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The Mager Model
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A series of steps used to figure out how to solve any given performance problem.
Applied to AMRE Insurance Company problem.
Company BackgroundAMRE Insurance Company
“AMRE makes traveling through life safe and convenient.”
ServicesCompany sizeAverage wages
What’s the Problem?Percentage of errors in frontline
employee data entry:
20% error rate
February March
Total Records 140,128 155,789
Errors 26,387 31,283
Is it Worth Solving?Use the following information to find the
company’s monetary loss: 1.8 million customers 20% error rate 5 minutes taken to find and correct error
Hundreds of thousands of dollars lost each year!
Yearly Losses # of Customers X Error Rate = Amount of Errors
1.8 million X (.20) = 360,000
Amount of Errors X Amount of time to correct = Minutes
360,000 X 5 minutes = 1.8 million minutes
Minutes ÷ 60 Minutes/Hour = Wasted hours/Year
1.8 million minutes ÷ 60 = 30,000 wasted hours/Year
Average Salary X Wasted Hours/Year = Total Loss $/Year
$21.00 X 30,000 = $630,000 Lost every year
Can we apply Fast Fixes?Expectations
Clear
ClarifyExpectations
ResourcesAdequate
ProvideResources
PerformanceQualityVisible
ProvideFeedback
ProblemSufficiently
Solved
NO
NO
NO
YES
YES
YES
YES
Done
Are Consequences Appropriate?Is Desired
Performance Punishing?
Remove Punishment
Is Poor Performance Rewarding?
Remove Rewards
Are Performance Consequences Used
Effectively?
Provide / Rearrange Consequences
Problem Sufficiently
Solved?
NO
NO
NO
YES
YES
YES
NO
YES
Are Consequences Appropriate?
Erica Burns: “People, we can’t afford to be making such petty mistakes all the time! You all need to figure out how to input the information correctly. I mean, come on, you have manuals; isn’t that enough!?!”
Joyce Reynolds: “But, I didn’t do anything wrong, why are you mad at me?”
Erica Burns: “I don’t care if it wasn’t you, there’s enough mistakes to go around!”
Do They Already Know How?Genuine Skill Deficiency?
Did It In the Past?
Used Often?
Provide Feedback
Provide Practice
NO
YES /NOT SURE
NO
YESYES
NO
Do They Already Know How?• Anonymous records:
Test Score Monthly Errors
Emp 1 85% 10
Emp 2 81% 9
Emp 3 93% 12
Emp 4 91% 7
Emp 5 79% 8
Emp 6 88% 13
Emp 7 74% 12
Emp 8 98% 10
Emp 9 83% 6
Emp 10 96% 6
Are There More Clues?Can Task BeMade Easier?
SimplifyTask
Any OtherObstacles?
RemoveObstacles
PersonHas PotentialTo Change?
ReplacePerson
Train
YES
YES
YES
NO
NO
NO
Are There More Clues?You: “Why do you feel this job is being poorly
performed?”
Rick: “I can’t think of anything in particular that would be a problem. You may want to ask the Manager of the frontline employees though.”
You: “Why was the new system implemented?”
Rick: ”We were pretty out of date when it came to the frontline system and we needed to input data quicker in order to keep up with competitors.”
Select And Implement Solutions
CalculateCosts
SelectBest
Solutions
DraftActionPlan
ImplementAnd
Monitor
Done
Solutions Four feasible
solutions:Job AidFeedback SystemReward SystemTraining on each
system (feedback, reward)