AIXIO S1:Lesson Nine

Measuring x10 Value

READ here, or on page 26 of the coursebook …

THOUGHT EXPERIMENT: Just suppose, as an x10 Thinker, you were hired to consult to the CEO of a company employing 1000+ people. Their payroll would clearly be a very big monthly investment. What might be your idea for your CEO client, a bvs, for them to get a much better ROP, a much better return on payroll.

How might they measure that extra value?

15 thoughts on “AIXIO S1:Lesson Nine

  1. ROP is a great theoretical indicator but measurement is difficult especially for overheads. Yes people that charge their outputs ( gadgets, products or services produced per hour) to clients it is easy and it has been done for a long time. Overheads that are supposed to assist in value creation by supporting the productive workforce is quite difficult.

  2. Making all key staff aware that the measure of their effectiveness is the measure outlined above of RPO is an essential step.

    As a director / adviser I have always implemented measuring Turnover, Gross Profit and Net Profit by Number of Workers in a monthly period and keep a running tally from month to month that is communicated to executive staff on a monthly basis in businesses I have been involved with over the years. It is essential the monitoring is done regularly as if performance is measured infrequently the opportunity to correct has expired and it is hard to come back.

    If the measure is in a downward trend then the reasons need to be found and the trend arrested. In some instances it may be too many staff leading to diminishing returns, in others bad pricing policies or lack of effective marketing or shortage of available products. It is the task for operational executive staff to monitor trends and find the solutions to keep the firm profitable and providing ongoing benefits for owners and staff.

    It is hard to expect staff to perform if they do not have any idea of what they need to achieve personally , for example in an accounting or legal firm the measure may be chargeable hours expected per person each week. In other firms it might be the number of tonnes that need to be processed and then on sold or even the number of effective sales calls made. Once again this is a task for executive staff to counsel and monitor the staff they mentor.

    My use of Chat GPT to date has centred on seeking better alternatives or gathering information to build a case for a change or looking for best practice in an industry but always in the context of enhancing continuing operational efficiency.

  3. The equivalent of one hour a day people would have group meetings in which they discuss how their work could be done more effectively. There would be two criteria being how effective the change would be and the second would be how easy the change would be to effect.

    The workers could then vote on which ideas to implement. The work could then be split into two or more groups being the present way of doing work being the control group and this could be compared to the new ways of doing the work and criteria for measurement would have to be developed.

    The ROP would have to be done on a short term, medium and long term basis and therefore might need to proceed for a long period.

    This process could be done using ChatGPT.

  4. train whole culture to use Chat CPT on a reglular basis and keep track of usefulness of results in productivity, creativity effectiveness etc.

  5. My advice:
    The company should focus multiplying the number of better thinkers strategically and holistically by both hiring and developing better thinkers through exposing existing staff to ChatGPT and their GBB skills which will lead to enhancing productivity, employee satisfaction, reducing turnover, and overall cost-effectiveness and improved problem-solving abilities within the organization, enabling more efficient and effective solutions to challenges.

    How to measure the extra value – can be challenging-By systematically collect and analyse data, you can assess the effectiveness of the initiative to multiply the number of better thinkers and determine its impact on the return on payroll and overall organizational performance.

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