Measuring x10 Value
Lesson 28 DFQ: 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?
Next Lesson: ROI
https://chat.openai.com/share/360d6a65-adcc-412d-a291-2f24d33c88eb
To achieve 10x ROP the ai said a holistic approach.
The idea I had is I would ask each employee to look at how chatGPT could enhance there work and make them more efficient
I would make sure they were trained on prompt engineering techniques
This was a great exercise. Chat GPT came up with a range of ideas (in seconds) covering financial metrics (eg revenue, cost reduction), productivity (eg cycle time, quality improvements), employee metrics (eg employee satisfaction),customer satisfaction (eg customer retention), and comparative analysis (eg benchmarking). All really good ideas worth exploring. It was not only the speed but how comprehensive the list was it generated that was impressive.
As a consultant the the idea I would present to the CEO would be to involve employees in the ChatGPT process of performing GBBs with the express purpose of improving their Return on Payroll and how to measure it.
GOOD Points:
Empowering Employees: It gives employees the opportunity to directly participate in improving their productivity and the company’s profitability.
Increasing Collaboration: This process can increase collaboration as employees come together to discuss and implement the outcomes of the GBB analysis.
Encourages Critical Thinking: By performing GBBs, employees could improve their problem-solving and critical thinking skills.
Enhanced Understanding: Employees will have a better understanding of ROP and how their roles and actions impact it.
Elevated Employee Engagement: This initiative can boost employee engagement as they see their inputs being valued and acted upon.
Innovation Stimulation: GBBs can lead to innovative ideas for improving ROP.
Access to Diverse Perspectives: By involving all employees, the CEO can tap into diverse perspectives, which can lead to unique and effective solutions.
Increases Accountability: With involvement in the process, employees might feel a greater sense of accountability in achieving the company’s goals.
Continuous Improvement: Regular GBBs can instill a culture of continuous improvement within the organization.
Learning Opportunity: This can serve as a learning opportunity for employees to understand the larger business operations and their impact.
BAD Points:
Time Consuming: The process of all employees doing GBBs could be time-consuming, potentially taking away from their core responsibilities.
Possible Resistance: Some employees might resist this new approach, seeing it as extra work or out of their comfort zone.
Complexity: The concept of ROP and measuring it might be complex for some employees to grasp.
Oversharing Information: The process might require sharing sensitive financial information which the company might not be comfortable with.
Quality of Analysis: The quality of GBBs can vary greatly depending on the individual’s analytical skills and understanding of the business.
Lack of Structure: Without a structured approach, this process could turn chaotic with numerous ideas coming in from all employees.
AI Reliability: Relying on AI like ChatGPT might not always provide accurate or comprehensive responses.
Confidentiality Issues: Discussions on ROP might involve sensitive data, and confidentiality could be an issue.
Unequal Participation: Some employees might participate more than others, leading to unequal input and potential frustration.
Expectation Management: Employees may have high expectations from their suggestions, and not all can be implemented, leading to disappointment.
BETTER Points:
Guided Sessions: Introduce guided sessions to help employees understand how to use ChatGPT effectively for GBBs.
Moderated Discussions: Appoint moderators to manage the GBB discussions and ensure all voices are heard.
Training and Development: Invest in training employees to better understand ROP and the GBB process.
Reward System: Implement a reward system for ideas that are implemented, providing an incentive for employees.
Pilot Program: Start with a pilot program involving a smaller group of employees before rolling it out company-wide.
Structured Process: Develop a structured process for submitting and reviewing GBBs.
Clear Communication: Ensure there is clear communication about the purpose and benefits of this initiative.
Integration with Other Tools: Consider integrating ChatGPT with other collaboration tools already in use by the company.
Data Protection Measures: Establish clear data protection measures to ensure confidentiality.
Feedback Mechanism: Have a mechanism to gather feedback on the GBB process and make continuous improvements.
This was a great exercise. Chat GPT came up with a range of ideas (in seconds) covering financial metrics (eg revenue, cost reduction), productivity (eg cycle time, quality improvements), employee metrics (eg employee satisfaction),customer satisfaction (eg customer retention), and comparative analysis (eg benchmarking). All really good ideas worth exploring. It was not only the speed but how comprehensive the list was it generated that was impressive.
Give staff the time and tools to create more value as part of a structured approach endorsed and supported by the CEO and management team. Help staff learn how to use AI and the GBB approach to create tangible improvements in their work areas and to work collaboratively and cross functionally with staff from across the organisation on innovative initiatives which will generate even more X10 value. Improvements can always be costed out, but the real value is creating a culture of X10 thinkers who habitually use their skills in a supportive environment.
Update: Chat GPT prompt and reoonse.
PROMPT
If the effectiveness and profitability of a business is determined by the quality of individual decisions made over time, and individuals are responsible either for value creating ideas or value draining ideas, given that effective use of GBB can increase the quality of decisions, how should a large business with over 1000 employees use this information to improve its performance, and how should such initiatives be measured?
RESPONSE
A large business with over 1000 employees can utilize the GBB approach to improve its performance and decision-making quality in the following ways:
Implement GBB workshops: Conduct workshops or training sessions to introduce the GBB methodology to employees at different levels within the organization. Provide guidance on how to effectively use GBB for evaluating ideas and propositions.
Foster a culture of constructive feedback: Encourage employees to openly share and discuss GBB analyses within their teams and departments. Create a culture that values diverse perspectives and constructive criticism, allowing for continuous improvement.
Incorporate GBB into decision-making processes: Integrate the GBB framework into existing decision-making processes within the organization. Encourage teams and individuals to consider the Good, Bad, and Better aspects of ideas before making final decisions.
Assign responsibility for GBB analysis: Designate individuals or teams responsible for conducting GBB analyses on key decisions or proposals within the organization. Ensure that they have the necessary training and resources to perform comprehensive evaluations.
Establish metrics for decision quality: Develop metrics or key performance indicators (KPIs) that measure the impact of using GBB on decision-making quality and business performance. This could include metrics like cost savings, revenue growth, customer satisfaction, or employee engagement.
Track outcomes and feedback: Monitor and analyze the outcomes of decisions that have undergone GBB analysis. Collect feedback from stakeholders, both internal and external, to assess the effectiveness and impact of GBB on decision outcomes.
Encourage innovation and creativity: Emphasize the “Better” aspect of GBB by fostering an environment that encourages employees to propose innovative ideas and alternative solutions. Reward and recognize individuals or teams that generate valuable Better points.
Provide resources and support: Ensure that employees have access to the necessary resources, tools, and training to conduct GBB analyses effectively. Support their development and provide guidance when needed.
Continuously improve the GBB process: Regularly evaluate and refine the GBB process based on feedback and lessons learned. Adapt the methodology to fit the specific needs and dynamics of the organization, fostering continuous improvement.
Share success stories: Celebrate and share success stories where GBB analysis has resulted in positive outcomes and improved decision-making. This helps create awareness and encourages broader adoption of the GBB approach within the organization.
Measuring the impact of GBB initiatives can be done through a combination of qualitative and quantitative methods. This may involve tracking key performance indicators related to decision outcomes, conducting surveys or interviews to gather feedback from stakeholders, and analyzing financial data to identify improvements in profitability, cost savings, or revenue growth. It is important to establish baseline measurements before implementing GBB initiatives to accurately assess their impact over time.
BENEFIT SUMMARY
Certainly! Here’s a summary of the benefits of implementing the GBB approach for a CEO in a large business:
Enhanced decision-making: The GBB approach provides a structured framework for evaluating ideas and propositions, helping the CEO make more informed and well-rounded decisions. It encourages considering both positive and negative aspects, as well as exploring innovative alternatives.
Improved strategic planning: By utilizing GBB, the CEO can identify potential risks, challenges, and opportunities associated with different strategies or initiatives. This allows for more effective strategic planning and minimizes the likelihood of overlooking critical factors.
Increased innovation and creativity: The Better aspect of GBB encourages the exploration of alternative possibilities and innovative choices. This can inspire the CEO and the organization to think creatively, fostering a culture of innovation and driving the development of new ideas and solutions.
Enhanced risk management: By evaluating the Bad points, the CEO can proactively identify and address potential risks, mitigating their impact on the organization. This enables better risk management and reduces the likelihood of costly mistakes or negative outcomes.
Improved collaboration and engagement: The GBB approach promotes open discussion and constructive feedback, fostering collaboration and engagement among employees. This encourages diverse perspectives, leading to better decision-making and increased employee satisfaction and morale.
Optimal resource allocation: Through thorough evaluation of the Good, Bad, and Better points, the CEO can allocate resources more effectively, ensuring that investments align with the organization’s goals and have the highest potential for positive outcomes.
Greater adaptability and agility: The GBB approach encourages the consideration of alternative options and innovative choices. This enables the CEO to be more adaptable and agile in responding to changing market conditions, technological advancements, or other external factors.
Increased accountability and responsibility: The GBB approach empowers individuals to take ownership of their ideas and decisions by considering the impact of their proposals from multiple perspectives. This fosters a culture of accountability and responsibility throughout the organization.
Measurable impact and continuous improvement: By establishing metrics and tracking outcomes, the CEO can measure the impact of the GBB approach on decision quality and business performance. This allows for ongoing evaluation and continuous improvement of decision-making processes.
Competitive advantage: Implementing the GBB approach can provide a competitive advantage by enabling the CEO to make more effective decisions, identify opportunities for innovation, and mitigate risks. This contributes to the overall success and growth of the organization.
Overall, the GBB approach empowers the CEO to make well-informed decisions, foster innovation, manage risks effectively, and drive the organization towards success by leveraging the collective insights and expertise of employees.
Exposing staff to ChatGPT and using the GBB system would be a great starting point. By applying this in groups to real problems in the business, the staff will benefit by learning how to use and apply ChatGPT in conjunction with GBB.
Measuring the benefit would be assessing the current state over the future state.
When do we start 🙂
I would work with my CEO collaboratively to generate some ideas using AI/GBB model specifically in relation to improving ROP in a large hospital. Chatgpt gave some great ideas and we chose one to focus on “Enhanced Patient Flow and Discharge Processes” to streamline patient admission, discharge, and transfer processes to minimize wait times, improve bed turnover, and increase capacity utilization. This could lead to higher patient satisfaction and better utilization of staff resources. We could measure the extra value created by some specific metrics (ALOS) Av length of stay – A decrease in ALOS indicates improved efficiency and increased capacity for serving more patients. Bed turnover rate (BTR) – by optimizing patient flow and discharge processes, the CEO can aim to increase the bed turnover rate, indicating a higher throughput and better utilization of resources. This could be a great starting point for a more integrated GBB analysis based on staff and patient feedback about current service bottlenecks and cost overruns etc
Improving employee performance is the fastest way to improve business performance, and improving employee thinking and collaboration skills is the fastest way to get improvements in employee performance.
GBB is a thinking model which imroves effectiveness of employee thinking skills.
We would propose a planned Implemention of the GBB approach to provide you as CEO with a framework to leverage and optimize the contribution made by all employees.
Such an approach will empower the organization to make better-informed decisions, aligned to company values and goals, while fostering innovation and employee engagement.
Better decision making, combined with improved employee engagement will then drive positive organizational outcomes, giving, easier and faster responses to changes in market demand with lower costs, resulting in higher returns on both human and financial capital.
Use a regular third party or an anonymous workplace and management questionnaire or evaluation program. Find out what employees think and how they feel… learn what their gripes are, what it takes to increase their engagement, and ask them for suggestions on how to improve things.