"LEAN SOLUTIONS" REQUIRE PEOPLE — PEOPLE WHO
MATCH THEIR JOBS WELL!
Authors James Womack and Daniel Jones have been
well-read proponents of the theories and practices of
"lean manufacturing" and "lean operations." In their
most recent book, Lean Solutions: How Companies and
Customers Can Create Value and Wealth Together,
they carry their analysis of the concept further
suggesting "good business starts with the customer."
While that's a difficult concept to argue against, each
time they provide examples of what they mean, they
inevitably come back to the person (employee) who talks
to the customer.They identify a list of things
customers want a business to do for them:
- Solve problems completely
- Don't waste my time
- Provide exactly what I want
- Deliver value where I want it
- Supply value when I want it
- Cut the number of decisions I must make to solve
my problems.
Each
of those things, ultimately, depends on a very good
match between the person representing the business and
the job he or she is Each of those things, ultimately,
depends on a very good match between the person
representing the business and the job he or she is
trying to accomplish. For example, they suggest
so-called "help desks" are a place where few or none of
the items on the customer's wish list commonly occur.
(Help desks seldom solve problems completely. They
inevitably waste huge amounts of time, as an
underqualified employee runs through a mandated,
computer-generated hierarchy of possible solutions
eventually turning the customer over to a [presumably]
more qualified employee who applies greater knowledge to
the problem, ad infinitum…) The solution, according to
the authors: "...put knowledgeable people on help desks
to solve problems faster and better." We would add: be
sure the knowledgeable person communicates well at the
level of the customer, is persistent, has a high degree
of tact, and has a genuine interest in helping people.
In other words...Job Fit.
Apply the concept to health care. Instead of having
patients talk to a receptionist to schedule an
appointment, put them in touch with a knowledgeable
professional who can do a more appropriate job of
scheduling, and who can cut out unnecessary preliminary
appointments and decrease the hated waiting time before
treatment. We would add that this professional should
have good communication skills, high objective judgment,
interest in people service, moderate assertiveness…Job
Fit.
While the authors suggest we may need a whole new set
of industries to, essentially, outsource business
logistics, by building lean organizations to deliver
these services, we would argue against the idea. It's a
red herring. Existing organizations could provide what
we would call "lean customer service," if they are
conscientious in matching service providers with the
jobs they perform. In the process, more efficient and
valuable service could be provided by fewer people who
do a better job. My goodness, we could even pay service
providers more, if they were more effective and the job
required fewer employees! Every level of service
delivery presents this opportunity, as well as a wide
range of living examples of excellent performance—models
who fit the job!
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UNDERSTANDING THE PEOPLE YOU MANAGE...
ASSESSMENT TOOLS CAN HELP!
Writing in last spring's Working Knowledge, a
publication of the Harvard Business School, Marcus
Buckingham asserted, "Average managers treat all their
employees the same. Great managers discover each
individual's unique talents and bring these to the
surface so everyone wins."
Many managers in North American business circles
would probably agree. While Buckingham's credentials are
impeccable, and his research with the Gallup
organization is based on very large samples in
real-world settings, his recommendations are sometimes a
bit general, and therefore limited in utility. For
example, most managers are not likely to know exactly
what to do with this advice: "To identify a person's
strengths, first ask, ‘What was the best day at work
you've had in the past three months?"' Interpretations
of the answers to this question are probably as varied
as the managers who ask it! Fortunately, many more
specific tools are available to help a manager discover
each individual's unique talents. For example, most
managers would be likely to benefit from knowledge of
the individual's cognitive style: does this person learn
quickly and accurately with little repetition, or should
information be metered out, repeated and practiced to
ensure it's understood? It would be beneficial to know
something about several important behavioral traits: how
long can this person work without a break, before
quality of work suffers? In a staff meeting, are we
likely to hear important ideas offered freely, or will
we need to encourage, or even insist on participation to
find out what he or she is thinking? Will plans be
accepted too freely because this person's expectations
are that "things will all work out OK?"
Our hypothetical manager might pay attention to a
worker's occupational interests, too. Top performance
rarely accompanies disinterest.
Identification of these, and similar characteristics,
can be accomplished with difficulty and a great
investment of time by managers willing to pursue the
matter long-term in close contact with a worker. But
most managers don't have that kind of time to invest,
even if they possess the skills to accurately appraise
all these things. A valid and reliable whole-person
assessment, however, can give a very accurate picture of
this type of information in a very short time.
Are you managing customer service? Would it be useful
to know the employee's characteristics regarding trust,
tact, conscientiousness and flexibility? A well-designed
assessment can identify these characteristics
efficiently. Does your sales force need persistence and
a high energy level to succeed? An assessment can help
you identify the extent to which each of your people
possess these characteristics, and perhaps help you
compensate for weaknesses with systems and support.
Viewed objectively, the dilemma of "understanding the
people you manage" is nearly impossible with simple,
biased, one-person observation...but very solvable with
a combination of valid and reliable assessment tools.
Managers who take this challenge to heart will be
well-served by investigating the broad array of
assessments available, determining the appropriateness
of these tools to their own responsibilities and then
weighing the very high returns on investment available
in proper use of good assessments.
Good information, in the hands of a manager also
invested in interacting with his/her people and learning
by observation, may well make possible Buckingham's
elusive goal where everyone wins. |
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SETTING CUTOFF SCORES IN HIRING
—JOB-RELATEDNESS IS CRITICAL
If you read the Department of Labor's (DOL) guidance in
the area of "Processing Test Results to Make Employment
Decisions" (page 76 in their Guide to Testing and
Assessment), it will become clear that the ability
to prove the relationship between a cutoff score on an
assessment and success on the job is a primary concern.
The actual guidance goes like this: "a cut-off score is
the minimum score that a candidate must have to qualify
for a position. Employers generally set the cut-off
score at a level which they determine is directly
related to job success. Candidates who score below this
cut-off generally are not considered for selection."
How, then, do you make your case for job-relatedness
in the area of pre-employment screening assessments?"
Elsewhere in the DOL guide, under the heading of
"Situations in Which an Organization May Benefit From
Testing," they include "high employee turnover or
absenteeism."
The following case study shows how a manufacturer of
heavy construction supplies collected data, analyzed
hire failures leading to unacceptably high turnover and
provided strong justification for using a cutoff score
approach to helping eliminate candidates who were
unlikely to succeed on the job long-term.
The prescreening instrument used was the Step One
Survey IITM (SOSII), an honesty-integrity measure that
includes a distortion scale, that has been tested and
found to meet the DOL's recommended levels for validity
and reliability and that has also been tested for
disparate impact on protected groups.
Over a period of 10 months, the company provided the
assessment to 321 candidates in their normal hiring
process. Eventually,122 candidates were hired, based on
their application, experience, reference checks and
interview. The hiring team had access to the SOSII
reports, but did not utilize a cutoff score approach.
Data was subsequently collected on the hired
employees; hire date, termination date if they left
employment, reasons for terminations and whether
termination was voluntary or involuntary. (As previous
articles in this publication have documented,
involuntary terminations are much more expensive for
employers, on average, than voluntary terminations.)
It came as no surprise to the employer, hire failures
ran very high. Only 28 percent of those hired were still
employed 90 days after hire, about their usual failure
rate.
The question is how do the SOSII scores relate to
success or failure and what cutoff, if any, could help
attack the problem? The use of cutoff scores is almost
always a two-edged sword. If you set the cutoff too
high, jobs will go unfilled; set it too low, the problem
will not be sufficiently reduced.
Careful analysis of the data, as reflected in the
tables below, resulted in a decision to apply a cutoff
score at the level of "no scale score below four." Based
on clearly job-related data, and in pursuit of the
legitimate goal of reducing early hire failures,
application of this cutoff is expected to reduce
involuntary early hire failure by approximately 35
percent and reduce voluntary early hire failure by about
half as much, while only eliminating approximately 15
percent of the candidates statistically predicted likely
to stay employed beyond 90 days.
Predicted return on investment for the next year's
assessment program is in the range of 2000 percent,
based on annual assessment costs of $6,000.
| Factors Considered in Setting
Job-related Cutoff Criterion
Over the entire study period,
predicted effects:
- If no hires with a scale score < 4, 33%
less involuntary terminations.
- If no hires with a scale score < 4, 18%
less voluntary terminations.
- If no hires with a scale score < 4, 22%
still working would not be hired.
Considering the 90-day
failure/success point:
- Of the 27 people still employed beyond 90
days, only 4 (15%) scored <4.
- Of the 39 people who failed voluntarily in
< 90 days, 10 (26%) had a score <4.
- Of the 17 people who failed involuntarily
in < 90 days, 6 (35%) had a score <4.
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"Nothing is more terrible than ignorance in action."
– Johann Wolfgang Von Goethe
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