Maxim #6
Know your numbers
“Know your numbers” refers to what we call R1 and R2. R1 refers to “Results” in a defined base period against which improvement can be measured. R2 refers to the actual “Required Results” you are trying to achieve. The term “required results” is deliberate. It forces commitment. We abandoned the use of “target” or “goal” because when people get close enough to a goal they actually stop problem solving. We changed the term to “requirement” so managers would always problem solve variances. Being “below requirements” is psychologically very different than being close to your goal or objective.
Many managers don’t really know their numbers. Many think they know their numbers but they don’t really know them, at least not to the level where it affects their behavior or decisions. Key indicator reports are often too late after the fact to be useful.
Many employees don’t really know their numbers. When we ask employees how they know if they are having a good day or bad day, they often say “it’s good because customers aren’t yelling at me” or “I know it’s bad when the line is down.” These may be true statements but they have little or no reference to actual performance. For many people it’s a little like golfing every day without a scorecard.
To check if you know your numbers, simply ask yourself what are your planned and current levels for the following:
- Service quality?
- Schedule attainment?
- Productivity?
