Productivity Pyramid Training®
Excel Management’s Productivity Pyramid Training® will help your company increase its productivity by 10% to 200%. Fill in your name on the right-hand side of this screen to request a specific quote for your company.
Productivity Pyramid Training® uses strategy and goals with unified efforts to create value gains 1.5X-4.0X
Employee Performance/Productivity Monthly Coaching
Most companies utilize an annual employee performance review or no review at all. Preparation for this review is tedious and not very enjoyable. One must think back on the year and remember the good and bad employee performance elements. This process is painful. The ultimate outcome has many flaws:
• The performance review is not timely
• Very little productivity change occurs
• Employees only see this has a salary increase session
• The review is difficult to prepare
• The reviewer is often viewed as a CRITIC
Have you ever had a good COACH? This often occurs on an athletic team. What are the characteristics of a GOOD COACH?
• Teach and help improve skills
• Immediate feedback
• Encourage teamwork
• Seek for excellence
Consider these very important elements of a good coach and if the process below is followed, employee productivity will increase 400% to 1,000%.
The basis for a productive coach is a pyramid of success and accountability.
This process is not easy and takes 6 – 12 months to establish.
What are some typical Company Goals? One hundred percent of companies have a revenue goal. Most have a net income goal that is usually only known by upper management. But what other company activities should be company goals?
• Customer Retention
• Specific Area Expense Containment Or Reduction
• Production Volume (Must have a quality goal too)
• Timely Delivery
• Account Receivable Collection Time
• Employee turnover
• New Product Development
• Customer Satisfaction
These are examples of what COULD be company goals.
The next step is to ask the department heads what their department can do specifically, quantifiable and with timelines to accomplish the goals pertaining to the department.
Next, each employee is asked to develop (with the help and guidance of their supervisor) six – eight goals with one as a personal goal (such as losing weight, gym workouts, read books, visit shut-ins, etc.)
Now the magic of turning supervisors from critics to coaches. Each month schedule one hour per employee to go over WAYS THAT YOU BOTH CAN HELP TO ACHIEVE THE EMPLOYEE’S GOALS. Try incorporating all of the characteristics shown above for a good coach.
What happens is the employee’s annual goals magically get completed in two – three months. Then more goals are given and both help to achieve. This happens over and over to raise productivity by four to ten times.
Productivity Tracking: $Rev/FTE and $CM/FTE
One way to track the progress of the productivity increase is to create the Productivity Metric. Tracking is monthly by department, division, and company. Go back three to five years and see what is was before and then continue tracking after the goals – coaching – accountability – reward system is implemented
PRODUCTIVITY METRIC :
= GROSS MARGIN/FTE
FTE = Full-time employee equivalent (Part-time employees are summed together to an equivalent full-time status, i.e. 4 10hr/wk employee = 1 FTE
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.
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.
INCREASE COMPANY VALUE : EXAMPLES
How to Increase the Revenue, Profits and Value of a company, financially, operationally and strategically. Looking at a few examples of successful company turn-around efforts. Dale has had the opportunity to optimize over 100+ companies. A few examples are given below.
-C-Store – Oil/Gas Company
$50M re, NI loss $0.5k to $75M, NI $+2M
-30 yr. Pump Distributor
A/R 89 days, Cash crunch-A/R 23 days, Inv cash 200k, Line
-96 yr. Construction Company
Rev $3M no goals, accountability to $8M to $20M in two years
-Concrete Truck Monitoring System
Rev $250k – Value add calculator/marketing to Rev $5M, Sold $20M
100 + Companies achieved hundreds of % Productivity and profit improvements
Convenience (C)-Store: Oil – Gas Company
Convenience Stores (C-Stores) are associated with gasoline stations. About 60% to 70% of a gas station profit comes from the C-Store. This company was in its third generation. They had revenue of about $50 Million but were losing about $500,000 per year. Their brand was old and outdated. Their gas stations were old with a very small C-Store of about 10 feet by 10 feet. They sold soda, cigarettes and candy bars.
The competition was ahead of them. Many had built new C-Stores with brand food service suppliers, such as McDonalds, Wendy’s or Burger King. Also, many of the third generation had the philosophy of “I am owed a living” instead of “I must earn a living”.
Chevron Brand is very popular in the Western United States. Over a period of two to three months, a deal was made with Chevron to go 50%/50% on the capital to build a new large C-Store with a major fast food brand in all of the 39 gas stations.
A “Productivity Pyramid Training®” with a pay for performance program where there are company and employee goals with monthly coaching sessions was implemented that raised the company productivity by over 400%.
The combination of the Chevron Brand, with large C-Stores with a “Productivity Pyramid Training®” employee, pay for performance plan changed the profitability to a healthy $2 Million per year in a period of three years.
Thirty-Year Pump Distributor
This CEO inherited this business from his Dad who had run it for 20 years. The son had run it for 10 years and was working 8-14 hours a day, six days a week to make ends meet. He had not taken a vacation in ten years. He had four kids and hardly every saw them. He never knew where the next dollar was going to come from.
His accounts receivables (A/R) were at 89 days. He was a good guy and paid his payables in 30 days. At $3.6 Million in revenue per year, how much money was tied up in A/R? ($300,000 per month times three (3) = $900,000). Dale based proprietary simple but effective A/R collection methods were used to transform the A/R from 89 days to 23 – 25 days. This supplied $600,000 of cash over a few months.
Half of their inventory did not turn in a year. He could call the manufacturer and get the pump he needed in five days. A “special sale” notice was sent to the customers and within a couple of months, $200,000 of dead inventory was sold and brought in extra cash.
Then a local bank was contacted and a line of credit of $200,000 was established. In six months almost a $1,000,000 of cash was generated to ease the cash burden. He was encouraged to take his wife and family on a cruise and re-establish quality time and communications. It worked.
Ninety-Six Year Old Construction Company
This Company is an agriculture construction company. They design, manufacture and install silos, grain handling equipment, and controls. For over 90 years the father and grandfather had run a small business in the $3 – $6 million per year range. The grandson felt that the company could do more.
He began to systemize their processes, implement the Productivity Pyramid Training®” with company goals and coaching. He also created a national marketing program. He grew the company from three million to six million to twelve million to $30 million.
Concrete Truck Location Monitoring System
This application was for a concrete company. Tell me what a concrete truck driver does after the load in delivered? First and foremost, the truck needs to be washed out or it will be twice as heavy and half the capacity in a few months. After the truck is washed what happens next? Typically the driver would go to the coffee shop for a break.
After four years of product testing, this device resulted in one more load per day delivered per truck. Each tracking unit was $6,000 but it tracked the truck. So if you owned a company with 100 trucks, how much would it take to outfit all of the trucks? ($600.000)
Most concrete companies did not have $600,000 cash to purchase the locator device. The company was selling about $20,000 per month or $240,000 per year. Dale devised a “Break-Even” Calculator to help a business owner determine the Return On Investment (ROI) and Break-Even for the project. A local bank came on board to provide financing.
The business owner would input the revenue per concrete yard, the cost, the labor cost and the number of fleet trucks. How long do you think the average project “Break-Even” time was for the project? (Between 25 and 90 days!!!!) A normal “Break-Even” capital budget process of less than two years is considered worthy to complete. This had such a short break-even, that almost all customers wanted the device. With the calculator and bank association, the company improved sales tremendously. In two years, the company sold for $20 million!
TOP TEN WAYS TO INCREASE REVENUE, PROFITS, AND VALUE:
- Productivity Pyramid TM Goals–Coaching-Accountability–Rewards
- 80/20 – Customer Gold Program TM
- Performance Dashboards: A/R, A/P, Cash Flow, Contrib. Margin (CM), Productivity $Rev/FTE, $CM/FTE, NI/FTE
- Why do Customers Buy – Build Brand –
- Rifle vs. Shotgun Marketing TM Approach
- Systems – Processes
- Reoccurring or Recurring Revenue
- Know your Competition – Market and Value Advantage
- Optimize Product Pricing/Profits
- Remove Product Dead Wood –Increase Margins & Profits