employee engagement, good management, and improved ... · employee turnover top 25% retained 12...

Employee Engagement,Good Management, andImproved Productivity

Peter Koshland, PharmDKoshland Pharm: Custom Compounding Pharmacy

Greg Davis, Arbinger InstituteInternational Seminar

Houston, TXNovember 10‐12, 2016

© 2016. All Rights Reserved. 1

Tough Times for Our Businesses• Our businesses are in one of the most difficult times in the history

of modern compounding• We need to find ways to increase revenue and decrease costs

– At best ‐ stave off layoffs– At worst ‐ keep our doors open

• As owners and managers we need effective tools to affect change:– Within our pharmacy– Extending out to the patients and doctors we work with


Good Management Matters

• Studies show that the number one key to a business’ success is the effectiveness of its managers to inspire its workers to do their best work

• “The only way to generate enduring profits is to begin by building the kind of work environment that attracts, focuses, and keeps talented employees.”1* 1Heskett, James. The Service Profit Chain. Free Press. 1997


Why Good Management Matters

• In publically traded companies:– Only 60% of its real market value can be accounted for by its assets

– Only 10% of the changes in a company’s value can be accounted for by fluctuations in its profit

• An employee’s relationship with their manager is more important than pay, vacation time & profit sharing in terms of retention and productivity


The Studies Prove It

• In 1997, Gallup polled over 37,000 employees at a very successful retailer with over 100 stores to see why some stores performed better that others

• Asked 12 questions to assess employee engagement / work satisfaction– Ranked on scale of 1 to 5* 1Buckingham, Marcus and Coffman, Curt. First, Break All the Rules.

Simon & Shuster, 1999


The 12 Questions (scored on a scale of 1 to 5)

1. I know what is expected of me at work2. I have the materials and equipment I need to do my work right3. At work, I have the opportunity to do what I do best every day4. In the last seven days, I have received recognition or praise for

doing good work5. My supervisor, or someone at work, seems to care about me as

a person6. There is someone at work who encourages my

development


The 12 Questions (scored on a scale of 1 to 5) (cont’d)

7. At work my opinions seem to count8. The mission / purpose of my company makes me feel my job is

important9. My associates (fellow employees) are committed to doing quality work10. I have a best friend at work11. In the last six months someone at work has talked to me about my

progress12.This last year I have had opportunities at work to learn and grow


Analysis of the DataTop 25% Bottom 25%

Met Sales Budget 4.56% over 0.84% belowMet Profitability Budget 14% over 30% underEmployee Turnover Top 25% retained 12 more than bottom 25%* The cost of employee turnover for your store:

– Your store has 20 employees making an average wage of $35,000 per year

– The cost of finding, hiring, and training each new employee averages 1.5 times his / her salary

– If your store is in the bottom 25% you are spending $126,000 more per year than a store in the top 25%


Case Study: Our Store• Our biggest challenge for 2015 = turnaround time

– January ‐ December, 2015 = average 3.5 days • Time the prescription came in to the time it was shipped• 70 days where turnaround time was > 5 business days

– Numerous negative consequences• Competitive disadvantage• Time spent on phone with disgruntled patients• High stress level of staff to get prescriptions made• Concerns expressed by doctors that we were too busy and “weren’t the pharmacy we used to be”

• Overall bad for reputation and word of mouth


Addressing Turnaround Time

• Making our technicians more productive was going to be an important part of the solution– Technicians averaging 10 ‐ 11 logs per day– Industry average ‐ 18 ‐ 20 per day

• Existing plan– White board where we put each technician’s log count on board for each day

– Staff lunch when turnaround time ≤ 2 days


Listening to our Techs

• Technicians were feeling tremendous stress– “Always behind”; no sense of completion– White board wasn’t helping

• Low performing techs were feeling singled out• High performing techs were feeling like they were carrying the pharmacy

– Understaffed• Always someone out sick or on vacation


New Strategy

• Reconfigure the white board– Group goals– Incentives related to productivity not outcomes

• Individual goals– Private– Based on productivity & team impact


New Strategy

• Clearly defined management structure– Created org chart and filled in management roles

• Gave managers tools to positively impact staff– Arbinger training


Measuring Success

• Average log count– January ‐ July 2016 = 12.1 average logs / technician / day

10

11

12

13

14

15

Average Logs/

Technician/Day

Month 2016


Measuring Success

• Turnaround time– January ‐ July 2016 = average 2.1 days– 70 days with turnaround ≤ 1 day

• Business growth– January ‐ July 2016 = 17.7% over same period in 2015


Employee Engagement, Good Management, and

Improved Productivity

Greg DavisArbinger Institute


Peter Koshland, PharmDKoshland Pharm: Custom Compounding Pharmacy


Continuing to do the Work• Continue with current changes

– New white board format– Private, individual goals

• Mid‐year reviews are now mid‐year check‐ins– Listen to staff

• What are their problems / challenges?• What are their successes?• How can we do things better?• Give goal based feedback


Continuing to do the Work (cont’d)

• Weekly manager meeting• Daily walk around by management staff

– Build relationships when there is no crisis or intervention needed


New Initiatives for Coming Year• All staff will receive Arbinger training at next yearly meeting• Find ways make each staff member feel responsible for the success of

their coworker– Continue giving that message– Find ways to measure impact on coworkers– Use this information as part of evaluation for yearly raises / bonuses

• Continue to create environment where:– Each staff member feels supported by their manager– Each staff member feels personally responsible for the success

of their peers and the pharmacy as a whole


Thank you

Questions?


employee engagement, good management, and improved ... · employee turnover top 25% retained 12...

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