SHOW & CHAPTER 16: PEOPLE IN THE GAME - WILLIAM EASTMAN

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.

Show Objective
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.

Topics:

1. Management By Objectives (MBO)
2. Business Acumen Training
3. Shared Financials
4. Line of Sight to the Business Plan
5. Personal Scoring
6. Variable Compensation

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.

Topics:

1. Conduct basic financial training
   1. How to read the key business documents - balance sheet, profit and loss statement, and sources and uses of cash.
   2. The goal - improve employee competence to participate in the process
2. Map Your Processes
3. Fully Burden Everything with True Costs
4. Conduct advance profitability training
   1. Build a model for how the company makes and keeps money
   2. Turn the model into a game - use it for application training

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.

Topics:

• Strategic Initiatives (Aspirations)
• Goals - Company and Department (Results)
• Objectives (Activities)
• Line of Sight - their part

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?

Topics:

1. Schedule Board - work scheduled over a specified period of time.
2. DTD (end to end) - based what is on the Schedule Board, total time from beginning to end
3. TaKT (performance in individual unit),
4. WIPI (what is tied up between individual units,
5. OEE (up-time or availability).

Next Show/Chapter 20: Management By Objectives

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