Monthly Archives: August 2007

All Crumbs Lead to the Top

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“But the worst part of my little bonus system,” Reggie confided, “was not that my managers were manipulating the numbers, but I think it really changed their mindset. I corrupted their thinking and digging out of that hole is going to take time. And some of them will not survive.

“And the winner, the successful candidate who gets the position as the new division VP is going to think he got the job by gaming the system. It doesn’t matter how I explain it, in his heart, his experience will tell him that he got the job by playing with the numbers.

“It is really true,” Reggie continued, “the behavior you reinforce, is the behavior you get. I created the incentive. I got the behavior.”

“If you are going to create a different environment, what has to change first?” I asked.

“All crumbs lead to the top,” Reggie said. “I have to change first.”

Counterproductive To What We Stand For

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“So, you’re the culprit,” I repeated. “What specifically did you do that was so counterproductive?”

“No, I remember, it wasn’t anything extreme, but I began to hand out bonuses for the department with the highest gross margin, another for the highest revenue in the quarter.

“It’s funny, now that I think about it, when I handed out those bonuses, the room was really quiet. There was no jubilation or high-fives, just a nod and a polite thank you.”

“Tell me about the down-side?” I asked.

“I found out later,” Reggie explained, “that all of the departments were gaming the gross margins. They would pump up the pricing in the last week of the quarter and then rebate it back to the customer in the next quarter. In the end, we still got our standard margin, but the department was manipulating the bonus system.

“And it’s not so much that they had to pay the piper in the next quarter, but look at all the wasted energy, counterproductive to what we stand for. And the last thing on our mind was doing a good job for the customer.”

The Culprit

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Great comments, yesterday, from Barb and Mukul about Reggie and his dilemma.
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“It was worse than I thought,” Reggie stated flatly. “What I didn’t realize when I opened up this little fracas, was that the competition started long ago. I nosed around some of my sources. It’s been a dysfunctional fight for the past six months, with not only my three candidates, but two others. They are all spread across three departments, so I never saw it.”

“What’s been going on?” I asked.

“Mostly, it’s the subtle non-cooperation of one department with another. Convenient delays, rough hand-offs, missing information. Nothing malicious or brazen, but I have five people working against each other, working against the company.”

“Who’s the culprit?”

Reggie’s demeanor changed. He sat straight up in his chair. The nerve was struck. Chin down, looking over his glasses, furrowed brow, he finally spoke. “I’m the culprit. I thought it was a little healthy competition, but what I created was an environment where individual agendas were more important that teamwork.”

“How do we fix it?”

“First, we have to start with the culprit,” Reggie shrugged. “And that would be me.”

Selection Dilemma

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Reggie was grinning like a Cheshire cat. “I’m really lucky,” he said. “We are opening up a new division and I have three great candidates for the VP position. It’s actually going to be tough to pick which one I think will work out best.”

“Congratulations,” I offered. “Internal candidates or external candidates?”

“All internal. Homegrown. Got the right value system. Good decision-making skills.”

“And what will happen to the two candidates who will be left behind?” I asked.

Reggie stopped. He had been focused on his good fortune to have this kind of bench strength, but he had not considered what would happen after his selection.

“I guess they will just continue doing what they are doing now. I mean, they all play an important role, they just won’t be a Vice President in charge of a division.”

“They all know they are being considered as a viable candidate for the position?”

“Yep, I had a meeting, just last week, with all three of them. I wanted to be upfront, let them know what I was thinking.”

“And, have you noticed any change since you had that meeting?”

Again, Reggie stopped. He knew I hadn’t dropped by to chat about the weather. He also knew that sometimes, even on the outside, I hear about trouble before he does.

“So, something is up?” he guessed.

I nodded. “Don’t go jumping in there, but take some time to take a hard look at the new dynamics you just created.” -TF

Saving Face

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“But he has been doing a terrible job, as a Manager,” Cheryl observed.

“So, do you want him out of the company? Should he be gone?” I asked.

Cheryl shook her head. “No, Harold has too much knowledge, he knows everything about everything, he is just in the wrong position for our company. What he is doing now, works against us. But he could be so valuable in a different role.”

“Right now, you have Harold in the role as a Senior Manager, which you say is the wrong place for him. But you don’t want to fire him, just reassign him. How do you think that will work, in Harold’s eyes?”

“He’s not going to like it,” Cheryl replied, still shaking her head. “He might quit and we really do need his technical knowledge. I am afraid he is going to be embarrassed in front of his peers, in front of his direct reports. This move is going to be very touch and go.”

“So, what is the one thing you have to do, to make this move successful?” I pressed.

“Somehow, we have to allow Harold to save face in front of the company. I am just not sure how to do that.”

Stumped

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“This is the third meeting we have had,” Derek explained. “We just aren’t making any headway and the deadline is coming up fast. I thought this would be an easy problem to solve, but it’s not.”

“So, who do you have on the project team?” I asked.

“My best people, all seasoned vets at this game, but this problem has got them stumped.”

“Why do you think they are stumped?”

“I don’t know. This was a system they put together. They know all the ins and outs. They know the limitations of the system. It’s almost like they have a mental block.”

“Have you thought about putting Miguel on the team, even on a temporary basis?” I ventured.

“Miguel? Why Miguel? He has only been here for two weeks and hardly knows our system at all,” protested Derek.

“Exactly! Did you ever consider that the thinking that designed this system, that the thinking that created this problem will not be the thinking that solves this problem?” -TF

Practice and Coaching

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Yesterday, I spent time talking with Phil about his training program and what was missing.

We spend so much time fretting about our training programs, the curriculum, the workbooks, what to include, do we include too much, do we use powerpoint, who should the instructor be, should it last for one hour or two hours?

We sit on committees discussing this stuff, deciding, writing, re-writing, ordering the coffee, arranging for flipcharts and markers.

And we sit and wonder why our training programs are so ineffective.

Training is only the beginning. Training only gets you so far (and not very far at that).

The acquisition of any skill starts with training, but requires practiced performance. Without practiced performance (and coaching), the impact of most training is lost and all the resources are wasted.

So, the next time you create any training program, put as much thought into the aftermath, the practice and coaching that comes after the training.

What’s your experience? -TF

What Was Missing?

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“Look at this,” Phil exclaimed. “We just had the training on this last week. And I just pulled samples from the prototypes. Thank goodness this isn’t a production run. I ought to fire the whole lot of them.”

I winced. “Yes, I guess you could fire them, all eight of them. But then you would have to run the line yourself. I don’t know if you could keep up.”

“You know what I mean. I’m not going to fire anybody. I’m just frustrated. Maybe it’s our training department. Maybe we need to look at the training program.”

“Perhaps,” I said. “You know, when people acquire a skill, I mean really acquire a skill, it takes more than a training program.” Phil looked at me, like I was from Mars.

“When you were a kid, did you ever learn how to throw a ball?” I continued. Phil nodded. “So, someone showed you how to throw, and you threw one ball and then you were an expert?”

Phil laughed. He suddenly knew where I was going with this. “Of course not. I had to throw a hundred balls. I had to practice. My mom was my coach.”

“So, what do you think is missing from your training program?”

Phil’s eyes narrowed. His head began to nod. “Practice and coaching.” And with that, he scooped up the samples, turned on a dime and headed for the production floor. -TF

Motivated to Make Things Right

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“So, you were surprised that you didn’t get fired?” I asked. Kim and I were talking about her near disaster with a forklift.

“I was certain I would get fired. It was a boneheaded move on my part. But my manager, well, it was almost like he used a counterbalance. He knew he had my undivided attention over the forklift. He also knew that I was motivated to make things right. And he got someone to run the safety program, (me!), where it benefited the most.” Kim replied.

“How did that bring value to your thinking and your work?”

“Well, he could have fired me, he could have yelled at me. He could have embarrassed me in front of the team. He could have called me out to his boss. He could have suspended me. But what he did was to make me think.

“He had me motivated to sit down and learn more about how serious this safety stuff really is. It was one of the most important lessons in Leadership that I have ever been a part of.”

Big Mistake

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A good bit of the morning had passed when I met Kim in the coffee room.

“Okay, I came up with a list,” she said. “It’s not a long list, but I was able to think about some specific things that were helpful to me when I was a supervisor. It’s funny. At the time, I didn’t realize how helpful it was, but now, I can see it clearly.”

“So, what’s the biggest thing on the list?”

“We were under some pressure to get a big order pulled for shipping. I was supervising the crew. Things were hectic. I commandeered a forklift that had been pulled out of service. One of the buckles on its safety harness was being repaired. I was thinking, how stupid, not to use a forklift for a few minutes just because it didn’t have a safety harness.

“Big mistake. I told one of my crew to use it anyway, just to move some product about ten feet over in the staging area. That part was okay, but when I wasn’t looking, the crew member took the forklift over and started moving other stuff. He figured it was okay to use the machine, since I said so. He was turning a corner and ran over something, his load shifted and he came right out of the machine.

“I was lucky. No one was hurt, nothing got damaged. In fact, everyone that was there, thought it was funny. Well, except for my manager. I thought I was going to get fired. It was a stupid thing I did.”

“So, what did your manager do?”

“He never yelled at me. I remember, he just came into my office that afternoon. He said one word, ‘Lucky!’ Then, he put some safety books on my desk, said he would be very interested to attend my safety meetings for the next three months.”

“So, tell me, how did that bring value to your thinking and your work?” -TF