The question has been asked: as a manager, you come to your office to find that you have all your plant and equipment, but no people, what would it cost to do what was necessary to develop a new group of people to a point where they were functioning with the same degree of effectiveness as the original organization? Estimates range from 20 to 30 times the annual earnings of those people and suggest that a 4% deterioration in the value of the human organization will completely offset normal profits.Similarly, a 4% improvement in human effectiveness will double normal profits.
Our bottom line offering to our large clients in technical environments, is measurable and sustainable, step improvement around 3 to 6% on a balanced scorecard of their key measures. Over the years we have published numerous case studies across a variety of industries to support this claim, and they are available on request.
Many a consultant is ready to promise that their approach, aimed at solving part of the problem, will provide a total solution. However, total and continuous performance improvement relies on more than just measuring performance or developing goals or putting in a new system. If you are to achieve sustained performance improvement, nothing short of a purposeful, total and systematic approach will suffice.
Sacher Associates has identified the following ten essential components of team performance that are strongly evident in all high-performance teams and to quote a Hyundai advert: The secret to greater productivity is getting the basics right.
The ten essential components of team performance
• A unified sense of direction will be covered in my February 2013 blog.
• Strategy or long-term goals will be covered in my March 2013 blog.
• Outputs and performance measures will be covered in my April 2013 blog.
• Targets will be covered in my May 2013 blog.
• Performance feedback will be covered in my June 2013 blog.
• Communication will be covered in my July 2013 blog.
• Training (skills/knowledge) will be covered in my August 2013 blog.
• Systems and processes will be covered in my September 2013 blog.
• Structure and job design will be covered in my October 2013 blog.
• Reward systems will be covered in my November 2013 blog.
The better an organisation develops these components, the better its performance. By developing the ones that need improvement in your organisation, you are able to get on with creating a high-performance environment and culture for your organization. When these ten components are systematically built into everyday activities, performance always continuously improves and overall productivity gains of around 3 to 6% become viable.
Many people believe that their organisations have ‘been there, done that’ or are ‘currently doing all of this stuff’. However, many of them are yet to anchor these ten components even minimally, let alone at best practice levels, especially at the workforce and team leader/supervisor levels.
In other organizations, although managers attend in some way to these ten components of team performance, they do not go the distance in ensuring that these components become successfully and permanently entrenched in the work environment or culture – the stage that is directly correlated with the highest levels of employee performance and job satisfaction.
As we are human beings, the potential to improve our performance is limitless, and the competition intense. Our business focus should be on achieving continuous improvement through increasingly more thorough implementation of these ten essential components.