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Scope wants to minimise productivity gains (Solutions (We report on gross…
Scope wants to minimise productivity gains
Root causes
Potential will-be misalignment between the scope objectives and the monetisation:
The scope is most interested in reducing lead times and increasing the value delivered to the client, and this requires that the extra-capacity is reinvested in the business to generate more/quicker with the same resources
If the extra capacity is not reinvested, the outcome of the improvement will be to deliver the same output with less resources
The scope is afraid of "unjustified" capacity/budget reduction: cancel vacancy/new hire avoided, headcount reduction, subco reduction
The scope can not obtain clear evidence of the efficiency increase they are requested to commit to with senior management as their witness
CI methodology and assumptions:
Quantification of the issue
Coverage of the issue by the solution
Effectiveness of the solution
Static Measurements
The exercise of transposing freed-up FTE's to freed-up head count is usually difficult and sometimes impossible
Gains are scattered among several members of a team or among several teams
The scope questions when and if the solution comes to its full effect: some solutions require a period of user adoption, when the solution is fully adopted by the user is not easy to determine, not if the adaptation of the solution ahs truly removed the problem (e.g. recurrent meetings)
Productivity gain is booked when the solution is implemented, even if in tipically in practice additional time is needed for this extra capacity to become real
Consequence
Some scopes intentionally delay engaging CI until restructuring has passed
Issues & solutions are not recognised
Extra time spent by the Scope and CI in quantifying and negotiating at all stages of the project
Reduction of gains via negotiations harm CI reputation
Negotiations of gains reduce the motivation of the CI team
We are losing improvement opportunities
Solutions
We report on gross gains we should report on net. gains
Frederic: realised savings are preventing us from additional recruitings to take care of the additional activities
Measure gains on the basis of actual performance metrics
Agree up-front on quantifications based on historic benchmarks for similar issues/solutions
Introduce additional (to FTE savings) KPIs to monitor CI performance
Dedide monetization upfront
Take somehow into account the business growth
Create awareness at different levels (inc- survey to sample of employees) - Linked to Empowerment value - Scope to be empowered to decide about monetisation.
It's difficult to justify that freed-up FTE's does not equal freed-up head count towards superiors