W & M empoyee bonuses
B: save money in operating expense for the firm
D: not implement an employee bonus program
A: ensure employee satisfaction and financial stablility
| A-B: | Assumption(s) | Injection(s) |
| 1. Employees will not be satisfied if the firm goes out of business due to cash flow problems. 2. Saving money is a good way to ensure financial stability. | 1. Keeping operating expense from getting too high is important. But it is always more important to try and make more money rather than save more money. We want to stay out of the cost-world, and be a part of the throughput-world! 2. At a maximum, the monthly bonus would be $100 per employee. If both employees reached their goal, the total cost to the firm would be $200. If the firm cannot afford to pay an extra $200 a month to its employees, there are probably bigger financial issues that need to be addressed. |
C: establish global measurements for employees and increase throughput
D': implement an employee bonus program based on the number of demands sent per month
In order to ensure employee satisfaction and financial stablility I must save money in operating expense for the firm and in order to save money in operating expense for the firm I must not implement an employee bonus program. But, in order to ensure employee satisfaction and financial stablility I must also establish global measurements for employees and increase throughput and in order to establish global measurements for employees and increase throughput I must implement an employee bonus program based on the number of demands sent per month. I can't both not implement an employee bonus program and implement an employee bonus program based on the number of demands sent per month.
| Relation | Assumption(s) | Injection(s) |
| D-D' | 1. We can either choose to implement this program or not. We cannot do both. | |
| B-D | 1. Paying out bonuses will cost the firm more money. 2. The amount of throughput generated from each demand package would not be known at the time the bonus is paid. | 1. Increasing throughput is more important than decreasing operating expense. 2. We are not talking about huge bonuses here, maybe an extra $50 to $100 per month. 3. If the employee does not send the target amount of demand packages, they will not receive the bonus. The attorneys are not obligated to pay the bonus to each employee every month. 4. Even though the amount of the settlement for each demand is unknown at the time it is sent, each settlement is usually well over the suggested amount of the bonus. 5. If employees are more motivated to send demand packages, throughput for the firm will only increase. |
| C-D' | 1. There are currently not any global measurements by which the employees are evaluated. 2. Global measures are those that are directly tied to throughput and the overall financial performance of the firm. 3. Sending a demand almost always translates into collecting throughput in the future. 4. It is difficult to establish ways in which employees are to be measured without also justifying these goals giving the employees motivation to achieve them. | 1. Throughput is not always guaranteed when a demand is sent. 2. Throughput that corresponds with each demand is not received by the firm until at least 30 days (more like 6 to 8 weeks) after the demand has been sent. The employees would be paid their bonus before the resulting throughput is calculated/ received. |
| A-B | 1. Employees will not be satisfied if the firm goes out of business due to cash flow problems. 2. Saving money is a good way to ensure financial stability. | 1. Keeping operating expense from getting too high is important. But it is always more important to try and make more money rather than save more money. We want to stay out of the cost-world, and be a part of the throughput-world! 2. At a maximum, the monthly bonus would be $100 per employee. If both employees reached their goal, the total cost to the firm would be $200. If the firm cannot afford to pay an extra $200 a month to its employees, there are probably bigger financial issues that need to be addressed. |
| A-C | 1. Focusing on increasing throughput is more important than focusing on ways to decrease operating expenses. 2. Employees are motivated by programs that give them the opportunity to earn more money. They achieve satisfaction when they accomplish the goals that have been set for them. 3. Global measures are more relevant than local measures. 4. Achieving global measures directly translates into generating more throughput for the business. |