Considerations exploring application of OPD-SHRM

OVERVIEW OF OPD-SHRM

HUMAN CAPITAL DEVELOPMENT (HCD) SYSTEM

A summary of the OPD system as applied to commercial organizations and why it delivers significantly increased profits.

Linking people

to the

organization

such that both

benefit.

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+6421909310 Email: info@opdcoach.com web: www.opdcoach.com

Linking behavior to profits An organization is a collection of goals. All goals (KPIs) have actions called ideal actions that must be delivered if the goal is to be achieved.

Ideal actions are of the quality that doing them does not guarantee success, but not doing them guarantees failure. Doing ideal actions offers greatest goal success. Role specifications define the KPIs and ideal actions needed to achieve them.

Goal (KPI) achievement is increased when actual behavior of the person assigned the role is made closer to the ideal actions needed for greatest goal success.

Summary:

OPD system increases human performance The Unitec Masters of Business thesis submitted in February 2015 validated that regardless of what else a company may be doing, or applying, including currently understood global HR best practice, applying the tools of OPD increased human performance by a minimum of 12%.

The psychology of performance Personal buy-in: All mood and conduct driven by ideas, the intensity proportional to the associated emotions. The key buy-in is people choosing to manage their mind to enable their work-life success.

Profit profile

Goal cascade

Role specifications OPD-SHRM performance improvement

Sales KPIs - sales Defines KPIs and ideal actions

offering greatest chance of greatest

success

Sharpen ideal actions, then move actual behavior closer to ideal actions

Costs KPIs - costs

EBIT Result of KPIs

Increased profits more satisfied staff

OPD International Limited, 2/91B Roseberry Avenue, Birkenhead Auckland 0626, New Zealand Phone:

+6421909310 Email: info@opdcoach.com web: www.opdcoach.com

Clarity on paper first: Role specifications on paper are the guidelines to develop game plans in mind carrying the clarity of thinking needed to deliver top performance. Each independent aspect of the job has a separate role specification.

Building the mind set: Human capital development consists of personal buy-in, then recall of assigned role specifications, finally the translation of the role specification into habit. Together in mind, they constitute the game plan, the mind-set, the ‘set of the sail’. Improve clarity and focus of the game plan in mind and improve performance without increase in emotional effort.

Motivation: Defined as increased positive emotion associated with the game plan. Building fun while delivering ideal actions in assigned roles provides additional emotional thrust. The ‘wind in the sail’.

Benefit realisation Financial benefit: On evidence, it was found that a 10% improvement in human performance improved sales by 3-5%, reduced direct costs by 2-4%, and reduced overhead costs by 1-2%. It became clear that without CEO and hence policy commitment to the OPD system, results were eroded quickly.

Financial multiplier effect. Assume start position of sales 100, costs 90, EBIT 10. Improve human performance 10%, with 3% increase in sales and 3% reduction in costs. Sales 103, costs 87.3, EBIT 15.7. A 57% gain in profits.

Low implementation costs. For SME, payback 6 to 15 times costs. For corporate, up 50 times.

Staff/cultural benefits. Emergence of focused, more engaged, more professional culture. Increased staff satisfaction and fulfilment. Emergence of flow.

Critical success factors The commitment of the CEO is crucial. They must decide that greatest profits and staff satisfaction is to be achieved via the OPD organization design system.

Verbal ready executive: It is essential the Executive team is ‘verbal ready’, and willing to be verbal on their commitment to blending improved profit with staff fulfilment.

Team leader application. Team leaders are required to apply the team management tools of the system, the priority of the CEO is to oversee that this is done. It is not negotiable. This CEO focus is the control and guidance of the rollout of strategy.

Team leader skills: It is essential team leaders fully understand their role and skilled to do it. A crucial aspect of the team leader role being to ensure every person has fun at work while doing the actions needed for the greatest result.

Policy alignment. All leadership actions, HR policy and operations policy must be consistent with the OPD system.

Personal buy in: People must see that doing OPD process is for their personal satisfaction and fulfilment. It is essential people understand this choice, that they see clearly that the OPD system implementation is not ‘for the company’, but for their greater personal work life satisfaction. People do it for their own fulfilment and pride.

Engagement: It is essential people feel they are able to discuss and negotiate the ideal actions in their role, and are actively guided to do so and contribute to development of their own job.

If any one of these factors is not acted upon effectively and in the appropriate sequence results will be eroded by a third or more.

Assessing potential payback

From 10% improvement in performance, with 2% sales gain and 2% cost reduction. If start EBIT is 10, then it increases to 13.8, 38% increase in profits.

Current $ Current % After OPD $ After OPD %

Sales

Costs

EBIT

The crucial success factors are commitment and clarity of CEO on how to roll out strategy. Followed by the verbal readiness and willingness of the Executive on their commitment to blend profit gains with staff fulfilment.

Would staff benefit from the OPD system enabling greater success?

Would OPD payback for the company and staff...?