The book mainly talks about how to create a good work place for the industries: supermarkets, hotel, call centres, support. The main operational choices are: focus and simplify, standardize and empower, cross-train, operate with slack. But some of the points can be applied in general. My main insights from the book are:
4 operational choices for the good jobs strategy are: focus and simplify (maintaining discipline in doing only what adds value to the customer, eliminating wasteful and low value added activities and making the workload smoother and more predictable), standardize and empower (leverage frontline ability and knowledge in time to serve the customer well and pursue bottom up continuous improvement, standardize routine processes with frontline input to increase efficiencies and consistency and to reduce employees’ mental overload, then empower employees to engage in improvement and to make decisions to increase customer’s satisfaction, create structures to hear employees ideas), cross-train (to do both customer facing and non-customer facing tasks so they can adjust productively to changes in customer’s traffic), operate with slack (staffing the business with more hours of labor than the expected workload so employees can do their jobs without rushing and to be able to cater to customers even in peak demand, employees aren’t too busy to do a good job).
Pay is a hygiene factor - its absence causes dissatisfaction but its presence doesn’t guarantee job satisfaction. What really engages and motivates employees is a sense of belonging, achievement, recognition, meaningfulness and personal growth. Managers, who are constantly fighting fires have no time or resources to provide feedback, that doesn’t develop career opportunities. A worker’s worth is not fixed - ability itself is affected by low pay, external conditions and worker’s own decisions and actions. The important question is not whether a worker is worth 15$/h or whether a job is worth 15$/h but rather whether that person’s work, the job, has been designed to contribute 15$/h.
Whatever managers assume about people will be proven right because they will end up creating a system, that promotes the behaviour they expected (bad jobs aren’t the natural habitat of bad workers but create them). Look at the system in which workers operate not the workers themselves to understand the root cause of problems. Everyone is reliable (to do their work) and if you can’t rely on them - you need to look at what impedes them - the system or the job design, and what you can do to overcome those obstacles (fix the system - not the people).
The books may show that employees represent the largest share of expense, they don’t show that they also earn the largest share of revenue. Higher sales, lower costs and higher productivity from better operational execution are the 3 benefits that companies can estimate that affect profitability now. Most of any company’s market value is based on the expectations of how it will perform in the future, not on current profitability. If you can raise pay and simultaneously improve employee’s work so that each unit of labor would by design generate more output, then you’ve solved the problem.
In an environment with variability, the optimal strategy is to operate with slack. Killing theory - running near 100% capacity in a volatile system, inevitably leads to slowdowns and poor performance. The more variability there is in the system, the more extra capacity you want available. When there is a lot going on, you shouldn’t rely on nothing going wrong (eg processes that assume employees can finish 10m task in 10m and never be interrupted by customers).
3 essential ingredients for adoption of the Good job strategy:
1. Aligning the organization, especially the upstream functions that affect frontline work to prioritize this system change.
2. Making the right changes first so that you can get on a virtuous cycle as quickly as possible.
3. Learning how to maintain momentum and sustain the Good jobs system.
When profitability growth is the measuring stick, it’s easy to think a company is performing well even when it’s ignoring customers, employees or operational execution. So look hard at the inputs that produce profitability and imagine competitive pressures on them.
Tell stories - Prioritize doing the fundamentals of the business well. Do them over and over to get better and strive for excellence, this also enables you to beat the competition. Ensure to deliver great value/ service to your customers.
Helping others is motivating. Workers want to do the right thing but they aren’t given enough time or latitude to do a good job.
Focus and simplify (eliminating things that don’t add value to the customer) can alert some employees that layoffs are coming. This fear needs to be addressed and commit that no one will loose their job as a result of the intended improvements. If you have to eliminate some jobs, detail which jobs, why and how the company will help those people find new jobs and try to ensure that remaining employees do not live with fear or feel guilty.
You can’t promise progress on the metrics related to employees, customers, and operational execution that you used when you held up a mirror to your company. Provide short and medium term targets for improvement such as offering living wages, reducing turnover, increasing customer loyalty, and hold yourself accountable. Just because you made a change, doesn’t mean it has been successfully implemented in the frontlines so process related metrics may be a good way to show early signs of success (eg measure whether unit managers were actually offering predictable and consistent schedules).
Center the journey around winning with customers. It helps clarify your value proposition and makes strategic tradeoffs easier (what can your customers count on you to be the best at and what would you give up to accomplish that). Simplification can even help you clarify your reason for being. If you focus on what your business is not and eliminate that, it might become clear to you what your business is. Ask the following questions: Can we create a winning customer experience if our frontline workers aren’t empowered to solve customer problems or if they don’t have time to take care of the customer (eg because waste time with sales promotions)? Why haven’t our previous attempts worked? What else we need to do to get it right this time?
Start with the Good job strategy by applying first the triage (stabilizing the workforce): reducing turnover, understaffing, and low ability by raising pay, improving schedules, raising expectations, creating clear career paths, giving employees enough time to do their jobs. Instead of adding more labor hours, reduce employee workload (examine the biggest drivers of workload in the frontlines and ask which of these labor-intensive activities produce outcomes that really mattered to your customers, what can you take out of your customer offering to deliver more to your customers, what made employees work needlessly tedious unproductive and unpredictable - these simplifications make it possible to raise pay because fewer labor hours were needed when fewer were being wasted). You should start first with examining the workload, see where you can subtract tasks, smooth workload and stabilize people (ensure stable workloads and stable workforces before adding hours).