Best Practices for Effective Rule Enforcement€¦ · motivation, self-esteem, dignity, a curiosity to learn, joy in learning … The forces of destruction begin with toddlers –

© Copyright 2019, Great Systems, All Rights Reserved

Alternatives to DisciplineBest Practices for Effective

Rule Enforcement

Kevin McManus, Chief Excellence Officer, Great Systems2019 TapRooT® Summit – Montgomery, TX

www.greatsystems.com


Can We Stop the Destruction?

The prevailing system of management has destroyed our people …

People are born with intrinsic motivation, self-esteem, dignity, a curiosity to learn, joy in learning …

The forces of destruction begin with toddlers – a prize for the best Halloween costume, grades in school, gold stars –and so on up through the university.


What’s Really Being Reinforced?

Define Policy

Communicate PolicyEnforce Policy

Review and Improve

Policy

All key rules must be

reinforced regularly

AuditsFormal recognitionInformal recognitionPre-job briefsTraining

Letters and e-mails

One-on-one coaching

Work package contentsSigns, labels, and alarms

Discipline


Residents from North Dakota, Wisconsin, and Idaho, came together to fill sandbags in relief of the floods in Fargo, North Dakota, March 29, 2009. The 3500 volunteers have filled 4 million sandbags since March 27, 2009. (U.S. Air Force photo by Tech. Sgt. Dennis J. Henry Jr.

GALVESTON, Texas (Sept. 22, 2008) Sailors assigned to the amphibious assault ship USS Nassau (LHA 4) help a Galveston, Texas, resident load his damaged car from Hurricane Ike onto a trailer to be transported for repairs. (U.S. Navy photo by Mass Communication Specialist 3rd Class David Wyscaver.)


Why is Intrinsic Motivation Important?

Product quality, especially of an attribute nature

Pace of work

Willingness to suggest improvement ideas

Desire to minimize wasted time and materials

Willingness to adopt new skills, tools, and ideas

Degree to which safe work practices are followed

Intrinsic motivation levels affect:

How much ownership do you feel?

Team cohesiveness and cooperation


STOP asking how motivated people areDifferent types of motivation have different effectsThere are different kinds of motivation

START asking how people are motivated

There’s a single entity called motivation that people have more or less of

Trying to do so is undesirable – it implies controlMotivating others is impossible and unnecessaryHow do you motivate people … you don’t

“You can motivate other people”

Two Myths About Motivation


The Enforcement MatrixPO

SITI

VE

INFORMAL

Daily, consistent, positive, and

meaningful thank you / feedback

NEG

ATIV

E

FORMAL

Monthly Give Aways, 100 Point

Clubs, Profit Sharing

Beratement, no positive feedback,

limited communication

Discipline for errors, poor job

assignments, pay cuts / layoffs

Which square contains the most effective enforcement strategies?

What % of your enforcement actions fall into each square?

How was your current enforcement culture shaped over time?

How can leaders learn to enforce rules differently?


95% or more of effective positive enforcement is

INFORMAL

Do you know what their personal development needs are?Do you know what their daily work ‘headaches’ are?

Do you know what types of work your people do each day?Enforcement Through Stronger Relationships

Enforcing Through Relationships

Do you have action plans for addressing their key needs?

Do you know their preferred communication styles?


Preferred Sensing Modality

Visual

Serial

parallel

What are your preferences?

Auditory

Kinesthetic

Preferred Thinking Style

Preferred Mode of Expression

Visual

Auditory

Kinesthetic

How We Prefer to Communicate


Enforcement and High Risk Behaviors

How do you ensure the leaders at your site are consistent?

How is the need for positive enforcement built into BBS?

Have you seen BBS used to shift away from negative enforcement?

How might the incorrect use of this process cause problems?

Do you think a behavior-based observation program is an effective enforcement approach?

What are the key steps of a behavior-based observation (BBS) process?

How could this approach be used to enforce other key rules?


Reinforcing Safe Work Behaviors

Safe Work Practices

Task Specific JHA

Job position-specific JHA

Part of daily tool box talk review

Onboarding review of rules

Reviewed when job scope changes

JHA completed at start of day

Reviewed annually

Teach ‘effective JHA design’ skills

Create task specific JHAs before work

Review and update JHAs annually

Effective JHA Building Codes

Engage users during tool design and review


Layers of Enforcement Example

Hand sanitizers installed at the top and bottom of each stairwell

Managers given ‘Safe Climber’ cards to randomly give out ($1 value)

Stairway use JHA written and posted at top and bottom of stairwells

All employees urged to give immediate feedback to violators and report

PROBLEM: A job site was having an abundant number of near misses on stairways

Annual hazard training modified to include 5 minutes of safe stairway practice

ROOT CAUSE: Plant policy regarding safe use of stairways was not being consistently enforced

Actions Taken TO IMPROVE:

General JHA

General JHA

General JHA

General JHA

General JHA

Task Specific

JHA

FLRA / Pre-Job

FLRA / Pre-Job

FLRA / Pre-Job

Practice-Based

Training

Walk Through

Task Specific

JHA

Task Specific

JHA

Task Specific

JHA

Walk Through


Rule Enforcement Best Practices

All leaders must use a consistent approach to rule enforcement

Rules must be clearly, consistently, and regularly communicated

Audits, training, and job prep are also used to reinforce rules

Positive reinforcement works better than negative reinforcement

Multiple approaches to rule enforcement are needed to send a clear, consistent message

Each rule needs to be clearly defined – expectations and consequences

Discipline should only be used for ‘one off’ situations


How do we do recognize the right people fairly?

How do we link personal performance to formal recognition?

How do we decide what people want as rewards?

What mix of recognition approaches do we have?

How do we effectively formally and informally recognize employees?

How do we link recognition to ‘on the job’ performance?

Key Recognition Questions

How do we assess the effectiveness of our recognition approaches?


Formal recognition approaches are stagnant

Long term use of system is not considered

Recognition is not tied to skill demonstration

Extrinsic motivators are relied on too heavily

Recognition criteria are not aligned with the company mission

Sustainability is discounted or ignored – not recognized

People are recognized for doing non-value added work

People are recognized for doing things that they don’t affect

Recognition is not equitable across all work groupsPeople don’t know why they were given an award

Top Recognition System Weaknesses

WIIFM


What’s Your Recognition Process Mix?

Most OrganizationsThe Best

Organizations

Tea

mIn

div

idu

al

InformalFormalInformalFormal

Tea

mIn

div

idu

al

IF

IF

IIII

FT

FT

ITIT


Recognition System Design Questions

How many people / year do we want to recognize?

What is the available budget for formal recognition?

What measurable results do we want to recognize?

What is the maximum payout / year if all get recognized?

What subjective results, like behaviors, do we want to recognize?

What type of recognition would the people find meaningful?

What meaning, if any, do we want the recognition to have?

How often do we want to recognize someone?


Newsletter or intranet article

One on one conversations

Peer or team leader recognition at team meeting

Personal note or thank you card

Types of informal (non-gift) recognition

Look them in the eye – your face and voice show sincerity

Make it clear why what they did, or did not do, meant something to you personally

Link the ‘Thank You’ to the meaningful thing the person didMaking a One on One ‘Thank You’ Sincere

Informal Recognition Examples

Match your delivery style to their preferred receiving style


The Formal Recognition Spectrum

Individuals are given awards for

performing certain tasks or

making key contributions

Individual recognition is

driven by team and personal

contributions in a variety of areas

Monthly recognition based

on team performance for a

balanced set of performance

results

Variety of individual and team-based

recognition types awarded on both

a regular and special case basis

Giveaways to

Individuals

Performance Based Points

Program

Team-based Performance

Plan

Multi-level, integrated

Recognition System

What to recognize?

Individual or team? Whom to recognize?

Award frequency?

Award mix?

Award value?


Formal Recognition Spectrum

Employee of the Month

Monthly Profit Sharing

Drawings and Raffles

Point Earning Catalogs

Progress Stickers

Spot Rewards

Employee Stock Ownership

Achievement Awards

Commission / % Rewards

Team Giveaways

Reward the right tasks and behaviorsRecognize the right people

Refresh the process annually

Recognition System Building

CodesNo ‘one winner’ systems


Example Helmet Sticker Recognition Process

Define how stickers can be earnedMake earned stickers visible

Consider using special stickersHand out stickers weekly or monthly

In football, helmet stickers are earned for:

If you want to use stickers for recognition:

Scoring and winsAchieving specific team goals

Academic achievementReaching workgroup goals


Spending Points

Perfect Attendance = 5 pointsAccident Free = 15 points

KPI Goal Achieved = 25 points

Idea Submitted = 5 pointsProject Team Work = 100 points

Logo Hat = 100 points

Logo Jacket = 250 pointsFlat Screen TV = 1,000 pointsGift Certificates = $.50 / point

Tool Box and Tools = 500 points

‘100 Point Club’ Recognition Process

Earning Monthly Points

Earning Extra Points

Recordable Injury = – 100 pointsUnplanned absence = -10 points

Losing Points


“Go for the Green!” Recognition Plan

Each month, the following formal recognition options exist (4 points / day possible):

95% of possible points



$300 – Cookout or T-shirts

$200 – Pizza, chicken dinner, or subs

$100 – doughnuts, fruit, or sodas

GREENNo recordable or first aid

accidents

No absences or tardies

No product placed on hold

Under the budgeted cost per case

YELLOWFirst Aid accident

One absence or tardy

One hold occurrence

Up to 5% > the budgeted cost per case

REDOSHA recordable accident

More than 1 absences or tardy

More than 1 hold occurrence

5% or more over the budgeted cost per case


Award Name What is being recognized? What is given? Dollar Value? Who Approves?

Henry VanderPol Consistent service above ** Special logo shirt or pin $150 total No approval required, as thisService Award and beyond the call of duty ** $100 gift certificate award is given to any employee

** Name on plaque in terminal who receives three "Golden** Recognition at annual breakfast Oak Leaf" awards

and in newsletter

Golden Service that is WELL above and ** Special logo shirt or pin $75 Approved by the DistrictOak Leaf beyond the call of duty ** $50 gift certificate Manager or a Director, or

** Recognition at annual breakfast as a result of getting three** Newsletter recognition service stars

Service Service that is above and beyond ** $25 gift certificate $25 Approved by the terminalStar the call of duty ** Recognition at annual breakfast manager or workgroup

** Newsletter recognition supervisor

Drivers of Superior driver performance in ** Special logo shirt or pin $150 total Nominated by Districtthe Year the areas of safety, customer ** $100 gift certificate Manager and approved by

satisfaction, and cost ** Name on plaque in terminal the Leadership Teameffectiveness ** Recognition at annual breakfast

and in newsletter

Employee Recognition Process Summary


Annual cost / employee = $148

Award TypeAnnual

Cost

Annual Goal Achievement

Recognition System Cost

Give %# of

awardsAward Cost

$4,00080% 80$50

Monthly Team Goal Achievement $50040% 5$100

100 person organization

Team Project Completion

$50020% 3$250

Perfect Attendance / Accident Free

$9,80098% 98$100


Improving Your Recognition System

Design It

Use It

Build It

Improve It

Possible Action Items

Recognize team success monthly

Implement a multi-year, evolving recognition plan

Build at risk pay and multiple recognition opportunities into all jobsUse surveys and other feedback to improve each recognition approach at least annually

Define the desired recognition system outcomesDefine / modify your existing recognition process

Annually recognize all people who meet key criteria

Link recognition criteria to company scorecards

Redesign leader jobs to provide more floor timeProvide practice-based informal recognition training

Expect and assess informal daily recognition value


The Employee Engagement Power System

Incentives / At Risk Pay Plans:The only way to really let people know what’s in it for them in a fair manner

Recognition Process:Lets people know what is appreciated and that their efforts make a difference

Compensation Plan:Shows how pay, benefits, work environment, and recognition approaches fit together

Link each person’s pay to team and organizational performance

Key Leverage Point:

Paying people more based on the title they hold

Cultural Challenge:

RecognitionProcess

CompensationPlan

Incentive / At Risk Pay Plans


Wages

Hourly pay rate versus area averages

Hourly pay rate versus job expectations

% of pay at risk – link to company results

Internal and external results are recognized

Increases - skill development and COLA

Benefits

Ability to spend time away from main job

Opportunities for personal development

Support resources required

Consequences – good and bad

Programs exist to support family members

Medical, dental, and life insurance

Variety of recognition programs

Recognition‘One winner’ programs are minimized

Key Compensation System Components


Comparing Compensation Approaches

TraditionalWorkplace

W a g e s

B e n e f it s

E x t r a s

E n v ir o n m e n t

High PerformanceWorkplace

Hourly rates mirror local averagesOvertime is main form of ‘extra pay’Increases are primarily COLA drivenPiece rate incentives used in some cases

Same basic package for all groupsManagement typically gets added featuresPackages limited to medical, dental, and life

Giveaways used to motivate at timesBonuses limited to upper managementLittle community support involvement

Limited involvement in decision makingJob rotation is limitedFew workplace improvements are made

Hourly rates are above averageMonthly or quarterly profit sharing payoutsPay for skill process drives wage increasesProfit sharing available for all employees

Cafeteria style benefits programAll employees on same programWide range of benefit options

Multi-level recognition processSite-wide bonus programHigh% of workforce supports community

High levels of employee involvementJob rotation is linked to training plansWorkplace improvements are expected


Example Profit Sharing Plan


Involve all stakeholders in the planning effort

Link company, team, and personal goals togetherAllow all employees access to the project databaseUse one database to capture all possible improvements

Review performance regularly at all levels

Use a balanced scorecard of goals with top to bottom links

Identify resource requirements for all improvement effortsUse listening posts to collect inputs for planning

Use a formal decision making process in all areas

How the Best Compensate Their People


Linking Work Systems

Leadership Index includes

recognition statements

Leadership System

Annual survey includes

recognition statements

Engagement System

Formal leadership communication

avenues have been defined

Leadership SystemRecognition criteria

are aligned with mission, strategies,

and goals

Recognition System

Recognition criteria are linked to process level

Key Performance Indicators

Measurement System

Job description includes need to improve

Leadership Index and survey scores

Job Design System

Annual plans include

recognition enhancements

Planning System


Deploying Open Book Management

Get the InformationOut There

Post information incurrent form regularly

and explain what it means

Teach others when theopportunity arises

Involve others whenpossible to help make

improvements

Add profit share into thecurrent labor agreement

Link cost informationto month-to-monthbalanced scorecard

performance

Provide training to managersand supervisors, who

might train others

Form project teamsaround high leverageimprovement needs

Align profit sharingfor all managersand supervisors

Provide additional financialperformance information

on a real-time basis

Provide actual businessliteracy training sessions

Use performance / costreviews at natural

work group meetingsto identify key projects

Place all employeeson the same profit

sharing plan

Create a "huddle"system to share anddiscuss information

Build business literacyinto a broader training

curriculum

Extend "huddle system"to include all employees,along with project teams

Offer stock ownershipto provide a long

term goal and focus

future

nowempower others and

build ownershipteach business

literacyprovide a stake insuccess and failure


Using the Leadership Index to Enforce Expectations

1. Works with me to define the expectations of my job

2. Helps us find ways to do our jobs better

3. Is willing to spend time listening to my concerns

4. Lets me know when I have done a good job

5. Asks for my ideas about things affecting our work

6. Treats me with respect and dignity

7. Keeps me informed about things I need to know

8. Lets me do my job without interfering

9. Makes an effort to understand my point of view

10. Keeps favoritism from being a problem in our workgroup

11. Makes sure that continuous improvement is part of my daily job

My manager or supervisor …

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

SA A AD D SD

LI = 45%

Which leaders should be measured with an index?

How long should we tolerate ‘poor performance’?

What minimum score should be considered acceptable?

LI = 45%


Teach people about the costs associated with all forms of compensation

Use a profit sharing model that includes all employee groups – make it fair!

Link learning to compensation by using a ‘pay for skills’ process

Use a variety of formal and informal approaches to recognize contributions

Here are eleven key ways to build a better employee engagement system:

Increase business literacy at all levels through open book management

Improving Your Employee Engagement System

Compensate people for the contributions they personally make each day

Create a multi-year engagement and recognition improvement plan

Link your mission statement, job descriptions, and engagement plans togetherDesign systems that focus primarily on intrinsic, not extrinsic, motivators

Strive to minimize the line of sight between contribution and compensation

Use your internal survey to regularly assess compensation approach value


Improving Your Engagement System

At Start

Second Cycle

First Cycle

Third Cycle

Cycles of Refinement

Increase business literacy and cost awareness

Implement a multi-year, evolving recognition plan

Build at risk pay and multiple recognition opportunities into all jobs

Link engagement levels to short- and long term results measures across the company

Define your existing set of engagement plans

Define your existing recognition process

Provide bonuses to all people for meeting goals

Link recognition to company scorecards


E-mail: [email protected]

Snail mail: 70460 Walker RoadRainier, OR 97048

Phone: 206.226.8913

Website: www.greatsystems.com

Root Cause and Incident Analysis: www.taproot.com

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If you like this workshop, you also might enjoy my books -Please check them out on Amazon.com!

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Books by Kevin McManus!

Pursuing Process Excellence

Vital Signs Measurement

150 pages of ideas and examples that will help you accelerate and sustain your process improvement efforts

Over 25 examples of ‘best practice’ assessment tools that leaders can use to encourage and support high performance work

12 team exercises that can be used to begin applying each concept as it is learned

128 pages of ideas and examples to help you make your existing measurement systems more meaningful

Over 30 examples of ‘best practice’ measurement tools and techniques that leaders can use to promote high performance work

14 team exercises that can be used to begin applying key concepts as they are learned

Error Proof

162 pages of strategies and dialogue questions to help you stop daily goofs for good

Over 100 proven best practices that you can use to help error proof your key work processes

Can be paired with the 100 page workshop workbook that contains 13 team exercises to help you begin applying key ideas

Available on Amazon.com!


Documents

Best Practices for Effective Rule Enforcement€¦ · motivation, self-esteem, dignity, a curiosity to learn, joy in learning … The forces of destruction begin with toddlers –