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Achieving Organizational balance of Production / Production

Capability

Achieving a good P ⁄ PC balanceSteven covey: 7 Habits of highly effective persons.

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The P / PC Balance this is a balance between the productions (P) of desired results and the production capability (PC). or maintenance of the producer An excessive amount of focus in either production or production capacity will have disastrous results.

Achieving a good P ⁄ PC balance

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The P/PC balance principle can be easily understood by remembering Aesop´s fable of the goose and the golden egg. This fable is the story of a poor farmer who one day discovers in the nest of his pet goose a glittering golden egg. At first, he thinks it must be some kind of trick. But as he starts to throw the egg aside, he has second thoughts and takes it in to be appraised instead

Achieving a good P ⁄ PC balance

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The P/PC balance principle can be easily understood by remembering Aesop´s fable of the goose and the golden egg. This fable is the story of a poor farmer who one day discovers in the nest of his pet goose a glittering golden egg. At first, he thinks it must be some kind of trick. But as he starts to throw the egg aside, he has second thoughts and takes it in to be appraised instead The egg is pure gold! The farmer can’t believe his good fortune. He becomes even more incredulous the following day when the experience is repeated

Achieving a good P ⁄ PC balance

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The egg is pure gold! The farmer can’t believe his good fortune. He becomes even more incredulous the following day when the experience is repeated. Day after day, he awakens to rush to the net and find another golden egg. He becomes fabulously wealthy; it all seems too good to be true.

Aesop´s fable

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But with his increasing wealth comes greed and impatience. Unable to wait day after day for the golden eggs, the farmer decides to kill the goose and get them all at once. But when he opens the goose, he finds it empty. There are no golden eggs – and now there is no way to get any more. The farmer has destroyed the goose that produced them.

Aesop´s fable

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I suggest that within this fable is a natural law, a principle – the basic definition of effectiveness. Many a time people see effectiveness from the golden egg paradigm: the more you produce, the more you do, the more effective you are

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As the story shows, true effectiveness is a function of two basic things: what is produced (the golden eggs) and the producing asset or capacity to produce (the goose).

If you adopt a pattern of life that focuses on golden eggs and neglects the goose, you will soon be without the asset that produces golden eggs. On the other hand, if you only take care of the goose with no aim toward the golden eggs, you soon won’t have the wherewithal to feed yourself or the goose.

(No clear objectives-no results-no outcome)

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Unduly high emphasis on Production or Production Capacity is equally harmful. Effectiveness lies in the balance. Although difficult, the very essence lies in getting great results out of an asset as well as maintaining it. This aspect can be validated in one’ s own life, where it is observed that exhaustively utilizing one’s abilities continuously gives an altogether less efficiency, whereas effectiveness takes a quantum leap if the production capacity is also kept in mind.

NB: This principle apply to organizations, families, as well as individuals.

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Physical asset Organizations are in constant pursuit of

increasing their production capacity to increase production. But do they apply these principles as much to their customers and employees as to their machines?

Any correct principle has an application in diverse circumstances, which makes it valuable. These principles apply to organizations, families, as well as individuals.

Three kinds of assets: Physical, financial and human

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The P/PC balance affects the organizational effectiveness in the use of physical assets. In a rapid growth phase, a physical asset may deliver the best performance but later this asset becomes worthless due to ill-maintenance or does not serve you better. E.g. server (bigger, better), computers-not cleaned/updated with anti virus-crush. Otoscope-not enough supply, hence co’s move from room to room. Need for essential programs to have better out puts, but they are not available. This also powerfully impacts the effective use of financial asset.

In short, assets need to be maintained, replaced and even supplied without focusing only on production. Otherwise how are you to achieve production (golden eggs?)

Physical asset

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In the human area, the P/PC Balance is equally fundamental, but even more important, because people control physical and financial assets

Example1: MARRIAGE When two people in a marriage are more concerned about

getting the golden eggs, the benefits, than they are in preserving the relationship that makes them possible, they often become insensitive and inconsiderate, neglecting the little kindnesses and courtesies so important to a deep relationship. They begin to use control levers to manipulate each other, to focus on their own needs, to justify their own position and look for evidence to show the wrongness of the other person. The love, the richness, the softness, and spontaneity begin to deteriorate. The goose gets sicker day by day.

Consider: ODM/PNU-CFK/CDC

Human Assets

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Effect: excuses…Instead of trust and trustworthiness developing, mistrust and untrustworthiness-why-coz focus is on G.E and not the relationship which enhances the pc.

Human Assets cont

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Example 2: PARENT'S RELATIONSHIP WITH A CHILD When children are little, they are very dependent, very

vulnerable. It becomes so easy to neglect the PC work -- the training, the communicating, the relating, the listening. It's easy to take advantage, to manipulate, to get what you want the way you want it -- right now! You're bigger, you're smarter, and you're right! So why not just tell them what to do? If necessary, yell at them, intimidate them, insist on your way.

Or you can indulge them. You can go for the golden egg of popularity, of pleasing them, giving them their way all the time. Then they grow up without a personal commitment to being disciplined or responsible.

Human Assets cont

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Either way -- authoritarian or permissive -- you have the golden egg mentality. You want to have your way or you want to be liked. But what happens, meantime, to the goose? What sense of responsibility, of self-discipline, of confidence in the ability to make good choices or achieve important goals is a child going to have a few years down the road? And what about your relationship? When he reaches those critical teenage years, the identity crises, will he know from his experience with you that you will listen without judging, that you really, deeply care about him/her as a person, that you can be trusted, no matter what? Will the relationship be strong enough for you to reach him, to communicate with him, to influence him?

Consider: employer/employee, supervisor/worker

Human Assets cont

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How often do people confuse principal with interest? Have you ever invaded principal to increase your standard of living, to get more golden eggs? The decreasing principal has decreasing power to produce interest or income or continuity of the program. And the dwindling capital becomes smaller and smaller until it no longer supplies even our basic needs. Our most important financial asset is our own capacity to earn. If we don't continually invest in improving our own PC, we severely limit our options. We're locked into our present situation, running scared of our organization winding up/downsizing/retrenchment or our boss's opinion of us, economically dependent and defensive. Again, it simply isn't effective. Consider organizational trainings, , cross trainings further learning, saving-sacco, banks etc. and you only love what you know as a result

Financial asset

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There are organizations that talk so much about the customer and completely neglect the people that deal with the customers i.e. employees. The PC principle is to treat the employees EXACTLY AS YOU WANT THEM TO TREAT YOUR CLIENTS

By money, the material potential of the employee can be bought. But the employer needs to have the greatness to win over his heart and mind to expect loyalty, resourcefulness, leadership and devotion in him

The prevailing attitude and paradigm among the employers is insufficient to tap these qualities in the employee. This is because employers focus more on the customers rather than the key people who deal with the customers – the employees. This paradigm needs a shift if we want more dependable employees at work.

Organizational pc

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You can buy a person’s hand, but you cannot buy his/her heart. His/her heart is where his/her enthusiasm, loyalty is. You can buy his back, but you cannot buy his brain. That’s where his/her creativity is, his/her ingenuity, his resourcefulness.

Pc work is treating employees as volunteers just as we treat customers as volunteers, because that’s what they are. They volunteer the best of themselves-their hearts and minds.

Organizational pc cont

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Effectiveness lies in the balance of the two. Excessive focus on P results in ruined health and broken relationships-employer/employee, employee/client. If the goose (pc) is sick, it impacts on golden eggs (p). The goose doesn’t give golden eggs because you have promised it food, you give it food and others necessities for it to produce. Consider a de-motivated employee, not recognized, not considered in decisions, etc COZ THE FOCUS ON is GOLDEN EGGS, employer will miss on numbers, miss on samples etc and only samples keep us here etc

Organizational pc cont

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Another area that requires balancing is employee development (education and training) and actually performing the work. We certainly want to keep our work force trained in the latest methods, technology etc…

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A balance of good care of assets, personnel and customers is the key to organizational effectiveness. The bottom-line is not just results/profits, but customer care, profits, growth and welfare which is another way of balancing production capacity with production.

conclusion

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Steven Covey: Seven habits of highly effective people

Bible.

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