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Building a Quality Organization - Part 1
Michael Boone & Associates Newsletter
Building a Quality Organization October 2005
• Quality People
• Measuring Productivity
• Time Management - Case Study
Greetings!
For the next three newsletters, we will discuss "Building a Quality Organization" If you want a Quality Organization, you must first start with Quality People!
Building a Quality Organization October 2005
• Quality People
• Measuring Productivity
• Time Management - Case Study
Greetings!
For the next three newsletters, we will discuss "Building a Quality Organization" If you want a Quality Organization, you must first start with Quality People!
Quality People
With the introduction of the computer era and the promise of great new efficiency, there was a rush to become computerized. Many companies developed a "Computerized Mentality" and all the necessary equipment, but in the process somehow forgot the people end of the business.
What are the characteristics of most successful companies? Over the last 20 years, we have studied hundreds of companies. We learned that the companies most profitable and stable are those with the most capable people. Companies with people highly qualified and motivated by professional management can survive a wide range of economic cycles, even growing during poor economic conditions.
Measuring Productivity
The total number of people in a company or department doesn't tell us much about individual productivity. We have found that in many companies 75% of the production is effected by only 25% of the people. Many executives are aware of the 75- 25% formula and agree it is a challenge most companies have to deal with.
We have worked with many companies dealing with the concept and have often started with an analysis of the production manager's time budget. We learned that in many cases, 80% of the manager's time is spent working with marginal people with little capacity to produce while the top producers were given very little managerial attention.
Time Management - Case Study
Eight years ago a client of ours embraced the 75- 25% idea. He had five branches and 18 employees. The total revenue was $8.5 million. After evaluating his staff, he decided to focus his efforts on the people who had demonstrated a high capacity to produce. The first action was to out-source his payroll/billing functions since this was not critical to his growth, and it did take a significant number of managerial oversight hours. His next step was to categorize his staff as either high-potential producers or low potential. It was obvious where the head count had to be reduced. As a result, he now has only two branches, four people and an annual revenue of $10.5 million. Profits have more than doubled....and he has more free time.
Don't forget workshops fill up fast! If you have plans to start your New Year with a different slant, enroll now. Dates and locations will be published soon.
With the introduction of the computer era and the promise of great new efficiency, there was a rush to become computerized. Many companies developed a "Computerized Mentality" and all the necessary equipment, but in the process somehow forgot the people end of the business.
What are the characteristics of most successful companies? Over the last 20 years, we have studied hundreds of companies. We learned that the companies most profitable and stable are those with the most capable people. Companies with people highly qualified and motivated by professional management can survive a wide range of economic cycles, even growing during poor economic conditions.
Measuring Productivity
The total number of people in a company or department doesn't tell us much about individual productivity. We have found that in many companies 75% of the production is effected by only 25% of the people. Many executives are aware of the 75- 25% formula and agree it is a challenge most companies have to deal with.
We have worked with many companies dealing with the concept and have often started with an analysis of the production manager's time budget. We learned that in many cases, 80% of the manager's time is spent working with marginal people with little capacity to produce while the top producers were given very little managerial attention.
Time Management - Case Study
Eight years ago a client of ours embraced the 75- 25% idea. He had five branches and 18 employees. The total revenue was $8.5 million. After evaluating his staff, he decided to focus his efforts on the people who had demonstrated a high capacity to produce. The first action was to out-source his payroll/billing functions since this was not critical to his growth, and it did take a significant number of managerial oversight hours. His next step was to categorize his staff as either high-potential producers or low potential. It was obvious where the head count had to be reduced. As a result, he now has only two branches, four people and an annual revenue of $10.5 million. Profits have more than doubled....and he has more free time.
Don't forget workshops fill up fast! If you have plans to start your New Year with a different slant, enroll now. Dates and locations will be published soon.