NO COST NO RISK — Detailed Description of New Consulting PLan
LDG announces a new consulting payment plan. We’ll perform the installation — including all documents, associate training, salaried training and all measurement tools — all at no cost.
Posted on March 2nd, 2008 by pat
Filed under: Simplified GainSharing
SGS or Simplified Gainsharing is something you should take a look at. The company I work for has used it for some years and had spectacular results. After watching it work for a few years I think I know why.
There are only a few people (rabbits) that by their nature work harder than they are required too without “external motivators”. They need to be perceived (by themselves not supervisors) as top end performers. The average associate, without an “external motivator”, will do what you ask them and a little bit more, to stay out of trouble and to please. The below average associate (slugs) will do the average, usually, but often a little less. They are typically at some level of progressive discipline due to their poor work ethic and resistance to “external motivators”.
We used to set base performance levels (standards) based on what we perceived to be a good average days work. We didn’t expect all associates to be rabbits or slugs. When standards were set this way the gravitational pull for performance came from the left of standard, the slower end. Average associates would monitor their work to make sure the met the standard and (some not all) made sure they didn’t exceed it to much for fear the standard would be raised. The rabbits easily did their 115%-120% that proved to themselves they were the best but were happy 10% ahead of the average associates. The under average performers (slugs) continued to waste as much time as possible and still hit the average, usually. In all three of these scenarios, the associate is focused on the base level or standard but the gravitational pull is coming from the left of standard.
This gravitational pull to the left of standard and the standard set at good average, has the tendency to keep metrics stubbornly set with no way to change them. What SGS does is change the direction of the gravitational pull. The pull comes from the high end of what is humanly possible. Money is and will always be the best motivator. If a slug, average associate, or rabbit knows they can work harder and make more $/hr they will all work harder. The rabbits will work as hard and smart as they can to maximize the $/Hr. The good average associate will rise to the old rabbit levels. The slugs will make sure they increase their hourly wage some; they don’t want to miss out. This constant pull to the right of the middle is what makes SGS work year after year without losing ground. It’s hard to fight gravity and win.
We have always had “external motivators” and some are a lot more effective than others.
1. Simplified Gain Sharing
2. Progressive discipline.
3. Performance reviews
4. Company performance contests
5. Blue Collar Brainstorming
6. Daily touches (interactions)
7. Posting comparative statistics, competitions with other DCs
8. Peer pressure
9. Posting weekly/monthly associate performance
10. Many more if I took the time to think of them.
Most of these external motivators are just good effective management/leadership. Most of these techniques are mostly used to hold the current levels of performance; not lose ground. At best, they along with process improvements, help you slowly inch up the standards over a period of years. Where SGS differs is, it works quickly to increase performance levels; weeks, months, not years. The others will allow you to incrementally inch up the standards as you make process changes over the years. SGS, if effectively used, changes performance almost immediately. Maybe it doesn’t change base levels but who cares. Gravity (Simplified Gain Sharing) keeps everybody consistently at a much higher levels of performance regardless of the base.
Dan