Bringing Out the Best in People BPI Webinar

Bringing Out the Best in People BPI Webinar Aubrey C. Daniels, Ph. D. AUBREY DANIELS INTERNATIONAL adaniels@aubreydaniels. com 678. 904. 6140

What is your behavior management process? 1. 2. 3. 4. 5. © 2007 Aubrey

What is your behavior management process? 1. Wages & Benefits 2. Performance Appraisal 3.

Your Organization is Perfectly Designed to produce what it is producing © 2007 Aubrey

Five-Step Behavior Management Process 1. Pinpoint 2. Measure 3. Feedback 4. Reinforce 5. Evaluate

Five-Step Behavior Management Process 1. Pinpoint • Behaviors • Results © 2007 Aubrey Daniels

Behavior Pinpoint © 2007 Aubrey Daniels International, Inc. 7

Measuring Impact: Short Term 25 Start 20 20 15 15 10 10 5 1

Upselling Theatre Popcorn © 2007 Aubrey Daniels International, Inc. 9

Winning Behavior “The endless cycle of innovation and imitation causes competitors to erase each other’s competitive advantages virtually as fast as they can be created…. ” “One area of differentiation, however, is difficult to copy, even when competitors have benchmarked your company and learned your best practices. ” “That area is behavior. Behavioral differentiation is difficult to copy because it requires more skill and will than many companies possess – even when they know what you are doing!” by Bacon & Pugh io © 2007 Aubrey Daniels International, Inc. 11

Performance Improvement Opportunity Best Known Performer BK Discretionary Effort Performance Level Current Average Over

Stray Cartons NUMBER OF STRAY CARTONS # Stray Cartons = Result = Goal 550 Baseline at Intervention © 2007 Aubrey Daniels International, Inc. The DC employees consistently surpassed goals for reducing stray cartons. 13

Customer Responsiveness Figure 2. 2 C Customer responsiveness had been declining for five months. With the implementation of PM, responsiveness rose to 100% the first month. (Adapted from “A New Approach to Software Engineering Management” by Susan Webber, 1990, American Programmer, July/August 1990, pp 65 – 71. ) © 2007 Aubrey Daniels International, Inc. 14

ABC Model Finding Out Why and How People Work

ABC Model of Behavior Change Antecedents: Behavior (Setting Event) © 2007 Aubrey Daniels International,

Relative Effect of Antecedents vs. Consequences • Antecedents get a behavior to occur one

Antecedents © 2007 Aubrey Daniels International, Inc. 18

ABC Analysis Antecedents • Are anything that tells you what to do • Have only short-term effects • Are over-used by management • Must be paired with a meaningful Consequence to be effective © 2007 Aubrey Daniels International, Inc. 19

Cigarette warnings heating up Special for USA Today Tobacco Suit Talks Get Agreement on Labels Reprint from USA Today, Life Section © 2007 Aubrey Daniels International, Inc. Beginning Oct. 12, smokers will be blitzed by new, stronger warnings about cigarettes. The unprecedented campaign was announced Tuesday by the American Center Society, the American Heart Association and the American Lung Association. Smokers will get the word through television, radio and magazine public service announcements and a poster featuring “disease specific” labels. One label cautions about disease from smoking. Another cautions pregnant women. A third says quitting reduces serious health risk, and the fourth says cigarette smoke contains carbon monoxide. The labels will change every three months. Walter Hatcher, American Lung Association president, says the three agencies pooled resources because the tobacco industry spends $2. 7 billion a year in advertising. Walker Merryman, Tobacco Institute vice president, calls the effort “more squandering of tax and taxexempt money. ” 20

PIC/NIC Analysis © 2007 Aubrey Daniels International, Inc. 21

PIC/NIC Analysis Performer(s)______________ By_________________ Analysis Done *Remember consequences are from the point of view

PIC/NIC Analysis™ Performer(s) _________ Analysis Done By _____________ BEHAVIOR The Problem Pinpointed Performance Smoking cigarettes ANTECEDENTS CONSEQUENCES P/N I/F C/U Nicotine addiction Heart Disease N F U Boredom Lung Disease N F U Stress Cost N F C Meals Dirty N F U Stinks N F U Criticism N I U Holes In Clothes N F U Fires N F U Driving Taste P I C Ash tray Good Smell P I C Going to bed Stimulus P I C Meetings Relaxation P I C Fills time P I C Alcohol Coffee Telephone *Remember, consequences are from the point of view of the performer(s). © 2007 Aubrey Daniels International, Inc. 23

PIC/NIC Analysis Example 1 Behavior: Clearing a jam while machine is still running. Antecedents Consequences P/N Schedule demands Save time No rewarm-up period P I C Stay on schedule P I C Lose a finger N F U Backlog while machine is down Boss wanting higher productivity Feedback graphs for machine uptime © 2007 Aubrey Daniels International, Inc. I/F C/U 24

PIC/NIC Analysis Case Study The city of Atlanta wants a residential recycling program. In order to recycle goods, the sanitation person must pick up the recycling container and put the items into a special bin on the truck. The bin is on the side of the truck and must be opened each time. This requires extra work and time from the performer. When performers finish their route, they may go home for the day. Recently, TV news has caught 90% of the performers dumping the recyclable goods into the regular trash bin. The sanitation department is so mad, they have proclaimed that anyone caught doing this will be fired. Unfortunately, performers continue to dump the recyclable goods into the regular trash bin. Why would this be so? © 2007 Aubrey Daniels International, Inc. 25

PIC/NIC Analysis Example 2 Behavior: Not Putting recyclables in proper bins Antecedents Don’t believe it is important Union will protect Management won’t follow through Others don’t do it © 2007 Aubrey Daniels International, Inc. Consequences Save time Easier Praise from co-workers Might get fired P/N I/F C/U P I C N F U 26

PIC/NIC Analysis Example 2 Behavior: Putting recyclables in proper bins Antecedents Consequences P/N I/F C/U N I C Bins Labeled Takes more time More effort N I C Warned Go home later N F C Might get praised P F U Trained Saw TV report © 2007 Aubrey Daniels International, Inc. 27

The Relative Power of Consequences PIC NIC PIU Most Powerful © 2007 Aubrey Daniels

PIC/NIC Analysis Some Common Organizational Consequences Antecedents Consequences Compensation Benefits Recognition Promotion Get fired Get disciplined © 2007 Aubrey Daniels International, Inc. P/N I/F C/U P P P F F F C U U P N F F U U N F U 29

First Law of Behavior is a function of its consequences.

Behavioral Consequences and Their Effect Consequences that INCREASE Behavior Get something you want Behavior (R+) Positive Reinforcement (R-) Negative Reinforcement Escape or avoid something you don’t want Get something you don’t want Lose something you have and want Consequences that DECREASE Behavior © 2007 Aubrey Daniels International, Inc. (P+) (P-) Punishment Penalty 32

Creating Discretionary Performance “Want-to” curve Performance R+ Discretionary Effort RMINIMUM REQUIREMENTS “Have-to” curve Over

Reinforcement Harnessing the Forces that Drive & Guide Performance © 2007 Aubrey Daniels International,

How to make positive reinforcement effective 1. 2. 3. 4. © 2007 Aubrey Daniels

Reinforcement Strategies Consequence Exercise #2 Problem 1 The Wall Street Journal “An ACF Industries unit inspires its sales force to learn about a new valve by inserting envelopes with cash between others containing learning materials. ” –Joann S. Lublin What is being positively reinforced (R+) here? © 2007 Aubrey Daniels International, Inc. 36

Fluency Training in Health Insurance • Customer Service Training duration reduced from 44 to 29 days 34% improvement • • • Average Handle Time (AHT): 31% improvement After Call Wrap (AWC) improved by 43% OJT for AHT reduced from 26 weeks to 3 weeks Out performed seasoned employees by week two of training Quality: 24% improvement in post-training work io © 2007 Aubrey Daniels International, Inc. 37

Things that typically waste time and money 1. 2. 3. 4. 5. 6. 7. © 2007 Aubrey Daniels International, Inc. Employee of the month Annual performance appraisal Stretch goals Annual Bonus Plans Formal recognition systems Cost of living adjustments Across the board anything 38

Five-Step Management Process 1. Pinpoint 2. Measure 3. Feedback 4. Reinforce 5. Evaluate io

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Audited Receiving Adjustments © 2007 Aubrey Daniels International, Inc. 45

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Two things • Increase daily graphic feedback • Positively reinforce any improvement © 2007

Questions? 49