Operational Excellence Memo

KGW Inc. is a public held company, which owns and operates ten preventative and routine health care clinics in southeastern Pennsylvania, Southeastern new Jersey and Delaware. KGW Health is the exclusive provider of services to several HMO’s in each state. In order to make KGW cost-effective, our suggestion is to implement a new strategy: Operational Excellence. By introducing workforce differentiation into our new strategy, KGW could not only save unnecessary cost but also utilize expenses more effectively.

A. Different Players’ Definition and Analysis
Interpretation of “A” “B” “C” Players
“A” Players: they must have average rated 5 in most of the performance evaluations, especially the job performance evaluation. If they are leaders, we also need to take an eye on their evaluation of people and relationship. The PXT score of “A” Players, especially the thinking style and behavioral score, should be higher than 70. If not, then “A” Players will turn to be “B” Players. However, it also exists some exceptions, for instance, if someone has already been rated as the top of his team, even his overall performance evaluation is not 5, he can still be an “A” player. The reason is that his leader could under rate the whole team and thus he cannot get a 5 rate.
“B” Players: Most “B” Players should be overall rated as 3 or 4. Even some players’ overall evaluation is 5, he won’t be an “A” Player when the job evaluation is lower than 5. “B” Players share the same rule with “A” Players in the PXT score. If one of the PXT scores is under 70, then “B” Players will turn to be “C” Players.
“C” Players: Their overall rate is less than 3, or their performance only hit the button of the team when they are in a high performance team. Most PXT score is lower than 70, which means it is not suitable for them to do this job.

Analysis
It is true