Coincidence of Results

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“I am not so sure about this candidate,” Marcus explained. “He says he would make a good sales manager, but even on his resume, he has only been in that role for seven months.”

“So, what does he say?” I asked.

“When, I think about it, sounds more like promises,” Marcus nodded. “I asked him what kind of impact he was having on his current sales team. He said that by the end of the year, they were looking at a substantial increase in sales. He said they should have made him sales manager three years ago.”

“But, they didn’t? And, does the increase in sales have anything to do with the sales manager, or is their market just improving? You are basing your judgment of effectiveness based on a result (that hasn’t even happened, yet). You have fallen in a trap. Results based performance is a trap.”

“But, results are important,” Marcus defended.

“And, results can be a sucker punch. You assume the results were created by the performance, when there are a hundred other things that contribute – reputation, price point, product superiority, terms, another supplier that failed to deliver. Results are important, but they don’t tell the whole story. When you abdicate your judgment of effectiveness based on results, you ignore the candidates behavior. What are the behaviors you expect out of your sales manager?”

Marcus had to stop and think. “Coaching, goal setting, teaching, observing, giving constructive feedback, encouraging, bringing out the best in his sales team.”

“So, interview for those behaviors. Effectiveness in those behaviors will tell the story of your candidate. Don’t be fooled by a result (that hasn’t happened yet).”

The Danger of Missing Stratum IV

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From the Ask Tom mailbag –

Question:
We have silos. Everybody is in a power struggle. We used to have a great reputation, but I think we outgrew it. The company seems lopsided. Sometimes sales outstrips our ability to fill orders, so some of our sales orders turn into back orders, some of our back orders turn into canceled orders and some of our best customers defect to the competition. Other times, production outstrips our ability to sell, so our finished goods don’t get sold, they stack up in the warehouse. The warehouse gets full, so we rent another warehouse. We carry inventory so long it turns obsolete and costs to hold, eat up our profit. We are like a monster machine. Just read a book by Ken Blanchard Be a Silo Buster. Do we really have to bust up the company and start over?

Response:
With all due respect to Ken Blanchard, you created those silos for a reason. Do NOT bust them up. You need efficient, profitable internal systems. It is not a matter of busting up silos, it is a matter of integrating them together. This is a classic example of a company growing into Stratum IV. This is similar to the chaos we see in Stratum II companies, but on steroids. This is not a few individuals stepping over each other. This is whole departments, internally focused, head down, nose to the grind stone without care or consideration for the other functions in the company.

But, the fix is not to tear them down. The fix is integration and requires capability at S-IV. This is not finding the constraint in a single serial system (S-III), but understanding the impact of one system on another system (S-IV). This is not root-cause analysis, but systems analysis. We have reinforcing systems and balancing systems. This requires, not serial thinking, but parallel thinking.

This is not multi-tasking (because humans cannot multi-task), but truly seeing the dependency, inter-dependency, contingency, and bottle-necks that exist among out multiple systems and sub-systems. This requires a parallel state of thinking. Two specific things to look at –

  • Balance of each system output, optimized to its surrounding systems output.
  • Handoff of work product from one system to the next system as work output flows through the organization.

Optimization
Sales has to be optimized to production. There is no sense selling inventory that cannot be produced timely to the sales order. There is no sense producing finished goods that cannot profitably be sold timely to the market. The output of both systems has to be optimized so they work in sync. Reinforcing systems and balancing systems.

Handoff
A department, head down, will work to their own internal efficiency. The state of their work product may be incomplete or carry a defect for the next stage in the work flow. Work does not flow up and down in a department. Work flows horizontally through the organization, output handed off from one department to the next.

  • Marketing hands off to sales.
  • Sales hands off to estimating
  • Estimating hands off to contracting
  • Contracting hands off to project management
  • Project management hands off to operations
  • Operations hands off to QA/QC
  • QA/QC hands off to warranty
  • Warranty hands off to research and development
  • Research and development hands off to marketing, and so the cycle goes

Each handoff must be inspected and improved. This is the role at S-IV.
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To read more on system constraints, theory of system constraints, The Goal by Eli Goldratt.
To read more about reinforcing and balancing systems, The Fifth Discipline by Peter Senge.

The Danger of Missing Stratum II

The Danger of Missing Stratum III
The Danger of Missing Stratum IV

The Danger of Missing Stratum III

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From the Ask Tom mailbag –

Question:
Our company somehow always manages to pull the rabbit out of the hat, put the fire out that saves the refrigerator, crosses the finish line crawling through glass. But, we can never relax. Every major project is drama. Every major project is the one that will put our company over the top, but we never quite make it. We are always in a state of overwhelmed. Don’t get me wrong, our customers are very happy and return to us, project after project, but it is such a struggle. We never get to breathe, we never finish in stride.

Response:
Your company is operating at S-II (implement), in a market that requires S-III (system). If your organization is completing one project well, what does it get? Another project.

If your organization is completing two projects well, what does it get? A third project. How does it do the third project? The same way it does projects one and two. So, what does your organization get? Another project.

But, what if your organization got fifty projects? How would it do fifty projects? Certainly, not the same way it did projects one and two. Most S-II companies would kill to get 50 projects, not realizing that the 50 projects will kill them. What’s missing? S-III (system) capability.

S-III stands back from the 50 projects and sees the common pattern, extracts that pattern into a system. The system optimizes resources, reduces waste and minimizes effort. The company that wins the race is the one that goes the fastest with the least amount of effort.

S-III (system) brings consistency of output, it’s always the same. Consistency of output yields predictability of output, so we can codify our system. This predictability helps us understand the real cost, now predictable, so we can build in reasonable profit.

Whenever I hear about a profitability problem, I never look for what‘s causing the problem. I always look for a who. In this case, it is a who, with capability at Stratum III. -Tom

The Danger of Missing Stratum II

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From the Ask Tom mailbag –

Question:
We are small organization, but growing. We have a great CEO, with a smart executive team. Our engineering managers are really good at developing inventive systems. And we have a dedicated and loyal work force. We have a good reputation in the market with loyal customers (every one thinks they are special). Then why does our company struggle to make a profit? The CEO is open and honest about our situation. When we want to spend on new equipment or hire additional personnel, we can’t afford it. The profit we do make barely covers the debt service the CEO borrowed to start the company.

Response:
As I translate each element of your description into levels of work, I notice something very interesting.

  • We have a great CEO – S-V
  • Smart executive team – S-IV
  • Engineering managers, inventive systems – S-III
  • — – S-II
  • Dedicated work force – S-I

What’s missing?

When I describe levels of work based on the research of Elliott Jaques, often organizations make the mistake of thinking they have to beef up their hiring in the scarce talent pool at S-III and S-IV. They overlook the necessity at S-II. So what do they miss at S-II?

The work at S-II is typically an implementation role. This is where execution happens. While you may have a dedicated workforce at S-I, with highly skilled and effective technicians, the organization misses coordination of those efforts to these three outcomes –

  • Accurate (meets spec)
  • Complete
  • On-time

It is the role at S-II to make sure the entire project is complete, not just 90 percent. Major profit fade occurs in the last ten percent of the project. It is their accountability to make sure there are no gaps along the way. Hidden profit erosion occurs in these gaps. And, that, at the end of the day, our product or service meets the spec we promised to the customer. There is never enough time to do it right, but always enough time to do it twice.

I was told a story of a company running heavy equipment in a rural area on a distant continent. When I say, heavy equipment, I mean the driver had to climb a ladder to get in the cab of the truck. This was a large company, profitable everywhere else, but this remote location had not seen profit in the past ten years. They had a smart general manager with a brilliant team of engineers. They knew how to do what they were doing, they just could not execute. Their dedicated workforce was frustrated. Try as they might, they always missed their productivity targets, through no fault of their own.

What was missing was Stratum II. S-II is the land of checklists. What was NOT getting done? Think heavy equipment, checklists and preventive maintenance. What happens when you don’t change the oil on a preventive maintenance schedule (checklist)? How productive is a machine with a thrown rod? How long does it take to fly in a technician to troubleshoot the thrown rod? How long does it take to fly in the part to fix the machine?

Sometimes it is not a brilliant system (S-III). Sometimes, it is the implementation of that system (S-II), using a simple checklist. It’s all about the work. -Tom

The Truth About Empowerment

“Empowerment!” Joshua proclaimed. “The answer is empowerment.”

“Really?” I turned my head. “Just exactly what does that mean?”

“Well, when we are trying to get people to do something, we have to empower them.”

“All you did was use the word in a sentence, you didn’t tell me what it means.”

“When you want to raise morale, make people feel better about their job, you have to empower them,” Joshua tried again.

“Empowerment is a weasel word,” I explained. “Everyone uses (misuses) it, no one knows what it means. There are whole books about it, and no one knows what it means. It’s a cover-up, the salve to heal a wound inflicted by management. We have an empowerment problem. Our employees need to be empowered. WTF does that mean?”

Joshua turned sheepish. “I dunno.”

“Of course, you don’t know, you just stumbled into it. Sounded good, so you said it. Don’t ever use that word around me again. You don’t have an empowerment problem, you have an accountability and authority problem. You don’t need to empower your employees, you need to sit with your team and define the authority and the accountability that goes with it. It’s a contract with two parts. Empowerment is like a government oversight committee that has the authority to indict with no accountability. If you have the authority to do something, then you have the accountability that goes with it. Don’t talk about empowerment, talk about accountability and authority.” -Tom
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Weasel words is a concept codified by Lee Thayer Leadership, Thinking, Being, Doing. In the history of this blog, in addition to accountability, we have identified two other weasel words, motivation and holocracy.
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Hiring Talent in the Heat of the Summer

Hiring Talent in the Heat of the Summer starts on August 1, 2016. September marks the run-up to the 4th quarter. Are you prepared? Is your staff at capacity?

Purpose of this program – to train hiring managers and HR specialists to conduct more effective interviews in the context of a managed hiring process.

How long is the program? Designed to be completed in 3-4 weeks, the program is self-paced so participants can work through the program even faster.

How do people participate in the program? Participants complete online assignments and participate in online facilitated discussions, working directly with Tom Foster as the online coach, along with other participants.

Who should participate? This program is designed for managers and HR professionals who play active roles in the recruiting process.

What is the cost? The program investment is $499.

When is the program scheduled? This program is self-paced, on-demand, so participants can login and complete assignments on their own schedule.

How much time is required to participate in this program? Participants should reserve approximately 2 hours per week (on demand) for 4 weeks (total 8 hours).

Program Description
Module One – Role Descriptions – It’s All About the Work
Learning Objectives

  • Examine what hiring managers are up against.
  • Define the steps in a comprehensive hiring process.
  • Specifically define the Role Description as the cornerstone of the hiring process.
  • Define the Structure of the Role Description
  • Write a Role Description

Module Two – Interviewing for Future Behavior
Learning Objectives

  • To understand how most managers conduct interviews, so we can stop bad habits.
  • To identify, from the Role Description, the specific data we need from the candidate.
  • To design questions to capture the data we need to make an effective candidate selection.
  • To construct a bank of organized, written, prepared questions on which to base the interview.

Module Three – Conducting the Interview
Learning Objectives

  • To prepare mentally to conduct an effective interview.
  • To practice asking prepared questions and creating clarifying questions during the interview.
  • To practice taking notes during the interview and re-capping those notes following the interview.
  • To create a Decision Matrix to compile interview data and compare candidates.
  • To effectively work with an Interview Team.

Pre-register now at the following link – Hiring Talent Course. No payment due at this time. Looking forward to seeing you online. -Tom

How to Deliver Negative Feedback

“But they suck!” Rita explained, a bit frustrated.

“And, that is what you told them?” I asked.

“In so many words. My team needs to hear the truth, the whole lot of them. If their performance is sub-standard, who is going to tell them, their mother?”

“And, how did they respond to you?”

“You know. It’s like they stopped listening to me,” Rita was calming down.

“I am shocked that they would behave that way, not listening to their manager,” my eyes directly on Rita’s eyes. A small crack of a smile, then a chuckle crossed her face.

“Look, if they need to tie their shoes, so they don’t trip, who is going to deliver the negative feedback?”

“Indeed, because they aren’t listening to you.” I paused. “So, who is the one person in the whole world they would accept negative criticism from, wholeheartedly? You, for example, who is the one person you would listen to about the negative way you are handling your team?”

“Well, I am talking to you.”

“Yes, but, you won’t take criticism, even from me. The only person you are listening to, right now, is yourself. Negative feedback is not to condemn, but to observe. So, let me ask you some questions –

  • If you had it to do over again, with your team, what would you do differently to get a different result?
  • What behavior, as a manager, could you do more of to get a different result?
  • What behavior, as a manager, could you do less of to get a different result?
  • What shift could you make, in the way you see the problem, to get a different result?

The most effective managers are not those who tell people what to do, but those who ask the most effective questions.” -Tom

Context is Culture

From the Ask Tom mailbag –

Question:
I believe you when you say that a key managerial component is setting context. How does culture fit in to context?

Response:
Context is culture, that is why it is so critical for managers to set context. Context is the culture in which we do our work.

Beliefs and Assumptions. Culture is the way that we see the world (Grodnitzky). Culture is the lens through which we see every element of our surroundings. Culture is what we believe to be true (whether it is or not). It is the collective consciousness in our workforce.

Connected Behaviors. Culture drives behavior (Grodnitzky). Lots of things influence behavior, but culture drives behavior. These behaviors are attached to the way that we see the world. Change the way we see the world and behavior changes. If, as a manager, you want to change behavior, you have to change the way you see the world. Change the context, behavior follows (Grodnitzky).

Tested Against Reality of Consequences. Every connected behavior is challenged by reality. Is the way we see the world aligned with the reality of consequences? No plan ever survives its train-wreck with reality. Everyone has a plan (the way they see the world) until they get punched in the face (Tyson). The reality of consequences tempers the way we see the world. As a manager, do not believe that you can get away with a bullshit culture.

Customs and Traditions. Those connected behaviors that survive the test against reality produce our customs, rituals, traditions. These routine ceremonies reinforce (for better or worse) our beliefs and assumptions about the way we see the world. Some behaviors are simply repeated often enough to become rituals. Some traditions are created to enshrine the belief. Either way, over time, make no mistake, these customs will have their day against the reality of consequences. Be careful what you enshrine.

Context is the environment in which we work. What does yours look like? -Tom
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Many thanks to my mentor Gustavo Grodnitzky Culture Trumps Everything.

How to Set Context With Your Team

From the Ask Tom mailbag –

Question:
I hear you say that management is about setting context. I think I understand what that means, but I do NOT understand how to do it.

Response:
Culture is context. Setting context is the prime objective for every manager. Context is the environment in which work is done. Work is making decisions and solving problems. This is fundamental managerial work. Three moving parts –

  • Communicate the Vision. This is the future picture of a project, picture of a product in a package, the output from a service. This is what a clean carpet looks like.
  • Performance Standard. This is the what, by when. This is the objective in measurable terms. This is the goal – QQTR, quantity, quality, time (deadline or evaluation period), resources. The vision is full of excitement and enthusiasm, specifically defined by the performance standard.
  • Constraints. There are always constraints and guidelines. Budget is a constraint, access to resources is a constraint, time can be a constraint. These are the lines on the field. Safety issues are always a constraint. When the project is finished, you should go home with all your fingers and toes.

That’s it, then let the team loose to solve the problems and make the decisions within the context. Do not make this more complicated. It’s always about the fundamentals. -Tom

How to Interview for Teamwork

“The new guy just doesn’t seem to fit,” Cynthia said. “Our company is built on a culture of teamwork. He doesn’t seem to be a team player.”

“You hired him. What questions did you ask about teamwork?” I wanted to know.

“Well, I asked him if he thought teamwork was important?” she replied.

“And?”

“And, he said yes. He said teamwork was very important at his last job.”

“What did you expect him to say?” I pressed.

“Well, I wanted him to say teamwork was important, because, to be successful at this company, we have to work as a team,” Cynthia insisted.

“So, the candidate gave you the response you wanted to hear?”

Cynthia was silent.

“Look, teamwork is a state of mind,” I nodded. “It’s like an attitude. You cannot interview for an attitude. You cannot interview for a state of mind. You can only interview for behaviors connected to that attitude. Ask yourself, how does a person, with an attitude of teamwork, behave? Once you identify connected behaviors, you can ask a better set of questions. So, what are some behaviors connected to teamwork?”

Cynthia thought for a moment. “Cooperation, support, listening, constructive feedback,” she replied.

“Okay, try these questions.”

  • Think of a time when you worked on a project where teamwork was critical for the success of the project?
  • What was the project?
  • What was the purpose of the project?
  • What was your role on the team?
  • What was it, about the project, that required a high level of teamwork?
  • Describe how the team worked together?
  • What worked well?
  • What went wrong?
  • What did the team do to pull together?
  • What was your role in pulling the team together?
  • What was it, about the project, that pulled the team apart?
  • How did the team respond to that?
  • What was the outcome?
  • What did the team learn about working together from the experience on this project?

“Would these questions give you some insight to the candidate’s attitude toward teamwork?” -Tom