0 hrs.

Monthly - (1) check monthly parts stored. (2) Review warranty issues with Service Manager. (20%)

4.8 hrs.

Daily - (1) Compile claims for submission. (2) Check allocated parts available for claim. (3) Ensure all supporting documentation is available. (60%)

14.4 hrs.

Weekly - (1) review claims submitted vs claimed. (2) Reconcile claims payments. (3) Complete customer follow up report. (19%)

4.6 hrs.

Attend internal training and meetings as required. (1%) 0.2 hrs.



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4 Time Budget Report Sales Consultant

Position title/Job title Sales consultant


Plannable time 80% (136 hrs./mth)

Strategic management of staff performance relative to results It is agreed by sales people, sales managers and the DP that this role specification outlines perfect sales performance and is to be used as the standard against which actual human performance is assessed each month. At least once every month, each person is to discuss with their team leader what they will do to ensure their actual performance is closer to perfect performance.

Overall aim Achieve sales budgets, maintain admin and assigned areas to high standard while exhibiting high levels of professionalism.

KPIs

1. Volume budget, 16 sales minimum per month.

2. Gross profit budget as agreed with team leader. Currently minimum of $35,000/month.

3. Accessory sales and F&I average/vehicle sold to budget.

Admin and housekeeping.

1. All admin accurate and on time.

2. Assigned areas in dealership to high presentation standard.

Lead generation.

1. 10 Cold per week, 25 Existing data base per week.

2. Must have own lead generation plan agreed with sales team leader.

3. 10 hot leads to sales team leader every Monday by 3pm.

Customer interaction.

1. Achieve high customer satisfaction scores through customer satisfaction audit to ensure Company at least above national average for all factors.

2. Continue advocate development.

Summary of ideal actions Note: percentages reflect the time required either thinking about the issues (mental preparation and focus) or actually doing the actions needed. (1% is approximately five minutes each day.)

The hours to the far right are the hours projected to be spent monthly on each set of ideal actions. This is referred to as the ‘behavioral balance’ in the role. The behavioral balance is not rigid, but if ignored for too long then some result will not be achieved. The behavioral balance refers to ‘plannable time’ as above. Where activity is regular and controllable, such as 1,2,3,4,5,7,8,9 below then the time should be scheduled as a repetitive activity in your electronic calendar – exactly when it is done can then be shifted according to customers and other contingencies, but it is not lost sight of.

1. Professionalism (3%). Arrive at work with self-disciplined professional focus and dressed to elite standard.

2. Planning (2%). Have a plan for each month & week. 3. Daily focus (3%). Have a plan for each day including appointments, prospecting and

follow ups. 4. Lead generation (40%): Have plan for own lead generation. Have qualifying questions

that clarify client needs, budget and lifts client urgency. 5. Customer interaction (2%). Know the customer satisfaction survey questions and the

actions that ensure highest scores. Ensure all customer interaction to elite standard. 6. Managing opportunities (27%). Apply Company road to the sale, see below in ideal

actions. 7. Administration (10%). Completed accurate and on time. 8. Housekeeping (10%). Completed to high standard each day. 9. Internal time for meetings and training. (3%).



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Details of ideal actions (perfect human performance) This detail must be understood and memorized. Each person must be able to ‘see’ themselves doing the actions with no negative feelings or any uncertainty. The summary is then used each meeting with team leader for the person to discuss and explore how they will bring their actual performance closer to the agreed perfect performance. The times to the right represent an estimate of the time that needs devoted each month to the ideal action.

Professionalism. (3%)

1. Arrive at work professionally presented with self-disciplined focus. 2. Have prepared plan/target/hot list for each day. 3. Background basics

a. Be able to summarize the priority ideal actions offering greatest chance of achieving the KPIs.

b. Be able to summarize the Company road to the sale. c. Be able to summarize the steps and standards for managing leads. d. Be fluent on features and benefits of all products, accessories and F&I including the

hand over to the Business Manager. e. Be able to summarize key actions that maintain high customer satisfaction survey

scores. f. Have a list of qualifying questions that bring forth customer requirements, their

budget, clarifies what they need and lifts customer urgency.

g. Be able to do all agreed administration processes (including recording opportunities and write up sheet completion).

hrs./mth 4.1 hrs.

Customer interaction (2%)

1. Be able to list key questions from customer satisfaction survey and how they are to be implemented to ensure high survey scores.

2. All customer interaction to elite standard.

3. Every effort must be made to introduce every prospect to the Sales Manager or DP to support

the close. 4. Every sale introduced to the Business Manager.

2.7 hrs.

Lead generation (40%)

1. Dealership generated leads: a. By 'walk in', inquiries from internet and phone, and leads from telemarketing are

expected to provide 60% of leads required to achieve budget.

2. Own lead generation: a. Expected to provide 40% of leads needed to achieve budget. Own lead generation

plan to draw on following. Have a definite plan agreed with sales team leader of where own leads to be gained and work the plan each week.

i. Networking, have a clear focus of when, where and how you will network. ii. Workshop opportunities, leads from the workshop bookings, are rostered

days, and should be checked and assessed in advance. iii. Phone database in computer. Use sales to secure referrals and build

advocates for the brand and for Company.

54.4 hrs.

Planning (2%)

• Monday by 3 pm (Sunday if away on Monday) present to the sales team leader a minimum of 10 priority opportunities for the week and an additional list of unsold prospects with notes on how they will be advanced.

2.7 hrs.

Daily focus (3%) 4.1 hrs.



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1. Make contact with your sales team leader every day to seek support, advice and to review opportunities to be closed that day.

Managing opportunities (27%). Apply company road to the sale to all opportunities.

1. Receive or generate initial inquiry.

2. Meet/greet, listen/qualify.

3. Determine needs, identify model, test drive.

4. Coordinate trade appraisal with team leader while on test drive.

5. Demonstrate vehicles features/benefits while on test drive using preplanned route. Upon return, receipt drive book, offer refreshments, discuss vehicle and trade at closing desk. Complete write up sheet. Start at RRP, negotiate. Use double close with manager.

6. At appropriate stage, hand over to Business Manager who will complete transaction/settlement.

7. Complete data base to standard, completing all fields.

8. Ensure vehicle processing under way and establish time of delivery. Check vehicle delivery on track.

9. Delivery: By sales person. Sort suitable time, coordinate with delivery personnel. Check off and sign delivery sheet that vehicle is to standard.

10. Handover: Paperwork/payment completed upon arrival. Do 20 minutes handover of vehicle. Client to sign delivery check sheet.

11. Retention. Follow data base CRM and distributor prompts.

36.7 hrs.

Administration (10%). All admin accurate, legible, and completed on time. Complete all admin on the sale that day.

1. Complete record on all inquiries and discussions. Ensure every inquiry is captured immediately after the interaction.

2. Accurate and legible write up sheets signed off by the DP or sales manager, then hand over to the Business Manager for up sell.

3. Reconditioning sheets on all trades and given to the Sales Manager.

13.6 hrs.

Housekeeping (10%). Each sales person to have an area assigned to maintain presentation standard. Area review:

1. Ensure all vehicles meet presentation standards.

2. Ensure yard, showroom, café and bathroom, to presentation standards.

13.6 hrs.

Internal time (3%). Meetings, training etc. 4.1 hrs.



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Politics

It is essential the CEO ‘sees’ and understands the relationship between the strategy, expressed in the current business plan, for which they are accountable, and the identification and delivery of the behavioral structure derived from the strategy/goals that offers the greatest chance of greatest success.

It then follows that the CEO priority is to ensure all human resources, team, management and leadership processes are all fully aligned with the demand to identify the behavioral structure and guide its delivery to standard.

The CEO needs ‘see’ this organization wide set of processes as the priority for the rollout of strategy and the underpinning of success of the current business plan to the point that it is not negotiable in the exact sense that the marketing or operational philosophy and policy is not negotiable (refer The Mind of the CEO in the available reading list). This is a crucial point.

Policy guidelines for strategic human performance

OPD is a policy decision whereby the rollout of strategy is to be via the identification and delivery of the behavioral structure and hence involves quite precise business processes. This is exactly the same as the sales and marketing policy, for example. In both the application of the business processes, tactics, and philosophy of the policy is not a matter of personal choice, but required compliance to the direction set by the senior executive and governance. Fresh ideas whereby the aim of the policy is better enabled ought to be always welcomed, however until such ideas are proved and made official policy, then team leaders are expected to comply with current policy directives and tactics. Refer to the discussion questions, specifically considerations in question 35.

Within OPD theory, for the first time in the history of research into people in organizations, and based on a fundamental scientific/intellectual analysis of people, organizations and the link between them, human resources has a precise, systematic and coherent policy structure.

Applying OPD is referred to as the strategic human resource management policy, or strategic

human performance policy, within which here are several sub-policy elements for example: Integrated motivation policy, pay for performance policy, talent development policy, team based profit improvement policy, organization development policy, team development policy, recruitment policy, induction policy, and human capital development policy, policy on self-management and personal development of staff, cultural development policy and policy on current social issues that bear on the attitude of staff and hence impact their commitment.

Delegation to HR Department

The CEO delegates to the HR Department the following aims.

1. All appropriate administration and compliance of the human resource function.

2. Partner with team leaders supporting them identify the behavioral structure and guide its delivery and evolve a professional, high performing culture in their team.

The HR Department is the key central source of expertise associated with the identification and delivery of the behavioral structure throughout the organization.

The Human capital development committee

The human capital development (HCD) committee is the internal committee charged with overseeing the effectiveness with which the behavioral structure is identified and delivered throughout the organization. Given the behavioral structure is the set of ideal actions that must underlie strategy (a logical consequence of the goal-action principle), it follows that the HCD



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Committee oversees the roll out of strategy and specifically the rollout of the behavioral structure underlying the current business plan (which is the current short term expression of strategy).

It is essential that the CEO is chairperson of the HCD Committee. They do not have to attend every meeting, but it must be clear and evident they are fully committed to the process of the identification and delivery of the behavioral structure.

The HCD Committee reports monthly to the Executive Team.

The HCD Committee has a nominated Human Capital Development Manager who would normally be the senior HR person in the organization, but not necessarily if that HR person is not strategic, merely administrative.

The HCD Committee has two sub goals.

1. Oversee the aptness and quality of the standing human capital captured in OPD-SHRMIS. This necessarily implicates the HR Department technical expertise in identifying the behavioral structure and the expertise of team leaders in the quality the time budgets in each role in their team.

2. Oversee aptness and quality of the dynamic human capital which again necessarily implicates the HR Department expertise in coaching team leaders in the management of the core psychological processes that drive clarity of game plans, and overseeing the skills of team leaders in guiding delivery of the game plans in their team.

Technical training is a function of HR administration determined first by team leaders.

In small organizations, say 15 staff, it is recommended they still maintain and HCD Committee, since the rollout of strategy is as important as in any large organization.

It is recommended the OPD Consultant is part of the HCD Committee, especially during the initial period until internal resources are skilled and able to guide delivery of the business processes necessary for effective identification and delivery of the behavioral structure.

Even when the internal resources are fully developed, it may be appropriate to retain the OPD Consultant on the HCD Committee with the brief to provide external monitoring of the quality of the identification and delivery of the behavioral structure, and to provide back up to internal staff.

Verbal-ready Executive

It is essential that all the Executive ‘see’ and understand the relationship between the strategy, the current business plan and the behavioral structure, are fluent in describing it and countering any comment from within the organization which is inconsistent with the philosophy and policy direction.

All executive must be ‘verbal ready’ in relation to strategic human performance policy.

An inappropriate or loose comment by a Senior Executive can quickly erode the processes involved in identifying and delivering the behavioral structure, as people slip back to prior habits of thought and action. This issue is especially critical until the organization develops the ongoing collection of stories and narratives consistent with identifying and delivery of the behavioral structure, at which time the organization has evolved the culture consistent with the required team management and team leadership processes.

The Executive will always need to be verbal ready, but the evolution of the culture will support them since as it becomes commonly accepted that ‘this is how we do it around here’.



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Culture is the reservoir from which people draw their ideas. Hence culture can be developed by sharing stories about teams and team members who did it, and succeeded. This is building into the culture appropriate narratives of ‘how we do it around here’.

Signing off the role specifications

The CEO is accountable for the delivery of strategy.

The key operational document is the role specification relating what is to be done in this role to achieve goals derived from strategy.

It follows the CEO has an immediate vested interest in the appropriateness of every role specification and their integration such the operations of the organization are smooth and flawless.

The political process is that every team leader must sign off with their manager that the role specifications are apt, and fully accepted in the team with team members committed to acting them out.

Every manager must sign off with their Executive Manager that the role specifications in their division are apt and fully accepted within each team, with each team committed to delivery of the role specifications.

Finally every Executive Manager must sign off with the CEO that the role specifications for which they are accountable are apt, fully accepted and the staff are committing to delivery those role specifications.

Then via the HCD Committee the Executive receives monthly reports on the success or shortfalls in delivery of the role specifications across the organization.

Team leader-team member relationship

The team leader forges an agreement with every team member as follows.

• Performance contact: The team member agrees the ideal actions represent the greatest chance of greatest goal success. Further that they agree to work with the team leader by contributing to the refining of the role specification as they and the team learn about how to best get the results.

• Performance agreement: The team member agrees they seek personal success in their work life, they accept the role and that their personal success is delivery of the ideal actions to standard. Further, they accept the team leader as their daily support in maintaining the self-discipline to act out the role specification to standard every day at work.

• Team members accept the group aim of striving for perfect game plans perfectly delivered.

These aspect of the relationship between team leader and team member can then be attached to the formal contract between the company and staff member. Also, included in the annual goals and targets.

Seeing the big picture

The team member-team leader contract can have the effect of narrowing the view of the team member to just their role and expected efforts/results.

It is important the divisional manager speaks regularly to the team on divisional success and aims and direction. It is also crucial for the CEO to speak to people on the direction and success of the organization, so that every person can ‘see’ how what they do each day integrates with the efforts of perhaps thousands of others, and adds up to the organization success.



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Management

‘Management’ is team management, as regards achieving strategic and organization wide goals.

Within context, management is defined as development and or refining of role specifications.

Organization team and role structure is also an aspect of management. Goals are derived from strategy, influenced and shaped by operational policy choices and the selected market position.

Teams, divisions and business units that make up the infrastructure of the organization are then formed by grouping goals like with like.

Each team forming the organization is defined by goals derived from strategy. The process continued until arriving at an individual role specification.

The ideal actions underlying each goal are then identified and goals (key performance indicators) and ideal actions then constitute the role specification.

Role specifications define the results expected from the role relative to the strategy, and the current judgment of those actions offering greatest chance of greatest success.

Crucial steps requiring significant intellectual skills are: (1) the conceptualization of the goal cascade from strategy, that is the conceptualization of goals at one level from the level above, such as conceptualizing, say Californian goals derived from the overall aim in the USA market. (2) Conceptualization of ideal actions from the goals.

This process is important for large and small organizations.

The source of expertise in this process is the HR Department, and/or an appropriate HR consultant.

Integrating business processes

Business processes integrate the output from one role with the input to another role. It does not matter if the roles are in the same or different teams.

The role specification must specify these input-output relationships between roles. The smoothness of the business process and the smoothness with which it is delivered will determine the smoothness of operation of the organization.

Converting role specifications into time budgets

The role specification defines what has to be done, but gives no indication of effort required.

The time budget distributes the time allocated to the role across the ideal actions in the role and so offers an overview of the balance of effort thought most appropriate to achieve the results.

The time budget also balances effort between roles in a single job, such as sales and marketing manager, the time budgets of sales manager and marketing manager balances the 170 hours or so available each month between the two roles, and then balances the time available in each role across the ideal actions in the role.

Within OPD system this regular time planning of effort in each role is an important aspect self-leadership done each month or more regularly depending on the job and the role complexity of the job.

Converting time budgets into game plans

The game plan is the mental structure of the person accepting the role to guide them in delivery of the role.

The mental structure can only be developed by the person themselves assisted by the team leader. HR can also provide additional assistance especially with skills in emotional intelligence.



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Creation of the game plan is done by each team member. It does not emerge quickly, there will be initial hesitation and skepticism. Over a period of months, the team leader guides the team to review and develop the time budget. As this is done, and is supported by meetings with the team and one-on-one, and with the support of the HR Department, then the game plans being applied by each person slowly improve and evolve.

Capturing and distributing organizational learning

The team learns what works and what does not. This learning needs to be captured by refining the time budget. The improved time budget then captured in the OPD-SHRMIS as the standing human capital of the business.

The improvement in standing human capital is the organizational learning of how to achieve the greatest result.

When staff change the time budget offers the person a start point of what the organization has learned about achieving the greatest result.

If there are similar goals in other divisions, then what is learned in one divisions shared with so that all teams can benefit from that learned by one team.

New ideas are always welcome. But until the idea proved and approved, then the person is expected to comply with the time budget as the accumulated learning of the organization as how to ensure the greatest chance of greatest success.

Managing social attitudes to work

The person will build a frame in mind ‘my role at work’. As they do so, and as an aspect of human psychology, that frame will become linked to many other frames in mind, some of which may not be shared with the team leader.

Issues could arise for example, work-life balance, quality work life, sustainable business, ethical accountability of business to society, environmental protection, religious extremism and terrorism, excessive profitability, inflation and wage escalation, the wage-executive salary gap, child care, superannuation, health care, employment for life versus temporary job for now, redundancy, trial periods of employment...

Depending on the size and social standing of the organization it may be important for there to be short briefing statements on such issues that the team leader can share and discuss with team members should the need arise.

The crucial factor in any such briefing statement is that it has integrity. If the statement is not that which the Executive are willing to ensure is exhibited by the organization, then it is best if no statement is made.



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Leadership

Team management is the process of drafting role specifications, and time budgets, having them accepted by people as offering greatest opportunity of greatest success. Team management builds the base of professional performance.

Team leadership then builds from the management base and guides and supports people making those time budgets habits by developing game plans in mind from which they choose their daily behavior at work.

It is best if the team are guided over a period of time to evolve their personal game plans derived from the agreed time budget. The time budget is evolved with the team and as that occurs the refined and clearer game plan evolves in minds of team members.

The key determinant of all human behavior is choice

It is crucial that people deliberately accept the job and the agreements with their team leader as outlined above.

People must choose their relationship with work

The only commitment asked of people is to their own work life success.

Business success is achieving the numbers.

Personal success is delivery of the agreed ideal actions offering greatest chance of greatest success at achieving the numbers. There is no conflict between personal and organizational success.

People committing to their personal work life success means they commit to delivery of the ideal actions at work to the agreed standard.

It then follows given the structure of human psychology to develop a game plan for the role, manage any tensions that emerge between the role game plan and other frames in mind that contain other social issues.

It follows it is good sense to develop a clear and defined relationship between self and ‘what I do at work’ and avoid inappropriately confusing personal emotional issues with performance at work. It also follows that work performance will assisted by developing skills at managing emotions that could interfere with doing a good job, and by developing skills with the ideal actions.

Finally, it follows that it is sensible to make use of resources available such as team leader expertise and available training and development. None to the benefit of the organization, all to the benefit of personal work life success and satisfaction.

Redefining engagement

The current view of engagement is as an overarching emotional bond between the person, the company and their work.

In that sense, the OPD system merely asks people to ‘engage’ fully with their own work life success. It follows that in making the commitment to themselves it is rational to make use of all the potential in our own psychology.

In sport visualization is understood and a significant factor in achieving high level performance, defined as the activity of imagining oneself doing the actions needed to the standard needed, when in the situation.

The argument leads to the OPD system definition of engagement as the person imagining themselves doing the ideal actions to standard in the appropriate situation.



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The crucial aspect of visualization is that the person is emotionally comfortable imagining themselves doing the ideal actions to standard. Any negative emotions about any ideal actions will erode them doing it to standard.

The OPD definition of positive engagement is the person can imagine themselves doing the ideal actions with no negative emotions that could erode the performance.

As part of the team leader and/or HR Department support of the person seeking their own fulfilment and satisfaction from work, the person is guided in applying the emotional intelligence skills that detach negative emotions from delivery of the ideal actions.

Motivation

From the theory of psychology motivation is understood as emotion associated with ideas on a frame such that the emotion give thrust, zest, and drive to the actions arising from with the frame.

Fear can powerfully drive actions. But fear is an inappropriate motivator at work.

The main source of positive energy is fun. This leads to the OPD system approach to motivation as the team leader interacting with team member to ensure they are having fun while doing the self-disciplined action arising from the game plan they hold in mind.

Flow

Mihaly Csikszentmihalyi researched happiness and concluded people have their happiest moments when they are doing something they enjoy to the extent they ‘loose’ themselves in the activity. It is called flow.

If the person doing a job can find it in them to enjoy it to the degree they lose themselves in the activity then are can find flow at work.

Working ‘on’ the business

Working with the team to refine and improve the time budgets and game plans.

Working ‘in’ the business

Delivery of agreed game plans.



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The nature of culture and its emergence

All social causality is via the individual mind. There is no causality in the group, and no causality in culture. Think about culture as a reservoir of ideas, with emotions associated with those ideas. So some ideas have more force than others.

Culture is about ‘how it is done around here’. But no person need necessarily adopt any idea from the culture. The idea only becomes causal within the person if they adopt the idea and allow it to influence them, reinforcing that the key determinant of all human mood and conduct is choice.

Trying to manage culture is to promote certain ideas, give them emotional force, but the people have the choice of taking up the idea or not. And in a free society, other than compliance to the law, people cannot be coerced.

Culture is managed via team leaders who interact with team members and thereby have the most direct impact on the minds of people. Culture changes if and only if a critical number of individual minds change.

The OPD system is built on choice, from accepting the job, to committing to personal work success. With each choice there are sensible things to do that best enable the choice.

It follows that the culture emerging under OPD is one of reasoned, balanced commitment to the sensible things that offer the greatest chance of the greatest success.

The culture is referred to as a ‘professional’ culture defined as doing what which needs done when it needs done, with only secondary regard to personal feelings.



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Performance management

Management is drafting and refining role specifications and time budgets and having them accepted.

Leadership is building on the base of management to convert the time budgets into game plans which guide the efforts in relation to personal work life success.

The process begins with people choosing the job, agreeing goal and ideal actions appropriate and that if someone does the ideal actions to standard they have the greatest chance of greatest success.

Having chosen the path, the team then agree upon those activities a consequence of their choice that enable the greatest chance of greatest success.

Performance management is the team leader daily actions to maintain the focus in the team upon those things agreed as the sensible things to do to enable greatest success. The things include.

• Build apt role specifications relative to strategy.

• Work with the team leader in refining the role specifications as the team learns what works and what does not.

• Manage effort by distributing the time available across the ideal actions and between assigned roles to build time budgets.

• Develop clarity in mind by building game plans on frames in mind to guide daily effort.

• Manage other social issues that may taint the frame of what I do at work, and erode effort and/or satisfaction.

• Interact each day with the team leader to check that plans for the day are apt.

• Stay focused on ideal actions.

• Enjoy the day, interact and have fun while doing the things that need done.

• Seek to flow with the ideal actions, to make work an enjoyable aspect of life.

• Cooperate with people, and if they do not remind them why we all are here, and that it takes team work to succeed.

• Accept change as part of work life, but ‘I’ do not change, merely changes to the ideal actions that adapt the organization to the changing political, social, technological and economic environment.

Team leader activity

The team leader exercises team performance management every day by adopting one or more of the following activities.

• MBWA: walk about the team and assess the extent they are delivering the agreed ideal actions. Plan one-on-one discussions or team discussions depending on what is observed.

• Find someone doing the ideal actions and thank them.

• Ensure every person having fun that day, enjoy a joke and laugh, lighthearted with people, but with serious underlying intent of enjoying the day while acting with self-discipline to deliver the agreed game plan.

• On the spot coach people in how can improve delivery of ideal actions.

• On the spot scold someone not doing their agreed ideal actions without good reason.



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• Regular one-on-one meetings with team to review their game plans and their success at achieving the perfect game.

• Support people in their striving, ensure the simple courtesies like please and thank you.

• Judge if people in flow and do not disturb them, go back later and thank them.

• Have some short remarks that help people keep game plans top of mind.

• Do not be repetitive, spend time to refine comments, laughs, and pattern of performance management activity.

• Plan, and encourage your team to plan, what action this day, this week, what is coming up, what it will take.

• Seek the same relationship with your manager as is expected between you and your team.

Notes of caution

• Expect the team to be skeptical at first. Be prepared to keep up the performance management pattern for 6-8 months before the team begins to respond. For example, it could take 4-6 months before the team is responding to the request for ideas on how the ideal actions could be sharpened. Just wait for it.

• Decline immediately if the team asks for things that cannot be done. Be honest and open if you do not have the authority.

• Refer the team back to its goals and its place in achieving strategy. They are not the executive team, they may not agree with tactics, but those same tactics must not fail due inadequate effort.

• Be patient.

• Do the RIGHT things, and keep doing them, ask the team to do the same.

• Be prepared to repeat the agreements with the team every 6 weeks for the first 6-8 months before they begin to accept it.

• Be patient in working through the sensible things that offer the greatest chance of greatest success.

• Accept people have the right to skeptical and cynical. Do not respond, merely smile with ‘we have to be here, may as well make most of it’.

• Be sure all the above has been discussed on-on-one with each team member, so they know and understand what you are doing and the manner you will conduct yourself.

• Be patient, persist and slowly will come about you those who wish the same from their work life as you seek from yours.



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Organization and team development

Within OPD people and the organization are different things. This leads to tighter definitions of team and organization development.

Team development is the development of game plans, attitude to work, and development of the professional respectful relationship between team members and with other teams in the organization.

Organization development is the development of time budgets, the organizational structure.

Key performance expertise invested in HR Department

The HR Department partners with all team leaders supporting them in their striving to identify the behavioral structure, capture it in time budgets, have those time budgets accepted as game plans, and have the game plans acted out to standard. (In addition, the organization must fulfil the administration aspects of HR, particularly compliance, this is not included in this discussion which is on the strategic and performance aims of HR.)

These stages are necessary no matter the size of the organization.

Where the organization does not have an HR Department, it is recommended they retain the services of an appropriately skilled SHRM Consultant.

Skills in HR include at least the following:

• Devolving the goal cascade from strategy.

• Identifying the apt ideal actions for achieving a goal.

• Drafting role specifications.

• Converting role specifications into time budgets.

• Gaining acceptance of time budgets and creation of game plans.

• Advice on managing external social attitudes.

• Advice on guiding people to find flow.

• Advice on guiding people to have fun at work.

• Advice on development of the team leader-team member relationship.

• Advice on performance management.

• Advice on interpreting team cultural audits.

• Advice on ongoing profit improvement.

• Advice on talent management, recruiting and induction.

• Advice on guiding development of skills at self-management and emotional intelligence.

• Advice on managing change.

• Advice on ongoing profit improvement.

• Advice on guiding ethics of professional respect.

• Advice on guiding people to commit to their own work life success.

• Advice on guiding people to accept delivery of role specifications as their work life success.



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Management training

Development of skills at creating and refining time budgets.

Leadership training

Development of skills guiding people to build game plans, and to ensure those game plans imbued with positive energy thus giving the actions arising from those game plans zest and verve.

Technical training

Managed between team leader and HR admin support staff.

Managing change

Diagnosis of the change needed, identifying the roles involved, redrafting the role specifications, renegotiating the ideal actions with the team member accepting the role, guiding adoption of the agreed time budgets as game plans in mind, and supporting the acting out of game plans via daily performance management.

Ongoing profit improvement

Identifying the goals (KPIs) to be improved. Identifying the roles involved. Redrafting the role specification so it offers the greatest chance of achieving the greatest KPI success.

Renegotiating the role specifications with the people accepting the role, ensuring they have the necessary skills.

Guiding the conversion of the role specification into the time budget then having the time budget adopted as the new game plan.

Support acting out of the game plans via daily team leader performance management.

Fundamental factors underlying all high level performance

Within OPD there are five factors judged to underlie all quality performance in organizations.

1. Clarity:

a. Focus: Are people clear about the goals?

b. Accuracy: Are people clear about the ideal actions to achieve the goals? (Goals plus ideal actions are the game plan.)

2. Emotional resilience:

a. Commitment: Are they going to do it?

b. Leadership support: Do people feel their team leader supports them?

3. Business processes offering operational precision and efficiency:

a. Do people feel the business processes support their efforts?

Cultural audits

The team cultural or team climate audit is conducted at least each three months and assesses these five factors in each team on a scale of 1-10 (10 high).

The team leader is expected to develop the team such that the factors improve for the next audit. This process is referred to as strategic leadership development building clarity, operational precision and emotional resilience in the team.

Identifying and managing talent



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Within OPD the team is the core operational unit of the organization, hence team work is the crucial fundamental.

The first identification of talent is people in the team strong at team work. The steps of talent management are then as follows.

1. Exhibit strong team work in a team.

2. Exhibit skills at leading a team.

3. Exhibit skills at leading multiple teams.

4. Exhibit intellectual flexibility in able to lead a team in another function.

5. Exhibit intellectual skills in able to lead teams across several functions.

6. Exhibit intellectual skills at tactics, business planning, insight into the economy, market, competition etc.

Recruiting

In the first instance, the short list for recruiting is against the skills at being able to deliver the role specification.

Final selection then based on attitude to work, exhibited commitment to personal goals and achievement of those goals. Exhibited skill in team work. Personal life exhibiting integrity and balance.

Induction

Induction applies to all levels of recruitment.

The crucial aim is to build on the person’s attitude and commitment to personal work life success.

People are introduced to the key factors as follows:

• The role specification, how it was developed, its relationship to strategy, and how it is organizational learning and judgement as offering the greatest chance of greatest success.

• The theory of psychology, how we work and development of game plans.

• Self-management in relation to delivery of game plans, and emotional intelligence.

• Consolidation of personal commitment to work life success, and the consequences of viewing one’s current game plan objectively while ensuring it is supported by positive emotions.

• The role of the team leader, and the responsibility of the team member for conducting themselves in a respectful, self-disciplined professional manner.

Inter-personal relations

All people at all times treating all people with courtesy and professional respect.

Human capital

Under OPD human capital is in two parts. (See the reading list for the book Human Capital.)

1. Standing human capital: The conceptualization of the behavioral structure and capturing it in the OPD-SHRMIS. This is fully owned by the organization and can be capitalized.

2. Dynamic human capital: Is the skills and game plans in the minds of staff. It is not owned by the organization and cannot be capitalized.

HRIS and SHRMIS



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HRIS, human resource information system, captures all the administration surrounding people at work: Wages, holidays, absenteeism, accidents, contracts, etc.

SHRMIS, strategic human resource management information system, captures the standing human capital and aspects of its management: Time budgets, goal cascade, ideal actions, cultural audits, performance management, and strategic team leadership, etc.

HRIS tends to administer HR, SHRMIS captures the standing human capital of the organization and guides the actions that best enable goal achievement.

It is recommended organizations retain both. -END-

Graham Little PhD, AFNZIM Creator of the OPD theory and system Director of OPD International Limited 006421909310 [email protected]



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Appendix: Available reading on OPD and the intellectual foundation

On OPD theory and SHRM system

Essays

(At www.linkedin.com/in/grahamrlittle)

Achieving the perfect game plan to double profits

https://www.linkedin.com/pulse/20140731224137-7640385-achieving-the-perfect-game-to-double-profits?trk=mp-reader-card

Making HR the proactive driver of strategic success

https://www.linkedin.com/pulse/20140801013532-7640385-making-hr-the-proactive-driver-of-strategic-success?trk=mp-reader-card

Management is more important than leadership

https://www.linkedin.com/pulse/20140802002017-7640385-management-is-more-important-than-leadership?trk=mp-reader-card

How the team leader needs to lead

https://www.linkedin.com/pulse/20140805205316-7640385-opd-leadership-making-work-fun?trk=mp-reader-card

Making your work day more fulfilling for you

https://www.linkedin.com/pulse/20140810213120-7640385-how-to-ensure-you-find-work-fulfilling?trk=mp-reader-card

Okay, strategy is agreed. Now what?

https://www.linkedin.com/pulse/20140815185709-7640385-okay-strategy-is-agreed-now-what?trk=mp-reader-card

Understanding and managing motivation

https://www.linkedin.com/pulse/20140821050453-7640385-understanding-and-managing-motivation?trk=mp-reader-card

An integrated motivation policy

https://www.linkedin.com/pulse/20140822025012-7640385-an-integrated-motivation-policy?trk=mp-reader-card

Goal setting is old hat, why do we need KPIs

https://www.linkedin.com/pulse/20140826215656-7640385-goal-setting-is-old-hat-why-do-we-need-kpis?trk=mp-reader-card

Management versus leadership: Let’s settle the debate once and for all

https://www.linkedin.com/pulse/20140830220517-7640385-management-versus-leadership-let-s-settle-the-debate-once-and-for-all?trk=mp-reader-card

Change and continuous improvement in business and community

https://www.linkedin.com/pulse/20140912031046-7640385-change-and-continuous-improvement-in-business-and-community?trk=mp-reader-card

Governance, senior leadership, organization design and improving results

https://www.linkedin.com/pulse/20141001191109-7640385-goverance-senior-leadership-organization-design-and-improving-results?trk=mp-reader-card

New approach to HR to get better results

https://www.linkedin.com/pulse/20141008021416-7640385-new-approach-to-hr-to-get-better-results?trk=mp-reader-card



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Understanding and managing financial reports

https://www.linkedin.com/pulse/20141010225708-7640385-understanding-and-managing-financial-reports?trk=mp-reader-card

Desirable social pre-conditions for unlimited leave

https://www.linkedin.com/pulse/20141012224359-7640385-desirable-social-preconditions-for-unlimited-leave?trk=mp-reader-card

Work, flow and job satisfaction

https://www.linkedin.com/pulse/20141111014720-7640385-work-flow-and-job-satisfaction?trk=mp-reader-card

Building a high performing culture

https://www.linkedin.com/pulse/20141125194933-7640385-building-a-high-performing-culture?trk=mp-reader-card

Redefining engagement https://www.linkedin.com/pulse/redefining-engagement-graham-little?trk=mp-reader-card

OPD analysis of training and coaching

https://www.linkedin.com/pulse/opd-analysis-training-coaching-graham-little?trk=mp-reader-card

Books

Redesign of the organization book series enabling improved strategic human resource management delivering greater profits. Each book offers understanding of OPD from a different point of view as discussed in the description.

OPD is founded on the fundamental intellectual position and the general theory of psychology in The Origin of Consciousness. Dr Little’s books are here: www.amazon.com/author/grahamlittle and at www.lulu.com/spotlight/grahamlittle.

Testimonial: “The OPD model, based on the research of Dr. Graham Little, is a

solution to the HR questions being raised and is the most logical and thorough intellectual

development currently available in the HR field….the OPD approach also entails practical

solutions and is 10 years ahead of current thinking in this field.” Quoted by Professor of HR.

“Follow OPD advice, the money just turns up.” Client CEO to newly recruited divisional manager.

Title Summary description

The last leadership

book you ever need

to read (vol. 1)

Introduction to the new organization design arising from the improved insight into people and their relationship with their organization. The improved understanding of people is applied to gain greater insight into the link between people and the organization resulting in clearly defined business processes enabling team leaders to guide their teams to greater success.

Time budgeting (vol.

2)

Guides definite techniques enabling people to focus more effectively on the tasks at hand, allocate their effort across the tasks and achieve a better result than they would by any other technique.



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Modern team

leadership (vol. 3) Guidelines for team leaders in applying the clearly defined team leadership processes to enable the greatest opportunity for greatest team success.

The role of human

resource

management in the

modern

organization (vol. 4)

The new design for organizations results in a change in human resource management aim and priorities. The role of human

resources details the nature of the changes needed to ensure that HR is providing the internal service and partnership to team leaders enabling the organization the greatest opportunity for greatest strategic success.

The Mind of the

CEO (vol. 5)

An overview of OPD implementation from the point of view of the CEO/senior executive, exploring the how the CEO best think about roll out of strategy to enable greatest success.

Building community

wealth and health

(vol. 6)

Improving human resource management using the new design of organizations action has an effect on organization success. Organization success has an effect on economic success. Economic success has an effect on community wealth. Community wealth has an effect on community health. Building community wealth

and health provides the reader deeper and clearer insight into these links, and their place in building more successful organizations and communities.

Executive pocket

guidebook (vol. 7)

It is not always easy to ‘see’ new ideas. The Executive pocket

guidebook is a short introduction to the new organizational design enabling an easy transition in thinking from what is currently accepted to the new ideas.

Human capital (vol.

8)

The new design of organization results in very specific definition of human capital in the organization. Human capital discusses the new definitions of human capital value and the specific actions executive and team leaders can do to build the human capital value in their organization.

Rollout (vol. 9)

The aim of every organization is to achieve its strategy. Rollout describes the detail of how strategy is linked to the actions of people, and how the leadership can influence that link to improve delivery of the strategy.

To review the intellectual foundation

Book: The Origin of Consciousness. Fourth Edition. The Origin of Consciousness www.lulu.com/shop/graham-little/the-origin-of-consciousness/paperback/product-21730547.html

Essays

(At www.linkedin.com/in/grahamrlittle)

The intellectual structure of social science

https://www.linkedin.com/pulse/intellectual-structure-social-science-graham-little?trk=mp-reader-card



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Defining consciousness https://www.linkedin.com/pulse/20141112033215-7640385-defining-consciousness?trk=mp-reader-card

Do our genes determine who we are?

https://www.linkedin.com/pulse/20140928233534-7640385-do-our-genes-determine-who-we-are?trk=mp-reader-card

How do I think and can I do better?

https://www.linkedin.com/pulse/20140903031948-7640385-how-do-i-think-and-can-i-do-it-better?trk=mp-reader-card

Understanding and managing depression

https://www.linkedin.com/pulse/20140817010000-7640385-understanding-and-managing-depression?trk=mp-reader-card

Mind over matter https://www.linkedin.com/pulse/20140804020101-7640385-origin-mind-over-matter?trk=mp-reader-card

Why we do what we do https://www.linkedin.com/pulse/20140804013719-7640385-origin-why-we-do-what-we-do?trk=mp-reader-card

How do we build a general theory of psychology?

https://www.linkedin.com/pulse/20140804012800-7640385-origin-method-and-the-beginning?trk=mp-reader-card



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Appendix 2: The HP&OC questionnaire

Is a judgement by Executive and senior staff on human capital value of the organization.

There are 77 questions, takes about 15 minutes.

Requires minimum of 5 respondents, 8 is preferred.

Respondents should be CEO, three other senior Executives and three supervisors or senior staff.

Audit supported by a summary financial overview to enable financial projections.

Sample of questions...

22. How clear are team goals?

Not at all 1 2 3 4 5 6 7 8 9 10 Completely

23. How clear are people about their goals?


24. How effective is link between team goals and individual goals?

Poor 1 2 3 4 5 6 7 8 9 10 Perfect

25. How clear is the link between team goals and the overall strategy?

Poor 1 2 3 4 5 6 7 8 9 10 Perfect

26. How clear are team leaders on the actions needed to achieve outputs in each job?


27. How clear are people on the best possible actions to achieve the best possible result?


28. To what extent is there a link between goals and daily and weekly actions?

No link 1 2 3 4 5 6 7 8 9 10 Perfect link

29. How effective are the processes for regularly assessing performance?

Poor 1 2 3 4 5 6 7 8 9 10 Perfect

30. How effective are the processes for the review of team leadership?

Poor 1 2 3 4 5 6 7 8 9 10 Perfect

...



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Appendix 3: Background on the HP&OC audit

The HP&OC audits executive and senior staff view of the human capital value in the organization.

The data is then used to calculate the immediate gain (G) in human performance arising from applying OPD-SHRM.

Judgements then made on the link between staff action and the profit and loss, this is the OPD profit profile link (OPDPPL). The OPDPPL is normalised as the financial change arising from a 1% increase in human performance (defined as moving actual performance closer to perfect performance).

The OPD profit improvement factor (OPDPIF) is calculated by multiplying the gain in results by the projected increase in human performance calculated from the audit data. The OPDPIF is then calculated for sales, direct costs, and overheads (G x OPDPPL for sales, direct costs and overheads).

The OPDPIF is then applied to the annual budget to calculate the gains in EBIT arising from OPD-SHRM implementation moving actual performance closer to the perfect performance.

Because EBIT is the difference between to very much larger numbers, small and achievable gains in human performance can produce very large gains in EBIT.

Definitions

• Variance is against the standard.

• Standards based on the graph below.

• Organisational capability is the extent the team leaders implement the tools that offer best possible human performance.

• Internal consistency is the extent similar questions were given similar scores. If the internal consistency is out of range, the audit is not usable since results are too unreliable.

• Spread is the extent the same question widely different scores. Not as critical as internal consistency but if the spread is out of range, the audit is less reliable.

• The range for both internal consistency and spread is: <0.5 Excellent; 0.6 to 1.0 Good; 1.1 to 1.5 Satisfactory; 1.6 to 2.0 Marginal; >2.1 Poor. The standard is 1.5 maximum score.

Intellectual and emotional factors

• Intellectual factors are exactly as memory learning, with no emotional content. Standard is 9.3, excellent.

• Emotional factors are more difficult to improve, take longer. Standard 8.5, good. Changing behaviour or adopting new habits is much more difficult than achieving clarity even when the ideals are accepted and fully understood.

• The improvements are progressive, so each year applying OPD further gains will be achieved. But, there will be a plateauing effect.

Summary of processing the data

1. From the audit information the system calculates the current average rating for each factor against the OPD standards. (Variance)

2. OPD will improve intellectual factors by up to 50% and emotional factors by up to 20%, the improvement in organisational capability and human performance result from implementing OPD is then calculated. (OPD Profit Improvement Factor, OPDPIF)

3. Using the financial information supplied, we adopt a figure for the link between behaviour change and the financial results. (The OPD Profit Profile Link, OPDPPL.)



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4. Multiplying the performance improvement factor (OPDPIF) by the profit profile link (OPDPPL) produces the ‘impact of OPD’ in the financial spreadsheet.

5. The spread sheet and summary project the financial impact of OPD on the business.

Data results and standards

All results and standards are based on the graph below.

• The graph shows the researched relationship between 1 to 10 scales and the associated emotional response. There is a rapid change from positive response to a negative response in range 6.5 to 4.5.

• The audit ratings have been selected on following basis.

� From 5.5 to 6.5, the grading is rated marginal. A small adverse movement and the responses become rapidly negative. In effect, for a firm, the degree of ‘forgiveness’ is low, and a small error can result in negative response. While these may be overcome in a day or two, for that two day period effort is below expectations. The marginal grading places the firm on a ‘tipping point’.

� Below 5.5 the grading is rated poor since any error will tip the firm rapidly down the slope into negative responses. The degree of forgiveness is severely eroded, to being non-existent.

� There is a relatively long stretch where the grading is satisfactory, with little movement in response, from 7 to 8.5. The break at 8.5 is chosen on a basis that if we score it 8.5, then we describe it as ‘pretty good, with a margin to improve’.

� The ratings of good and excellent then split the grading between 8.5 and 10.

Difference between team cultural audit and the HP&OC audit

The HP&OC audit is designed for a mixture of Executive and senior staff to assess the human capital value across the organization. The questions and statistical structure are designed to that end. The HP&OC audit is a judgment by informed staff of the organization’s human capital value.

The cultural audit is designed to assess the team average attitude to key underlying human performance factors.

Marginal 5.5 to 6.5

Poor below 5.5

Positive emotions - engaged

committed

Negative emotions – not engaged or committed

Satisfactory 6.6 to 8.4

Good 8.5 to 9.2

1 2 3 4 5 6 7 8 9 10

Excellent 9.3 to 10

Neutral emotions



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Relationship between HCD factors and cultural audits

HP&OC audit and the cultural audit measure different things and are not interchangeable. Each provides data useful in building a high performing organization.

While each audit enables a unique insight into performance factors, there is a relationship between them as summarised below.

• Clarity of understanding goals and action that most enable the goals.

o Cultural audit factors (1) focus and (2) accuracy.

o HCD factors: 1, 2, 3, 5, 14, 17, 19, 20, 21.

• Emotion associated with the goals and action plan to achieve the goals.

o Cultural audit factors of (3) commitment and (4) support.

o HCD factors: 6, 7, 8, 9, 11, 15, 16, 18, 23, 25, 26.

• Integration of the background systems and processes that most enable goal achievement.

o Cultural audit factor (5) business processes.

o HCD factors: 4, 10, 12, 13, 19, 20, 22.



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Appendix 3: Implementation overview

1. Executive overview & HR Policy review. Gaining agreement as to the executive role, focus and priorities. Review HR policy and operations and align with OPD. Setting up the Human capital development committee. Draft and distribute the OPD organization chart.

2. Form HCD committee to oversee governance, monitor results, and set dates and plans. Meets monthly.

3. Advising people of the plan and involvement.

4. Drafting role specifications. In conjunction with team leaders.

5. Team leader one-day training: Leadership judgment. Overview and gaining agreement on first draft of role specifications. Introduce perfect and actual performance. Motivating people.

6. Induction: Initial one-on-one and sign off of time budgets or game plan for the role.

7. Time budgeting one-day workshop: People choosing to be successful, choosing to work with the team leader and enjoy the day.

8. One on one monthly performance management. Each month the team member discusses with the team leader whether they delivered the ideal actions for the month and what they will do to get their actual performance closer to perfect performance.

9. Team leader 2-hour workshops. Monthly workshops with team leaders to review all aspects of the system. Typical 15 workshops over 18-20 months. Topics include: Performance management, performance agreement, developing the time budget, performance contract, motivation, building team satisfaction, guiding game plans, flow, cultural audit, engagement, customer satisfaction audit, working on the business, profit improvement planning, disciplining, training, coaching, change management, change management, talent management, talent development.

10. Audits: Conducted every four to six months. Cultural audit of the level of human capital value in the teams. Customer satisfaction audits to improve customer satisfaction. Internal team audits to improve internal customer service.

11. Customer satisfaction audit.

12. Internal customer audits.

13. HCD committee strategic reviews: With Executive team, focus on applying system to improve results. To include human performance and organizational capability (HPOC) audits and strategic reviews (SR), on the effectiveness of OPD system and focus for the next period.

14. For new staff as needed.



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Approximate timing of activity final dates agreed each month in advance at monthly HCD

committee

1 2 3 4 5

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1 √ √ √ √ HPOC As

2 √ √ √ √ √ need

3 √ √ √ √ √ √ √ for

4 √ √ √ √ √ new

5 √ √ √ √ √ staff

6 √ √ √ SR

7 √ √

8 √ √ √ √ √ HPOC

9 √ √ √

10 √ √ √

11 √ √ √

12 √ √ √ √ √ SR

13 √ √ √

14 √ √ √

15 √ √

16 √ √ √ √ √

17 √ √ √

18 √ √ SR

19 √ √ √

20 √ √ √ √ √ √ HPOC



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Appendix 5: Non-disclosure statement

Statement of intent: OPD International asserts confidentiality of information enabling the working relationship to be fully explored to the satisfaction of both parties.

Definition of confidential information: All information acquired in the course of leadership readiness audits, human performance audits, or provision of financial information enabling calculation of payback is deemed confidential and covered by this agreement unless already in the public domain.

Restricted use of information: OPD International will keep confidential information and will only use such information in the manner agreed by the client company.

Binding on all involved: OPD International undertakes to ensure all Distributors, Account Managers, Associates and Consultants are bound by the intent, definitions and purpose of this non-disclosure agreement.

Termination of agreement: Remains in force until agreed by the parties that it is no longer appropriate and the information covered by this agreement is no longer deemed confidential.

Documents

1 Introduction to OPD-SHRM v2.2