4A. Vertical Management 1.0 Productivity

4A1. VM 1.0 productivity is based on making the individual resources (the parts) productive.
4A2. The premise that drives VM 1.0 productivity:
- 4A2i. If the parts are productive, the whole will be productive.
4A3. Principles of VM 1.0 productivity:
- 4A3i. Maximize the productivity of the individual.
- 4A3ii. Allocate more than 100% of capacity to make sure individuals are working as hard as they can.
- 4A3iii. Set priorities within individual functions in order to optimize the function.
- 4A3iv. Make everything a number one priority so that nothing is ignored.
- 4A3v. Give resource leaders their own resources to use to optimize their areas.
- 4A3vi. Optimize individual performance by allowing each person to use his own approach to decision making, planning, problem solving, etc.
4A4. The effects of VM 1.0 principles in a matrix organization:
- 4A4i. Priorities are set vertically and therefore don’t align across the organization.
- 4A4ii. Processes are suboptimized because time is overallocated.
- 4A4iii. Teams are suboptimized because individuals are optimized.
- 4A4iv. Vertical silos are created.
- 4A4v. The organization as a whole is suboptimized.
4A5. Management oversight in VM 1.0:
- 4A5i. Productivity is measured by the percentage of an activity that is completed as opposed to the output achieved.
  - 4A5ia. Activities are the steps needed to produce an outcome.
- 4A5ii. Monitoring tasks or activities creates a high level of granularity, which can result in getting lost in the details and can lead to micromanagement.
- 4A5iii. Typically, tasks or activities are monitored by examining how a task is being done and by the percent complete. Percent complete provides information about the past: how many effort hours have been spent to date. It does not tell you:
  - 4A5iiia. How long it will take to complete
  - 4A5iiib. If it will meet the customer’s needs or quality requirements
  - 4A5iiic. What the cost of the final product will be

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