Hiram Philips, CFO and Chief Administrator Officer, reported statistics

demonstrated positive results of the performance management

system foot in place one year ago.
Sudden slowdown in consumer spending Rainbarrel adjusting less
rapidly than its competitors.
Keith Randall, CEO - Inspiring Leader focused on innovation
Marketing Visionary. Company had no budget integrity whatsoever.
Company was fat and happy
Company had the potential for greatness but lacked the discipline.

Measures Taken by Hiran

Reduction in Labour Cost
Removing the bottom quartile using buyout packages
Reduction of 10% on all the units (Jack Welschs Philosophy)
Improved Productivity
Productivity improved by 50%
Worst performers names were put on Wall of Shame.
Increase in Ontime Shipments
Improved customer service.
Shipment gone up by 92%
Sales Commission Reflects actual purchase price.
Importance of straight forward rules and rewards in driving superior performance.

Concerns

Mislead matrix - No real measure of performance

People found loopholes to the rules.
Filing patents and Patents filed were not commercially viable.
Sales people lost incentive to sell to ex and current employees.
Current and ex employees became unhappy.
Existing employees became burdened with work.
Reduction of workforce without saving much money crippled the company.
Quality resources were lost.
Backfiring of the policies.

Our Proposal
Hiram should have introduced performance metrics by consulting different heads
in company.
He should have listened to the employees what they feel about these policies.
He should have run a pilot programme in a department before running through
out the organization.
He should have set high goals and communicated them to the employees. If there
is a problem in the process, he should have worked on removing the obstacles.
He should have feedback loops in place to understand the actual problems faced
by the people.
Wall of Shame should be replaced with Wall of fame.
He should define objective criteria for measuring performance and also test
whether it captures the true performance that ultimately adds value to the
organization.