Hamburg score

Management systems on the purposes (MBO) KPI exist long ago (more than 20 years), but the attitude towards them still ambiguous. Despite, apparently, obvious advantages, their implementation very often does not yield desirable result. Why? The answer is simple: "Was exactly on paper, but forgot about ravines".

Many successful companies face sooner or later gradual decrease in "turnovers" when employees get used to the settled rhythm and do not want to direct efforts more, than that is required by a necessary minimum. Heads unsatisfied with such situation consider different reorganizations options, in particular, think of system implementation of management by objectives (MBO) KPI. Such systems exist long ago (more than 20 years), but the attitude towards them still ambiguous. Despite, apparently, obvious advantages, their implementation very often does not yield desirable result. Why? The answer is simple: "Was exactly on paper, but forgot about ravines". And there is no wonder. Enter a word in the search system: "KPI" and you receive about one million different links. At the same time the question how practically to implement management on KPI ("bypass ravines"), either is not considered, or is considered on the example of the leading western companies. For most the Russian companies the practical value of the provided recommendations is rather small.

So, you are going to implement management on KPI. What to begin with? Obviously, from development of KPI. Considering quantity of literature, the seminars and the websites devoted to this subject this stage, most likely, will pass smoothly. Here big "ravines" are not observed therefore we will not consider it.

First "ravine" - unwillingness (fear) of workers to pass to a new form of labor relations. And people are afraid not so much of the fact that their work will be estimated how many the fact that it will begin to be estimated by NESPRAVEDLIVO. And similar concerns are reasonable. First, not always the result of work depends only on motivation and opportunities of workers. Very often poor organization of work which "is not treated by implementation of KPI" is the reason of failures. Secondly, activity of many companies is not transparent that also does not promote establishment of trusted relationships between the worker and the employer. "Why I will "stoop" if all of them it is equal that want, then will write". It is told about such problems much, but no specific "recipes", as a rule, are offered.

Second "ravine" - determination of planned values of the measured performance indicators (the Threshold, the Plan, the Call). Both the overestimated, and underestimated values demotivate workers therefore, in case of their wrong determination, management on KPI loses meaning. Often indicators are defined as follows: results of work (for example, quarter) are accepted to last reporting period as the Plan current quarter. The method is simple, but in practice quite often it is inaccurate since does not consider as external factors (on which the effectiveness depends), and internal factors (as people worked). Let's say if last month subordinates worked insufficiently effectively, threshold values will be underestimated; in a reverse situation, – overestimated.

Third, biggest "ravine" - complexity of determination of the reasons of failures (not achievement of efficiency by personnel of planned values). If the plan is implemented or exceeded, then, as a rule, there are no questions at the expense of what. Ate the plan it is not implemented, it is necessary to be able to define the reasons. How to make it in practice? Not only insufficiently good work of employees, but also the wrong installation of threshold values of efficiency (see first "ravine") and also external factors can be a source of a problem. Understanding it, many heads intentionally "underestimate a level", emasculating, thereby, an essence of management on KPI.

If you know where "ravines", then it is possible to bypass them. Step-by-step implementation of management on KPI beginning with a preparatory stage lasting not less than 6 months can become such "bypass". In a set-up time the following important tasks should be solved:

1. Psychological training of personnel (both workers, and line managers) for a new form of labor relations. Workers get used that each hour spent at work should be spent for achievement of effective objectives. Line managers get used to the fact that they are responsible both for process, and for result of work of the employees. And if someone works badly, then, first of all, it is their wine.

2. Elimination of "narrow" places and inefficient use of labor resources, improvement of an organization structure. Management on KPI will not yield desirable result if some workers are overloaded, and others do not know what themselves to borrow. Management on KPI is a logical continuation of business process optimization, and not vice versa.

3. "Marking" of performance indicators, i.e. determination of fair values for the measured performance indicators (the Threshold, the Plan, the Call). Unfair planned measure values of efficiency demotivate personnel and are one of the reasons of unsuccessful implementation of management on KPI. At the same time the problem is solved rather simply – work regulation.

All three above-mentioned problems can be solved effectively, using software Hamburg Score (www.hr.prolan.ru). If the organization to compare to the car, Wage fund – to fuel, and a management system on KPI – to a speedometer (or the distance in kilometers counter), then Hamburg Score is "tachometer" (the device measuring engine speed). The engine in this case is the capacity of the organization, namely: number of staff, organization structure and business processes. Hamburg score (as well as management on KPI) is a management tool organizational effectiveness. Also as the speedometer and the tachometer supplement each other when driving the car, so the KPI system and Hamburg Score supplement each other in management of organizational effectiveness.

It is only possible to manage what can be measured. In Hamburg Score, as the indicator of organizational effectiveness, Effective Loading – a share of Productive Work in total amount of the performed works is used; in more detail – below.

Psychological training of personnel

So, the first task – psychologically to prepare personnel for management on KPI, i.e. for a new form of labor relations. It is offered to solve this problem as follows. On computers of workers "camera" of the working day – the SelfTrace program is installed. Using this program workers keep account of the working time – time the performed tasks. It is simple. Everything that the worker needs to do – to tick off opposite to that task which he performs now. The program makes all the rest (calculation of time, entry in the database, etc.) automatically. The worker creates tasks independently or receives from the head, for example, using MS Outlook. The SelfTrace program it is transparent it is integrated, in particular, with MS Outlook 2007/2010. As the majority of functions is automated, time expenditure on self-timing averages from one and a half to four minutes a day.

Accounting of working time has the great "disciplining" value and is good psychological preparation for management on KPI. The working day stops being something amorphous "from arrival till a lunch, from a lunch before leaving", is concretized and structured. In each timepoint the worker knows what work he performs now, and what purpose of this work. At will he can export results of timing to the MS Excel and see, what is the time it spent for accomplishment of different tasks, for meetings, smoke breaks, "tea drinking", etc. At the same time at the first stage (for example, the first month) employees should not be controlled. But further the line manager can periodically ask workers to submit reports on use of the working time (the report forms automatically). As a result the personnel begin to get used gradually that working time – a valuable resource which should be used effectively and that from everyone can ask – as he uses it.

Some more problems are at the same time solved. Line managers get used to give to subordinates accurate, specific, measurable tasks, but not "make that, I do not know that". Thus, process of work becomes "more transparent", and result – more predictable. It is important that the head will be able always to be aware of what time busy at present each his subordinate. At the same time line managers have not only an opportunity, but also motivation the nobility, than their employees are engaged. They too sometimes should submit to the management the report on use of working time in their divisions. Such reports are also created automatically. The main thing – not to be overzealous and not to give in to temptation "coordinate" results of timing to motivation of personnel. A problem of a transient period not "construct" personnel (such task should not be at all), and to prepare it for a new form of labor relations.

Elimination of "bottlenecks" and inefficient use of resources

We pass to the second task – elimination of "bottlenecks" and inefficient use of resources. To solve this problem it is necessary, first, to be able to measure the actual load of personnel, secondly, to know the threshold values corresponding to normal load.

It is obvious that for different categories of personnel the load should be measured differently. Therefore the managerial personnel is offered to be separated into three categories conditionally:

• Workers of the regulated work – the personnel, the most part of working time executing standard business operations, as a rule, using the computer (accounting, operators, employees of personnel department (personnel document flow), etc.).
• Workers of "creative" (independent) work – the personnel, the most part of working time performing standard tasks both with use, and without use of the computer. In most cases it is the tasks within certain target functions performed by a certain technique (HR service, IT service, logistics, etc.).
• "Creative producers" – business administration, development of new techniques, technologies, etc. (first of all, heads of all levels). At once we will tell that for this category of personnel Hamburg Score is inapplicable.

To define "load of personnel", we suggest to separate all performed work of personnel of the first two categories into Productive Work and Auxiliary Work. For example, the accountant doing postings in the 1C: Enterprise program performs Productive Work. When the same accountant studies Consultant Plus - he is busy with Auxiliary Work. If the IT specialist diagnoses an incident – he performs Productive Work when he studies the new equipment – Auxiliary. Job classification is executed by the expert (line manager) at a stage of implementation of Hamburg Score.

As an indicator of load of personnel we suggest to use a set of metrics: "Effective Loading" (a share of Productive Work in total amount of the performed works). It is obvious that for workers of the regulated and "creative" work Effective Loading should be measured differently. But the main thing that it is measured in both cases automatically using the SelfTrace program. However at assessment of load of workers of the regulated work the program works in the Automatic Timing mode; at assessment of load of workers of "creative" work the Samokhronometrazh mode is used. In more detail about these modes it is possible to read here: http://www.hr.prolan.ru/idea/index.html

Information on Effective Loading in different cuts (on workers, divisions, projects, business processes, etc.) automatically registers in the database. Using the special means which are a part of Hamburg Score, this information is statistically processed and presented in the form, convenient for the analysis. One of such representations is display of the diagrams of Effective Loading tied to a uniform time line; see Figure 1. Thus, determination of "bottlenecks" and inefficient use of resources turns into purely technical task.

"Marking" of performance indicators

"Marking" of performance indicators is determination of fair planned values of efficiency (the Threshold, the Plan, the Call). Let's remind that planned values are used when calculating the weighted average values of efficiency. From that, this task will be how correctly solved, the success of implementation of management on KPI substantially depends. Use of Hamburg Score allows to solve this problem by a work regulation method.

Let's review a simple example. The specialist of service of telemarketing is engaged in purpose of business meetings with potential clients. One of performance indicators of its work is the number of the made appointment. Task: define fair planned values (the Threshold, the Plan, the Call) of an indicator "number of the made appointment".

Let's consider one of possible algorithms of the solution of this task (they can be also others):

• We define the list of the works belonging to the category of Productive Work (Effective Loading): search of potential clients on the Internet, are ringing, correspondence, telephone negotiations, etc.
• (Optionally) we Develop Examinations for efficiency evaluation of use of working time at accomplishment of these works and also Examinations for assessment of reliability of results of timing (see http://www.hr.prolan.ru/idea/index.html). Develop such Examinations usually does not make big work. At the same time nothing, except common sense is required.
• During the representative time frame (for example, quarter) it is weekly measured, first, number of the made appointment, secondly, of value of Effective Loading. Results of measurements we present tables in the form.
• On the basis of the acquired information we calculate: the average reliable time spent for the organization of one meeting, the minimum reliable time, the maximum reliable time, percentile of 75%> (25% of the greatest values are discarded), percentile of 75% < (отбрасывается 25% наименьших значений). Информация об эффективности использования рабочего времени используется только в качестве фильтра. Например, если в течение какой-то недели эффективность использования рабочего времени была ниже установленного порога, скажем, ниже 70%, то данные по этой неделе отбрасываются.

Having statistical estimates of the reliable time spent for purpose of one meeting and also knowing a share of working time which should fall on accomplishment of this business function (search of potential clients), determination of fair planned values of efficiency (the Threshold, the Plan, the Call) becomes purely technical task. The similar technique can be used for diagnostics not of achievement of efficiency by personnel of planned targets.

• N.A. beet, * Yuditsky S. S.