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
Step 1: teach all employees how to do a GBB and how they could perform their duties in a way which would increase the ROP.
Step 2: establish a protocol requiring employees to use a GBB for all key decisions.
Step 3: ask employees to provide their supervisors with details of their most successful GBB each month, including an estimate of how that GBB contributed to an increase in ROP.
Step 4: develop and implement a system to share the top 10 most successful GBBs across the whole organisation. This system could include rewards for the most effective GBBs.
The extra value could be measured subjectively by making judgements on the quality of the GBBs being submitted and by collecting views through questionnaires. It should also be possible to develop an accounting tool which would objectively measure the ROP increases.
I love this lession – for years we have talked about a workforce being the collective capcity to create value and that the holy grail benchmark is that each and every employee comes to work and strives to find ways to increase revenue or decrease costs – in this way we have a real return on payroll. The lever here is greater discretionary effort, where employees go beyond their job descriptions because they want to. The greatest driver of discretionary effort is employee engagement and the biggest impact on empoloyee engagement is the quality of leadership and specifically the relationship between an employee and their boss, to the tune of 70% of how someone feels about their job comes down to their relationship with their boss (it’s what we call the psychological contract). So my recommendation to CEOs is to improve the quality of your leadership and relationship with the workforce by helping people feel heard and understood and valued and hopeful that they can deal with complexity and find a way forward – for every 10% improvement in engagement their is at least a 6% improvement in effort and at least a 2% bump in the business’s performance metrics.
I’d insist on two things right away – a cultural scan (cultural wheel to collect data, where ten highest operational priorities are rated by all stakeholders), then I’d be working through an “appreciative inquiry” using coaching to find the good and explore how we get more of it!
You can find little ways to celebrate the good, expose the bad and of course shoot for the better in these two easy-to-enact strategies.