Frontline Workforce Performance problem must be at the CEO and CHRO Table.

Clan 1010+ Problem Definition

Low and Slow performance acceleration of new entrants.

CLAN 1010+ solution

Integrated Digital App to extract and transfer the Secrets of Success of top performers to low performers, every day to accelerate performance which will reduce infant attrition by 10% or more while simultaneously increasing performance by 10% or more.

Current Performance Framework and Performance Metric is faulty

• We are using calendar-month based performance framework which provides wrong conclusions because in any calendar month there are employees with a mix of residencies. Ranking and rewarding people on calendar months is like comparing apples and oranges. Booklet 1 Slide 12
• CLAN uses a new framework which uses the “residency-month based framework”. Booklet 1 Slide 15
• Current Average metric misleads since performance distribution is NOT a normal curve. Average hides the significant underperformances. Booklet 1 Slide 17

Two New Metrics – CAP and PM

• CLAN uses new metric called CAP or Cumulative Average Performance over 9 or 12 residency months to rank and reward people. CAP moderates monthly performance variations and also enables like to like comparison. Booklet 1 Slide 22
• CLAN uses a new metric called Performance Multiple (PM), to measure CAP variation. Performance Multiple is the multiple of CAP, averaged over a period, between top 10% and bottom 10% of any cohort.

Current Target Setting is unfavourable to new entrants

• Performance naturally improves and is positively correlated with residency. Current Target Setting favours the older employees and is unfavourable to new entrants. So, targets must increase with residency. Booklet 3 Slide 16
• Target is correlated with compensation – Booklet 3 Slide 21
• It is now possible to create a scientific target setting algorithm.

Multi-Dimensional and Drill Down Analytics only provides Insights

Multi-dimensional and drill down analytics is the only way to gain insights on how performance is happening in the ground.

• Drilling down to an employee level called TMI PLOT segments employees into 9 segments, which provides deep insights. This is not done currently. Booklet 1 Slide 30
• People tend to stay in narrow performance bands. So the strategy to improve performance has to change from asking employees to “long jump” to asking employees to STEP UP performance. Booklet 1 Slide 34
• Underperformance leads to high cost of operations. For the first time, it is now possible to calculate the financial cost of underperformances which could be up to one-third of the HR budget and can be a useful metric to track the effectiveness of the performance management of frontline workforce. Booklet 1 Slide 36

New Analytics Framework uses the power of Lead Indicators

Secret to consistent team performance is performance management of Lead Indicators of Performance (LIP). The new framework identifies the LIP and uses a new DARTS system to track the LIP to build predictive models. Booklet 4 Slide 6

Current incentive system is not motivating low performers to improve

Any incentive system must achieve two objectives – reward top performers and motivate medium and low performers. Current incentive system is rewarding top performers with only a small portion of incentive reaching low performers and hence is not motivating middle and low performers. Booklet 2 Slide 29

Current compensation structure does not favour high performers

Reason for top performer exit, as per the Compensation analytics from the new framework, is that despite top incentive pay out, total payout is low and does not compensate the top performers in proportion to their high performance. This is because the incentive to fixed payout ratio is low for top performers. There is urgent need to redistribute the fixed salary budget in favour of high performers. Booklet 2 Slide 33

Hire and Induct for Performance and Retention

• Current hiring practices hire for skills. Hiring alignment with the profiles of people who “perform and stay“ is not done today and will significantly reduce wrong hires.
• Current induction practices train for skills. Instead training should be for role mastery.
• Current induction training is front-ended. Instead learning should be real–time and just-in-time.

Current supervisor management requires review

• CLAN Supervisor Analytics reveals that supervisors are not solely responsible for attrition. For every five poor supervisors there is one star supervisor who manages high performing team with low attrition. What are they doing differently? What are their secrets of success? Booklet 2 Slide 20
• Supervisor job is to work with new entrants to accelerate their performance but they do the opposite and spend their time with top performers. New framework recommends a third metric for supervisors – minimise the performance variation within the team – in addition to meeting targets and controlling attrition of his team.

Cost of Attrition is very high and new framework provides a scientific model for Exit/PIP

• Early firing or late firing of low performers are both very expensive. The time to achieve – the first sale or 50% of target for the first time – a new metric from the new framework, provides the scientific framework for firing employees or putting them on Performance Improvement Plan (PIP). Booklet 2 Slide 25
• Cost of backfill due to underperformances of the replacement hire is in excess of 4 months salary. So firing employee for low performance is very expensive and must be minimised. Booklet 2 Slide 40

Performance Acceleration, to push new entrants to a threshold performance faster, is the solution to infant attrition

• Current attrition management is focussed on employee engagement and supervisor management. High infant attrition, in excess of 50%, existing in frontline is the proof that this approach has failed. Booklet 2 Slide 12
• Attrition is negatively correlated with performance achievement. Attrition of employees who cross 50% of target achievement threshold, drops dramatically. This means that the problem is not just low performance, it is also slow performance. Booklet 2 Slide 34
• So Performance Acceleration, to push new entrants to the threshold performance, is the new approach to infant attrition containment, and will automatically and significantly reduce infant attrition.

CLAN 1010+ Solution recognises that the solution to low performance is also within the same peer group – with the high performers

• Contribution analytics as per new framework shows that a few top performers make up for a large set of poor performers. Booklet 1 Slide 21
• Real symptom behind poor productivity and high infant attrition is “Performance variation”. Performance Multiple, between top 10% and bottom 10%, in many frontline workforce cohort, is between 8X to 20X. This means top performers are heavily underpaid while bottom performers are heavily overpaid. Booklet 1 Slide 32
• For every five low performers, there is one high performer. For every 5 poor performers there is one high performer – who is in the same team, at the same time, hired and trained the same way. What are they doing differently? What are their Secrets of Success?

CLAN 1010+ Solution uses the power of Digital Peer Learning to solve the low performance problem

• Top performers achieve consistent high performance by doing only two things – first they prioritise and focus, daily, on a few critical tasks in the role which have a high correlation with outcome. Second, they execute these critical tasks very differently than low performers who do “Jugaad”. These are the Secrets of Success (SoS) of top performance.
• Secrets of high performance is not skill mastery but Role Mastery. CLAN uses a new Role Modelling Framework to discover the critical tasks in every role.
• CLAN uses a new framework to extract the SoS of high performers.
• CLAN uses a new Digital platform to transfer the SOS , in real-time, to low performers and supports and tracks the implementation of the SoS.