Bodenhamer Staples NAD 682 Effort Activity Results July 2007

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Map for Observable Action EFFORT - ACTIVITY - RESULTS Our norms and patterns that govern our business is expressed in our leadership abilities. Our CULTURE represents how work gets done, how we communicate, make decisions, run meetings, assign projects and how we recognize and reward EFFORT, ACTIVITY and RESULTS. Including vs. Excluding, Appreciating vs. Blaming, Striving vs. Fearing, Sharing vs. Withholding, Wondering vs. Knowing, Developing vs. Dictating, Celebrating vs. Conforming. The challenge of our business will remain profitable change. We can capitalize on change or get stagnation the resistance to change. Why are the error remedy tables not worked? Why don’t we deliver the errors daily to associates? Why do supervisors come and go? Where do all the people go? When you become mindful of the power of people, the absolute power of their instincts and inclinations you will be enabled to successfully manage people, places and things of our business. Don’t protect them, partner up with all our associates. Critical or highly judgmental relationships don’t work. Blame and finger-pointing brings about more problems. Giving honest people honest feedback is appreciating them, highly supportive, fosters responsibility and accountability. Our strength will be bringing talent to bear, believing it will work, rally and attract support, learning from mistakes, sharing power and information and understanding how to respect people which includes our customers. Direct, timely and honest feedback is encouraging. Listen for the lesson and challenge other people to grow, share what we know and learn from other people and always allow positive pushback. We’re not connected yet as a supervisory group but we’re getting a sense of direction, clarity of goals and strategies and we’ll get a lot better at teaching. Gregory Bodenhamer July 2007 N.A.D. Staples The Culture We Want Strong Sense of direction, Clarity of goals - strategies, Focus on strengths, High level of trust & respect, Organizational ambition, Raising the bar, Learn from the past, Sharing best practices, Create Excellence Centers, Create and Motivate, Competition, Leaders developing, Mentoring leaders, Accountability, A strong voice, Spirit, Purpose, Communication. l Dictates Failure to develop leadership, accountability, loss of voice. Compliance Lack of spirit, leadership and associates not pulling together. Exclusive Directionaless employees, lack of shared vision and purpose. Criticizing Focus on weaknesses, lack of respect and appreciation, blaming. Fear Based Lack of organizational ambition, lowering the bar, underperforming Punish Risk Taking Failure to tap resources and creativity, group thinking, falls behind. Lack of cohesion and teamwork, lack of sharing, failure to connect. Silo-Mentality Map for Observable Action EFFORT - ACTIVITY - RESULTS Cause and Effect Breakpack Picker marks the box, Perform in-line QC, Error Remedy Process, Remove pickticket, take to picking location, verification, Validate location, SKU, model, description + pick, verify quantity. Neatly place items in box + repeat process. QC Deck Inspect last pickers picks and all green pens, Follow error remedy process, Follow scratch process. Bulk Picking Verify SKU and Location, Error Remedy Process, Scan ticket & location, Pick Product. FOCUS concentrated effort attention on a particular thing. or BASIC NECESSITIES most important or essential, food, shelter, and the other necessities of life. SAFETY protection from or non-exposure to the risk of harm or injury. ACCEPTANCE willingness to treat somebody as a member of a group or social circle. APPROVAL seeking a favorable opinion or feeling about something. EXPLORE to make a careful investigation or study of something. ORDER an organized state, with elements arranged properly, neatly. PEAK the point of greatest success, development, or strength of a process or activity. HELP OTHERS to make it easier for somebody to do something, or possible for somebody to do something that one person cannot do alone, by providing assistance of some sort, to provide somebody with advice, directions, or other information. Gregory Bodenhamer July 2007 N.A.D. Staples Lack of Supervision Pickers Moving Product Fatigue Picker not following procedure Leads Training and Education Supervisory Training and Education + Development Pace Line Balancing Flow of Boxes Conveyor Jams Missed Scans Over Induction Excessive Volume Item Stocked Wrong Replenishment, not put away in real time Overtime Production Pressure Turnover Rate Poor Selection + Hiring ACTION the process of doing something in order to achieve a purpose. SERVE to be useful or particular purpose. helpful for a for QUESTIONS a request information or for a reply. CHANGE to become different, or make something or somebody different. RAPPORT an emotional bond or friendly relationship between people based on mutual liking, trust, and a sense that they understand and share. FEAR an unpleasant feeling of apprehension or distress caused by the presence or anticipation of danger. HAPPINESS characterized pleasure, contentment, or joy. GRATITUDE a feeling of thankful to somebody for something. by being doing EMOTIONAL relating to or expressing emotion. TIME a limited period during which an action, process, or condition exists or takes place. YOU are the SECRET ABSOLUTES PEOPLE Map for Observable Action EFFORT - ACTIVITY - RESULTS P07-2006 08-05 08-12 08-19 08-26 09-02 09-09 09-16 09-23 09-30 = = = = = = = = = .75 .91 .85 .75 .83 .65 .81 .84 .79 Gregory Bodenhamer July 2007 N.A.D. Staples Clear Expectations RESULTS Start The Power to Succeed This process is not the result of luck or random chance or circumstance. It’s a matter of CHOICE governed by the actions we take. Error Remedy Table Departmental Issue Logs Bin Box Audit Internal Catch Rate Problem Order Analysis Boxes Per Hour Evaluations Selection - Training Rewarding - Recognition Discipline Education Development At the point in time where your power to execute intersects your expectations, a choice is made, an action is taken and a result is produced. SUCCESS Accumulate a successive series of positive results over time and you will become the success you desire. Expectations drive Actions, Actions drive Results, and Results drive Success. 2007 Taking the Actions required to turn expectations into results. 10-07 = .71 10-14 = .74 10-21 = .83 03-10 = .76 Direct Intervention 03-17 = .71 Five points 1st wk 03-24 = .63 03-30 = .60 04-07 = .65 04-14 = .63 04-21 = .60 04-28 = .57 05-05 = .59 05-12 = .59 05-19 = .66 Indirect Intervention 05-26 = .68 06-02 = .68 When you increase the power within each of your actions, you greatly increase the probability of attaining the RESULTS EXPECTED and reduce the time required to achieve the success you desire. Map for Observable Action EFFORT - ACTIVITY - RESULTS 2007 03-10 03-17 03-24 03-30 04-07 04-14 04-21 04-28 05-05 05-12 05-19 05-26 = = = = = = = = = = = = .76 Direct Intervention .71 Five points 1st wk .63 .60 .65 .63 .60 .57 .59 .59 .66 Indirect Intervention .68 Clear Expectations Benchmarks Integrity Don’t Lie, Cheat or Steal, Firm, Fair and Honest, Compliance, Profit, Service and Revenue Growth, Correct - Complete - Next Day, Fast - Friendly - Flexible, Respect Every point of view is important, Offer respect statements to complaints or observations, We want people to offer critical arguments, Always disagree with respect. Teamwork You cannot do it alone, We depend on other people, We must be able to depend on others, If you want to go far, get together, People must have the capacity to become a partner. Communications Communications is about what others hear, Communications is essential to culture, understanding, quality, DIALOGUE - LISTENING - TALKING Communications is not about winning, it’s about understanding. Excellence - Accountability - Trust Strive to improve, willingness to change, make us better. Each person is responsible, each person must perform at some acceptable level. The employer decides the acceptable level. The absolute basis for all relationships, Act in a manner that would engender trust. Gregory Bodenhamer July 2007 N.A.D. Staples How do you teach something that people think they already know? Teach them the Absolutes about how people think, feel and do things regardless of where they work or live. Give them the MAP for ACTION steps to success. Focus Action Serve Questions Change Rapport Fear Happiness Gratitude Emotional Time You, Inc. Map for Observable Action EFFORT - ACTIVITY - RESULTS Clear Expectations Benchmarks Integrity Don’t Lie, Cheat or Steal, Firm, Fair and Honest, Compliance, Profit, Service and Revenue Growth, Correct - Complete - Next Day, Fast - Friendly - Flexible, Respect Every point of view is important, Offer respect statements to complaints or observations, We want people to offer critical arguments, Always disagree with respect. Teamwork You cannot do it alone, We depend on other people, We must be able to depend on others, If you want to go far, get together, People must have the capacity to become a partner. Communications Communications is about what others hear, Communications is essential to culture, understanding, quality, DIALOGUE - LISTENING - TALKING Communications is not about winning, it’s about understanding. Excellence - Accountability - Trust Strive to improve, willingness to change, make us better. Each person is responsible, each person must perform at some acceptable level. The employer decides the acceptable level. The absolute basis for all relationships, Act in a manner that would engender trust. Gregory Bodenhamer July 2007 N.A.D. Staples How do you teach something that people think they already know? Teach them the Absolutes about how people think, feel and do things regardless of where they work or live. Give them the MAP for ACTION ABSOLUTES steps to success. How do you know if they’re learning and applying new knowledge? Do they understand the Absolutes of the KEY RESULT AREAS and are they building partnerships. Are they using new knowledge and techniques or do they just continue with their own way of doing things? Can you tell if people are changing their behavior when measuring KEY RESULT AREAS? Forecasting Discomfort Conformance - Compliance Resistance to Excellence Are they making the RIGHT CHOICE that will create EXCELLENCE? Concentrate Your Focus Take Actions on Priorities Serve Other People Ask Questions Embrace Change Build Long-Term Rapport Master Fear Create Real Happiness Adopt Gratitude Control Your Emotions Revere Time It’s about You, Inc. Intentional Excellence Seeing a negative in performance and taking positive actions to eliminate it. There is a clear choice, Half-hearted commitments leads to frustration and poor overall performance. Intentional Mediocrity Seeing a performance negative and doing nothing about it. Commitments Develop People, Commitments Define You. Error Remedy Tables Error Feedback Boxes per Hour Department Issue Logs P.O.A. Customer Rating Housekeeping They like the old way because it’s the easy way Map for Observable Action EFFORT - ACTIVITY - RESULTS Poor productivity, budget performance, attendance, quality, inventory control, housekeeping remains a direct result of negative people behavior concerning policy and procedures. We want the negatives to go away and to be replaced by positives. We want the negative people, places and things (the nouns of business- N3’s) to become extinct. Gregory Bodenhamer July 2007 N.A.D. Staples The only way a positive reinforcer should be given to any employee is for the employee to enter into a particular behavior that is acceptable. Managers and supervisors must spend more time where the work is actually being done. Effective delivery of reinforcement or sustaining positive motivation fails in many different ways. Many managers and supervisors use PR positive reinforcements or PC positive consequences that they like. The contingency error relates to the relationship between the behavior and the reinforcer. Contingency - something that occurs or exists only as a result of something else or that depends on something else. Reinforce - in behavioral psychology, a reward or stimulus used to encourage a particular action in order to increase the probability that it will be repeated. Never wait to reinforce good behavior, the longer you wait the less value it has for the employee. Invest your time in reinforcing while the behavior is occurring. A few positive reinforcers change nothing. These frequency errors are caused by managers or supervisors (MS) not wanting to change their own working habits. These same MS simply make feeble attempts and continue to fail until such time that you fail them. Remember, if you don’t tell people they’re appreciated they always assume the opposite. Short-term results are often achieved with totally inappropriate behavior so MS must be very careful. MS must require long-term success and know the precise outcomes required and the exact behaviors that produce them. MS must be able to pinpoint procedure success and failures that change the production output. Productivity, Quality, Compliance, Profit, Service and Revenue Growth cannot be the flavor of the month. Map for Observable Action EFFORT - ACTIVITY - RESULTS Hourly Associates (HA) must receive performance feedback. Effective performance feedback is not to be confused with general information and data. FEEDBACK is information about performance that allows the HA and also MS to make specific adjustments to his/her behavior inside the procedures. Learning requires specific information. If you display errors to an HA and the errors continue the HA is not learning and will not change behavior. HA are only given a vague idea of how the group is doing. The P.O.A. is 0.65 and the production rate is 13.5 and we have 2,500 orders left to complete are all group performance measures. Sharing sales, production, quality and financial information is helpful to some but is not specific feedback, it’s sharing information. Gregory Bodenhamer July 2007 N.A.D. Staples The Facts Effective motivation is determined by PRECISE laws that govern human behavior. It is the degree of DISCRETIONARY EFFORT that people are willing to give that determine your ability to get things done, with and through the VOLUNTARY COOPERATION of other people. Most managers and supervisors are not effective motivators because their motivational approaches are not based on anything more than personal experience and limited observations. Additionally, their methods are typically underpinned by emotion, perception and the way THEY prefer to be motivated. Map for Observable Action EFFORT - ACTIVITY - RESULTS Feedback is reporting about something that happened yesterday and is very important but will not sustain behavioral change. Feedback will produce or cause a performance surge, for a short period of time. How people respond to feedback or their performance history depends on the consequences. If you’re not happy with housekeeping and never do anything about it you won’t like housekeeping performance next month. People measure the consequences, both good and bad by their own experiences not yours, the things they have experienced or expect (future) to experience based on your own previous behavior. Gregory Bodenhamer July 2007 N.A.D. Staples The Facts With escalating competitive pressures we cannot rely on TRIAL and ERROR methods of production and quality to determine the behavior of our work force. What we’re doing is not being effective in total, we’re not that happy with the actual results. We’re not achieving the desired results because we have yet to achieve the desired behaviors. Map for Observable Action EFFORT - ACTIVITY - RESULTS Feedback, Positive Reinforcement and Persuasion form the most powerful combination of techniques you can use to bring out the best of the best of your people. We want and need to maximize performance, the goal is to make BPH as large as possible and the POA as small as possible. These are the right pinpoints (specific behaviors aimed at specific results), add feedback and positive reinforcement to create the right mix to maximize performance. The fastest way to improve performance for the long run seems to be very slow. It involves positively reinforcing small improvements. People not taking extended breaks, error remedy tables worked in 30 to 60 minutes, proper line-balancing, sequence - speed - rhythm, remaining productive, not leaving the production line, housekeeping, following proper procedures, not horsing around, building relationships, meeting deadlines etc. Gregory Bodenhamer July 2007 N.A.D. Staples The Facts Behavior is a Function of it’s Consequences. Consequences follow the behavior, alters the probability that the behavior will reoccur, causes the behavior to occur more or less often in the future, the role of consequences is to sustain desired behaviors, without reinforcement no behavior will last, consequences are reinforcements. Map for Observable Action EFFORT - ACTIVITY - RESULTS Gregory Bodenhamer July 2007 N.A.D. Staples Housekeeping is important one day but not every day? They don’t deliver errors daily they’re really not that important? I don’t know what happened to him, he’s on another shift? The supervisor hasn't been here in a week. We’re doing the best we can? I got in trouble for missing too much work, although the reports are wrong? He pulled me off the line and wouldn't let me pick any more orders? I always keep my cell phone with me because I’m very important? I’m not catching errors and get my friends fired? Taking a twenty five minute break is no big deal, the supervisors never last and we’ll be here. The Facts Both POSITIVE and NEGATIVE consequences increase behaviors. You cannot manage one day and skip the next, it’s called AMBUSH. You cannot temp them to quality and then forget about them and not reward them. It’s called FEINT which is a way to deceive another. You cannot go around and talk negative about other people, it’s called FLANKING. We cannot keep moving closer to S.O.P’s and then step back from our expectations the next day, it’s called RETREATING. Jumping in and out. Starting and stopping. Very important one day but not the next, it’s interpreted as a SURPRISE ATTACK. Map for Observable Action EFFORT - ACTIVITY - RESULTS Since Positive Reinforcement increases the rate of behavior by reinforcing small changes in performance behavior, we are able to accelerate performance early and often. The rate of performance improvement is directly related to the number of reinforcers received. If you care about quality, how do you show it? If you care about BPH productivity how do you show it? If you care about people leaving the line how do you show it? The technical name for this feedback, positive reinforcement and persuasion effort is called SHAPING. Shaping is to mold or pattern the process, people, places and things for making or giving something that is acceptable and produces value within supply - profit - chain. Shaping is the process of positively reinforcing successive approximations toward our goals. Shaping is very difficult and takes MS time as it requires patience and the discipline to reinforce even the smallest of changes for the better. The ability to shape behavior is the essence of effective teaching, coaching, managing or supervising a process or another human being. Gregory Bodenhamer July 2007 N.A.D. Staples The Facts Positive Consequences cause behavior to increase because a positive meaningful consequence follows the behavior. Negative Consequences causes a behavior to decrease in order to escape or avoid some unpleasant consequence. Positive Consequences stimulate people, they are more alert, more creative and more productive. The use of negative reinforcement will force some improvement for a short period of time. The long-term use of negative reinforcement can never sustain high levels of performance. Map for Observable Action EFFORT - ACTIVITY - RESULTS BASIC NECESSITIES most important or essential, food, shelter, and the other necessities of life. SAFETY protection from or non-exposure to the risk of harm or injury. ACCEPTANCE willingness to treat somebody as a member of a group or social circle. APPROVAL seeking a favorable opinion or feeling about something. EXPLORE to make a careful investigation or study of something. ORDER an organized state, with elements arranged properly, neatly. PEAK the point of greatest success, development, or strength of a process or activity. HELP OTHERS to make it easier for somebody to do something, or possible for somebody to do something that one person cannot do alone. Gregory Bodenhamer July 2007 N.A.D. Staples SURVIVAL The Facts The Longer We Wait to fully implement our plan the longer people stay in the survival mode. Doing nothing or changing plans consumes the good people, conflicts with stability and keeps people in the survival mode. Without prompt, accurate and honest feedback all people will assume the worst. If we don’t reach out and trust them they will assume that we don’t like them and therefore they will never trust us. STABILITY SUCCESS Give individual feedback. (Privately) Make group meetings as small as possible. Daily feedback is required. Post group performance levels. SIGNIFICANCE Don’t compare people, compare performance against a standard. Have people make their own graphs. Public recognition and rewarding is a must. Map for Observable Action EFFORT - ACTIVITY - RESULTS FOCUS concentrated effort attention on a particular thing. or BASIC NECESSITIES most important or essential, food, shelter, and the other necessities of life. SAFETY protection from or non-exposure to the risk of harm or injury. ACCEPTANCE willingness to treat somebody as a member of a group or social circle. APPROVAL seeking a favorable opinion or feeling about something. EXPLORE to make a careful investigation or study of something. ORDER an organized state, with elements arranged properly, neatly. PEAK the point of greatest success, development, or strength of a process or activity. HELP OTHERS to make it easier for somebody to do something, or possible for somebody to do something that one person cannot do alone, by providing assistance of some sort, to provide somebody with advice, directions, or other information. Gregory Bodenhamer July 2007 N.A.D. Staples The Facts Understanding and using the ABSOLUTES helps our people gain the success they want and the performance that is required of our business. You must comply with procedures during every work cycle. Managers and Supervisors remain the day to day example of leadership. Remain firm, fair and honest. Remain prompt and professional. Care about them first. Like them first. ACTION the process of doing something in order to achieve a purpose. SERVE to be useful or particular purpose. helpful for a for QUESTIONS a request information or for a reply. CHANGE to become different, or make something or somebody different. RAPPORT an emotional bond or friendly relationship between people based on mutual liking, trust, and a sense that they understand and share. FEAR an unpleasant feeling of apprehension or distress caused by the presence or anticipation of danger. HAPPINESS characterized pleasure, contentment, or joy. GRATITUDE a feeling of thankful to somebody for something. by being doing EMOTIONAL relating to or expressing emotion. TIME a limited period during which an action, process, or condition exists or takes place. YOU are the SECRET ABSOLUTES PEOPLE

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