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Individual Value Indicator (IVI) MethodologyCreating Organic ChangeA company is essentially a gigantic machine designed to achieve certain organizational objectives to create profit and growth. Our strategy to help the organization improve itself is to embed the means to refine practice at the point of execution; creating what we term organic change. We provide the means for performers within the processes to act optimally.Overcoming InertiaThe challenge is to overcome inertia. People tending to do the same thing every time and take the path of least resistance. It takes both our solution (the means to measure and the facts available in a way they can be used to do better) and a financial incentive (PFP) to reward based on measurable, compensable IVI's.Salient enables companies to institute a streamlined management approach which recognizes the significance of individual decision making at the point of execution. It requires that individuals at the point of execution have the Knowledge about their impact on those objectives; they are Empowered to take action towards those objectives; and they are Motivated. Salient calls this fundamental management style - Knowledge, Power, Stake.True Value ScoringWhile the Empowerment and Motivation are policies that each company must institute in their own style, the Knowledge is a primary result of deploying the Salient solution. Based on a framework of measuring each Entity (people, places, things) and Event (transactions), as constrained by Environmental factors (i.e. capacities, people, etc), Salient automatically computes activity values - such as costs, revenues, profit, growth, and unit productivity - from the raw details of everyday transactions and from data that describe the conditions and constraints of the business environment. Individual Value Indicators (IVIs) are computed as ratios, which ensure Value within Context (i.e. values to show unit (per-each) productivity such as volume / population = per-capita volume), and are tracked to enable individual performance improvement. These IVIs may then be rolled up to show process and ultimately enterprise Key Performance Indicators (KPIs). |
