Budgets & Headcount
In part 11 in this monthly series – we will focus on the enabling Environmental Asset Attribute of:
Budgets & Headcount
The Budgets & Headcount or “Financial” Systems provide the capital and expense budgets, and the headcount budgets needed to enable and support performers in performing at a level of mastery.
This Environmental Asset Management System responds to the financial and staffing needs of the Process or Processes, reflected in the analysis data, by providing “budget/ headcount” assets of the following type/ nature:
- Capital budgets
- Reserve budgets
- Operational budgets
- Headcount/ Staff budgets
- Outsourcing budget
The budget and headcount Requirements of a Process or set of Processes are typically easier to determine than the data/ information requirement – as is determining who should provision them, and how that provisioning should be measured given its importance/ criticality to the Enterprise.
Determine which financial assets are appropriate given the targeted Process improvement, and assess their adequacy, and the assuredness of their provisioning systems. And pay attention to future needs, if predictable.
Ask yourself – given those targeted Processes you were asked to mentally list earlier for your Acid Test of this content:
- Is this enabling system itself currently Performance Competent?
- Might this enabling system be an area for Targeted Improvement?
- Do we understand well enough how this system is or is not enabling our Processes and meeting the Requirements of our Customers and Stakeholders?
- What would I look at and where would I go and who would I talk with to determine the answers to these questions?
- What is the Return value of addressing this issue for some level of Investment – as in ROI?
Back to The Big Picture of EPPI’s Performance Enablers
Here are the 12 Boxes of the EPPI approach … in non-Box form …
…start on the left with the Process itself… and then on to the enablers… of Process Performance…
Frames … Boxes … Buckets … Accomplishments … Areas of Performance … Key Results Areas … Major Duties … Responsibilities …. whatever ….
It’s complex. It’s a system.
Within a system of course….
Budgets & Headcounts
The appropriate items in this category are just one set of enablers of a Process or set of Processes.
And it’s important to understand the difference between all data and key data – that are the key Data/Information that really enable Performance Competence. And what’s really critical versus necessary versus superfluous.
And what is your definition of Performance Competence – or the end goal – and then … how do you measure that?
How you measure that is unique to each situation – except for the bottom line, accepted financial metrics related to Return on Equity (ROE), and/or return on net assets (RONA), etc., etc. Business measures.
The bigger picture…
Rocking Review Around the EPPI 12 Box Model Clockwise
Besides “The Process” itself – there are the 2 types of Enablers. 12 items, boxes, frames, etc., etc.
But in my view – I would always start with the Process.
Is there a Process – and is it adequate to the demands of all of the Stakeholders – including but beyond THE CUSTOMER(s). And their Customers and other stakeholders. Here is my model for Stakeholders – for you to adopt or adapt as needed…
The enablers are either adequate or inadequate in the context of the needs/requirements of the Process. So start there.
What is the Process and what are its Requirements – what enables it?
And are those enablers adequate?
In Rocket Science it would be the following for the EPPI Data & Information category/box:
- the Rocket Ship also needs a flight plan, instrument data, technical,blueprints, wiring diagrams, computer systems instructions, etc., etc.
Are those Enablers adequate?
Start with the Process itself and it’s Gaps – and then, as needed, look to the Process Enablers – and any Gaps there.
The Enablers are again of two types:
The Process View and the Enabler Views I propose here are intended to be used in a scalable manner, for looking at what is necessary at the following levels of Enterprise Performance …
- Worker - a.k.a: Individual, and/or the…
- Work - a.k.a: Process, and/or the…
- Workplace - a.k.a: Organization-Enterprise, and/or the…
- World - a.k.a: Mega-Social Responsibility
Human Assets and Human Asset Management Systems
The Human Assets are:
- Awareness, knowledge, skills
- Physical attributes
- Psychological attributes
- Intellectual attributes
Awareness, knowledge, and skills – come in many types and varieties. Further complicating the performance context/ situation, one performer might need to be only aware of what other performers need to know much more about, while yet another group of performers may need to have an actual skill level.
Physical attributes – include “items” such as the five senses: sight, hearing, touch, taste, and smell; as well as height, weight, strength, endurance, etc.
Psychological attributes – include “items” such as positive attitude, aggressiveness, risk taking, cautiousness, detail orientation, big picture orientation, etc. Many Models exist.
Intellectual attributes – can include “items” such as conceptual thinking, concrete thinking, strategic thinking, process thinking, etc.
Values – can include such “items” as customer satisfaction orientation, teamwork, diversity, fairness, honesty, work ethic, family, etc.
The HAMS – the Human Asset Management Systems “provision” these to the Processes as needed – adequately, or not.
The HAMS are covered after this next section.
Environmental Assets and Environmental Asset Management Systems
And the Environmental Assets include:
- Information/ data
- Tools/ equipment
- Materials/ supplies
- Facilities/ grounds
- Budget/ headcount
- Consequences (+/ –)
Data & Information – includes all of the work orders and instructions, the policies/procedures, and all data/information needed to enable job holders to perform.
Materials & Supplies – provide all of the materials and supplies needed to enable job performance.
Tools & Equipment – provide the tools, equipment, machinery, and vehicles needed to enable performers to perform at a level of mastery.
Facilities & Grounds – provide the buildings, grounds, facilities and utilities for communications/power/water/and so on, as needed to enable performance.
Financial Systems – provide the capital and expense budgets, and the headcount budgets to management, needed to enable and support job holders in performing.
Culture & Consequences – provide and reinforce the enterprise cultural norms, and all of the management reinforcements (and extinguishments) needed to encourage (or discourage) performance.
The EAMS – the Environmental Asset Management Systems “provision” these to the Processes as needed – adequately, or not.
The EAMS and the HAMS are covered in this next section.
And Then What?
And then after determining which of the Enablers are in need of attention – I use the following model to determine how “these things” happen – and where and who – in my client organization.
Here are the Provisioning Systems mentioned earlier – the HAMS and the EAMS … I use this next model as a tool/template to determine who actual “owns” or “co-owns” or “doesn’t own but should” – the roles and responsibilities for Provisioning the right “stuff” to the right processes at the right time, cost and quality …
“Stuff” being the HA – Human Assets and the EA Environmental Assets REQUIRED. By the Processes.
Nothing more. Nothing less.
These Enabler Provisioning Systems – which don’t look like this as structured in the graphic below – but perhaps this frame might help you determine who the Provisioners of Enabling Assets – may be at the root of any Gaps in the key Value Stream Processes or in the Enabling Processes.
Next one would estimate the Costs of Non-Compliance to see if it’s a Big Enough Deal – and as appropriate – the Costs of Compliance – and then one can make a wise or foolish Business Decision – from an ROI viewpoint.
Should the gaps in the enablers be addressed?
Where does this – or these kind of things – happen in the Enterprise? What’s the Enterprise Model for EAMS and HAMS? Who “owns” the responsibility for this/these?
Is it centralized, or distributed, or some mix (appropriate or not)? Is it in “enough control” with tolerable variability – or does some or all of it need to be “tightened up?”
Next Month we look at another of the Environmental Asset Enablers category – those classified as from : Budgets & Headcount.
The Big Picture of EPPI – for Performance Improvement
It’s not about Learning – even in a Learning Organization. It’s about Performance.
Focus on Performance – and Enable That.
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