Part 11 of 12 – My 12 Boxes for Leveraging Enterprise Process Performance Improvement

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
  • Etc.

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…

EPPI Fishbone v2012 - 1- The Process

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?

Mine…

Slide6

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…

Stakeholder Hierachy Example 1

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?

The Enablers

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:

  1. Human
  2. Environmental

And…

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 …

  1. Worker - a.k.a: Individual, and/or the…
  2. Work - a.k.a: Process, and/or the…
  3. Workplace - a.k.a: Organization-Enterprise, and/or the…
  4. 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
  • Values

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 …

The EPPI HAMS and EAMS Model

“Stuff” being the HA – Human Assets and the EA Environmental Assets REQUIRED. By the Processes.

Nothing more. Nothing less.

Lean.

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

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 

Slide27

It’s not about Learning – even in a Learning Organization. It’s about Performance.

Focus on Performance – and Enable That.

# # #

Monday Morning Quarter PACT #18

Take a Quarter Hour or Less

To develop your ability to adopt and adapt the PACT Processes for ISD – to meet your Requirements and Constraints.

For Performance Improvement and positive ROI when properly targeted.

Slide1

C3- CAD – Events & Modules

Video Short C3- CAD – Events & Modules

Reminder – this is just one video of a collection of over 55 free “School of PACT” videos, that in combination with free books, articles, presentations and for fee books intends to enable the practice of performance-based Instructional Systems Design. To improve Performance Competence at the worker level, the work level, and the workplace level. For Individual, Process and Organizational performance improvement.

You may view them in sequence – or bounce around to eventually do just some or all of them.

See the Resource Tab or The Pursuing Performance Blog and the EPPIC Web Site for additional free resources – here.

See the entire School of PACT video collection Index – here.

What is PACT?

PACT is performance-based ISD… at 3 levels… with common analysis and project management approaches, tools and techniques… to speed the ISD process… to be effective while being efficient…

PACT Logo w 5 Methodologies 2

Other PACT Resources

See all of the EPPIC Videos on YouTube – here.

Books for free – here.

Books for sale – here.

Slide3

This MMQP Series

This Blog series will post each Monday at 8 am east coast time (USA).

Gopher-perched-transparent

Go for it – here – Monday Mornings!

Why PACT?

The benefits?

Slide40

Proven

# # #

30 Years Ago – Training Magazine Article on Curriculum Architecture Design

It Was September 1984

CAD efforts produce one or more T&D Paths, a.k.a: Learning Paths.

Or Menus.

The article had been submitted before the end of 1983 as I recall. This was the first of several publications on the ISD methodologies we were developing at R.A.Svenson & Associates, and were applying in dozens of client projects. I myself had done 5 CAD efforts before the end of 1983, and my 2 business partners were doing more.

Here is the Training Magazine cover and the first page of the article.

CAD - Training 84 Cover and 1st Page

The 6 Page Article & the 30 Page Submission

CAD – Training Mag – 1984 – 6 page PDF – the first publication about Curriculum Architecture Design via a Group Process – published in Training Magazine in September 1984. Original manuscript (30 pages) – How to Build a Training Structure That Won’t Keep Burning Down.

That publications on CAD was followed with an NSPI Chicago Fall Workshop presentation (by me) and then the the next spring with the first national presentation on Curriculum Architecture Design via a Group Process.

Slide5

CAD – NSPI – 1985 – 21 page PDF – this is the first national presentation on the Curriculum Architecture Design methodology which Guy Wallace delivered at the NSPI Conference on April 24, 1985 (the 1st presentation of this was done for the Chicago Chapter of NSPI the previous fall).

I did a whole lot a CADs for quite a while after that. Then in the 1990s I started having more my staff consultants at SWI and at CADDI, plan, price and lead CAD projects.

I also trained hundreds of GM staff and subcontractors in the mid to late 1990s. Here is a short video from GMU – General Motors University did in 1997 about my PACT Methodologies – which they internally branded as MC/MI …

Video is under 12 minutes in length.

In 1999 I finally finished the book I had started on Curriculum Architecture Management in 1983…

Lean-ISD Quote - Rummler

The lean-ISD book cover was created (unasked for) by the late Geary A. Rummler, after he read the pre-publication draft and wrote that great marketing quote in the graphic above.

CAD is all about guiding the Performer through structured and less-structured Learning. And doing so in a way that produces more sharable content. Sharable “as is” or “after modification.” Another Holy Grail of the ISD world.

T&D Paths/ Learning Paths/ Performance Development Paths

Here is a Path from a 1989 – an update to the original CAD outputs from 1986.

CAD Path Prod Mgrs

Above the Path is very open, more of a menu than a Path.

Here is another Path, one from 2001, that is totally Lock-step. Definitely a Path.

CAD Path Call Center Sales

Here is another example, from 2004, a combination of open Menu and Path.

CAD Path Global Clinical Trials

Over the past 32 years I have done 75 CAD efforts, the last one completed January 2013. Before that it was 2004. I had been doing more non-Instructional work for some reason.

The 75th effort was for a Health Care Representative who helped patients apply for federal, state, and local aid if they were uninsured.

Here are the 74 before that, with the last 25 leading the way…

Slide2 (2)

And the list continues…

Slide3 (2)

And the list continues with the first 24 CAD efforts and concludes… with the first… in 1982.

Slide4 (2) 

75 CADs to date, plus almost as many MCD (ISD) efforts.

More Recently

In 2011 I completed an update of the lean-ISD book, plus three other books and created this 6 Pack…

Slide3

30 Years of Sharing CAD and My Efforts

Plus 28 years of developing my clients’ staff in the various roles and responsibilities of PACT.

Past “Staff PACT Practitioner Development” Clients

Amoco, AT&T, Dow Chemical, Discover Card, EDS, Eli Lilly, General Motors, HP, MCC Powers (later Siemens Building Technologies), Norfolk Naval Shipyard/NAVSEA, NASCO, NCR and SunTrust.

PACT Logo

Email me for more information:

guy.wallace@eppic.biz

# # #

Monday Morning Quarter PACT #17

Take a Quarter Hour or Less

To develop your ability to adopt and adapt the PACT Processes for ISD – to meet your Requirements and Constraints.

For Performance Improvement and positive ROI when properly targeted.

Slide1

C2- Paths/ Planning Guides

Video Short C2- CAD – Paths/ Planning Guides

Reminder – this is just one video of a collection of over 55 free “School of PACT” videos, that in combination with free books, articles, presentations and for fee books intends to enable the practice of performance-based Instructional Systems Design. To improve Performance Competence at the worker level, the work level, and the workplace level. For Individual, Process and Organizational performance improvement.

You may view them in sequence – or bounce around to eventually do just some or all of them.

See the Resource Tab or The Pursuing Performance Blog and the EPPIC Web Site for additional free resources – here.

See the entire School of PACT video collection Index – here.

What is PACT?

PACT is performance-based ISD… at 3 levels… with common analysis and project management approaches, tools and techniques… to speed the ISD process… to be effective while being efficient…

PACT Logo w 5 Methodologies 2

Other PACT Resources

See all of the EPPIC Videos on YouTube – here.

Books for free – here.

Books for sale – here.

Slide3

This MMQP Series

This Blog series will post each Monday at 8 am east coast time (USA).

Gopher-perched-transparent

Go for it – here – Monday Mornings!

Why PACT?

The benefits?

Slide40

Proven

# # #

My 1st Friday Favorite Guru Series: W. Edwards Deming

We begin the First Friday of the month, September 2014, with another of my Favorite Gurus…

W. Edwards Deming

I never met the late W. Edwards Deming – but my brother did. My brother is a professor at Northwest College and has been since the early 1980s.
DSC00237
Garry, got this autograph for me. He had read in his school’s paper (he is/was a professor at Northwest College in Powell WY) about Deming’s visit, and recognized “the name” from what he had heard from me endlessly back in the 1980s.
And so he went to hear him speak, and then asked for the autograph (below) after Deming was done.
I posted about this previously – in 2007 here – and in 2013 here.
When I went to visit my brother a few years later (2003) I particularly like the sentiment about this next photo, but not the sentiment’s execution.
The grass on the mall of the Deming Plaza in Powell WY (where Deming grew up) was shoddy. I hope it looks better today than it did when I first took these photos in 2003.
I wrote about The Deming Plaza back in 2007 – here.
From Deming while I was at MTEC – Motorola’s Education & Training Center – I learned a lot about Quality thinking, SPC and X-Bar R Charts, and the red bead experiment – that taught me the truth about process variation, and management’s tendency to blame the workers – which Deming loved to demonstrate as he berated the workers in the red bead experiment.
I never became an expert Practitioner in the tools and techniques of TQM, I merely blended them in adopted or adapted, into my own Performance Improvement (PI) practices… a.k.a.: HPT – Human Performance Technology.
Demings teaching on Quality in the early 1980s blended nicely with my earlier learning about Human Performance Technology (HPT) and the Performance Improvement approaches of Geary A. Rummler (MFFFG Post on the late Geary A. Rummler –  here).
Back to Deming…
From Wikipedia, the free encyclopedia…
W. Edwards Deming
W. Edwards Deming.gif
Born October 14, 1900
Sioux City, Iowa
Died December 20, 1993 (aged 93)
Washington, D.C.
Fields Statistician
Alma mater University of Wyoming BSc
University of Colorado MS
Yale University PhD
Influences Walter A. Shewhart

William Edwards Deming (October 14, 1900 – December 20, 1993) was an American engineer, statistician, professor, author, lecturer, and management consultant.

Trained initially as an electrical engineer and later specializing in mathematical physics, he helped develop the sampling techniques still used by the Department of the Census and the Bureau of Labor Statistics, championed the work of Dr. Walter Shewhart, including Statistical Process Control, Operational Definitions, and what he called The Shewhart Cycle which evolved into “PDSA” (Plan-Do-Study-Act) in his book The New Economics for Industry, Government, and Education, as a response to the growing popularity of PDSA, which he viewed as tampering with the meaning of Dr. Shewhart’s original work.

He is best known for his work in Japan after WWII, particularly his work with the leaders of Japanese industry which began in August 1950 at the Hakone Convention Center in Tokyo with a now seminal speech on what he called Statistical Product Quality Administration, which many in Japan credit with being the inspiration for what has become known as the Japanese post-war economic miracle of 1950 to 1960, rising from the ashes of war to become the second most powerful economy in the world in less than a decade, founded on the ideas first taught to them by Dr Deming:

  1. That the problems facing manufacturers can be solved through cooperation, despite differences.
  2. Marketing is not “sales,” but the science of knowing what people who buy your product repeatedly think of that product and whether they will buy it again, and why.
  3. That In the initial stages of design, you must conduct market research, applying statistical techniques for experimental and planning and inspection of samples.
  4. And you must perfect the manufacturing process.

He is best known in the United States for his 14 Points (Out of the Crisis, by Dr. W. Edwards Deming, Preface) and his system of thought he called the System of Profound Knowledge, consisting of four components, or “lenses” through which to view the world simultaneously:

  1. An appreciation of a system,
  2. understanding of variation,
  3. psychology
  4. and Epistemology, or a theory of knowledge.

Deming made a significant contribution to Japan’s later reputation for innovative, high-quality products, and for its economic power. He is regarded as having had more impact upon Japanese manufacturing and business than any other individual not of Japanese heritage. Despite being honored in Japan in 1951 with the establishment of the Deming Prize he was only just beginning to win widespread recognition in the U.S. at the time of his death in 1993.

President Reagan awarded him the National Medal of Technology in 1987. The following year, Deming also received the Distinguished Career in Science award from the National Academy of Sciences.

Deming’s Writings

Here is a list of books by and about Deming – here.

What I Learned From Deming

The importance of systems thinking, and Statistical Control.

I especially liked his 14 Points:

1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.

2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.

3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.

4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.

5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

6. Institute training on the job.

7. Institute leadership (see Point 12 and Ch. 8). The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.

8. Drive out fear, so that everyone may work effectively for the company (see Ch. 3).

9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

Eliminate work standards (quotas) on the factory floor. Substitute leadership.

Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.

12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective (see Ch. 3).

13. Institute a vigorous program of education and self-improvement.

14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody’s job.

Share Your Stories

If the work of W. Edwards Deming has been a valuable influence and/or resource for you – please share your stories about that in the comments section below.

Or simply share a URL there that is relevant.

And – thank you – for sharing!

The My First Friday Favorite Guru Series

We each have many influencers, mentors, both active and passive, knowingly and unknowingly in their respective roles in our development.

This series is my attempt to acknowledge all of them… one by one… in no particular order… as I attempt to consciously reflect on what I have have learned and whom I have learned it from, regarding all things “Performance Improvement” – my first focus.

I have a long list.

Lucky me.

Next month –  continuing with the influence of TQM – Total Quality Management – the late Joseph Juran.

Links to All of the Past Posts in the MFFF Guru Series

Here is a page with links to all of the Past Posts from this series, listed below – here.

  • W. Edwards Deming – September 2014
  • Bonnie B. Small – August 2014
  • Walter A. Shewhart – July 2014
  • Carl Binder – June 2014
  • Ruth Clark – May 2014
  • Rob Foshay – April 2014
  • John Carlisle – March 2014
  • Miki Lane – February 2014
  • Harold Stolovitch – January 2014
  • Bill Wiggenhorn – December 2013
  • Will Thalheimer – November 2013
  • Roger Kaufman – October 2013
  • Roger Addison – September 2013
  • Ray Svenson – August 2013
  • Dick (Richard E.) Clark – July 2013
  • Allison Rossett – June 2013
  • Carol Panza – May 2013
  • Jane Bozarth – April 2013
  • Judy Hale – March 2013
  • Margo Murray – February 2013
  • Neil Rackham – January 2013
  • Robert (Bob) F. Mager – December 2012
  • Joe H. Harless – November 2012
  • Thomas F. Gilbert – October 2012
  • Sivasailam Thiagarajan (Thiagi) – September 2012
  • Geary A. Rummler – August 2012
  • Dale Brethower – July 2012

Here is a page with links to all of the above Past Posts in My First Friday Favorite Guru Series- here.

# # #

30 Year Anniversary: Publication About CAD – Curriculum Architecture Design

Via a Group Process

Which is how I prefer to approach analysis, design and even then development.

Slide1

CAD – Training Mag – 1984 – 6 page PDF – the first publication about Curriculum Architecture Design via a Group Process – published in Training Magazine in September 1984.

Original manuscript (30 pages) – How to Build a Training Structure That Won’t Keep Burning Down.

Since Then

I’ve been doing CAD efforts – to produce modular paths and menus and roadmaps of curricula since 1982.

I’ve myself have done 75 to date.

My business partners, staff and clients have done thousands more.

The last one I did started in December 2012 – and ended in mid-January 2013 – less than 60 days in total cycle time.

# # #