May 1, 2025 • 46 mins
Operating an organization as an “integrated, coherent whole” is something most CEOs aspire to have… But it is RARELY accomplished. Not achieving this level of integration causes disfunction, waste and creates a miserable work atmosphere of frustration. It is disheartening… and, like a Natural system, like a human body, it is not healthy.
What does it look like when a company functions like a living organism — where every department, system, and person operates in mutual support of the whole? In this dense, highly practical episode, Andrew Reed unpacks the architecture of a truly integrated organization. Drawing from Multi-View’s work with over 1,300 companies, he reveals how high-functioning organizations rely less on talent and more on system design — using compensation, standards, and culture to wire the business together like a central nervous system.
This is a masterclass in systems thinking, focused on one foundational truth: fragmentation kills excellence. Reed explains how to build a culture where every action is aligned with purpose, financial health, and long-term quality. From compensation structures to people development and the groundbreaking Multi-View org chart, this episode lays out a blueprint for leaders serious about coherence, accountability, and lasting impact.
Chapter Markers
(00:00) – Intro
(03:34) – What Nature Teaches Organizations
Translating natural intelligence into organizational structure and interdependence.
(04:58) – The Multi-View Model Defined
Dynamic, behavior-based, and results-driven — how MBI redefines quality and performance.
(08:38) – Selling Certainty, Not Just Services
Why predictable experiences matter more than perfection.
(12:07) – Purpose + Financial Reality = Sustainable Culture
Why leading with meaning drives the best economic outcomes.
(14:37) – System Over Star Talent
The most successful companies invest in design, not heroics.
(17:43) – Compensation as the Great Teacher
How to wire accountability, harmony, and learning directly into pay systems.
(23:37) – The War Against Siloing
Disconnected departments = a sick system. Alignment is non-negotiable.
(28:59) – Rethinking the Org Chart
Putting clients at the top, leaders in service, and people development at the center.
(36:08) – Objective Monitoring & Radical Transparency
Data-driven feedback that eliminates subjectivity and transforms management.
(40:26) – The Ten-Two Redundancy System
A powerful cross-training model that builds flexibility and prevents fraud.
(44:23) – Direct Accountability is Non-Negotiable
Why success or failure always comes down to clear lines of ownership.
Song: If All the World Were Right - andrew reed & the liberation
Album: If All the World Were Right (Trilogy II Album 1)
Social Media Links
https://www.youtube.com/user/mvimedia
https://www.linkedin.com/company/mviteachers/?viewAsMember=true
https://www.facebook.com/multiview.incorporated
https://www.instagram.com/multi.viewinc/?hl=en
MVI Phone #: (828) 698-5885
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:12):
Creating the perfect company from the organizational
experts MultiView Incorporated.This content is based on MBI's
work with over 1,300organizations extracting nine
eighty nine data elements withnine twenty two cross
calculations over twenty sevenyears on a monthly basis and
(00:35):
then systematizing theoperational success patterns of
the ninetieth percentile. Ourintent is to get beyond the brag
and the boast and simply shareinsights from our experience
without manipulation or coercionto sell anything except helpful
ideas. These messages range fromintimate recordings from the
(00:58):
Awakened Forest to concerts,national conferences, and
broadcasts.
Speaker 2 (01:09):
Operating as an integrated coherent whole, where
all parts of the organizationwork together. This is probably
something that all CEOs andfounders of organizations aspire
to, and it makes sense. Know, wewant to believe that everybody
in the organization is unifiedand moving in the direction,
(01:35):
it's much more difficult thanthat. Is that not true? And so,
again, with all our work, withall of this 1,300 or so
organizations and training allthese leaders, we've picked up a
lot of things, I'll say, throughthe years that have been just
groundbreaking regarding how toactually do this.
(01:58):
And I'll just say this. When Iwas forming Multiview, I'm a
system analyst. I was a musicianand had great success in music
and all that. And then, ofcourse, I had to reinvent my
life after I breached my sixyear contract. And I had to
reinvent myself, so I became acomputer programmer and then the
(02:22):
CPA and all that.
But when I was programmingcompensation systems. So I
became a system analyst, reallydirecting programs. I found out
I kind of had a talent for doingthat for customer service and
taking care of, you know,clients, of course, but also
communicating with programmerswhat needed to be done in all
(02:42):
this. And I'll just say this,that system helped me
tremendously, you know,identifying the critical path,
realizing that not all eventsare linear, that we could have
all kinds of initiativeshappening at the same time,
Gantt charts, what have you.Yeah, that led to a lot of this
(03:04):
this idea of operating as thisintegrated coherent whole.
Obviously, all my time innature. Also, I I think I heard
Gerber and some different peopletalking about this, and I go,
wow. That that is a marvelousway to to look at things. And
then, taking that higherintelligence of taking, the
(03:26):
abstract, which would be nature,and saying, well, how does
nature work? And what patternscan we observe?
Again, we think of asintelligent. And then bringing
those patterns and then reallytransposing them onto an
organizational context andtrying to really get the
(03:47):
organization to work as thissystem of mutual reliance, where
it's much like a natural systemthat if you break your arm or
whatever, all parts react toprotect and help in the
defective area rather than beingoblivious to it and just going
on, well, it's just about, youknow, the right leg today, and
(04:08):
then today it's just about thelungs, I'm just thinking about
me. No, natural systems don'twork like that. And so we should
aspire to emulate that to alarge extent, and we have found
that you can indeed do this. Andso when we talk about operating
as an integrated coherentcompany, In a nutshell, we might
(04:33):
kind of language it like this,for marketing to promise exactly
what operations can actually do,and for operations to do exactly
what marketing has promised, andfor indirect and support areas
to make sure that marketing andthen operations have everything
(04:55):
they need to be successful.
It might be just as simple asthat. So this gets us to the
definition of the MBI or theMultiView Incorporated model.
And, of course, when we formedthe organization, we were
primarily system analysts andCPAs, very good with the numbers
(05:20):
and all that. But we soon foundthat if you really want to move
the numbers, if you want to betruly effective, you've got to
understand the realities ofhuman behavior. And so that's
really where our focus hasreally went for the last twenty
some odd years.
And so the model is more thanjust operating by percentages of
(05:45):
net revenue, rather than somekind of static budget. Static
budgets are great for managingprojects with limited duration,
but they fail miserably formonitoring really ongoing
operations. You need dynamicfeedback, And that's really what
(06:08):
the model does. And so we teachorganizations really how to
simplify things on all level ofthe organization. And people
learn to live within theirpercentages of net revenue.
So really, MBI is really aquality program, but it takes in
both the quality aspects andperfect interactions, perfect
(06:30):
phone interactions, perfectvisits, perfect products, all
this, of course, perfect meaningto the standards of the
organization. And of course, asa byproduct, or I should say a
natural byproduct of doingquality, you have phenomenal
economics as well, but as anatural byproduct of doing
purpose well. So let's put adefinition around the, quote,
(06:55):
MBI model. It is the creation ofa high quality, predictable
experience. All these words havegreat meaning.
Of course, the model itselfindicates intention, design.
Most organizations are fairlyorganic. Their models, I mean,
they have models, they'veusually evolved over time, but I
(07:17):
question whether they're great.Most of them fall in what? The
fiftieth percentile, becausethat's the best they know how to
do.
If they knew how to do better,they'd be doing it. So the model
is the creation. We are all inthe act of creation all the
time. Every time the phone ringsat your company, you're creating
(07:37):
a feeling. Every time you have apersonal interaction, you're
creating a feeling.
Every time someone picks up oneof your materials or your
products, are they feelingquality? But you're creating a
feeling. So we're constantly inthe creation business. Of what?
High quality.
If people don't want to aspireto high quality, go work for
(08:00):
Bottom Feeder organization downthe river. I mean, hey, no, we
are the milquetoastorganization. We only do
mediocre work. Forget it.Everybody wants to aspire to do
something great.
High quality. Okay, so the modelis the creation of a high
quality, predictable, andpredictable is another important
(08:20):
word. Why? Because in business,whether we're selling a service
or a product, we are sellingcertainty. And then we've got
manuals on human behavior andselling certainty, but that's
what people want.
And what kind of certainty orpredictability? The experience,
(08:43):
the feeling. So the model is thecreation of a high quality,
predictable experience, or youcould substitute the word
feeling, because human behavioris guided by emotions and
feelings. We think we'relogical. But normally purchase
decisions are made on a feelinglevel first, and are secondarily
(09:07):
supported by intellectualjustifications.
Even if we think we're a smartguy or a smart gal and we gather
all the facts, you're nevergonna have all the facts.
There's gonna be this element ofthe external world that you're
going to have to dance with orinteract with, which, you know,
(09:28):
brings in probability and allthat. So you can do your best to
gather all your data and allthat, be the smart guy, but then
you end up making a snapdecision based on your gut, your
feeling, and then on your drivehome, Yeah, that was good reason
(09:48):
because this, and, you know,it's a long term store of value,
and we can resell it later on ifit goes bad, we can do, you
know, whatever your rationaleis. But that's just the way
human beings work. And probablyanybody listening to this can
identify with making a decisionand then the drive home
(10:09):
intellectually justifying it.
So emotions and feelings are atthe foundation, I'll say, of
MultiView, and that's why wehave the patient chair and all
this. And when we formed thecompany years ago, we knew that
we were gonna thousands of phonecalls every day from companies
(10:29):
all over the country of allkinds of different sizes. Some
have 100 employees, some have13,000. And that experience had
to be great. We had to build iton the big R, or should I say
relationship.
And that built such a solidcompany where the brand loyalty
(10:51):
was so great, a member of peoplewould try to buy us and said,
Well, how long does your typicalcustomer last? And, you know,
we'd kind of scratch our headand go, Well, they really don't
go away. We might lose one ortwo a year. And that's usually
because of a merger or somethingoutside their control where
(11:13):
they're absorbed by something.But it's never due to you
screwed up here or servicefailures or complaints.
It's always, y'all are great.Again, we, our standards are in
a place where, I mean, forexample, the longest we've ever
(11:34):
went with a phone call not beinganswered by a real person, not
an automated system, but a realperson, a competently trained
person, within three rings, Thelongest we've ever went is four
and a half years. Our average isreally probably about two and a
half to three years. Whereas alot of organizations, they have
(11:58):
screw ups and service failuresand complaints every day, and
they think that's normal. Ithink we have to be very careful
what we tolerate as leaders.
All I know is if there's servicefailures and screw ups, I'm
gonna rip somebody's lungs out.Of course, I'll do it in the
nicest way possible, but there'sgonna be pain. You could also,
(12:25):
let's add another definition.The model is the creation or
design of a company culture thatsimultaneously balances purpose
and financial realities tocreate a sustainable world class
experience. Okay.
So again, this idea ofintention, you're designing your
culture, and we'll have othermessages that will go into that
(12:48):
deeper, that simultaneouslybalances purpose and financial
realities. And I always elevatepurpose higher than financial
realities, because if we do agreat job at our purpose,
normally again this naturalbyproduct of incredible
economics, I mean hundreds ofpercent above the fiftieth
(13:10):
percentile, are usually achievedas a result of doing quality.
Steve Jobs, I remember, made anincredible statement that I
remember that the differencebetween Apple, which at that
time was the most valuablecompany on the planet, which he
turned it around from almostbankrupt, is that we were
(13:34):
focused on creating art. We werefocused on creating this high
value purpose, and the money wassecondary. Whereas if you switch
that around and we're going forthe money, yeah, we're all gonna
get rich doing this, and thenthe purpose is down here, that
just doesn't have the juice.
That is not the compellingvision that most people that are
(14:01):
going to be employed in thatenterprise are going to get
behind. It will surely motivatethe few greedy, but not all the
front lines, the people in thetrenches, the people that you
got to learn to love and takecare of. So we're building this
integrated, coherent company.And we're going to focus more on
(14:26):
system solutions rather thanpeople solutions. A lot of
people, they try to hire thiswinner, this change agent that's
going to make our life better.
And though that's partially truethat that can happen, most of
our success is going to bestructurally dictated by our
(14:47):
systems and processes and beingsmart about designing these.
What kind of structures andprocesses are you talking about,
Andrew? Well, I'm talking aboutall the ways that you interact
with your customers. Perfectphone interactions, perfect
visit designs, perfect manuals,perfect products. This
(15:12):
revolutionary levels of ofquality.
You know, your your trainingsystems, your compensation
systems, those are probably thetwo killer of killers because
your people systems are soimportant because all of your
quality flows out of you as aresult of the quality of your
(15:32):
people. And as we say, yourquality is no more or less than
the quality of your peoplesystem. Notice I didn't say your
quality is no more or less thanthe quality of your people,
though that's true too. Focusingmore on the quality of your
system rather than the people.And your compensation systems
(15:59):
are the other key, key system,because as we go into this topic
a little bit more, we'll realizethat this is how we're going to
wire all of our differentlocations, sites, indirect and
supportive departments togetherto be this really integrated
(16:20):
whole.
Okay? As far as we know, aftertwenty seven years of doing this
and working with hundreds andhundreds of companies, the only
known or practical means thatyou wire all of your
(16:41):
departments, your regions, yoursites, your locations, your
product lines together isthrough your compensation
system, where it's designed toincentivize harmony and internal
delight. Again, internal delightfirst because why? Because
(17:03):
that's what flows out to thecustomers. But it starts with an
inside job.
You know, just like this naturalbody system, when the body
system's sick on whatever level,it's you just can't function the
way that you need to. But yourcompensation is equivalent to
blood or air in a human system.It's the flowing thing that
(17:25):
circulates all through. It'salmost a communication
mechanism. And compensationprovides this powerful
communication of each area'sduty for maintaining really the
health and the welfare of thewhole.
So your compensation system isthis great communicator. The
(17:48):
compensation is perhaps yourgreatest teacher in that people
look at their paychecks and go,Woah, that worked out. I think
I'll do more of that. Oh, thatdidn't work out. I think I'll do
less of that.
And probably most importantly,it should be designed to do your
accountability for you. This iswhat MultiView espouses. Design
(18:11):
your compensation system to doaccountability for you, to do
the heavy lifting. And why isthat? It's because of the truth.
After training over 10,000leaders, your leaders, your
managers will not effectivelyhold their people accountable.
(18:36):
I'm going let that set in. Yourleaders, your managers are not
going to effectively hold peopleaccountable. They're going to
delay the pain when it needs tobe administered, when someone's
not doing the standards or thevows of the organization. It's
like, Oh, I don't want to havethat meeting today.
(18:57):
It's going be a rough day. Theydelay. And all such delays cause
an extension of the nonstandardor the subperformance. And
there's the breakdown. So thecompensation system is really
(19:20):
your key because you cansensitize all of your
operational systems.
In health care, it's your EMR.It also would include your
general ledger or your financialsystems where they can be
sensitized to detect nonstandardperformance. You still need
managers, of course, andleaders, to observe, the
(19:46):
different behavioral standardsof the organizations, but those
that can be quantified can beextracted and monitored from
your different systems bysensitizing them. So with this
said, you want your comp systemto do the accountability for
you. And this reallynecessitates having four things.
(20:07):
First of all, clear standards.Most organizations, you can say,
what are your standards? Well, Idon't know, you know, and so
thus people don't even know whatquality really looks like. And
these standards really need tobe for every area, discipline,
department, site, location,region. You want to have as few
(20:29):
standards as possible, ofcourse, too, because the more
standards you have, the more youcomplicate everything, and it
exponentially increases things.
So you want to have things asuniform as you can, but you have
to have standards. That's reallythe starting point for so many
organizations, and it's one ofthe places where we really
(20:53):
excel, just getting down to thecore, because people will tend
to overthink things, and they'llget in meetings that form a
committee, God help us, which isbasically constipation at an
epic level. That's all the bestideas are neutered down, and
(21:13):
there's all these concessionsmade to weaker members and
voices and whatever, and thatguy that's sitting in the back
that's kind of quiet that hasthe brilliant idea, that's
quiet, of course, and he'signored. So we help people get
clear with their standards, getthat picture of the results that
they really want for every area,discipline, department,
(21:36):
location, all that. Two, whenyou have the comp system do
accountability, you also have tohave effective training systems
to communicate the standards andthe result picture that you're
trying to get.
And you want to train people, weuse a system called System
seven. In Six Sigma, it'd becalled intensive training, but
(21:57):
you want to train people to thepoint where it's impossible for
any employee to not know thestandards or the results you're
after. Just words binary. Eitherpeople can do the job or not.
And that makes things, easier.
When you train people to, curveor you allow really any
(22:21):
deviation, you create all theseholes, or I'll say knowledge
deficits. And if if if you testpeople even to a 90% pass level
in however you evaluate youremployees, well, even for 100
employees, your screw up factoris exponentially compounded. You
(22:44):
don't know who knows what ordoesn't know what. Okay, three,
we need a means of measurement.I mean, things that are easy to
look at and digest, asuncomplicated as possible.
And this is where we simplifyusually measurements, since
(23:04):
we're great at measuring. Wefind those critical
measurements, because we foundif you measure the critical
measurements, it may satisfy 50other measurements. And so just
by doing the one well, itsatisfies all these other
requirements. And the fourththing, of course, regarding
accountability in yourcompensation system is the
(23:25):
alignment of the compensationsystem with the standards and
results. So all of these thingsconnected help us create this
integrated whole.
Again, if people are not doingthe results or the standards
that are needed, They need tofeel pain, just like, again, a
(23:45):
body system, because it'sunhealthy for any department,
organization, site, whatever, tobelieve that they are separate.
We call this siloing. And aslong as they think they can
operate independently from therest of the world, from the
other service lines or whatever,it's not healthy for the whole.
(24:08):
In healthcare, obviously, wework a lot in the post acute.
Not that we can't work all over.
I mean, work for an investmentfirm since we're pretty good at
the money. Anything thatinvolves customer service, fast
food, what have you. But, so ifyou have people camping out in
one service line, like a homehealth or whatever, well, that
(24:32):
may be good for a time, but ifthey decline, then you want to
get them into something else,you know, maybe hospice or
whatever. So you want to keepeverything connected, because
it's unhealthy for onedepartment or site or whatever
to believe that they areseparate, or as we say, silo
from others. And so if you havemultiple service lines, and
(24:56):
some, let's say it'scomplimentary products or
whatever, and so there might bea level that you take clients or
whatever, where you get them setup, you get their equipment set
up, or in healthcare, they're ata certain status where we're
seeking cure or to get better,But then there's a certain point
(25:18):
where you don't want them tostay there.
It's not good for them. It's notgood for the organization. And
so they need to be transferredto the next department, let's
say in healthcare, to get thathair. Or once the machines or
whatever are set up, you know,we need to transfer over to the
ops team, or whatever yoursystem or flow is from your
different service lines. Well,how do you do that?
(25:41):
You do that through yourfinancial incentives, that if
it's not done within a certainperiod of time, if this happens
by this dates, dates are greatfor doing this. Here is the
negative financial consequencefor not doing this. You always
have to, of course, have plentyof upside in a in a good comp
(26:01):
system, but you definitely haveto provide the disincentive, to
cross the line and and not getclients really through your
system as needed. And let me saythis about intercompany,
interdepartment issues. They aregoing to be the toughest issues
(26:23):
that you face as a leader or asa founder of your organization.
It's not so much the battle withthe external world so much.
It's, you know, here, we gotthis division doing this, and
then we've got this service linedoing this, and then we got our
indirects, we got our IT, HRcompliance, And you'll just find
(26:45):
that there'll be all theselittle empires that will form,
and of course, they're lookingfor their own, out for their own
self, interest. And again, thatis exactly what we're trying to
defeat by making this integratedcoherent organization where they
all pull together. That's whyin, through the comp system, has
to be, again, where there's somekind of shared benefit for when
(27:09):
the organization wins byproviding the function at the
assigned cost, not 1p abovethat. You go 1p above it, then,
you know, 20% of the salary ofthe leader or that whole team is
gone.
But then if you beat your modelor your percentage, you get a
large portion of that that youcan distribute among your team.
(27:32):
It's got to be set up somewhatin a proportional basis in order
to really integrate it, andthat's really key, and that's
why budgets and things like thatjust are not effective, because
they don't flex or move withreality. Let me just say this.
The problem with budgets, andI'm not going to go into my big
talk about that, is that theyconfuse things because you're
(27:56):
dealing with two differentvariables. You have a volume
variable and you have anefficiency variable, and you
cannot tell the differencebetween the two in a static
budget.
There's all kinds of otherhorrific things that happen in a
static budget. Usually there'sbudgetary slack built in.
There's all kinds of paddinggoing on and and and what have
you. People actually think theycan spend the entirety of the
(28:17):
budget. All these things thatare not healthy, whereas when
you strip away the volumevariance and make something as
much more flexible that goes upand down with fluctuations of
revenue, well, at that point itbecomes an efficiency variance.
So you're just saying, with therevenue that we have, how well
are we managing in proportion tothat allotted to us? And so
(28:43):
there's the cost question, arewe doing it for the cost that's
been assigned or engineered forour area? And then the secondary
question is the qualityquestion. Is the function being
done to the standards of theorganization? Now let's talk
about the organizational chart.
Most people have the pyramidscheme, I'll call it. Basically,
(29:03):
you have the pyramid with theCEO, the head honcho on the top,
and then it cascades down to thepion levels. And then the
slightly more enlightenedversion is the upside down
pyramid scheme with the CEO inthe bottom. We call this servant
leadership, and that's slightlymore elevated and calibrates a
(29:24):
little higher on the scale ofconsciousness. But we're gonna
share with you the MBIorganizational chart.
And, I was paid by this largeWall Street company, tremendous
money to come up with this newcompany design since we have a
knack for doing unique thingsthat actually work. And we came
(29:48):
up with this very differentlooking organizational chart. So
let's take a look at it. And ifyou can get on our website, you
can get a copy and see what thislooks like. But at the top of
the chart, rather than it beingthe CEO or whatever, the boss,
(30:08):
as we call it, are our clients,our customers.
They will write every paycheckwe will ever receive, and they
will discharge us if they'redispleased. So that's really the
top of everyone's org chart. Ithink you can also add the
sovereign of this universe. Youcan add God at the top if you
(30:32):
want to. But that boss better bethere that actually writes the
check.
Okay. Then below that, frontlineemployees, our machine
operators, our clinicians, allthat, the people that are
actually providing the service,our technicians. And then we
come down to the third level,which is our site, our location,
(30:54):
our team managers. And this isthe supercharged area that we're
going to put tremendous focus onas you listen to more and more
of these messages. We'll talkabout creating extraordinary
leaders and extraordinarymanagers.
And this really comes from,again, my good friend Norman,
(31:19):
when we were building that worldclass organization, is he read
in Gallup that 70% of thedevelopment, morale, and
retention of an employee comesfrom the relationship of the
immediate manager with theemployee. Let's focus on that.
(31:40):
And we did, and that's how wewon the award. Obviously, we
were completely systemic andorganized about how we went
about constructing anddeveloping our business. But we
weren't focusing on frontlineemployees.
And that's a mistake that we seeso many people. Why? Because of
that 70% principle. Again, I'llsay it again. 70% of the
(32:01):
development, morale, andretention of frontline staff
come from the relationship withthe immediate manager.
These need to be inspirationalfolks. They need to be able to
change lives. They need to bereal leaders. And so that's
where we put our eggs, oureffort, and put laser beam
(32:21):
focus. And it paid off likecrazy.
And for any company that MBIhelps manage or partner with or
do magic engagements, This iswhat we do when we teach people
how to do that. Okay. Then thenext level is a singular level
with one person, the COO. TheCOO actually runs the company
(32:46):
because we have the CEOelsewhere. So here we've got
somebody in a senior leadershipposition who's actually learning
the ropes of how to run things.
And they usually come with agreat degree of talent, usually
experience or whatever. Butthey're really your number two,
(33:08):
and we need this for redundancypurposes. And then in the
center, in the great big center,which could be a heart, a big
circle, whatever in your orgchart, is people development.
Because at the heart of any MBImodel company is the idea that
(33:29):
we are teaching organization,that we are empowering
organization. And as all qualityis going to come from the
quality of our people system,this is where we really need to
put the bull's eye.
And so in people development,this is where you're going to
find where the CEO spends mostof their time, and we have
(33:50):
proportions of time that theywould spend. Obviously, they're
doing their CEO stuff, butthey're really focusing and
being that real leader. This iswhere the CFO would be doing a
lot of teaching, as well as someof your other key operational
people, your top teachers, yourtop topical experts. Again,
(34:11):
passing off this expertise tothe people that run your company
and work in it. And so that's agreat deviation for most
organizations.
But becoming a teaching orempowering organization, I can't
tell you how much good that willdo for human beings. It provides
(34:34):
incredible inspiration. Peoplelearn how to provide customer
delight, how to be much moresensitive and conscious to the
feelings of other people, andjust how they go about not only
their work, but their lives.This is amazing. And most
organizations, you you walk intotheir organizational space and
(34:57):
you cross the threshold and it'sbeige.
It's the color of light turds.And then I say, okay, well, you
know, let me see your tests. Oh,well, we don't test, really?
Really? You know, like, Is thisa joke?
What about your positionobservation? What about your you
know, and they just don't haveanything put together. And then
(35:18):
they wonder why they're fiftiethpercentile. Well, there you go.
Then at the bottom of the orgchart is supporting services.
And this is really where youfind, all your indirect
functions. This is where youfind HR compliance, finance, IT,
(35:38):
marketing. Even the board ofdirectors would be down in this
area. If we're not for profit,you might find your development
down there, but they aresupporting really everything
that's above it. Sometimes, youyou see the board of directors
at the top and really, no, theyneed to view themselves as, you
know, how can we be of serviceand helpful to support all those
(36:01):
people on the front lines thatare actually making this
business happen.
And then to complete the orgchart, you have this strange
square off to the side, which iscalled objective monitoring.
Okay. This is an MVI creation.We're the only company known to
(36:22):
do this because I'll just saythis, it takes a lot to set this
up. You have to be, have allthese computer programmer guys
and system analysts where we cango into different systems and
then pull out the pertinentdata, basically the
sensitization of youroperational systems, and go into
your financial systems, as wellas the benchmarking, all that,
(36:44):
and pull this out so that we canprovide this objective view of
your organization.
We don't want to know everyperson in your organization. We
don't want to know them at all.We don't want to see pictures of
them. We don't want to knowabout their families or
whatever. Everybody's a numberto us.
(37:04):
Because if we know about them,it's going to cloud our
judgment. It needs to be blackand white. And so when we're
pulling all this information,processing payroll, the comp
system, you know, providing thisfeedback for people, it just
needs to be black and white withno deliberation of, Oh, this is
(37:26):
gonna hurt them, or whatever.No, this is the result. And
we've got a clever way of doingthat, but I'll just say this.
When we're pulling stuff, assoon as anything that's
nonstandard, or that is to thestandards of the organization,
is detected, a non woundingemail goes out to the person
(37:50):
that's responsible, that'saccountable for this, and then
the supervisor or leader iscopied so they know how to coach
this person, so they don't haveto be the bearer of bad news.
They don't have to contemplateall night that, Oh, I gotta have
this big meeting tomorrow. It'salready done. And this
completely changes or transformsthe role of the manager, rather
(38:14):
than the hard ass coming inthere and, Oh, I got some
reprimand people. No, it's like,Oh, I know you got the email.
Let me help you. And so itreally transforms them into the
role of a coach. This isamazing. And that's the org
(38:35):
chart. And I would like to addthis, too.
Once you get quality, moving inthis world class direction,
where you can go thousands ofinteractions without a single
screw up, a single complaint,all this, you supercharge your
(38:58):
comp system because you have to.I don't know anybody that's ever
gotten to the ninetiethpercentile statistically as an
organization that has not usedcreative compensation systems. I
mean, let's just be blunt aboutthat reality. You're never gonna
get there if you're just payinghourly and salary. And we got
whole books on this and how todo it.
(39:22):
But as you increase yourquality, you can flatten your
indirects, your GNA, whateveryou call it, and you can get as
flat as a pancake, because youjust don't need that many people
in supportive areas. So you canjust picture this little pad of
(39:42):
butter on top of this pancake,and there's no need for regional
supervisors or any layers exceptfor the straight line between
really the CEO and the siteleaders for, let's say, you have
50 locations or whatever acrossthe country. There's no need for
(40:03):
anybody in the middle tomisinterpret you, to
miscommunicate or whatever. Youhave a direct communication,
which is way more efficient, andyou save a bunch of money
because you just don't need allthose extra FTEs. And people
(40:23):
could say, well, geez, you'rerunning pretty lean there,
Andrew.
I mean, what if somebody getssick or whatever? Well, then
we've got a system that'smonitored by HR called system.
The Tentwo system is basically apattern that we try to apply to
all positions that we can, allyour critical positions,
(40:46):
billing, AP, you know, whateveroperational functions you need.
But it's basically this, is thatpeople only work in a certain
position for ten months of theyear, and two months of the
year, they have to, nonconsecutive months, I should
say, they have to work inanother position. So you may
have your biller that worksthere for ten months of the
(41:07):
year, but then twononconsecutive months, they work
doing AP or an HR or whateverarea of interest that they would
like to grow in.
And this is tracked. In fact, ifthis is not required, there's a
financial hit that departmentleaders experience, you know, if
(41:27):
they're not doing that, becauseyou always have to have that
redundancy in the system. Andthis Tentwo system does some
amazing things. There's at leastfour things, and you might call
it cross training, whatever,building in redundancy, but it
does at least four things asidefrom building or empowering a
(41:48):
human being by giving them morevalue as far as their skill
levels. First, it obviouslyprovides a backup person.
So if someone gets sick orwhatever, and so they can carry
on this specialized functionskill in their absence, okay? So
check that off. Second, becausepeople work in it infrequently
(42:09):
or relatively infrequently, onlytwo months of the year and
they're not even together,normally this causes, the
processes to have to be writtendown. So thus they're
documented, which of coursesatisfies, the documentation
aspect of standardization.That's good.
Okay. Three, it supports theorganization's paradigm of being
(42:31):
a teaching organization firstand foremost. And so there's
this school, ideology ofempowerment and all that, and
people like that. And fourth,and I was not expecting this
when this system was developed,it breaks the fraud triangle,
making fraud and embezzlementmuch more difficult without
(42:56):
collusion. And I remember thefirst time I put it in, at this
company, the AP clerk justdidn't want to do this system,
you know.
She's a hard worker, the bestworker probably we ever had, you
know. And, nope, you've got todo it. You need to, you know,
change out with Betsy Lou here.And, what did we discover? She
(43:20):
had embezzled over a half amillion dollars, but we were
making so much money, wewouldn't even feel that.
So it goes a long ways to reallybreaking up the fraud triangle.
Again, making fraud andembezzlement much more unlikely
unless there's heavy collusion.And the other thing I'll add to
(43:43):
this as we wrap up, I think inall org charts and in designing
companies, you never want sillydotted lines or matrix or
whatever. You want strictaccountability where people only
have one leader to directlyreport to. Because if you do
anything outside of that, andI've seen all kinds of screwy
(44:07):
situations that makes everythingkind of squishy and whatever,
no, you got one leader, onemind, one vision to conform with
at all your different locations,your sites, that it's that
immediate supervisor that,again, provides that 70%.
You want direct lines ofaccountability because
accountability, when you getdown to it, is really the
(44:29):
determining factor of whetherinitiatives are accomplished.
Accountability is really thedifference between success,
mediocrity, or failure, youmight even say. And ultimately,
accountability is where strengthin all organizations is built,
(44:50):
and we've got messages on that.And I know it's something that
has to be taught on a regularbasis because people normally
recoil from the idea of beingheld accountable. But if we want
to have a mature workforce whereeverybody does their job,
fulfills their function, they'vegot to get beyond being a victim
(45:14):
or live in a world of excuse orblame, because that's not
healthy in the body system, inwhat we're talking about here,
this integrated, coherentorganization.
You can't have cultures of blameand victimhood and, well, no,
this is your job. And if it'snot done, here are the
consequences. If we win, here'sthe rewards. And it has to be
(45:39):
set up like that through thecomp system. So you might say
this, we use the comp system toa great extent, again, to do the
accountability.
And with that said, there's somegreat ideas and multi view
thinking, you might say, ofoperating an organization as a
(45:59):
coherent, integrated whole,where all parts work together.
Speaker 1 (46:09):
We hope you are having the best day of your
life. If you need somethingfurther, just visit one of the
Multiview Incorporated websitesor contact us through social
media. Smoke signals, carrierpigeons, telepathy have not
proven reliable. All calls areanswered within three rings by a
competent real person. Thank youfor listening.
Creating the perfect company from the organizational
experts MultiView Incorporated.This content is based on MBI's
work with over 1,300organizations extracting nine
eighty nine data elements withnine twenty two cross
calculations over twenty sevenyears on a monthly basis and
(00:35):
then systematizing theoperational success patterns of
the ninetieth percentile. Ourintent is to get beyond the brag
and the boast and simply shareinsights from our experience
without manipulation or coercionto sell anything except helpful
ideas. These messages range fromintimate recordings from the
(00:58):
Awakened Forest to concerts,national conferences, and
broadcasts.
Speaker 2 (01:09):
Operating as an integrated coherent whole, where
all parts of the organizationwork together. This is probably
something that all CEOs andfounders of organizations aspire
to, and it makes sense. Know, wewant to believe that everybody
in the organization is unifiedand moving in the direction,
(01:35):
it's much more difficult thanthat. Is that not true? And so,
again, with all our work, withall of this 1,300 or so
organizations and training allthese leaders, we've picked up a
lot of things, I'll say, throughthe years that have been just
groundbreaking regarding how toactually do this.
(01:58):
And I'll just say this. When Iwas forming Multiview, I'm a
system analyst. I was a musicianand had great success in music
and all that. And then, ofcourse, I had to reinvent my
life after I breached my sixyear contract. And I had to
reinvent myself, so I became acomputer programmer and then the
(02:22):
CPA and all that.
But when I was programmingcompensation systems. So I
became a system analyst, reallydirecting programs. I found out
I kind of had a talent for doingthat for customer service and
taking care of, you know,clients, of course, but also
communicating with programmerswhat needed to be done in all
(02:42):
this. And I'll just say this,that system helped me
tremendously, you know,identifying the critical path,
realizing that not all eventsare linear, that we could have
all kinds of initiativeshappening at the same time,
Gantt charts, what have you.Yeah, that led to a lot of this
(03:04):
this idea of operating as thisintegrated coherent whole.
Obviously, all my time innature. Also, I I think I heard
Gerber and some different peopletalking about this, and I go,
wow. That that is a marvelousway to to look at things. And
then, taking that higherintelligence of taking, the
(03:26):
abstract, which would be nature,and saying, well, how does
nature work? And what patternscan we observe?
Again, we think of asintelligent. And then bringing
those patterns and then reallytransposing them onto an
organizational context andtrying to really get the
(03:47):
organization to work as thissystem of mutual reliance, where
it's much like a natural systemthat if you break your arm or
whatever, all parts react toprotect and help in the
defective area rather than beingoblivious to it and just going
on, well, it's just about, youknow, the right leg today, and
(04:08):
then today it's just about thelungs, I'm just thinking about
me. No, natural systems don'twork like that. And so we should
aspire to emulate that to alarge extent, and we have found
that you can indeed do this. Andso when we talk about operating
as an integrated coherentcompany, In a nutshell, we might
(04:33):
kind of language it like this,for marketing to promise exactly
what operations can actually do,and for operations to do exactly
what marketing has promised, andfor indirect and support areas
to make sure that marketing andthen operations have everything
(04:55):
they need to be successful.
It might be just as simple asthat. So this gets us to the
definition of the MBI or theMultiView Incorporated model.
And, of course, when we formedthe organization, we were
primarily system analysts andCPAs, very good with the numbers
(05:20):
and all that. But we soon foundthat if you really want to move
the numbers, if you want to betruly effective, you've got to
understand the realities ofhuman behavior. And so that's
really where our focus hasreally went for the last twenty
some odd years.
And so the model is more thanjust operating by percentages of
(05:45):
net revenue, rather than somekind of static budget. Static
budgets are great for managingprojects with limited duration,
but they fail miserably formonitoring really ongoing
operations. You need dynamicfeedback, And that's really what
(06:08):
the model does. And so we teachorganizations really how to
simplify things on all level ofthe organization. And people
learn to live within theirpercentages of net revenue.
So really, MBI is really aquality program, but it takes in
both the quality aspects andperfect interactions, perfect
(06:30):
phone interactions, perfectvisits, perfect products, all
this, of course, perfect meaningto the standards of the
organization. And of course, asa byproduct, or I should say a
natural byproduct of doingquality, you have phenomenal
economics as well, but as anatural byproduct of doing
purpose well. So let's put adefinition around the, quote,
(06:55):
MBI model. It is the creation ofa high quality, predictable
experience. All these words havegreat meaning.
Of course, the model itselfindicates intention, design.
Most organizations are fairlyorganic. Their models, I mean,
they have models, they'veusually evolved over time, but I
(07:17):
question whether they're great.Most of them fall in what? The
fiftieth percentile, becausethat's the best they know how to
do.
If they knew how to do better,they'd be doing it. So the model
is the creation. We are all inthe act of creation all the
time. Every time the phone ringsat your company, you're creating
(07:37):
a feeling. Every time you have apersonal interaction, you're
creating a feeling.
Every time someone picks up oneof your materials or your
products, are they feelingquality? But you're creating a
feeling. So we're constantly inthe creation business. Of what?
High quality.
If people don't want to aspireto high quality, go work for
(08:00):
Bottom Feeder organization downthe river. I mean, hey, no, we
are the milquetoastorganization. We only do
mediocre work. Forget it.Everybody wants to aspire to do
something great.
High quality. Okay, so the modelis the creation of a high
quality, predictable, andpredictable is another important
(08:20):
word. Why? Because in business,whether we're selling a service
or a product, we are sellingcertainty. And then we've got
manuals on human behavior andselling certainty, but that's
what people want.
And what kind of certainty orpredictability? The experience,
(08:43):
the feeling. So the model is thecreation of a high quality,
predictable experience, or youcould substitute the word
feeling, because human behavioris guided by emotions and
feelings. We think we'relogical. But normally purchase
decisions are made on a feelinglevel first, and are secondarily
(09:07):
supported by intellectualjustifications.
Even if we think we're a smartguy or a smart gal and we gather
all the facts, you're nevergonna have all the facts.
There's gonna be this element ofthe external world that you're
going to have to dance with orinteract with, which, you know,
(09:28):
brings in probability and allthat. So you can do your best to
gather all your data and allthat, be the smart guy, but then
you end up making a snapdecision based on your gut, your
feeling, and then on your drivehome, Yeah, that was good reason
(09:48):
because this, and, you know,it's a long term store of value,
and we can resell it later on ifit goes bad, we can do, you
know, whatever your rationaleis. But that's just the way
human beings work. And probablyanybody listening to this can
identify with making a decisionand then the drive home
(10:09):
intellectually justifying it.
So emotions and feelings are atthe foundation, I'll say, of
MultiView, and that's why wehave the patient chair and all
this. And when we formed thecompany years ago, we knew that
we were gonna thousands of phonecalls every day from companies
(10:29):
all over the country of allkinds of different sizes. Some
have 100 employees, some have13,000. And that experience had
to be great. We had to build iton the big R, or should I say
relationship.
And that built such a solidcompany where the brand loyalty
(10:51):
was so great, a member of peoplewould try to buy us and said,
Well, how long does your typicalcustomer last? And, you know,
we'd kind of scratch our headand go, Well, they really don't
go away. We might lose one ortwo a year. And that's usually
because of a merger or somethingoutside their control where
(11:13):
they're absorbed by something.But it's never due to you
screwed up here or servicefailures or complaints.
It's always, y'all are great.Again, we, our standards are in
a place where, I mean, forexample, the longest we've ever
(11:34):
went with a phone call not beinganswered by a real person, not
an automated system, but a realperson, a competently trained
person, within three rings, Thelongest we've ever went is four
and a half years. Our average isreally probably about two and a
half to three years. Whereas alot of organizations, they have
(11:58):
screw ups and service failuresand complaints every day, and
they think that's normal. Ithink we have to be very careful
what we tolerate as leaders.
All I know is if there's servicefailures and screw ups, I'm
gonna rip somebody's lungs out.Of course, I'll do it in the
nicest way possible, but there'sgonna be pain. You could also,
(12:25):
let's add another definition.The model is the creation or
design of a company culture thatsimultaneously balances purpose
and financial realities tocreate a sustainable world class
experience. Okay.
So again, this idea ofintention, you're designing your
culture, and we'll have othermessages that will go into that
(12:48):
deeper, that simultaneouslybalances purpose and financial
realities. And I always elevatepurpose higher than financial
realities, because if we do agreat job at our purpose,
normally again this naturalbyproduct of incredible
economics, I mean hundreds ofpercent above the fiftieth
(13:10):
percentile, are usually achievedas a result of doing quality.
Steve Jobs, I remember, made anincredible statement that I
remember that the differencebetween Apple, which at that
time was the most valuablecompany on the planet, which he
turned it around from almostbankrupt, is that we were
(13:34):
focused on creating art. We werefocused on creating this high
value purpose, and the money wassecondary. Whereas if you switch
that around and we're going forthe money, yeah, we're all gonna
get rich doing this, and thenthe purpose is down here, that
just doesn't have the juice.
That is not the compellingvision that most people that are
(14:01):
going to be employed in thatenterprise are going to get
behind. It will surely motivatethe few greedy, but not all the
front lines, the people in thetrenches, the people that you
got to learn to love and takecare of. So we're building this
integrated, coherent company.And we're going to focus more on
(14:26):
system solutions rather thanpeople solutions. A lot of
people, they try to hire thiswinner, this change agent that's
going to make our life better.
And though that's partially truethat that can happen, most of
our success is going to bestructurally dictated by our
(14:47):
systems and processes and beingsmart about designing these.
What kind of structures andprocesses are you talking about,
Andrew? Well, I'm talking aboutall the ways that you interact
with your customers. Perfectphone interactions, perfect
visit designs, perfect manuals,perfect products. This
(15:12):
revolutionary levels of ofquality.
You know, your your trainingsystems, your compensation
systems, those are probably thetwo killer of killers because
your people systems are soimportant because all of your
quality flows out of you as aresult of the quality of your
(15:32):
people. And as we say, yourquality is no more or less than
the quality of your peoplesystem. Notice I didn't say your
quality is no more or less thanthe quality of your people,
though that's true too. Focusingmore on the quality of your
system rather than the people.And your compensation systems
(15:59):
are the other key, key system,because as we go into this topic
a little bit more, we'll realizethat this is how we're going to
wire all of our differentlocations, sites, indirect and
supportive departments togetherto be this really integrated
(16:20):
whole.
Okay? As far as we know, aftertwenty seven years of doing this
and working with hundreds andhundreds of companies, the only
known or practical means thatyou wire all of your
(16:41):
departments, your regions, yoursites, your locations, your
product lines together isthrough your compensation
system, where it's designed toincentivize harmony and internal
delight. Again, internal delightfirst because why? Because
(17:03):
that's what flows out to thecustomers. But it starts with an
inside job.
You know, just like this naturalbody system, when the body
system's sick on whatever level,it's you just can't function the
way that you need to. But yourcompensation is equivalent to
blood or air in a human system.It's the flowing thing that
(17:25):
circulates all through. It'salmost a communication
mechanism. And compensationprovides this powerful
communication of each area'sduty for maintaining really the
health and the welfare of thewhole.
So your compensation system isthis great communicator. The
(17:48):
compensation is perhaps yourgreatest teacher in that people
look at their paychecks and go,Woah, that worked out. I think
I'll do more of that. Oh, thatdidn't work out. I think I'll do
less of that.
And probably most importantly,it should be designed to do your
accountability for you. This iswhat MultiView espouses. Design
(18:11):
your compensation system to doaccountability for you, to do
the heavy lifting. And why isthat? It's because of the truth.
After training over 10,000leaders, your leaders, your
managers will not effectivelyhold their people accountable.
(18:36):
I'm going let that set in. Yourleaders, your managers are not
going to effectively hold peopleaccountable. They're going to
delay the pain when it needs tobe administered, when someone's
not doing the standards or thevows of the organization. It's
like, Oh, I don't want to havethat meeting today.
(18:57):
It's going be a rough day. Theydelay. And all such delays cause
an extension of the nonstandardor the subperformance. And
there's the breakdown. So thecompensation system is really
(19:20):
your key because you cansensitize all of your
operational systems.
In health care, it's your EMR.It also would include your
general ledger or your financialsystems where they can be
sensitized to detect nonstandardperformance. You still need
managers, of course, andleaders, to observe, the
(19:46):
different behavioral standardsof the organizations, but those
that can be quantified can beextracted and monitored from
your different systems bysensitizing them. So with this
said, you want your comp systemto do the accountability for
you. And this reallynecessitates having four things.
(20:07):
First of all, clear standards.Most organizations, you can say,
what are your standards? Well, Idon't know, you know, and so
thus people don't even know whatquality really looks like. And
these standards really need tobe for every area, discipline,
department, site, location,region. You want to have as few
(20:29):
standards as possible, ofcourse, too, because the more
standards you have, the more youcomplicate everything, and it
exponentially increases things.
So you want to have things asuniform as you can, but you have
to have standards. That's reallythe starting point for so many
organizations, and it's one ofthe places where we really
(20:53):
excel, just getting down to thecore, because people will tend
to overthink things, and they'llget in meetings that form a
committee, God help us, which isbasically constipation at an
epic level. That's all the bestideas are neutered down, and
(21:13):
there's all these concessionsmade to weaker members and
voices and whatever, and thatguy that's sitting in the back
that's kind of quiet that hasthe brilliant idea, that's
quiet, of course, and he'signored. So we help people get
clear with their standards, getthat picture of the results that
they really want for every area,discipline, department,
(21:36):
location, all that. Two, whenyou have the comp system do
accountability, you also have tohave effective training systems
to communicate the standards andthe result picture that you're
trying to get.
And you want to train people, weuse a system called System
seven. In Six Sigma, it'd becalled intensive training, but
(21:57):
you want to train people to thepoint where it's impossible for
any employee to not know thestandards or the results you're
after. Just words binary. Eitherpeople can do the job or not.
And that makes things, easier.
When you train people to, curveor you allow really any
(22:21):
deviation, you create all theseholes, or I'll say knowledge
deficits. And if if if you testpeople even to a 90% pass level
in however you evaluate youremployees, well, even for 100
employees, your screw up factoris exponentially compounded. You
(22:44):
don't know who knows what ordoesn't know what. Okay, three,
we need a means of measurement.I mean, things that are easy to
look at and digest, asuncomplicated as possible.
And this is where we simplifyusually measurements, since
(23:04):
we're great at measuring. Wefind those critical
measurements, because we foundif you measure the critical
measurements, it may satisfy 50other measurements. And so just
by doing the one well, itsatisfies all these other
requirements. And the fourththing, of course, regarding
accountability in yourcompensation system is the
(23:25):
alignment of the compensationsystem with the standards and
results. So all of these thingsconnected help us create this
integrated whole.
Again, if people are not doingthe results or the standards
that are needed, They need tofeel pain, just like, again, a
(23:45):
body system, because it'sunhealthy for any department,
organization, site, whatever, tobelieve that they are separate.
We call this siloing. And aslong as they think they can
operate independently from therest of the world, from the
other service lines or whatever,it's not healthy for the whole.
(24:08):
In healthcare, obviously, wework a lot in the post acute.
Not that we can't work all over.
I mean, work for an investmentfirm since we're pretty good at
the money. Anything thatinvolves customer service, fast
food, what have you. But, so ifyou have people camping out in
one service line, like a homehealth or whatever, well, that
(24:32):
may be good for a time, but ifthey decline, then you want to
get them into something else,you know, maybe hospice or
whatever. So you want to keepeverything connected, because
it's unhealthy for onedepartment or site or whatever
to believe that they areseparate, or as we say, silo
from others. And so if you havemultiple service lines, and
(24:56):
some, let's say it'scomplimentary products or
whatever, and so there might bea level that you take clients or
whatever, where you get them setup, you get their equipment set
up, or in healthcare, they're ata certain status where we're
seeking cure or to get better,But then there's a certain point
(25:18):
where you don't want them tostay there.
It's not good for them. It's notgood for the organization. And
so they need to be transferredto the next department, let's
say in healthcare, to get thathair. Or once the machines or
whatever are set up, you know,we need to transfer over to the
ops team, or whatever yoursystem or flow is from your
different service lines. Well,how do you do that?
(25:41):
You do that through yourfinancial incentives, that if
it's not done within a certainperiod of time, if this happens
by this dates, dates are greatfor doing this. Here is the
negative financial consequencefor not doing this. You always
have to, of course, have plentyof upside in a in a good comp
(26:01):
system, but you definitely haveto provide the disincentive, to
cross the line and and not getclients really through your
system as needed. And let me saythis about intercompany,
interdepartment issues. They aregoing to be the toughest issues
(26:23):
that you face as a leader or asa founder of your organization.
It's not so much the battle withthe external world so much.
It's, you know, here, we gotthis division doing this, and
then we've got this service linedoing this, and then we got our
indirects, we got our IT, HRcompliance, And you'll just find
(26:45):
that there'll be all theselittle empires that will form,
and of course, they're lookingfor their own, out for their own
self, interest. And again, thatis exactly what we're trying to
defeat by making this integratedcoherent organization where they
all pull together. That's whyin, through the comp system, has
to be, again, where there's somekind of shared benefit for when
(27:09):
the organization wins byproviding the function at the
assigned cost, not 1p abovethat. You go 1p above it, then,
you know, 20% of the salary ofthe leader or that whole team is
gone.
But then if you beat your modelor your percentage, you get a
large portion of that that youcan distribute among your team.
(27:32):
It's got to be set up somewhatin a proportional basis in order
to really integrate it, andthat's really key, and that's
why budgets and things like thatjust are not effective, because
they don't flex or move withreality. Let me just say this.
The problem with budgets, andI'm not going to go into my big
talk about that, is that theyconfuse things because you're
(27:56):
dealing with two differentvariables. You have a volume
variable and you have anefficiency variable, and you
cannot tell the differencebetween the two in a static
budget.
There's all kinds of otherhorrific things that happen in a
static budget. Usually there'sbudgetary slack built in.
There's all kinds of paddinggoing on and and and what have
you. People actually think theycan spend the entirety of the
(28:17):
budget. All these things thatare not healthy, whereas when
you strip away the volumevariance and make something as
much more flexible that goes upand down with fluctuations of
revenue, well, at that point itbecomes an efficiency variance.
So you're just saying, with therevenue that we have, how well
are we managing in proportion tothat allotted to us? And so
(28:43):
there's the cost question, arewe doing it for the cost that's
been assigned or engineered forour area? And then the secondary
question is the qualityquestion. Is the function being
done to the standards of theorganization? Now let's talk
about the organizational chart.
Most people have the pyramidscheme, I'll call it. Basically,
(29:03):
you have the pyramid with theCEO, the head honcho on the top,
and then it cascades down to thepion levels. And then the
slightly more enlightenedversion is the upside down
pyramid scheme with the CEO inthe bottom. We call this servant
leadership, and that's slightlymore elevated and calibrates a
(29:24):
little higher on the scale ofconsciousness. But we're gonna
share with you the MBIorganizational chart.
And, I was paid by this largeWall Street company, tremendous
money to come up with this newcompany design since we have a
knack for doing unique thingsthat actually work. And we came
(29:48):
up with this very differentlooking organizational chart. So
let's take a look at it. And ifyou can get on our website, you
can get a copy and see what thislooks like. But at the top of
the chart, rather than it beingthe CEO or whatever, the boss,
(30:08):
as we call it, are our clients,our customers.
They will write every paycheckwe will ever receive, and they
will discharge us if they'redispleased. So that's really the
top of everyone's org chart. Ithink you can also add the
sovereign of this universe. Youcan add God at the top if you
(30:32):
want to. But that boss better bethere that actually writes the
check.
Okay. Then below that, frontlineemployees, our machine
operators, our clinicians, allthat, the people that are
actually providing the service,our technicians. And then we
come down to the third level,which is our site, our location,
(30:54):
our team managers. And this isthe supercharged area that we're
going to put tremendous focus onas you listen to more and more
of these messages. We'll talkabout creating extraordinary
leaders and extraordinarymanagers.
And this really comes from,again, my good friend Norman,
(31:19):
when we were building that worldclass organization, is he read
in Gallup that 70% of thedevelopment, morale, and
retention of an employee comesfrom the relationship of the
immediate manager with theemployee. Let's focus on that.
(31:40):
And we did, and that's how wewon the award. Obviously, we
were completely systemic andorganized about how we went
about constructing anddeveloping our business. But we
weren't focusing on frontlineemployees.
And that's a mistake that we seeso many people. Why? Because of
that 70% principle. Again, I'llsay it again. 70% of the
(32:01):
development, morale, andretention of frontline staff
come from the relationship withthe immediate manager.
These need to be inspirationalfolks. They need to be able to
change lives. They need to bereal leaders. And so that's
where we put our eggs, oureffort, and put laser beam
(32:21):
focus. And it paid off likecrazy.
And for any company that MBIhelps manage or partner with or
do magic engagements, This iswhat we do when we teach people
how to do that. Okay. Then thenext level is a singular level
with one person, the COO. TheCOO actually runs the company
(32:46):
because we have the CEOelsewhere. So here we've got
somebody in a senior leadershipposition who's actually learning
the ropes of how to run things.
And they usually come with agreat degree of talent, usually
experience or whatever. Butthey're really your number two,
(33:08):
and we need this for redundancypurposes. And then in the
center, in the great big center,which could be a heart, a big
circle, whatever in your orgchart, is people development.
Because at the heart of any MBImodel company is the idea that
(33:29):
we are teaching organization,that we are empowering
organization. And as all qualityis going to come from the
quality of our people system,this is where we really need to
put the bull's eye.
And so in people development,this is where you're going to
find where the CEO spends mostof their time, and we have
(33:50):
proportions of time that theywould spend. Obviously, they're
doing their CEO stuff, butthey're really focusing and
being that real leader. This iswhere the CFO would be doing a
lot of teaching, as well as someof your other key operational
people, your top teachers, yourtop topical experts. Again,
(34:11):
passing off this expertise tothe people that run your company
and work in it. And so that's agreat deviation for most
organizations.
But becoming a teaching orempowering organization, I can't
tell you how much good that willdo for human beings. It provides
(34:34):
incredible inspiration. Peoplelearn how to provide customer
delight, how to be much moresensitive and conscious to the
feelings of other people, andjust how they go about not only
their work, but their lives.This is amazing. And most
organizations, you you walk intotheir organizational space and
(34:57):
you cross the threshold and it'sbeige.
It's the color of light turds.And then I say, okay, well, you
know, let me see your tests. Oh,well, we don't test, really?
Really? You know, like, Is thisa joke?
What about your positionobservation? What about your you
know, and they just don't haveanything put together. And then
(35:18):
they wonder why they're fiftiethpercentile. Well, there you go.
Then at the bottom of the orgchart is supporting services.
And this is really where youfind, all your indirect
functions. This is where youfind HR compliance, finance, IT,
(35:38):
marketing. Even the board ofdirectors would be down in this
area. If we're not for profit,you might find your development
down there, but they aresupporting really everything
that's above it. Sometimes, youyou see the board of directors
at the top and really, no, theyneed to view themselves as, you
know, how can we be of serviceand helpful to support all those
(36:01):
people on the front lines thatare actually making this
business happen.
And then to complete the orgchart, you have this strange
square off to the side, which iscalled objective monitoring.
Okay. This is an MVI creation.We're the only company known to
(36:22):
do this because I'll just saythis, it takes a lot to set this
up. You have to be, have allthese computer programmer guys
and system analysts where we cango into different systems and
then pull out the pertinentdata, basically the
sensitization of youroperational systems, and go into
your financial systems, as wellas the benchmarking, all that,
(36:44):
and pull this out so that we canprovide this objective view of
your organization.
We don't want to know everyperson in your organization. We
don't want to know them at all.We don't want to see pictures of
them. We don't want to knowabout their families or
whatever. Everybody's a numberto us.
(37:04):
Because if we know about them,it's going to cloud our
judgment. It needs to be blackand white. And so when we're
pulling all this information,processing payroll, the comp
system, you know, providing thisfeedback for people, it just
needs to be black and white withno deliberation of, Oh, this is
(37:26):
gonna hurt them, or whatever.No, this is the result. And
we've got a clever way of doingthat, but I'll just say this.
When we're pulling stuff, assoon as anything that's
nonstandard, or that is to thestandards of the organization,
is detected, a non woundingemail goes out to the person
(37:50):
that's responsible, that'saccountable for this, and then
the supervisor or leader iscopied so they know how to coach
this person, so they don't haveto be the bearer of bad news.
They don't have to contemplateall night that, Oh, I gotta have
this big meeting tomorrow. It'salready done. And this
completely changes or transformsthe role of the manager, rather
(38:14):
than the hard ass coming inthere and, Oh, I got some
reprimand people. No, it's like,Oh, I know you got the email.
Let me help you. And so itreally transforms them into the
role of a coach. This isamazing. And that's the org
(38:35):
chart. And I would like to addthis, too.
Once you get quality, moving inthis world class direction,
where you can go thousands ofinteractions without a single
screw up, a single complaint,all this, you supercharge your
(38:58):
comp system because you have to.I don't know anybody that's ever
gotten to the ninetiethpercentile statistically as an
organization that has not usedcreative compensation systems. I
mean, let's just be blunt aboutthat reality. You're never gonna
get there if you're just payinghourly and salary. And we got
whole books on this and how todo it.
(39:22):
But as you increase yourquality, you can flatten your
indirects, your GNA, whateveryou call it, and you can get as
flat as a pancake, because youjust don't need that many people
in supportive areas. So you canjust picture this little pad of
(39:42):
butter on top of this pancake,and there's no need for regional
supervisors or any layers exceptfor the straight line between
really the CEO and the siteleaders for, let's say, you have
50 locations or whatever acrossthe country. There's no need for
(40:03):
anybody in the middle tomisinterpret you, to
miscommunicate or whatever. Youhave a direct communication,
which is way more efficient, andyou save a bunch of money
because you just don't need allthose extra FTEs. And people
(40:23):
could say, well, geez, you'rerunning pretty lean there,
Andrew.
I mean, what if somebody getssick or whatever? Well, then
we've got a system that'smonitored by HR called system.
The Tentwo system is basically apattern that we try to apply to
all positions that we can, allyour critical positions,
(40:46):
billing, AP, you know, whateveroperational functions you need.
But it's basically this, is thatpeople only work in a certain
position for ten months of theyear, and two months of the
year, they have to, nonconsecutive months, I should
say, they have to work inanother position. So you may
have your biller that worksthere for ten months of the
(41:07):
year, but then twononconsecutive months, they work
doing AP or an HR or whateverarea of interest that they would
like to grow in.
And this is tracked. In fact, ifthis is not required, there's a
financial hit that departmentleaders experience, you know, if
(41:27):
they're not doing that, becauseyou always have to have that
redundancy in the system. Andthis Tentwo system does some
amazing things. There's at leastfour things, and you might call
it cross training, whatever,building in redundancy, but it
does at least four things asidefrom building or empowering a
(41:48):
human being by giving them morevalue as far as their skill
levels. First, it obviouslyprovides a backup person.
So if someone gets sick orwhatever, and so they can carry
on this specialized functionskill in their absence, okay? So
check that off. Second, becausepeople work in it infrequently
(42:09):
or relatively infrequently, onlytwo months of the year and
they're not even together,normally this causes, the
processes to have to be writtendown. So thus they're
documented, which of coursesatisfies, the documentation
aspect of standardization.That's good.
Okay. Three, it supports theorganization's paradigm of being
(42:31):
a teaching organization firstand foremost. And so there's
this school, ideology ofempowerment and all that, and
people like that. And fourth,and I was not expecting this
when this system was developed,it breaks the fraud triangle,
making fraud and embezzlementmuch more difficult without
(42:56):
collusion. And I remember thefirst time I put it in, at this
company, the AP clerk justdidn't want to do this system,
you know.
She's a hard worker, the bestworker probably we ever had, you
know. And, nope, you've got todo it. You need to, you know,
change out with Betsy Lou here.And, what did we discover? She
(43:20):
had embezzled over a half amillion dollars, but we were
making so much money, wewouldn't even feel that.
So it goes a long ways to reallybreaking up the fraud triangle.
Again, making fraud andembezzlement much more unlikely
unless there's heavy collusion.And the other thing I'll add to
(43:43):
this as we wrap up, I think inall org charts and in designing
companies, you never want sillydotted lines or matrix or
whatever. You want strictaccountability where people only
have one leader to directlyreport to. Because if you do
anything outside of that, andI've seen all kinds of screwy
(44:07):
situations that makes everythingkind of squishy and whatever,
no, you got one leader, onemind, one vision to conform with
at all your different locations,your sites, that it's that
immediate supervisor that,again, provides that 70%.
You want direct lines ofaccountability because
accountability, when you getdown to it, is really the
(44:29):
determining factor of whetherinitiatives are accomplished.
Accountability is really thedifference between success,
mediocrity, or failure, youmight even say. And ultimately,
accountability is where strengthin all organizations is built,
(44:50):
and we've got messages on that.And I know it's something that
has to be taught on a regularbasis because people normally
recoil from the idea of beingheld accountable. But if we want
to have a mature workforce whereeverybody does their job,
fulfills their function, they'vegot to get beyond being a victim
(45:14):
or live in a world of excuse orblame, because that's not
healthy in the body system, inwhat we're talking about here,
this integrated, coherentorganization.
You can't have cultures of blameand victimhood and, well, no,
this is your job. And if it'snot done, here are the
consequences. If we win, here'sthe rewards. And it has to be
(45:39):
set up like that through thecomp system. So you might say
this, we use the comp system toa great extent, again, to do the
accountability.
And with that said, there's somegreat ideas and multi view
thinking, you might say, ofoperating an organization as a
(45:59):
coherent, integrated whole,where all parts work together.
Speaker 1 (46:09):
We hope you are having the best day of your
life. If you need somethingfurther, just visit one of the
Multiview Incorporated websitesor contact us through social
media. Smoke signals, carrierpigeons, telepathy have not
proven reliable. All calls areanswered within three rings by a
competent real person. Thank youfor listening.
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