Learn Your True Operational Effectiveness

At the first annual Bob Clements International Dealer Boot Camp in Atlanta, GA, held in January, Green Industry consultant Bob Clements shared tips that business owners and managers across the board could implement in their business to improve processes, increase productivity and raise profitability.

The only way to make your improved processes work is by having the right people in place. Asses your staff to calculate your Operational Effectiveness Rating (OER). The OER helps a business owner decide if each of their employees is having a positive impact on the business each day.

“Don’t change your processes to meet your people,” advises Clements. “Change your people to meet your processes.”

Each employee should be graded based on their level of motivation and competency.

  • Motivated/Low Competence – 50%
  • Motivated/Competent – 75%
  • Motivated/Highly Competent – 100%
  • Unmotivated/Highly Competent – 80%
  • Unmotivated/Competent – 50%
  • Unmotivated/Low Competence – 20%

For staff in the 20% range, termination should be the next step. Before deciding to replace that 20% employee, consider bringing one of your 80% employees quickly and easily up 20% to 100% with further training to increase competency and implementing a bonus structure to increases motivation. Employees in the 50% rating shouldn’t necessarily see termination, but should be set on a path to correction.

Click here to learn more great business management tips from Bob Clements.

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