Productivity Pyramid ® and Systems

Productivity Pyramid ® and Systems

Productivity Pyramid ®

The rule of thumb is if you lose an “A” performer, it takes you 3 years of salary to get them back. Having goals accountability and rewards for your team ensures that you keep your “A” performers because it’s a huge expense to get another one back.

1) Goals–Coaching-Accountability–Rewards

Coaching: Brings about the highest productivity change. You will be amaze

d at what people will achieve when you are a good coach.

It is essential that supervisors be taught how to be good coaches. The natural tendency of people is to focus on the negative instead of the positive. For a person to have high self-esteem, they need 3-4 positive comments to every 1 negative. Our society is mostly based upon negative “constructive criticism”. This negative methodology results in poorer performance and individual loss of self-worth.

3-4 positive comments to every 1 negative

When criticism is needed, use a technique such as the “Sandwich” principle: Two positive comments sandwiching the constructive thought. Also, a good coach using “Active Listening” techniques. This means that “listening” is more important than “telling” or “suggesting”. Especially at first; gather the facts, listen to understand the situation BEFORE suggestions are given. Work as a team to suggest and improve performance. This must be trained and practiced.

If this: Goals – Coaching – Accountability – Reward system is implemented employee productivity and company profits will soar.

I have experienced productivity improvements of 20% to 200%!!! with the Productivity Pyramid ® methodology. There are four Productivity Indexes that can track the productivity of your company. They include:

Productivity Indexes:

1. Revenue/Full-Time Employee (REV/FTE)
2. Gross Margin (GM/FTE)
3. Contribution Margin (CM/FTE)
4. Net Income (NI/FTE)

Graph this data monthly. Go back one to two years, and graph this history with the ongoing month-by-month data. In about 3-6 months from the Productivity Pyramid ® implementation, the productivity indexes should go up as illustrated in the graphic below.

Systems

Management Team: Experience – Performance – Systems

Your management team is important as long as we go to the next step which is Scalable. Scalable means you can take your system and it can be duplicated in other cities or other areas. You’ve got a system.

There are 2 benefits for a system: 

1. Take your tribal knowledge high-risk positions, systemize them- find out exactly all the steps they use, all the materials, all of the scripts, everything they do. Create a system that can be duplicated. You can not duplicate tribal knowledge. Systems don’t happen for companies until they are about $100 million in revenue. If you have systems in place, you look like a $100 million company. Smaller companies wear too many hats and they haven’t transferred tribal knowledge into systems.
2. Systems are of huge value because they are transferrable. They’re scalable. You can multiply yourself.

There are 2 ways to create systems. 

1. When you design or quote a project, take a tape recorder and instead of listening to music as you commute, tell me exactly every step you take to do an estimate. Where do you find it, where the numbers are, the tables you look at. Get a high school kid to transcribe it for $10/hour.
2. Or take someone and have them trained. Say, your job not only is to learn the job, but I want you to write down everything he does step by step exactly what you do.

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Productivity Pyramid ® & Systems were hot items for Mike, Reno 

Productivity Pyramid ® & Systems were hot items for Mike Dillion from Reno, Nevada from Dale Richards’ presentation on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically. Mike realized that his tribal knowledge needs to be converted to systems and he can increase his team productivity by 10% to 200% with the trademarked process, Productivity Pyramid ®.