Hello again, and welcome to Module 3. Module 3 and Module 4 belong to the building block B of our SPDM framework, what do I have? So far, we have seen Module 2, which covers the who am I section of our framework along with what do I offer and who do I offer it to. We have also looked at promise, a sense flame red, client archetypes, service specifications, and moments of truth. Building block B, what do I have addresses? What do I know? How to obtain resources from freeing up time, and how to get rid of waste. Following our SPDM diagram, in Module 3, we shall concentrate on the orange part of the chart. Look at the orange part of the chart. In the next module, Module 4, we should look into how to get rid of waste. Let's start with Module 3, unlocking capacity to tackle higher value added task. What does this mean? It means that we shall see that we spend our time in on and how much of it we have available. Let's call then. First, look at our journey. We should sail from board number 3. Here we have board number 1, board number 2, and board number 3. We will head for board number 4, and we shall have five stopovers as usual. We shall call in at the service mix board, then at the task equals problem equals knowledge board. Then the capacity metrics, the load matrix, and the task benchmark stopovers. This module will provide you with two very neat Excel simulations that will let you analyze your capacity. Just wait and see. I know what you all are thinking. What does all this mean? I promise that when we finish this module, you will understand every last week of all of this. Let's first start with some basic ideas that you need to get very straight. What we would like to discuss is how to free up time from where you might ask from everyday tasks. You really do not realize how much time you waste, because you do not realize how much time you spent performing a task. The first thing that we shall understand is a new concept, time consumption. What's that? It's a time you use, consume, performing a task. We're dealing with service companies, so we shall just concentrate on service tasks, any tasks that you perform in a service encounter. For example, withdrawing cash from an ATM as we saw before, buying oranges, ordering a burger, those are service tasks. How much time do you spend or use, consumed on tasks? Well, it just depends on the day and the situation, but never mind the backdrop and the situation. Just look at the task. That also depends. Look, for instance, I am clumsy today, and I'm dropping my credit card. I spent six minutes withdrawing cash. Last week, I was quick and spent three minutes. On average, how much time do I spend? One day, six, the other three, total nine. On average, 9 divided by 2 equals 4.5. First, a very important idea. In services, consumption is always measure on long-term average, we call it LTA. Remember that concept is a very critical concept. Another idea, task consumption is measured in terms of LTA as we said before. Why should this be useful in services? Let's see. You may nature branch where that ATM is, and you want to know how many clients your ATM can serve in one hour. Using operations terminology, how many clients can the ATM produce per hour? The ATM is a machine. Well, yes. But what about humans? Do we also produce? The answer is, yes. Absolutely, yes. Humans produce solutions to problems. For instance, I need a mortgage solution, I need an insurance quote, I need health service. All of those are examples of human machines providing solution, producing solutions. Before we carry on, we must get something straight, very clear and straight. Can we agree that there is one hour per hour? Is there one hour in an hour? Yes. I'm asking this. Is there one hour in an hour? Can we agree that you can consume one hour in an hour, that there is one hour per hour? Yes. Do we agree? Agree? Then we're good to go. If in LTM terms a client, you, spends 4.5 minutes at the ATM, and they are six minutes in an hour, then in an hour, the ATM can serve 60 minutes divided by 4.5, 13.333 clients. Rounding up because you cannot divide a client, 13 clients. But you know that your lunch breaks more than 20 clients can turn up in an hour. So what are you going to do? "Okay, great," you say, "I buy another ATM." Wrong, totally wrong. No buying, no hiring with me, remember that. No hire, no fire. What we have to do is cut time consumption, very critical. Cut time consumption. How come? Look, if instead of 4.5 minutes the test consumption is three, what happens? 60 minutes divided by 3 gives you 20 clients. Bingo, you got it. Second idea, a bottom line is a ways cut task consumption. Remember, always cut task consumption. How? You will have to wait for our next module. In Module 4, we will look at no hire, no fire. But in this module, we shall learn all about consumption; how to analyze what capacity you have and what to analyze in order to produce more task or services. Please, do not take the following from your team. "We can do this. There's no resources. We don't have any." I can do it. I'm up to my ears in work. No way, Jose. I don't have time. Forget all that. Don't take any of it. Let's just erase that. What you are going to say from now on, really, you are going to say from now on, forget everything else, is, show me. Show me numbers and perform a capacity analysis. This is the answer. Do not allow your people, your team, to give you any other answer than that. Show me. What you will learn with me and teach others in this module is that we are no control freaks. You cannot be control freaks with brain force. This is the 21st century. We work with brains, not hands. Knowledge is a key variable that we have to play with. So task equals problem equals knowledge. Remember that. Task equals problem equals knowledge. This is critical for us. Every single member should understand the test-time consumption and the best production time, and every single member should take responsibility and jointly work to free up time, joint responsibility. Remember win-win, you gain, I gain, we both share responsibility. One more step, you also need to understand today's and tomorrow's task service mix. That means what percentage of different bundles of task combined as a service you sell. For instance, I might sell three types of services, dinner at my restaurant, takeaways from the restaurant, and special home delivery for just part of my menu. Three different services, your service mix. As task equals problem equals knowledge, we need to know if today's mix is going to differ from tomorrow's and what new knowledge you will need to do and to have, and you need to understand that. Focus on task that needs zero response time and plan other tasks. Define the team processors, LTA, task production, not that of individuals. Get an idea of the task load those positions can take on and define their service time proactively. Search for the individual that consumes the least time to produce while keeping up with a promise service excellent. Always remember, the best. We're looking for the best, we're not looking for those people that are in default. We always look for who is the best at something and someone and that someone is critical to find out. Find out why he or she is able to perform that way. Make him or her your benchmark and materialize whatever he or she does to keep time. Too many new concepts? Do they make you scratch your head? I always tell everybody, hold your horses. We're going to take things step-by-step and it's going to be really easy. Believe me. Really, believe me. Really, really easy.
