Linking Behaviour to Bottom Line Performance
Four Groups links the behavioural aspects of people management to bottom line performance. Firstly, Four Groups introduces a new approach to articulate and predict relationships. Secondly, by applying a proprietary formula, it is possible to calculate the link between behaviour, costs and their impact on sales.
Predicting Behaviour and Relationships
The first facet comes from Four Groups' ability to articulate and predict normally intangible behaviour and relationships. Predicting relationships introduces foresight into new relationship combinations.
As per the diagram, different relationships attract different levels of effort and productivity. Notice the difference in Beverley's position in Team 1 with Brian's in Team 2. If Beverley were to leave and be replaced by Brian, the predicted impact on the relationships is illustrated.
The Bottom Line
Using Four Group's formula, it is now possible to link the intangible aspects of behavior to costs and the impact this has on targets and other financial indicators. This formula (Relationship Friction) weighs different types of relationships against salaries. By expressing Relationship Friction as a percentage, a lower Relationship Friction number is more preferable than a higher one. The end result is a means to show savings and efficiencies as derived by behaviour and relationships and to link this information to relevant KPIs such as costs or revenue. The tables on the left give an example of this;
- Brian's salary is the same as Beverley's
- The salaries of Team 1 are the same as Team 2
- Relationship Friction costs 32.8% in Team 1
- Relationship Friction costs 26.8% in Team 2
- Brian's start reduces Relationship Friction
- The fall in Relationship Friction is 6%
| Team 1 | Base Salary |
| Ajit | £ 35,000 |
| Beverley | £ 70,000 |
| Christien | £ 110,000 |
| Dirk | £ 50,000 |
| Emma | £ 55,000 |
| Total Salaries | £ 320,000 |
| Relationship Friction % | 32.8 |
| Team 2 | Base Salary |
| Ajit | £ 35,000 |
| Brian | £ 70,000 |
| Christien | £ 110,000 |
| Dirk | £ 50,000 |
| Emma | £ 55,000 |
| Total Salaries | £ 320,000 |
| Relationship Friction % | 26.8 |
Applications
The ideas and formulas outlined here can be applied to a variety of different scenarios. For example;
- Business Processes
- Human Capital
- Management Due Diligence
- Organisational Strategy
- Recruitment and Selection
- Team Building
Please contact us for further information.
