In most businesses, only the owner or the executives are having fun. Business is a game and fun to play if you know the rules. The question universal in all organizations is “how do we get people involved and committed?” The reason that question is so critical is most people just trade time for money and arbitrarily limit their performance to match a paycheck. Getting people in the game changes how they think and increases the amount of discretionary performance they choose to share with the company.
Given your employees are a good fit for the job and have accurate position descriptions, you will create a system for focusing their efforts to maximize the impact on the company.
EPISODE 73: Summary
Getting People in the Game is an effect and is caused by how well the business goals and objectives are shared and are used as management tools. Once people understand their role in the show, it is time to increase their business knowledge so they understand the rules. Combining these two elements together with providing a daily line of sight to the business plan is an essential tool that allows them to own their own performance. The only thing left is the ‘WIIFM” - what's in it for me and that can be addressed by creating variable compensation where they share in the upside.
EPISODE 74: Training the Financials
Start with the basics - Balance Statement, Income Statement, and Cash Flow Statement. Make sure everybody in your meeting understands how to read these 3 vital statements. Next discuss the drivers of profitability and where to find it on the respective statements. Now move to assets and how it is created, then move to how cash is created. Finally close with how their day-to-day behavior impacts the numbers.
EPISODE 75: The Business Plan & Line of Sight
Peter Drucker on Contribution: “the man who focuses on contribution and who takes responsibility for results, no matter how junior, is in the most literal sense of the phrase, “top management.’”
Instead of focusing on just top management as outlined in the Drucker quote, what if we had everybody focusing on contribution? What if everybody in the company asked themselves this question when in doubt about what to do next - which of these will make the most significant impact on the business?
That question underscores why everyone in the business must know two things - how the company makes money and what is their role in the show.
EPISODE 76: Personal Scoring
We are working at two levels: (1) using peer pressure and transparency to drive performance, and (2) gaining commitment to own the numbers. We will or should have electronic employee dashboards (on their computer) so they already know the numbers, this is different. Imagine in a work group a schedule board available visually to everyone with each individual posting their own numbers. What impact would that have on performance and contribution?
Next Show/Chapter 20: Management By Objectives
How to apply today's show to your business:
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