The Viagra Effect: going higher and faster.

In our previous post we discussed the importance of knowledge within an organisation. Talent acquisition, retention and performance, organizational strategy and cultural change and innovation and the cycle of new. All of these are mission critical activities that are knowledge intensive and have to do with the workforce. That’s why knowledge alone is not good enough. Knowledge, we would argue, is even dangerous. You have too much of it and you have no understanding. You have to turn knowledge into understanding, understanding into shaping beliefs, shaping attitudes, ultimately into shaping behaviour. That behaviour you want it to be repeated so it’s a habit. And you want enough people in the organisation, a critical mass of them to have that habit so it’s cultural. That’s what HR departments do: they shape culture. Here is where we can introduce what we call the TV METER, or Time Value Meter. TVM_OneSide

Our TV METER consist of two curves. One is “lower slower”, the other is “higher faster”. Here’s an example of how it works: Think about your training programs. How high do you get up on this curve? Do your training programs just deliver knowledge? Do they even do that? How much of that knowledge is processed into understanding? What’s more, just like one dollar today is better than one dollar tomorrow, there’s time value to knowledge. Getting higher faster, getting to culture in three months, is much more valuable. Of course, you’re leaking money if you get there in 3 years. And imagine if you don’t get there at all. But that’s just on one plane of this graphic, which we call knowledge acquisition. The problem most organisations really face is Knowledge Retention and the lifetime value of that knowledge.

TVM_2

The data says: Up to 75% of the knowledge acquired, if you manage to deliver it, is actually lost in around  90 days. So qualitatively what does that mean? People saying: “I don’t really remember what they said in the training program” or “I remember it but I don’t know how to apply it” or even “I heard it when they were doing the campaign but I don’t think it’s a top priority for the senior management so why should I do it?”. So, what’s the application and retention rate of that knowledge? One way to remember this is what we call “The Viagra Effect”: In terms of knowledge what you want is: To get it off as fast as possible and keep it up as long as possible. Knowledge acquisition and retention. So what’s the difference between these two curves in the graphic? What’s the blue space? It’s the measurable stuff. It’s being able to measure employee performance, product quality, service excellence, customer satisfaction,customer retention and lifetime value, brand equity, revenues in salesforce training, market share, value chain performance, profitability and ultimately shareholder value. So how knowledge intensive is your HR? And how can you go higher faster when it comes to knowledge acquisition and retention?

 

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2 Comments

  1. Reblogged this on aileengutierrez and commented:

    No pun intended..

    Like

  1. […] The Viagra Effect: going higher and faster. […]

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