Arizona ispi apr 6 2011

Human Performance TechnologyThe Dawn of a New Era

Fred Nickols, CPT

Arizona ISPI MeetingApril 6, 2011

Copyright Fred Nickols 2011 1


A Note about Notes

A copy of this presentation is available at:

http://www.nickols.us/AZISPI2011.pdf

Introduction & Overview

• The End of the Old Era– A shift in the nature of work & working– A shift in the locus of control– A need for some new models & a new approach

• The Dawn of the New Era– Some models – performance & organizations– Some examples & ideas– Some discussion



The Disappearing Farmer

Decades1900 1910 1920 1930 1940 1950 1960 1970 1980 1990

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The Changing Workforce

MiningConstructionManufacturingTrans/UtilitiesWhole/RetailFin/Ins/REServicesGovernment

Decades1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Perc

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0.0

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20.0

30.0

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The Knowledge Worker

“No one can direct him. He has to direct himself. He is the guardian of his own standards, of his own performance, and of his own objectives.”

Peter DruckerManagement (1973)


What Was It?

It wasn’t a shift to knowledge work!


It Was a Shift

From…– materials-based,– easily observed,– prefigured working

activities

To…– information-based,– difficult to observe,– configured working

activities


The Mix of Work


Cann

ed R

outi

nes

Routine (Prefigured) Work Crafted Respo nses

Non-Routine (Configured) Work


Industrial Era to Modern Times Qualities of Work Industrial Era Modern Times

Work-Base Materials Information

Behaviors of Interest Overt, Physical Covert, Verbal

Visibility of Working High Low

Locus of Interactions People > Materials People < > People

Workflow Linear Non-Linear

Results & Feedback Direct & Immediate Indirect & Delayed

Focus of Control Worker Work

Locus of Control Management Worker

Standards Fixed, External Variable, Internal

Knowledge Concentrated Distributed

Control Principle Compliance Commitment

Role of the Worker Instrument Agent

Working Activities Prefigured Configured

Effective Managers Directive Collaborative


The Upshot of the Shift

• We can no longer engineer their performance• They must engineer their own performance• Performance engineering must be woven into

the fabric of the organization; it must become a pervasive and robust capability

• HPT practitioners can help with that but we need new models and a new approach


Performance Engineering Model

Societal

Organizational

Operational

People

© Fred Nickols 2010

NeedsAssessment

What Should Be & WhyWhat Is & Why

SelectedGaps

SolutionIdentification

What Has to BeDone & How Do

We Do It?

SolutionConfiguration

Obtain Approval,Develop a Plan,Build Support &

Marshal Resources

SolutionExecution

Execute

Ongoing Evaluation

How Is It Going? How Did It Go? What did we Learn?


The Performance Pyramid

Organizational(Profits, Market Share,Value to Society, etc)

Operational(Processes)

People(Individuals& Groups)

The Individual Level

Copyright Fred Nickols 2011

Targets

Goals

Perceptions

Actions Conditions

14


A Performance Problem

RegistrationForms Batching Scanning Editing Pass All

Edits ?

Resolve ?

No

Yes

A

Yes

No

ContinueProcessing

Return toApplicant

A

Applicants

RejectRate

60-70 %

30-35 %

30-35 %

30-40 %

The Culprit

In An Ideal World


Goals

Perceptions

Actions Conditions

RegistrationForm

TheRegistrant

Target

A "Clean and Complete"Registration Form

Filling Out and Submittingthe Registration Form

Evolving, in the courseof filling it out, from a Blank Form to a

"Clean and Complete"Registration Form

None thatInterfere

The Reality


Goals

Perceptions

Actions Conditions

Filling Out and Submittingthe Registration Form

RegistrationForm

TheRegistrant

Target

A "That's Good Enough"Registration Form

Evolving, in the courseof filling it out, from a Blank Form to a

"That's Good Enough"Registration Form

NumericallyOrganizedCode List

From Proximate to Ultimate


Actions

Direct &Immediate

Results

Proximate

Indirect& Delayed

Results

Ultimate

Intermediate Results

The System

18

Registration to Employment


Employed

(Drawing aPaycheck)

ProximateResult

UltimateResultIntermediate Results

LicensedCertifiedTest PassedTest TakenSeat AssignedRegistered

(RegistrationForm Correctly

Completed& Submitted)

The Load Rate Problem


Dollar Chargesto Programs

Direct Costs ofWork Performed

Allocations fromCorporate

Charges from OtherCost Centers

Computers, Phones,Copying and Other

Office Expenses

FICA and MedicalBenefits

Vacation, SickTime, Holidays

Indirect Costsof Work

Performed

Load Rate


Load


+

´

¸

20

Individual Performance Factors


Goals

Perceptions

Actions Conditions

Targets

Select, train, assess& develop for skillsEnsure the performercan evaluate his/herown performance

Focus on the right targetSet goals collaborativelyEnsure a shared viewDevelop commitment to goalsManage conflicting goalsAdjust expectations

Observe, measure,evaluate & communicateIdentify, map & managethe links connectingProximate to Ultimateperformance

Ensure the performer hascurrent and accurate informationabout the state of the Target

Provide supportRun interferenceRemove obstaclesProvide proper tools& equipmentEnsure well-designedprocesses & systemsEnsure clear prioritiesRemove disincentivesHelp identify, map &manage linkagesbetween proximate &ultimate results

21

The Process Level


Process

Inputs OutputsSource Destination

Processor

Operator

Operations

Controller

22

Applicant as Processor


Filling Out theRegistration Form

Applicant

GoalsPerceptions

BehaviorsBlank

RegistrationForm

CompletedRegistration

Form

Entering Info

TestBulletin

TestingCompany

23

Process Level Questions


Process

Processor

Controller

OperatorInputs Outputs

Operations

Source Destination

What are the inputs?What standards must theymeet?How is their adequacyassessed?Who or what assesses thatadequacy?

What are the outputs?What standards must theymeet?How is their adequacyassessed?Who or what assesses thatadequacy?

What operations convert the inputsinto outputs?What tools,equipment and otherresources are needed to carry outthese operations?What initiates the operation?What terminates it?How is control over the operationexercised?

Who or what is theoperator?What behavioral/actioncapabilities must theoperator possess in orderto perform the operations?

Who or what serves as the controller?What are the goals, standards andrequirements being used by thecontroller?How does information about the state ofinputs and outputs reach the controller?Is that information accurate? Is ittimely enough to be useful?What is the controller's perception ofthe output?

24

The Organizational Level

OrganizationalBoundary

Functional Areas

OPS IT R&D Finance Legal HR Sales

Inputs Outputs

Transformation Processes

Transaction Processes

Suppliers

ProductsServicesInvoices

Information

NeedsOrders

PaymentsInformation

Investors/Lenders

Capital& Loans

Returns& Interest

Customers

NeedsOrders

PaymentsInformation

ProductsServicesInvoices

Information

Relevant Environments

FinancialPolitical TechnologicalSocial Scientific Physical

Alignment, Adaptation & Innovation Processes

Intelligence

IntelligenceChanges

Competitors

Executives


A Recurring Cycle of Events


Products& Services

Orders &Payments

Orders &Payments

Products& Services

26


RecapWorkPrefigured Configured

Locus of ControlManagement Worker

Role ofthe EmployeeInstrument Agent

ModelsExisting New

PerformanceEngineering

Consultantas Engineer

Performeras Engineer

OpportunitiesNarrow &Diminishing

Broad &Expanding

HPTEnd ofan Era

Dawn of aNew Era


Discussion


Related Resources

• Manage Your Own Performance: No One Else Can

• Inside the Process Box• Fit & Fitness: The Yin & Yang of Sustainability

http://www.nickols.us/ManageYOP.pdf

http://www.nickols.us/ManageYOP.pdf

http://www.nickols.us/insidetheprocessbox.pdf

http://www.smartdraw.com/blog/archive/2009/12/07/fit-amp-fitness-the-yin-amp-yang-of-organizational-sustainability.aspx


Contact Information

Fred NickolsManaging Partner

Distance Consulting, LLC1558 Coshocton Ave – 303Mount Vernon, OH 43050

(740) 504-0000

Some Related Matters

• Performance Architecture• Contributions & Inducements• The Control of Discretionary Effort• The Control Problem


Performance Architecture


Financial

Operational

Individual PoE

PoE

PoI

PoI

Assess & Adjust

The Situation

X Marks theSpot, the Results

You Want toAchieve

X

To Get There, YouHave to Map theStructure of the

Situation

In Order toIdentify the

Linkages betweenPoE and PoI

Investigation

PhasePoints of

Evaluation(PoE)

Where and WhatYou'll Measure &

How You'll Measure It

Points ofIntervention

(PoI )

Where and WhatYou'll Change &

How You'll Change It

With PoE, PoI andtheir Linkages

Known, You CanConfigure a

Solution

Next, You Carry ItOut; You

Intervene in theStructure of the

Situation

IF YouHave theLinkagesRight

Changes Made"Ripple Through"the Structure ofthe Situation,Producing...I

ntervention

Phase


Contributions-Inducements

Contributions(Put In)

(Get Out)Inducements

Individual Organization

The Control of Discretionary Effort


Empl

oyee

Per

form

ance

& P

rodu

ctiv

ity

UpperLimit

LowerLimit

Current

Controlled bythe Employee

Controlled byManagement

The

Empl

oyee

's D

iscr

etio

nary

Eff

ort

Pote

ntia

l Gai

nPo

tent

ial L

oss

Achieve and PreservePractices that IncreaseEmployee Engagement

Avoid and EliminatePractices that DecreaseEmployee Engagement

EmployeeEngagementImprovement

Strategies

34

The Control Problem Characteristics Repetitive Systems Adaptive Systems Innovative Systems

Input Variability Low Moderate High

Processes Prefigured Adjustable Configured

Outputs Fixed Variable Customized

Markets Mass Segments Niches

Demand Concentrated Clustered Dispersed

Economic Leverage Capital Technology Knowledge

Competitive Edge Cost Cost & Quality Cost/Quality/Speed

Rate of Change Slow Moderate Rapid

Regulation High Moderate Low


The Control Problem (cont’d) Characteristics Repetitive Systems Adaptive Systems Innovative Systems

Basis of Authority Position Reciprocity Performance

Management Style Directive Participative Collaborative

Skill Levels Low Moderate High

Judgment Needed Low Moderate High

Risk Tolerance Low Moderate High

Control Principle Compliance Cooperation Commitment

Focus of Control Activities Products Outcomes

Worker's Role Instrument Partner Agent

Locus of Control The Supervisor The System The Worker


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