1. Calculated Productivity and TBW Summary February 2015

2. Summary Current measure of an Engineer’s productivity in Team Based Working (TBW) is iPop We are replacing iPop with Calculated Productivity TBW at Engineer level will also replace iPop with Calculated Productivity This pack will run through all of the changes we will be making around Calculated Productivity and how it will work in TBW We have had detailed discussions with the CWU over recent weeks that have concluded with reached agreement of the replacement of iPop with Calculated Productivity

3. Why are we moving away from iPOP? iPop is a performance measure which was introduced to offer a balanced view of productivity. Although it has positives, there are elements to iPop that mean it isn’t an ideal measure of productivity. Some of the reasons behind this include: It only measures completions, not other types of activity Single iPOP value makes it difficult to get underneath detailed reasons for low/high performance Standard task times seen as unrealistic in some cases and not reviewed regularly Does not mix adjust the work Calculated Productivity is the measure we are moving to… so why is it better? Let’s have a better look into Calculated Productivity…

4. What is Calculated Productivity?... Calculated Productivity is a combination of the rate at which you complete tasks (Task Out Rate) and how many of these jobs were completed successfully without furthering (Success Rate) The rate at which work is completed over the course of a notional Engineers working day (456 Minutes). The opposite of furthers % - it is the amount of jobs that were completed successfully. The ratio of rate at which jobs are completed, and how many of those are completed successfully. Please be aware that calculated productivity is NOT a jobs per day measure. It is a rate measure and tells you how many task completions you have delivered over a notional period of 456 minutes worked across a 13 week period. It does not matter how many minutes your actual day length is as by treating everyone the same i.e. using 456 minutes for all, the calculation is the same for all regardless of your attendance pattern.

5. What is Task Out Rate?... Task Out Rate is effectively how many jobs for a specific product an engineer would complete in an assumed day measured over a 13 week period. Its calculated by assuming a figure for an engineer’s day, and dividing it by the engineers average task time per product. Task out rate is only influenced by the issue to com time. Absences such as leave, sickness, training and Non-task periods such as end-of-day travel, lunch or idle time DO NOT IMPACT Calculated Productivity So how does this work in an example?...

6. What is Success Rate?... Success Rate is looking at how many of these jobs engineers completed successfully and did not further It is basically the opposite of furthers If you have low furthers, you will have a high success rate Lets take it back to our example…

7. Real Life Example 1 – Normal Working Day Task Out Rate = 456 minutes divided by the average time it takes for an Engineer to complete their tasks over the day. In this example the average task time is 81.6 minutes ([82 + 60 + 92 + 10 + 54 + 110] / 5 tasks). Therefore we divide 456 minutes by 81.6 minutes, to get a Task Out Rate of 5.59 Success Rate = the amount of jobs completed successfully over the day (4), divided by the number of allocations (5). Therefore 4 divided by 5 = 0.8 (80%) Task Out Rate (5.59) x Success Rate (0.8) = Calculated Productivity of 4.47 Job 1, COM 08:0009:22 Job 2, COM 10:22 11:54 Job 3, FUR Job 4, COM 13:38 CAL, Com 15:28 15:52 Job 5, COM 12:0412:44 Lunch EOD one task split by lunch 82min60min92min10min54min 110min Relevant for Calc Prod A working day of an engineer:

8. Real Life Example 2 – Working day including an absence Task Out Rate = 456 minutes divided by the average time it takes for an Engineer to complete their tasks over the day Average time taken on tasks is (58 + 110) divided by 2 = 84 minutes Therefore Task Out Rate = 456 / 84 = 5.43 Success Rate = the amount of jobs completed successfully over the day (2), divided by the number of allocations (2). Therefore 2 divided by 2 = 1 (100%) Task Out Rate (5.43) x Success Rate (1) = Calculated Productivity of 5.43  So an engineer could only do 2 jobs over a working day, yet have a calculated productivity over that day of 5.43 4 hour Absence 08:00 12.00 Job 1, COM 13:38 CAL, Com 15:28 15:52 Job 2, COM 12:40 Lunch EOD 240 min40 min58 min110min Relevant for Calc Prod A working day of an engineer:

9. However when you add together the tasks, time, completions for Skill A and Skill B combined, Engineer 2 has a higher overall calculated productivity / lower Avg. Task Time / higher TOR / higher Success Rate This is all due to the differences in task proportions (work mix) that the two engineers carry out across the same period of time. Looking at the overall measures across skills combined is not a fair way to understand relative engineer performance For Skill A - Engineer 1 has a higher calculated productivity than Engineer 2 due to a lower task time and higher success rate. The team result for skill A is engineer 1 and 2’s results combined. Mix-Adjustment for Engineers (i) Looking at the overall Calculated Productivity in isolation is insufficient For Skill B - Engineer 1 has a higher calculated productivity than Engineer 2 due to a lower task time and higher success rate. The team result for skill B is engineer 1 and 2’s results combined.

10. These are the overall Team’s results for the same two skills, showing Avg. Task Time, TOR, Success Rate and Calc Prod for each skill. By applying the same work mix that Engineer 1 carries out (80%/20%) to the overall Team’s results, the equivalent ‘Mix-Adjusted’ results are calculated: Mix-Adjusted Team Avg. Task Time = 80%*124 + 20%*81 = 115 Mix-Adjusted Team TOR = 456 / 115 = 3.95 Mix-Adjusted Team Success Rate= 80%*79.2% + 20%*88.6% = 81.1% Mix-Adjusted Team Calc Prod = 3.95 * 81.1% = 3.21 So for this engineer, if the team had done the same mix of work that they had done, then the team calculated productivity would have been 3.21. Engineer 1 has a calculated productivity of 3.34 and is therefore completing work at a higher rate To remove the impact of engineers having different mixes of work issued to them, we calculate what the overall team would have achieved if it had done the same mix of work that each engineer within the team actually did across the same period of time. Mix-Adjustment for Engineers (ii) What the overall Team would have achieved for an individual engineer’s work mix This is the work mix done by engineer 1.

11. Now by comparing Engineer 1 against the overall Team’s ‘Mix- Adjusted’ results, it can be seen that Engineer 1 performs better than the overall Team for the same work mix. For example, Engineer 1 achieves a Calculated Productivity of 3.34 while the team would have achieved 3.21, i.e. the engineer performs 4% above team average. Having now established the overall Team’s results based on the same work mix as done by an individual engineer, a correct comparison of performance can now be made for the individual engineer. This process is repeated for each engineer, each time taking the specific work mix of the engineer into account. We also only compare home parkers to home parkers and yard parkers to yard parkers. Mix-Adjustment for Engineers (iii) How an engineer compares to the overall team Now by comparing Engineer 2 against the overall Team’s ‘Mix- Adjusted’ results, it can be seen that Engineer 2 performs at a lower rate than the overall Team for the same work mix. For example, Engineer 2 achieves a Calculated Productivity of 3.57 while the team would have achieved 3.73, i.e. the engineer performs 4% below team average. Comparing at the individual product / skill level does allow for comparisons on relative performance Comparing overall (across all products / skills) performance i.e. Engineer 1 and Engineer 2’s actual calculated productivity / TOR / SR results is not meaningful and should not be done.

12. Why is Calculated Productivity more useful than iPop? Engineer performance is Measured against (local) peers – it’s not a fixed or UK-wide target. Engineer Productivity is mix-adjusted by the type of products they work on. Measures time spent doing ALL tasks and how well they are done e.g. Furthers are counted. This better reflects an Engineers work than iPop. It is broken down into key components (Task-Out Rate and Success Rate) which allows Engineers visibility underneath high level measures. Simplicity - For Engineer and Manager, it looks at specific work types versus a rolled up composite measure. The score is broken down to Task Out Rate & Success Rate at Product level, so clear guidance where improvements are required by product can be given, allowing for more relevant coaching conversations. Only Time on tasks is considered inc. travel time, but not non-productive time

13. Calculated Productivity will be calculated over a rolling 13 week period and presented on a visualiser to view performance compared against peers. This can help to identify good performance as well as identify the areas where we can support the engineer to improve There will be quintile groupings in the visualiser for comparison purposes which will avoid the need for there to be a RAG status. There will also be a rolling 4 week average view presented All tasks will be included on the visualiser regardless of the level worked on a particular product over the 13 week period. For the purposes of coaching conversations conclusions should not be drawn unless the level of tasks for a particular product is sufficient to suggest a performance trend Coaching plans related to productivity should use the Calculated Productivity information to focus the plans on ‘how’ an individual can improve their performance in a given area/product. Similarly coaching plans should focus on performance improvement with a limited number of clear actions on identified products. Product related actions should not be spread across the whole portfolio of products, task out rates and success rates Coaching plans are normally for a period of 4 weeks to enable timely feedback and focused reasonable incremental improvements, however where the discussion determines that the required targeted improvement cannot reasonably be achieved within 4 weeks, there is the discretion for the plan to have a longer duration, and the manager will seek to agree this duration in discussion with the team member. As is currently the case, where appropriate, there may also be certain behaviours that if addressed could improve overall performance e.g. start and end of day routines, COM’ing as you go etc. These behaviours, where relevant, may also be highlighted in coaching plans so as to further help any performance improvements Coaching Guidance Coaching

14. If I am good in iPop, will I still be good in Calculated Productivity? ~80% of Engineers saw minimal movement in their Productivity positioning (+/- 2 positions) within their SOM, with Calculated Productivity compared with iPop ~10% saw a greater improvement, ~10% saw a greater drop We see a difference for a few reasons: o Time for Furthers are included in Calculated Productivity o Calculated Productivity compares against Peer averages, for the same mix of work, rather than set national task times o Because of these it is a purer measure – it recognises overall efficiency as opposed to just how fast tasks are completed. For the ~10% of Engineers where the change in measure has led to decline priority will be given to discuss this with them and explain why their iPop is different to Calculated Productivity with time and support to address Engineers seeing decline Engineers seeing limited change Engineers seeing improvement ~10% ~80% ~10%

15. 15 At Engineer level there is very little change – the only one being replacement of iPop & Furthers, and the inclusion of Calculated Productivity all calculated over a 13 week trend Productivity still holds exactly the same weight as Quality, and will hold the same level of importance when reviewing overall Engineer performance Engineer Calculated Productivity within TBW Assists Raised

16. Acclimatisation Period The interim agreement covering existing informal and formal coaching plans will end on the introduction of Calculated Productivity The Acclimatisation period will run for a period of 6 weeks from the date of implementation to give time for individuals to transition to the new measure, and will apply to all engineers including those currently on formal plans During this period while managers and engineers will have normal coaching discussions and create informal coaching plans, they will not progress existing or new informal plans to the formal stage. The existing formal plans will remain in place. At the review of existing plans consideration will be given to progress on iPOP as well as Calculated Productivity. The overall performance picture will be used to decide whether to continue or end the current plan. No formal plans will progress to the next stage during the acclimatisation period to enable the insight from Calculated Productivity to be addressed Coaching discussions will prioritise engineers on formal plans as well as where the Calculated Productivity measure has resulted in the relative productivity outcome reducing due to the change in measurement. Managers will work with engineers to understand the root cause for the Calculated Productivity outcome and identify coaching opportunities that could be put into place - it is important to recognise that for some, particularly those where productivity outcome has reduced, this may not be an area of performance that has previously been discussed or understood to be impacting performance