| 1.5 HRM
13. Personal Productivity | |
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| Observation: | | After detailed analysis of hundreds of companies, it became self-evident that a company strives towards inefficiency and low productivity. While the start up and very small company may be productive, as a company increases in size, its productivity reduces. |
| Rules: | | 1. Identify the effectiveness of people by their outcomes, not how busy they look. | | 2. Fire anybody who claims they need an assistant to do their daily work - they are ineffective. | | 3. Never let your company know that you are so productive that you could do your daily work in one hour - you can do a weeks work in one day. Executives may imagine you are doing a poor job and you will be fired. | | 4. Always work like crazy, give the appearance of always being too busy to help anybody else - you are paid by the hour not by what you do. Invent complex ways of working so nobody can replace you. | | 5. Keep data in many different places - never let data come together where it can be audited and cross checked. Use lots of different tools that nobody else has ever seen. | | 6. Make things pretty - a report is worthless until it has lots of colour, meaningless graphs, excessive numbers and compared with some previous period. Nobody can identify when you make a mistake with your complex colour coding. |
| Legal Obligations: | | The legal obligations imposed on large companies are very expensive - yet large company benefits are taxed to make them worthless. A very small company is ignored by many legal obligations and Directors are given special treatment when it comes to dividends and benefits. It is illogical to work as an employee when for the same imcome, a Director can offset taxes and benefits to a significant degree. | | The clever bit is where a large number of small companies form a federated partnership to work with one another. No one person works for any other - all are equal and any can leave at any time. People that trade with one another can focus the most skilled people to do the skilled jobs. Effectiveness and productivity come from outsourcing each task to the person best skilled to do that task. | | The hard bit is that each Director does not need to become a jack of all trades, but they need to get their prices right. If the price is too high, they will get few who will buy and will not make a living. If the price is too low, they will get too many customers and will not make any profit. The goldilocks price is modest and fair to all parties - the way to maximise revenue in the long term. |
| Empire Building: | | Some people are very good at spending a lot of time and resources inventing ever more complex way of working. The people who say they are looking for simplicity, end up creating excessively complex methods and procedures. | | This kind of person is not only ineffective, but they become critical to the company as they are the only person who properly knows what they are doing. Without realisation, they become worth more to the company as they become less effective by doing more complex things. People are highly motivated to make their job so complex that they are worth more, are critical to the business and need an assistant. Some people dream up shadow functions in all sincerity, they move data from A to B and then from B to C so they need an assistant to resolve conflicts between C and A. | | One way to identify this kind of person is from data fragmentation - information they process is in many different places in many different formats. Another characteristic is colour and fancy fonts - hours and hours are spend colour coding data to look good in a very inefficient and low productivity way. These people not only get an assistant, they empire build, get promoted, become worth more and continue to make complex systems. |
| Productive Outsider: | | Some people are very good at simplifing the work they do by cutting out things that have no outcomes. These people become very productive at what they do, they reduce work to a series of simple repetivie tasks that become self organising. | | This kind of person is not only effective and highly productive, but they appear to always have plenty of time to help others. Without realisation, their high productivity makes them appear to be redundant - they look like they only work some of the time, so they are the first to go. Executives who manage by appearance, accidently let go those who are very productive and not busy, rather than those who are very busy because they are inefficient. |
| Federation: | | A key problem with most companies is that people are paid by the hour with little concern for the outcomes. Productivity can only be rewarded when people are paid by the outcome, regardless of how many hours they put in. People become highly motivated when they are paid to deliver working solutions - they can become very skilled at such a role. A secondary benefit is that outcomes are delivered faster and that can have massive first-to-market benefits. | | When people are only paid by working outcomes, they do not get paid for things that do not work, regardless of how many hours they spent. People quickly adapt to make sure that outcomes are positive - that is the only way they get paid. | | IRDS is about each and every person having the right to run their own company. A very large number of highly experienced people working in partnership are many times more effective than all competitors. People who are good enough to operate their own company will be much more productive than anybody who works for a corporation. The federation can put any sized team together in a matter of days - no recruiting and hiring expenses, just a partnership agreement to share according to contribution. |
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