Performance Scoring Case Studies
Check out a few of the Performance Scoring Case Studies below. Performance Scoring is proving that real-time performance engagement through effective performance management drive higher retention, productivity, performance, and profits.
A plumbing and heating company was experiencing an increased rate of employee attrition that was decreasing their profits, quality, and moral. The company had handled industry standard turnover rates for years, but with the increasingly tight labor market made hiring top talent a challenge. They could not afford to lose employees given the extreme difficulty of adequately replacing them. An outside consultant was brought in to review the situation and recommended solutions to increase employee engagement and prioritize employee development. The company set out to implement these solutions, and after solicitation from Performance Scoring’s Team, identified Performance Scoring as the best long-term tool for the job. The Performance Management System was implemented to prioritize employee development with objective data and continuous feedback and coaching.
In a tight labor market, the immediate priority is retention of existing employees through engagement and strengthened professional relationships. The Performance Scoring System was setup to be an extension of the company and the new approach to performance management. It was designed for employee incentive programs to create excitement with the new approach. Employees know that their development is a priority and feel recognized and appreciated – a lack of these are the leading factors of attrition. Managers have real-time access to areas of high, medium and low performance to keep their teams on track. Continuous coaching from the Performance Scoring metrics strengthened professional relationships, greatly increasing retention. Within 6 months of implementation, the company’s attrition rate greatly decreased, they realized a much-improved rate of internal promotions, with more referrals for open positions not captured internally through promotion.
In the first year of prioritizing employee development relationships with engagement driven by Performance Scoring the company’s retention rate has improved by 35% year-over-year. An anonymous employee satisfaction survey was administered after 6 months of Performance Scoring – 70% of employees identified as “very engaged” and 83% could identify as “very unlikely” to pursue another job. After 12 months, the same survey was administered, and results increased to 85% of employees identifying as “very engaged” and greater than 90% could identify as “very unlikely” to pursue another job.
A commercial services company was experiencing a challenge with too many recalls that was costing the company on average $12k per month. The company realized that the recalls were due to process failures by their employees and set out to identify an employee evaluation system to prevent recalls caused by process failures while developing their employees. After researching existing systems, the company was dissatisfied by the one-size-fits-all approaches and set out to develop a unified system specifically for their company and employees. Development of this system proved it would be very burdensome and costly, and the company was referred to Performance Scoring as another option. Performance Scoring’s Performance Management System was tailored to their company and evaluated each employee by the unique performance metrics that the senior management team knew lead to success, so Performance Scoring was implemented to decrease process failures and the costly recalls that they lead to.
The approach with Performance Scoring was to:
- Identify the factors that were contributing to recalls and understand where they occurred
in the process.
- Eliminate the factors that were contributing to recalls through continuous measurement.
This is an evidence-based management approach that uses continuous feedback to drive individual employee development. Performance Scoring’s Team worked quickly with the company to setup the system to mirror the company and set performance metrics to measure the
underlying factors that contributed to recalls at every unique company role. When employees know that specific job responsibilities are being measured, they are more likely to accomplish
them, and if they are not accomplished, then data trends will be generated. These historical data trends are used by management to proactively prevent repeat occurrences of process failures that contribute to recalls. As a result, the recall rate plummeted by 75% over four months and the decrease continued until recalls became virtually non-existent.
The average cost of a recall to the company was approximately $700 and with the decrease in recalls with Performance Scoring the company realized an additional $10k a month in gross profits. Within 120 days of implementation the recall rate was reduced by 75%, and the monthly recall rate has maintained at 0-5% of the beginning rate. Additionally, the company experienced
fewer billing errors and the average time to collection decreased by approximately 15%. By substantially reducing the amount of process errors contributing to recalls the customer satisfaction also improved. The company became the #1 ranked vendor of a Fortune-100 client with Performance Scoring as the catalyst. The ROI that the company experiences with Performance Scoring is $20 for every $1 spent on the Performance Management System.
A mid-size regional contracting company became increasingly aware of the poor performance of one of their branch locations. They had a proactive response and addressed the branch with various changes in employees, process and training but performance improvements were still not satisfactory. Management needed better tools to monitor the process changes and ensure that training had the proper effects for success. The company came to Performance Scoring seeking additional data for root-cause analysis of the location’s operations and to understand differences in real-time contributing to varying performance.
Implementation of Performance Scoring’s System mandated every manager throughout the company determine the custom performance metrics that matter to success within each company role. Then, the performance metrics were compiled and setup in Performance Scoring to compare the data with historical trends at each location. With real-time access to areas of high, medium and low performance at each location, the management teams “course corrected” more efficiently, and targeted trainings were implemented to address performance needs. Within 18 months of implementation substantial performance improvements were realized company-wide,
with negative factors at the low performing branch decreasing by 42% and an average decrease of 17% across other locations.
Improvements of employee performance were seen in every ScoreCard Category company-wide, with substantial improvements seen at the low performing location. After 18 months at the low performing location, performance by field service employees experienced a reduction in negative factors of 48% – including an almost 60% reduction in factors related to safety. In-office employees at this location experienced a 36% decrease in negative factors. Percent of Gross Profit of the underperforming branch is no longer impacted, and currently maintains the same percent of gross profit as the main branch. Company-wide performance improved as well during this time frame, with negative factors decreasing in company policy, customer protocols, customer service, dispatch, field service and safety by an average of 17%.
A large commercial services company was experiencing a challenge with lengthy collection time, averaging greater than 60 days. They began reviewing their internal billing processes and were made aware that in addition to numerous internal billing errors, there were various external reasons for errors from customer process requirements. Employee training was performed with a focus on proper billing processes, but management also wanted to be proactive toward future billing errors to ensure comfortable billing averages in the future. They wanted a real-time feedback system to not only document billing errors as they occur, but also to notify all relevant parties so that errors are corrected immediately.
Approach the collection time with root-cause analysis, by identifying the factors that affect billing within each company role. Once these factors were setup in the Performance Scoring System, real-time feedback of their occurrences was made available to all relevant employees
and managers. This proactively remedied billing errors as they occurred (rather than at time of billing) and generated historical data trends where and when billing errors occurred in the process. The data trends were used to inform team meetings, address process failures with targeted trainings, and continuously coach employees in areas of low performance that led to billing errors and delays. After the initial 12 months of Performance Scoring usage, billing errors were reduced, and the average time of collection was reduced by 50% from year-over-year averages.
During the first three months of implementation, the daily billing cycles averaged 3.5 negative factors, which extended collection time. Months four through nine of implementation realized a
reduction to just under 2 negative factors, which resulted in the average collection time reduced by 35%. After the ninth month of Performance Scoring utilization the average number of negative factors per billing cycle dropped to below 1 and the average collection time was reduced by almost 50% from the year-over-year averages before adopting Performance Scoring’s system. The company experienced a substantial reduction in process failures that affect billing and they access to capital has improved with the reduction in time to just over 30 days to receive payment.
What Our Clients Are Saying
Want to hear from some of our clients? We picked a few of our favorite performance management application users. They love Performance Scoring, and so will you.
This has been the best investment my company has made. It almost single handily increased our margins and our bottom line. The best part about the growth we have seen, is that our employees have come to love it, and management doesn’t know how they managed performance before.
The Performance Scoring Application made an incredibly positive impact in our business and employees. Employee productivity has skyrocketed, failures plummeted, and morale is sky high. Thank you Performance Scoring.
If you want to kick start growth in your business and it’s people, join Performance Scoring. The Observer Effect is in full force here, within weeks we started to notice dramatic changes, best of all our Employees have come to rely on Performance Scoring for themselves, their teams, and those they manage.