Performance Management

Performance Management New Hire Operations Training for Supervisors

Module Objectives Communicate basic concepts of gathering and analyzing data and executing corrective actions to manage performance improvements. Apply basic elements of Target Specific Management (TSM) to build and execute action plans, which will address specific Key Performance Indicators (KPIs) in need of improvement. This process can best be remembered by illustrating it as a simple formula. Know What + Know Why = Know How

Module Contents Lesson 1: Target Specific Management Lesson 2: Key Performance Indicators Lesson 3: Root Cause Analysis Lesson 4: Action Planning Worksheet Lesson 5: Planning Meetings

TSM Definition TSM is a business process in which the business is divided into small measurable units. These units are measured in order to monitor performance and take action to improve it.

TSM Goal: Continuous Improvement GOOD, BETTER, BEST NEVER LET IT REST ‘ TIL YOUR GOOD IS BETTER AND YOUR BETTER IS THE BEST!

TSM Methodology Know What - Track Key Performance Indicators (KPIs) and compare to established standards in order to improve performance. Know Why – Complete a Root Cause Analysis to identify the true problem that is impacting performance. Know How - Understanding the true problem or root cause gives insight into how to solve the problem.

TSM: Principles Target Specific Management (TSM) requires all levels of management to utilize a wide variety of leadership principles: Planning & Organizing Directing & Delegating Goal setting Motivating Control and audit Communication Training

TSM: Benefits TSM… Develops confidence through repeated success. Promotes accountability Promotes employee development Allows you to determine shared, measurable targets, which will need to be obtained incrementally in order for you to meet budget and service objectives.

TSM: Benefits TSM… Allows you to accurately measure and track your actual performance to these incremental targets in a timely manner. Provides a process to prioritize and plan your efforts and activities; the what, how, who and when, to ensure that you realize the greatest results with the least effort, in the shortest period of time.

TSM: Step 1 - Gather Data: Hines Story What is the moral of the story? How does this story relate to your role as a Supervisor? Is is important to know where you stand on every element at all times? Why or why not?

KPIs: Introduction What gets measured, What does this proverb mean to you? gets fixed.

KPIs: Impact These KPI’s reflect corporate objectives relating to: People Service Costs $

KPIs: Impact KPIs impact the business in two (2) ways: By target to establish the performance expectation. Allow us to quantify a cost benefit.

KPIs: Addline Process TSM Addline Process is a simple way of tracking numbers either on a daily, weekly, monthly, and quarterly basis. Most managers track key performance indicators (KPIs) or performance weekly.

KPIs: Addline – Part 1, Addline KPIs Updated weekly Quarterly roll up Year to date actual & plan % effective

KPIs: Analysis Basics Vertical Horizontal Scan Trends Anomalies Actual to Plan Comparison Cause & Effect Relationship

KPIs: Addline – Part 1, Addline 2. Complete Horizontal scan to identify problem weeks. Here we see only one week meeting or exceeding plan. 1. Conduct a Vertical scan comparing YTD ACT vs YTD Goal. Identify any KPI below plan.

Root Cause: Problem 1 You’re driving a bus that is leaving on a trip from Miami to New York. To start off with, there were 32 passengers on the bus. At the the next bus stop,11 people get off and 9 people get on. At the next bus stop, 2 people get off, and 2 people get on. At the next bus stop, 12 people get on and 16 people get off. At the next bus stop, 5 people get on and 3 people get off.

Root Cause: Pitfalls Incomplete problem identification Unknown relationships Focus on Solution

Root Cause: What + Why = How K Know What + Know Why = Know How

Root Cause: The Process The Root Cause Process has two (2) basics components: Decomposition: Breaks the problem down Externalization: Gets the problem and it’s variables on paper

Root Cause: Questions What? Why? How? When? Who?

Root Cause: Why Ask Why? Why is TPR not at goal? Why are first stops times are off 15 minutes versus plan? Why is the sort starting 15 minutes later? Why is the container truck arriving 15 minutes later? Why are the containers in the wrong position?

Root Cause: Externalization Externalization is the second component of the root cause analysis process. It helps us to break down the problem and think about all the different elements or variable This is the first stage in the creation of an Action Planning Worksheet (APW). It also serves as the basis for future documentation, follow-up and accountability.

APW: Attributes An effective APW should: Focus on an actual element Be specific and detailed Contain action items Show plans for incremental gains Be mathematically sound

APW: Guidelines Use one sheet per committed element below goal. Record previous month’s excess daily hours and cost, if applicable. State, in your own words, how the problem will be corrected on the APW. Include sufficient “how’s” and/or actions to solve the problem and bring the element back to goal. Work collaboratively with your staff to decide on a completion date and follow up procedure. Record the expected improvement on the worksheet as a commitment.

APW: Planning Actions APW may reflect a goal under the KPI in order to plan for incremental gains. Incremental gains must be attainable. Success will come in attainable, incremental gains. By planning for incremental gains, we help our employees succeed.

TSM: Incremental Gain Example Goal: Increase WPX Transit Performance from 87% to 90% by end of quarter.

TSM: People, Service and Cost The main idea behind the Target Specific Management approach is to improve performance through small, incremental gains. Although every element is a number, that element translates into people, service and cost. Focus on people as well as processes. TSM is ultimately a matter of individual performance. It happens one day at a time, one person at a time.

TSM: Pareto’s Law Pareto’s law states that 80% of your effort to improve performance will be dedicated to 20% of your employees.

TSM: Talk With (TW) Conduct a brief meeting with employee to present the problem. Get their thoughts on the problem and why they think it is happening. Solicit their feedback on possible solutions before presenting yours. By doing this you are focusing on the problem not the person, you are treating them with respect and you are giving them the opportunity to take ownership of the solution.

TSM: Work With (WW) Schedule a time to Work With or coach the employee. Coaching an employee is more time consuming for both parties but maybe necessary to correct the problem. You can use the Pareto Law in estimating how many people you will need to work with. The majority of people will improve performance just by communicating the problem. The remainder are probably new employees or ones that did not receive proper and complete training for the work they do.

TSM: Translating Plans Into Action As a Supervisor, you must translate plans (APW) into action. The Action Items section of the APW is where the implementation of solutions is posted. Productivity Management (and TSM) can help you prioritize and focus resources where they are most needed.

APW: Supervisor vs. Manager Supervisor’s Role Create APWs using guidelines. Manager’s Role Work with supervisor to ensure that APWs are successful. Aid supervisor in analyzing data, brainstorming solutions and creating realistic and viable action plans. Audit APWs to ensure that they conform to guidelines.

Planning Meetings: Focus Problem identification. What is the problem? Proper solutions for the identified problems. Why is it happening? How to accomplish the solutions. Who will be involved. When it will happen. Establish accountability.

Planning Meetings: Focus Where are we and where should we be? What’s been done and what needs to be done? What’s been successful (BDP’s) and what hasn’t? Who’s doing well and why? Who needs help and how do we give that help?

Module Wrap Up Know What + Know Why = Know How Pitfalls Incomplete Problem Identification Unknown Relationships Focus On Solution Root Cause Analysis (Decomposition) 5 APW Attributes (Externalization) Execution! Plans without action is a plan to fail

TSM: Step 4 – Execution Ex-e-cu-tion (ek si kyoo shun),. Not simply tactics, but a system of getting things done through questioning, analysis, and follow-through. A discipline for meshing strategy with reality, aligning people with goals, and achieving the results promised. Execution is a systematic process of rigorously discussing the what’s, whys and how’s, questioning, following through, and ensuring accountability. Managing execution includes delegating and coordinating work, as well as meeting with employees to review progress. Larry Frasca & Ram Charan Execution: The Discipline of Getting Things Done Addline (KPI’s) Root Cause Action Planning Execute

Performance Management

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Performance Management