The need to survive.

An architectural firm needed to stay afloat in

1983,Economic conditions had turned harsh. Layoffs were rampant and jobs

were difficult to find. Downsizing or closure would lead to personal

ruin of a loyal colleague. Hence, this was just not an option. So, this

group of small and reputed associates along with others in related

fields like Structural Engineering, Landscaping, Interiors, who faced

the same crisis, joined hands and offered to do projects at “breakeven

or without profit”. Their Reputation and now this “one-stop service”

got them some projects. Hopefully this would now help them to tide

over these difficult times. At least ‘overheads’ such as salaries, rents

and such would now be paid for.

Profits.

The only insurance when things go

wrong.

But now, there was a big catch. Projects taken at cost had no

room for Delays or Errors which would lead to Loss, Litigation

and Bankruptcy. In all Projects, Profit is the only safety and

insurance when these happen. For a project to always remain

on course is wishful thinking.

Detecting problems early.Constant progress evaluation

Hence, they needed to evaluate and measure the performance of both, the project and the individuals assigned constantly to ensure that mistakes and delays were detected early, since, "a stitch in time saves nine." Since errors and delays were just not an option, they worked round-the-clock and still met only with limited success.

PerformanceCan only be measured on “Output”

What was indeed very sad, was that even if an error was

detected within a day of the previous check, this was just not

affordable. They needed to detect errors and causes for delay

almost as soon as these occurred. Evaluation and performance

has only been possible by measuring "outputs". Their survival

depended upon measuring and hence detecting such problems

as they occurred or "on inputs".

Measuring performance on

“input”.The need for innovation.

Necessity is the mother of invention and this drove them to

such an innovation for “measuring performance on Inputs".

They met with limited success but this was just the ‘inspiration’

needed. Nothing succeeds like success, even limited success.

This helped them to overcome these bad times reasonably

well. Over the next 30 years, with constant tweaking and

improvement, performance of both "projects and individuals

assigned" could now be measured with great reliability and

accuracy: “on Inputs".

They did well. Actually, very well.

Emerged as the most reputed firm in the

US.

All the associates, architects, structural engineers, landscaping, interiors, integrated and became one. They grew and grew to become one of the largest multidiscipline services firms in the United States. During the sub-prime crisis, when competition collapsed, they emerged stronger. The above graph tells the true story of what measuring performance on inputs helped them to achieve.

85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Actual Revenue Growth Enabled by Measuring Performance on Inputs

At RDG USA, Des Moines. Iowa1985 to 2011

Invention receives US patent.

June 15, 2010

From 2004 to 2010., the United States Patent office searched globally for Prior Art or other technologies which achieved anything remotely similar. Finding none, this invention which simplified managing projects and individuals was awarded a United States Patent.

Measuring performance on inputs.

The effect on individuals …. 1

Digital technology and processes enables measuring

performance of both projects and individuals on inputs.

For individuals, errors, deviation from specifications and similar

problems are identified as they occur. This information is

shared with each individual, their associates and project

leaders.

Either individually or collectively such problems are addressed

and corrected instantly.

Contd … next slide

Measuring performance on inputs.

The effect on individuals …. 2

This enables:

1. Constant learning,

2. Appreciation and recognition of work done,

3. (or inability to perform),

4. Elimination of stress,

5. Accurate recommendation of rewards and bonuses,

in short, all that’s necessary to ensure retention. Conversely,

Attrition is almost eliminated and since failure to perform is

detected simultaneously, what is achieved is “Desirable

Attrition”

Measuring performance on inputs.

The effect on projects.

Inputs into each phase of a project is digitally monitored constantly. Any error or delay or related problem is instantly detected. This information is shared with the project leaders and the management, and when necessary, with each individual assigned to the task. This enables instant course correction and addressing the issue as it occurs. This enables every phase of the project:

• To meet the specifications or the scope. • Cost overruns are detected and corrected immediately.

Hence projects always conform to: 1. Specifications, 2. Schedules and 3. Financial projections.