Magnetic-North Consulting organization, people, and process integration services 1 Performance Engineering to Create Dramatic Change in Business Results

Magnetic-North Consultingorganization, people, and process integration services

1

Performance Engineering to Performance Engineering to Create Dramatic Change in Create Dramatic Change in

Business Results Business Results

CM Nagnetic North ConsultingRight Direction. Done Right.


2

Science vs. EngineeringScience vs. Engineering11

ScientistScientist EngineerEngineer

There is so much to know and discover

There is so much we know that we have not applied

There is so much we know that we have not applied

Satisfied to find out what the world is like as it is

Intent on remaking the worldIntent on remaking the world

Has a well developed process and will go where it leads

Knows where to go and will use any process to get there

Knows where to go and will use any process to get there

Knowledge is an end, valuable and worth great cost to attain it

Knowledge is costly and needs to be applied efficiently where value is created

Knowledge is costly and needs to be applied efficiently where value is created

11Human Competence: Engineering Worthy Performance. Thomas Gilbert. New York: McGraw Hill. © 1978Human Competence: Engineering Worthy Performance. Thomas Gilbert. New York: McGraw Hill. © 1978


3

Worthy Performance (W)Worthy Performance (W)

► Egyptian pyramids vs. alphabetEgyptian pyramids vs. alphabet

► Education must be economicalEducation must be economical

► We have no need to measure behavior until we We have no need to measure behavior until we have measured accomplishmenthave measured accomplishment

► Measures of behavior can be misleading and Measures of behavior can be misleading and measures of accomplishments are requiredmeasures of accomplishments are required

W = W = Valuable accomplishments (A)Costly behavior (B)

Valuable accomplishments (A)Costly behavior (B)


4

Measuring Human CompetenceMeasuring Human Competence

► Mark Spitz 20% faster than best high school swimmerMark Spitz 20% faster than best high school swimmer

► PIP is a measure of competence we have and PIP is a measure of competence we have and potential to increasepotential to increase

► Reducing a PIP of 4.0 to 1.5 is easier than reducing a Reducing a PIP of 4.0 to 1.5 is easier than reducing a PIP of 1.2 to 1.1PIP of 1.2 to 1.1

► Key is to find out what makes the best, the best (6 Key is to find out what makes the best, the best (6 areas to be discussed later)areas to be discussed later)

Potential to Improve Performance (PIP)

Potential to Improve Performance (PIP)

Worthy Performance (best)Worthy Performance (typical)Worthy Performance (best)

Worthy Performance (typical)= =


5

Performance Engineering Model: Gilbert Performance Engineering Model: Gilbert 19781978

Behavior Cost

Behavior Cost

Cost of workers’ behaviors (R) + Cost of environment (E)

Cost of workers’ behaviors (R) + Cost of environment (E)

= =

Information Instruments Incentives

Knowledge Capacity Motivation

Information Instruments Incentives

Knowledge Capacity Motivation


6

The Six Boxes™: Binder 1998The Six Boxes™: Binder 1998

Carl Binder is doing work with Microsoft Game Studios (XBOX) and, in a nutshell, is finding that job outputs don’t match job descriptions—surprise!

Carl Binder is doing work with Microsoft Game Studios (XBOX) and, in a nutshell, is finding that job outputs don’t match job descriptions—surprise!

Expectations

& Feedback

Expectations

& Feedback

Tools&

Resources

Tools&

Resources

Consequences

& Incentives

Consequences

& IncentivesSkills

& Knowledge

Skills&

Knowledge

Selection&

Assignment

Selection&

Assignment

Motives&

Preferences

Motives&

Preferences


7

Creating IncompetenceCreating IncompetenceP P

ers

on

’s r

ep

ert

ory

of

beh

avio

r

Knowledge1. Leave training to

chance

2. Put training in the hands of supervisors who are not trained instructors

3. Make training unnecessarily difficult

4. Make training irrelevant to the students’ purposes

Capacity1. Schedule performance

for times when people are not at their sharpest

2. Select people for tasks they have intrinsic difficulties in performing

Motives1. Design the job so that it

has no future

2. Avoid arranging working conditions that employees would find more pleasant

3. Give pep talks rather than incentives to promote performance in punishing situations

SD

InformationRInstrumentation

Sr

Motivation

E En

vir

on

men

tal

Su

pp

ort

Data

1. Don’t let people know how well they are performing

2. Give people misleading information about how well they are performing

3. Hide from people what is expected of them

Instruments1. Design the tools of work

without ever consulting the people who use them.

2. Keep the engineers away from people who use the tools.

Incentives1. Make sure that poor

performers get paid as well as good ones

2. See that good performance gets punished in some way

3. Don’t make use of non-monetary incentives


8

PE Example: Syracuse LacrossePE Example: Syracuse Lacrosse11

► 2007 Record: 5-82007 Record: 5-8► 2008 Record: 11-2 National Champion2008 Record: 11-2 National Champion► Top 5 scorers were the same from 2007 Top 5 scorers were the same from 2007 to 2008 order to 2008 order

changed slightlychanged slightly► Bench support about the sameBench support about the same► Slight improvement in winning face offsSlight improvement in winning face offs► 2008 goalie slightly better than 2007 goalie2008 goalie slightly better than 2007 goalie

How can we pinpoint the reason for the significant increase in How can we pinpoint the reason for the significant increase in performance: a little improvement in a lot of areas, working harder?performance: a little improvement in a lot of areas, working harder?

11James Land. ww.laxnews.comJames Land. ww.laxnews.com


9

Performance Engineering Analysis Performance Engineering Analysis ResultsResults11

► Sid Smith: Defense (middle)Sid Smith: Defense (middle)► Junior transfer from Junior transfer from

Onondaga Community Onondaga Community College College

► Cut the goals allowed per Cut the goals allowed per game to 4game to 4

► In Semi final with Johns In Semi final with Johns Hopkins, held Hopkins Hopkins, held Hopkins attack to 3 goalsattack to 3 goals

I asked Sid after the Championship game how he and the 'Cuse D were able to force Hopkins to have twice as many turnovers as Syracuse had in the Championship game. Ever humble, he said that Danny Brennan won so many face offs for the Orange that it was easy to pressure the Blue Jays. I told Sid that Brennan was great all year, but that Face offs were actually even in the Championship game, 13-13. Sid thought for a minute and said it was the offense that took the pressure off the D and made Hopkins think they had to make moves. I think he was simply trying to spread the credit around. The bottom line is that the difference in the game, and the season, for Syracuse was Sid Smith.

11James Land. ww.laxnews.comJames Land. ww.laxnews.com


10

Where to startWhere to start

► Differentiate between behavior from performanceDifferentiate between behavior from performance► Define measures of exemplary performance based on desired business Define measures of exemplary performance based on desired business

resultsresults► Complete performance table levels 1-3 for sales forceComplete performance table levels 1-3 for sales force► Find exemplary performer, troubleshoot performance, and complete Find exemplary performer, troubleshoot performance, and complete

Performance Engineering ModelPerformance Engineering Model► Determine cost/benefit of getting % of sales force to exemplar and whether Determine cost/benefit of getting % of sales force to exemplar and whether

this will get desired business resultsthis will get desired business results► Pilot test and apply solutions based on Performance Engineering Model Pilot test and apply solutions based on Performance Engineering Model

resultsresults► Regularly revise performance table to determine effectiveness of solutionsRegularly revise performance table to determine effectiveness of solutions

Documents

Magnetic-North Consulting organization, people, and process integration services 1 Performance Engineering to Create Dramatic Change in Business Results