Do YOU know how to increase labor productivity by more than 10%?
Last year our company launched another project to optimize the organization of labor and increase the productivity of teams. The project started with a retrospective of the results of teams work over the first half of the year and the results of the qualification growth of the heads of subdivisions. There were achievements and mistakes, but the main result of the retrospective was the decision to form the three-level teams and to implement the algorithmization of the subdivisions’ work.
The point of the three-level team is that the team is divided into professional groups, each of which has its own leader. The leader of each group, in turn, takes over not only the most difficult professional tasks, but also over the organization of work intended to complete the remaining tasks of his or her group. The leader of the whole team, in turn, deals with strategic issues. Algorithmization of work is the catalyst of its productivity.
The trend noticed by the management team was that the three-level teams showed much higher results than the similar two-level teams, and their leaders upgraded their professional category. Based on the analysis, we obtained an increase in efficiency by 10-15%. The second part of the study showed that the algorithmization of subdivision’s work gives an even greater increase in effectiveness.
The reasons for the increase in productivity will be explained on the examples of typical problems of the team:
The sole head of the subdivision is a “narrow neck” in the information flow. All communications are tied up to one leader. The incoming stream of parallel information slows the rate of reaction to it of the entire team, thus, decisions are made slowly.
The lack of algorithms for solving problems is equal to a magical solution of the problem. Absence of multiplication possibility. Absence of repeatability of the result. When you change the specialist who performs the task, the quality of the result is lost. Absence of explicated technology means that the manager / head of the department constantly works in the operational control mode. The technology of work is in his head, therefore the manager is forced to make all decisions, set tasks and accept them himself.
Absence of explicated technology results in a low speed of employees training and adaptation. Knowledge and skills are transferred manually; there is no clarity of the stages of the solution of the problem. Consequently, all that trainee does is trying.
In case of the absence of an algorithm for the team’s work, the time needed for the business hand-over if the manager changes is prolonged.
We can go on and on, but I would like to get down to the target “solution”.
Having introduced a three-level team structure we got the following results:
- Stable growth of budget implementation results, starting from the next quarter after forming the three-level team equaled 10% or more.
- Teams focus on specific tasks in the field of their activities.
- The head of the department has more time for tasks on infrastructure management, product development, personnel training.
- Professional tasks are solved at the level of group leaders.
- An intermediate link appears between the head of the department and the specialist, which improves the quality of training, as well as the accuracy of selection of department heads.
With the implementation of technologization / algorithmization of the subdivision’s work, its head obtains:
– the repeatability of results with a given quality and expense;
– the meaningfulness of the result obtaining, and the ability to analyze it and correct the system;
– a package of categories of tasks available in the subdivision, hence the plan for working with personnel;
– the increase in the speed of staff training;
– the opportunity to control the frequency of the result cross-section;
– the ability to multiply the result.
To sum up, I believe that the creation of the three-level teams and work algorithmization is another key to productivity management, results multiplication, and, consequently, to the growth of the Company.
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