work focused improvement®

American Management’s Greatest Opportunity …

is where they’ve missed the mark, and that’s with Pay Systems:1. Frederick Taylor’s scientific approach to incentives has been attacked by those who

see incentives as a cost and not an investment.2. In the last 20 years many managers believed that “money doesn’t motivate” and sought

to enrich each job with inherently interesting work.

There is a solution:3. Taylor’s scientific approach to incentives, with each human time studied as just

another machine, does not work. Work Focused Improvement’s Socio-Technical design adjusts design factors according to the culture rating of the socio-technical work system.

4. Pay Systems must be designed so that if things stay the same, there is no bonus.5. The notion that “money doesn’t motivate” springs from a corruption of Frederick

Herberg’s writings. There are many linear jobs (comprised of mostly repetitive tasks) that cannot be significantly enriched.

6. The number 1 motive for murder is money. Here is a point that has somehow been missed. If people are willing to kill for money and risk their lives, it is likely that they will work harder during their 8 hours at work for more money.

7. Even Nexters and X Y Generation People who sometimes adopt the Hollywood motto of “take this job and shove it” respond to properly designed Pay Systems

Management Approaches• The Control Model Based on the military model, it is

the fastest in terms of decision making, but does not foster commitment and does not work with today’s workers

• The Commitment Model Most management gurus endorse some variation of the Commitment (Team) model which does not move individuals out of the Entertainment / Entitlement Zone

• Work Focused Improvement®• Linear & Nonlinear work is uniquely managed in

consideration of profound differences• Pay Systems offer real rewards for advancing the

organization’s bottomline• People choose to excel and move the organization into the

Performance Zone• Everyone thinks and acts like an owner

© 1997-2013 Samuel H. Pratt / SHP Consulting Limited

Work Focused Improvementä... in a nutshell

Endorse & understand the underlying premise: When a group of people work in concert to advance the business, a by-product of the effort is a better functioning social unit

Distinguish between the two basic types of work: linear and non-linear and design all business mechanisms to match the work

Focus on the work, performance and results, not on …– Hygiene: company policy, wages, working conditions, security,

status, supervision, and interpersonal relationships– Feelings & Emotions– Turf, politics, personality, or blame

Be a student of management and build a profound understanding of all leadership and management mechanisms, tactics, and concepts

People© 1997-2013 Samuel H. Pratt / SHP Consulting Limited

Two Theories

• If you make people happy they will work hard

• If people choose to work hard, they will be happy• Work hard because the work is inherently

interesting and stimulating• Work hard because in the process of

doing so there is recognition and reward

Work & Jobs© 1997-2013 Samuel H. Pratt / SHP Consulting Limited

Pay System Gems • If excellent work is not meaningfully rewarded, there

will be no healthy and open competition. This is because people who work very hard for no extra money are under attack ... from other people, and even from themselves. The notion is: “Why am I busting my ass to make some owner richer when I could coast like Bobby, have some fun, and take home the same pay.”

• Most management gurus today focus on non-repetitive work. As for repetitive linear work, they either pretend it doesn't exist, tell you how to get rid of it, or camouflage it with things like vertical job enrichment.


Incentive Overview Gain Share pays bonuses to individuals for

improvements in bottomline performance of an organization or team. Gains are generally idea based and as such are cumulative over time and tend to be in the nature of two steps forward and one step back.

Direct Incentive pays bonuses to Individuals or small teams for improved performance on measurable tasks and quality. While on Direct Incentive, people also get a 20% share of the applicable Gain Share. Gains are usually immediate and large.


Incentive Imperatives(applies to both Gain Share & Direct Incentive)

When individuals receive bonuses, the organization experiences a commensurate gain.

Before individuals receive a bonus, their (or their team’s) performance must exceed:

– the stretch– the baseline– the cost of their earlier bonuses

If the above imperatives are not realized in a way that is fair to the organization and fair to individuals, the design must be adjusted.


Pay SystemsFuturistic Non-linear Work

Concentrated Linear Work

RepetitiveIndividual

Planning

Coordinating

Team

Pay for Periodic Bottom-line Results

Pay for Immediate Work Performed

Coaching

Collaborating

Measurable elements

Visioning

Gain Share

Direct Incentives

Pay Systems

Executives

Managers

Supervisors

Core Workers

Organization

Gain Share

Direct Incentive


Core Steps (Items 1 to 6 are essential and occur naturally while 7 is situational)

1. Perform Organizational / Environmental Analysis2. Develop Key Performance Indicator Matrix and Graphs3. Follow Work Essentials Process leading to Advancement List4. Design Pay System5. Use Scoreboards to make performance visible & elevate its impact6. Design Communications Program7. Conduct Leadership Training

WFI Pay Systems


Environmental Analysis• Streamlined process• A carefully sequenced questionnaire includes both

standard and custom questions to dissect an organization and provide:• Objective scores for culture & business mechanisms• Insights on consistency & flexibility• Knowledge of “if and how” Work Focused

Improvement® can make a difference• The process

• Is interactive … everyone participates and benefits• Provides information used to design socio-technically

correct Incentive Baselines & Sculpted Pay Curves


Key Performance Indicators• Streamlined Process to identify & organize KPIs• KPIs are measures of performance in all areas of

the organization critical to bottomline results• To be useful the indicators must be simple, visible,

accurate, meaningful, timely, and objective• Some KPIs are measures of individual and team

performance• In Work Focused Improvement®, standardized

graphs are used in various ways to intensify gains

Pay Systems© 1997-2013 Samuel H. Pratt / SHP Consulting Limited

Hygiene then Motivators & Movers

“… the factors involved in producing job satisfaction (and motivation) are separate and distinct from the factors that lead to job dissatisfaction.”

“… The opposite of job satisfaction is not job dissatisfaction but, rather, no job satisfaction; and similarly, the opposite of job dissatisfaction is not job satisfaction, but no job dissatisfaction.”

Frederick Herzberg


Core Steps (Items 1 to 6 are essential and occur naturally while 7 is situational)

1. Perform Environmental Analysis2. Develop Key Performance Indicator Matrix and Graphs3. Follow Work Essentials Process leading to Advancement List4. Design Pay System5. Use Scoreboards to make performance visible & elevate its impact6. Design Communications Program7. Conduct Leadership Training

WFI Pay Systems


10+ Pay System Design Steps(Captured in Workbook)

0) Select Design Team – match personnel with roles

1) The Group – who is covered by the plan2) The Formula – measures that define the gain3) The Baseline – value of formula that must be exceeded4) Smoothing Mechanisms – control volatility of payout5) The Curve – match the pay curve, culture, and stage6) The Share – how much goes to organization & team7) Payout Frequency – how often is bonus paid8) The Split – how are the gains distributed within the team9) Continuous Improvement Adjustment – keep opportunity fair

10) Capital Investment Adjustment – re-engineering recognition


Direct Incentive OpportunityThe sweet spot (best overall result) is when there is 130% actual opportunity (earnings as compared to guaranteed base rate)

As opportunity drops below 130%, increasing numbers of linear workers lose interest

The only benefits to the company for opportunities above 130%: Stabilize the work force Preserve trust by only taking the specified annual

Continuous Improvement Adjustment Very loose incentives have the potential to be

counterproductive when workers restrict output to hide the easy opportunity

130%

120%

100%

Key Systems & Mechanisms© 1986-20010 Samuel H. Pratt / SHP Consulting Limited

Work Essentials• Streamlined process• One page form is simultaneously completed by all

members of a Work Group to capture• Tasks of Occupations & Work Assignments• Relative importance / impact of tasks• Time requirements of work

• Data used to• Assess Work System Design and Flow• Eliminate Non Value Adding Work• Identify On Demand and Discretionary Work• Plan Focus Studies of key linear work


Considerations When Setting BaselinesSocio-technical Design

• Technical capabilities of the team (as determined by studies, data analysis, correction factors)

• Culture of the Work Group• Size of the gap between where the team is today

and where it technically could be• Volatility of historic performance coupled to an

assessment of the reasons for peaks, valleys, and current direction

• Opinions and mindset of the team as it relates to the incentive design

• Recent initiatives and structural changes


These are examples many available Pay Curves.

Actual Pay Curves extend below 100% for rating purposes.


Core Logic and Mechanisms for Optimizing Work Focused Improvement®

The power of Work Focused Improvement® is captured in tables, lists, and algorithms that use Culture Rating and Stage of WFI to optimize the Pay System with an ongoing process. Examples of design factors that are calibrated include:

1. Workable Stretch range 2. Slope or slopes of low section of pay curve 3. Slope of middle section of pay curve 4. Slope of high section or sections of pay curve 5. Intersection point at bottom and top of middle section 6. Ratios of opportunities between Direct Incentive and Gain Share 7. Culture Rating coupled to the Stage of Work Focused Improvement® (refer to “The 3

Stages of Work Focused Improvement®”)

Calibration is verified and ownership transferred by visuals and a list of questions for each design element / decision. There is a narrative outlining the process. Many of the adjustments are counter-intuitive.

Those using these tools need high levels of WFI experience and advanced Excel skills. These tools are continuously improved. For example, if an organization has deviated from the


Examples When GS is 25% and Direct Incentive is 30%

100.0% 100.0% 100.0%

30.0%15.0%

25.0%

12.5%

5.0%2.5%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

Person on DirectIncentive Only

Person on Gain ShareOnly

Person with 1/2 of Hourson Each

GS while on DI

GS Bonus

DI Bonus

Base Pay

When on Direct Incentive, an individual also gets a 20% Share of The Gain Share Bonus.

An associate will not earn less than his or her base rate. Poor Direct Incentive performance will subtract from Gain Share Bonus, but Gain Share Performance never subtracts from Direct Incentive


• Company within a Company – consider outsourcing, but do it to your own encapsulated company

• Compartmentalized and Team Controllable Revenue & Expense measures determine Virtual Profit

• Outputs or outcomes are the actual or virtual product that energizes the effort

• Step by step analysis and graphs are used to set targets and incentive baselines

• Gains beyond baseline are shared with team members per Sculpted Pay Curves and other design criteria

Virtual Performance Company™


Virtual Performance Company™ One design option for Gain Share is the Virtual Performance Company™. The idea is to build an organization within an organization. Anything from a small Work Group to a large division could be a virtual company. Virtual Revenue and Virtual Expenses are used to calculate Virtual Profit or Gain. To get the right VPC mindset, ask yourself this series of questions:

1. If you were going to outsource a functional area of your organization, such as billing or transcription, would you compare your costs and value or product / service to the costs and value of the outsourced work?

2. If you were going to double the size of a functional area and sell your services or product in the open market, would you first estimate expenses and revenue of the new enterprise?

3. Can any company perform well or poorly? 4. Would it help if employees in any enterprise were motivated, and also thought and acted

like owners? 5. If you do neither 1 or 2 above, would it still make sense to create formulas for Revenue

and Expenses to be used to calculate Virtual Profit to gauge performance? 6. Would it then make sense to share exceptional gains in Virtual Profit with associates

thereby transforming everyone into an owner?


Virtual Performance Company™Design Criteria

A. Is simple to understand the pay system via words, numbers, and graphsB. Insures that bonuses are truly earned by associatesC. Protects against staff bonuses caused by Corporate effort, investment, or

initiativeD. Assures that historic trend, stretch target, and budget are exceeded before

bonus is paidE. Uses virtual outputs & outcomes that are balanced by quality measuresF. Perfect quality is rewarded, and poor quality is penalizedG. Compartmentalizes Virtual Performance Company™ gainH. Focuses on VPC controllable gain on both the revenue and cost sidesI. Energizes linear work with Direct IncentivesJ. Incorporates organizational objectives and criteria into the designK. Assures if bonuses are earned by individuals, a commensurate gain goes to

organizationL. Embodies the message: “Fair to Individuals & Fair to the Organization”M. Utilizes regular, brief, and graphic update meetings to assure alignmentN. Includes Continuous Improvement & Redesign Criteria


The American WorkforceIn the Entertainment / Entitlement Zone

– Tend to identify more with their own objectives than those of the organization

– Are comfortable saying “My new dog has to get his shots today, so I have to leave at 2:45,” [assume the individual is behind on critical work]

– Perform at about 33% to 45% of potential (from various studies)

– Focus on personal entitlements regardless of the organization’s performance

– Spend a disproportionate amount of time on social and entertainment factors as compared to performance factors and the core work

– Especially struggle with linear work


The Performance Organization

Key Performance Indicators (KPIs) are visible and important to everyone

The organization as a whole is focused more on facts and less on opinion

There is high flexibility, and people move to where they are needed most

All business mechanisms are geared to performance Personnel assessment, recognition, and reward are all tied

directly to actual measured results Individuals act as positive forces Associates are aligned with organizational goals, and at the

same time, the organization supports individual objectives

Organizational Dynamics© 1997-2013 Samuel H. Pratt / SHP Consulting Limited

Gain Share After Design & Kickoff A Gain Share System is not crock pot chili that you can make

and then walk away It requires stirring, tasting, seasoning, and Personal Attention

– Use walkabouts to send the message you care about performance– Post KPIs on Scoreboards to share information and create the Hawthorne

Effect [Individual, Team & Organization Performance over time]– Use Work Sampling as an enabling tool– Focus on facts while giving Personal Attention– Lead by example and be a visible, positive force– Give Associates frequent performance data– Pass the message “We can do it!”– Secure all gains of the Advancement Process– Instill everyone with a Continuous Improvement Mindset– Listen, look, and Over-communicate– Track Inventory– Track Direct Incentive to Total Work Hour Ratio– Monitor Tasks to Date Chart


Direct Incentive Annual Continuous Improvement Adjustment

The Annual Year-end Continuous Adjustment is calculated by reducing the opportunity in excess of 130% by 1/3. Example: If the average opportunity is 160% for 2001, it will be reduced to 150% for 2002. The 10% reduction is 1/3 of the 30% excess over 130%. So if it took 22 Quality Widgets per hour in 2001 for 160%, it will take 23.47 in 2002. It is expected that performance improvements would continue so that actual bonuses remain at the higher level. In the process of reviewing all rates, some may actually be increased.

Continuous Improvement Pay Curve Adjustment

0%

50%

100%

150%

200%

250%

300%

0 50 100 150 200 250 300

Widgets Per Hour

% P

erfo

rman

ce

2001 Pay Curve

2002 Pay Curve

Average 2001

Adjusted Average Opportunity Start 2002


Pragmatism, Culture, Reality, EtceterasSummary

Don’t expect rapid changes of culture or values. Never give up on changing culture over the long haul Recognize that attempts to transform the culture overnight can

be counterproductive due to reality / perception / expectation gaps [management can look incredibly naive]

Use multi-factored pay systems to change short-term conduct and long-term culture

Use a wide variety of management tools & techniques to bring about change

Manage with facts Push for rapid changes in technology and conduct Assure that culture is moving in the right direction, and worry

less about the rate of change


Over 30% total

improvementeach year,

and atotal of143%

improvementin 3 years

Over 30% total


and atotal of143%


Megan Patton Items from Article:She earns an incentive bonus every month, and in one

recent month, she earned a $2,100 bonus on top of her regular pay.

“It’s a fun atmosphere to work in. I don’t mind coming to work every day,” she said. I don’t get stressed out about it.”

It’s important to note that she is producing at more than 6 times the team average from one year earlier … and morale is up!

Three Years of Steady

ImprovementUnder Work

Focused Improvement

Actual data from a medical billing company

Quality Charts Processed per Person

0

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-99

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-99

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b-0

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-02

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Charts Billed

Employee Count

Linear (Employee Count)

Linear (Charts Billed)

Over 30% total


and atotal of143%


Three MoreIncentive Start-up Examples

Next 3 Slides

This is actual data without real names of participants

Long Term Care Division

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Close Files [inclusive]

Post EOBs [inclusive]

Issue Bill ( invoice) [inclusive]

Issue PO [inclusive]

Verify Order (Order Intake)

Verify Medicare #40% Reduction In Force after 9 work days on Pay System

Direct Incentive Startup

0%

20%

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160%M

ay-

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-03

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p-0

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-03

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v-0

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Gayle T

Laura K

Nicole W.

Lena F.

Christine Z.

Val C.

Michelle W.

Melissa F.

Nina B.

Kelli V.

Erica U.

Debbie S.

Deanna W.

Lisa E.

Connie L.

Casey E.

Hollie T.

Susan M.

Melissa C.

Misty S.

Nikki T.

Val B.

Pre Incentive Avg

Linear (Casey E.)

Linear (Nicole W.)

Linear (Gayle T)

Pre Incentive Average

Fundamentals

Today’s Management

Panaceas

Business tested

mechanisms that work in concert

Management By

Wishful Thinking

Work Focused

Improvement®


The Norm Work Focused Improvement®

“Money Doesn’t Motivate” Money creates movement & over time changes culture

Incentives are viewed as a cost Incentives are designed as a no lose investment

No recognition of distinct needs to manage linear work

Linear work is elevated and energized with unique mechanisms

Hourly workers tend to increasingly act like hourly workers – not owners

Everyone is an “owner” with the real opportunity to succeed … or fail

If used, incentives are either Taylor (scientific) or Wishful Thinking (low opportunity)

Incentive design is socio-technical with culture-corrected baselines and sculpted pay curves

Grading or keeping score dehumanizes people

Keep score and make it visible, timely, and helpful

Use “feel good” management programs rather than focus on results

Pragmatic leadership, systems, and mechanism move the organization into the performance zone


What do all these People ConceptsSuggest about Leadership?

1. People are complex2. Managing people is more complex3. All of the preceding concepts have value but none is

predominate4. To lead, you must treat each person as a unique

individuala) Know the likes, dislikes, strengths, weaknessesb) Learn what triggers positive responses from individualsc) Ask and listend) Try different approaches, tactics and mechanismse) Focus on what works!f) Remember that Trust is always an issue


BuildingBlocks

MissionObjectives

ISO 9000

Pay SystemsMechanisms

Culture

Values

Communications

Conduct

Process design

Training

Re-engineering


Perfect Alignment

Mission

Objectives

ISO 9000

Pay Systems

Mechanisms

Culture

Values

Communications

Conduct

Process Design

Training

Re-engineering


Define objective in terms of KPIs, outputs, and other

measures or results

Communicate clearly with the objective of two

way understanding

Build natural follow-up points

for feed back such as month-end reports, and

Performance Reviews

Document discussions,

agendas, actions, issues,

performance over time

Follow-up as promised (lead

by example)

5 StepClosed Loop SystemA. If project or task,

repeat until complete

B. If process, repeat on ongoing basis


Gain Share / Direct Incentive Realities The new Pay System is not an effort to give money to employees It is a system to share gains of the organization with employees In a significant way, the Pay System makes employees “owners” The system is a carrot, not a stick Unlike some organizations, this organization does not take money

away from employees for poor performance It is all on the plus side If nothing changes, pay to individuals will not change The expectation is for large gains and large bonuses If you prove yourself to the Pay System, it will prove itself to you

… give it your best shot! Again, the ultimate goal is to become a Performance Organization

that is profitable each month … resulting in a win-win


Focus onThe workPerformanceResults

Do NOT focus onHygiene: company policy, wages,

working conditions, security, status, supervision, and interpersonal relationships

Feelings & EmotionsTurf, politics, personality, or blame


QualityThroughput without World Class Quality

will put you out of businessDuring the 1980s the United States awakened to the fact that poor quality was the path to disaster. The Japanese, with world class quality, led the way to quality focused organizations. Two of the key players in the Japanese quality transformation were Edwards Deming (an American) and Genichi Taguchi. From a quality leadership perspective, Taguchi provided the quote that is most instructive: "Whatever an executive thinks are the losses of poor quality, they are actually six times greater"

Quality© 1997-2013 Samuel H. Pratt / SHP Consulting Limited

Work System Design Checklist1. Design as a collaborative effort among Work Groups2. Eliminate non-value adding work, streamline, simplify, automate, reconfigure3. Design so that people rely on their strengths and develop their weaknesses4. Design so that people are equally challenged, but recognize the mastery

verses variety dynamic5. Incorporate vision that there will be greater cooperation and more cross

functional Advancement Teams6. Include mechanisms to insure design refinement and reconfiguration in an

ongoing way7. Consider how all associates will be more integrated into the information and

decision making system8. Support the concept of "boundaryless" and protect against turf battles9. Develop multiple work assignment groupings to show occupation options10. Develop multiple organizations that include various diagonal groupings11. Don’t avoid past adversarial relationships but consider both healing and

synergy12. Include discretionary and non-discretionary work in each team if possible13. Include repetitive and creative tasks in occupations and teams where possible14. Design from a organization perspective first, and consider specific

personalities second15. Push the limits … don’t be afraid to combine or change teams, jobs, processes,

etc. Organizational Dynamics© 1997-2013 Samuel H. Pratt / SHP Consulting Limited

Work System DesignSpecial Considerations

• Some work assignments, such as Customer Service, Maintenance, and Reception, are “on demand.” There are very busy periods separated by slack time.

• Other work assignments, such as filing or even core work with excess capacity, are more “discretionary” in nature.

• Ideally, occupations should have both On Demand and Discretionary Work Assignments.

• In any case, for all associates doing On Demand tasks, there should be Discretionary tasks for assignment.

• It is also useful, to have some associates on Discretionary jobs who can be assigned to On Demand work during peak periods.

On Demand Work

Discretionary Work


Work System DesignSpecial Considerations

• Professionals and specialists increase expertise throughout their careers as the expand knowledge and skills diagonally in the organization

• Rely on strengths and develop weaknesses

• From Managing People is Like Herding Cats: “Rotate your key assistants every two years. They may become too complacent.”

• From The Boundaryless Organization: “In many organizations, professionals, specialists, and other functional experts find comfort in their long-standing functional identities. They wrap themselves in their function like a child with a comfort blanket.”

• From Who Moved My Cheese: “The quicker you let go of the old cheese, the sooner you can enjoy the new cheese.”

Mastery Choose or Combine Variety


Calibration

Technical Focus / Expertise

Leadership & ManagementFocus / Expertise

Strict

Values Consistency Lenient

Values goodwill of individuals

1 2 3 4 5 6 7

1 2 3 4 5 6 7

People & Leadership

Advantages of Inclusive Rates• Key Performance Indicators (KPIs)

zero in on measures that flow directly to the bottomline. KPIs make excellent Inclusive Rates

• If the number of precollect call completed is more important than the number of wrong numbers reached in the effort, then focus on and track the precollect calls completed (the Inclusive Rate which is also a KPI … not a sub-task).

• Inclusive Rates encourage process improvement and elimination of non-value adding tasks. Tracking sub-tasks does the opposite.

• Inclusive rates reduce bureaucracy, complexity, and frustration.

• Inclusive rates eliminate (or greatly reduce) the need to track ancillary work, delays, interruptions, dwell, subordinate work, and minutia.

Concept of Inclusive Rates• The Work Essentials process identifies the Key Core work of an

organization.• If Issuing a bill is the fundamental work of a Work Group, then all

ancillary work associated with this Core Task can be considered as integral to it.

• Sub-tasks that may or may not be required in issuing a bill for an encounter:

1. Verify address and personal information

2. Send email(s) and / or make call(s)

3. Review account

4. Verify codes and procedures

5. Etc.• Rather than record all the subtasks associated with an account, it is

more efficient and direct to record just the inclusive rate.• For an Inclusive Rate to be fair to the organization and to

individuals, it is imperative that it includes sufficient time for an effectively working individual to earn a bonus of 30% … on the average.


Personal AttentionEnabling / Coaching / Counseling

Fact based

Unemotional

Focused on future opportunity

Optimistic and caring

“You can do it”

Characteristic based

Emotional

Focused on past conduct

Noting imminent peril

“I’m fed up”

Enabling ScaleNormal & Frequent Last Chance or Never

Supervising People© 1986, 1986-2012 Samuel H. Pratt

Think in Thirds

• It is useful to picture performance in thirds

• The thirds relate to performance and value of the people – not literally the top 33.3%

• It is also useful to think of the Groups as A, B, and C

A = Superior

C = Struggling

B = Good

Supervising People© 1986, 1986-2012 Samuel H. Pratt

Women in the Springfield ArmoryWorld War I and II

• Women joined the workforce during World Wars I and II as a necessary measure to win the wars

• At the Springfield Armory during WWII, faster and better training methods were developed to get women into the workforce quickly.

• With women composing as much as 43% of the workforce, productivity reached all-time records.

• This workforce was focused on winning the war by supplying as much quality armaments as possible … which just might be a lesson … maybe several!


Work Focused ImprovementäUnderlying Assumptions / Environment• Managers / Leaders know their areas• In an area at any given time, there are far more known

improvements to make than resources to make them• A Manager / Leader’s day is fragmented• Only large cost / risk ideas require detailed justifications

and return on investment calculations• Most local improvements go unreported• Reporting, tracking, energizing, and analysis

mechanisms should be simple• Trust is always an issue


WFI Socio-technical Design

TraditionalLess of this• Controlled compartmentalized units• Ambiguous requirements• Technical system dominance• Limited information flow• Narrowly defined jobs• Errors reworked downstream• Controlling structure & culture• Static design by top management

Socio-technical DesignMore of this• Empowered autonomous units• Clear direction and goals• Socio-technical integration• Accessible information flow• Diagonally enriched jobs• Control of variance at source• Empowering structure & culture• Capacity to reconfigure built in

Organization© 1997-2013 Samuel H. Pratt / SHP Consulting Limited

ImportantIntroducing Work Focused Improvement®

1. WFI is a streamlined process that uses fully designed modules powered by templates, workbooks, slide shows, etc.

2. WFI is learned by participating in the process which is carefully sequenced.

3. At times, describing a module prior to doing the work is counterproductive. Example: describing the Focus Study process before the hour of the Focus Study.

4. WFI slides are often not self explanatory. Context, derivation, examples, and issues must be added by presenter.

5. Introductory Meetings should not become “ready, aim, aim, aim …” when the process is ready to “fire”.

6. The roll out process and the final selected slides should be reviewed with Sam Pratt before presenting.


work focused improvement®

Documents