Author Archives: Tom Foster

About Tom Foster

Tom Foster spends most of his time talking with managers and business owners. The conversations are about business lives and personal lives, goals, objectives and measuring performance. In short, transforming groups of people into teams working together. Sometimes we make great strides understanding this management stuff, other times it’s measured in very short inches. But in all of this conversation, there are things that we learn. This blog is that part of the conversation I can share. Often, the names are changed to protect the guilty, but this is real life inside of real companies.

Why Would They Skip a Step?

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“What do you mean, I see things that my team cannot see? If they would just look, they would see it, too,” Max pushed back.

“Max, you are a manager. You are responsible for creating all the systems that people follow. You know more about how things work and how things go wrong. Give me a short list of things you see, that your team doesn’t see,” I asked.

“Short list?

  • Sometimes, we get parts in from our vendor that have a slight defect. If we use that part in our assembly, when we get to the end, the unit will fail a pressure test.
  • If we skip the pressure test, the units get boxed and sent to customers, who install defective units. Their first call is to the salesperson, who gets an earful from the customer.
  • If the salesperson gets three customer phone calls complaining about defective units, the salesperson loses confidence in our ability to make a quality product. He stops selling.

Should I go on?” Max quizzed.

“Why can’t your production people see that?” I prompted.

“I guess they can’t put the dots together. From the time we get that first defective part, to the time the customer complains could be three months time. And when the customer complains, we still have to track down the problem, then reference our production codes to find out when the units were actually produced. It might take another week just to track down the problem. There is too much disconnection for my production team to follow. They just know they get yelled at for skipping a parts-inspection and a pressure test.”

“And, why would they skip a parts-inspection?” I wanted to know.

“Funny, the team was actually proud of their assembled output that week. We were in a bind for a large order. It meant overtime and a team bonus for 50 extra production units that week,” Max lamented.

“So, let me understand. You design all the systems out here, including the bonus system for exceeding production quotas in a shorter period of time? And you wonder why the team skips steps, to get their bonus?”

If I Only Had People Who Were Smarter

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“We have plenty of people to do the work,” Max explained. “I have written all the steps for them to follow, a nice flow chart as a visual on the cover of the binder. As the projects move through, I have Gant charts to help me understand the status, so I can explain to the customer.”

“It all sounds very organized. So what’s the problem?” I asked.

“The problem is, the production team doesn’t follow the work instructions. I walked by a work cell yesterday and the work was clearly being done out of sequence. I suddenly knew why we were having QC problems on some of the output.”

“And?” I pressed.

“I asked them why they were doing it that way, when we had just completed a training program on the correct sequence. Do you believe this? They told me the training program was wrong, that they had been doing it their way for a long time and they didn’t see the need to change. Besides, it was easier to do it their way.”

“And they had just been through training?” I wanted to know.

“Well, yes, it wasn’t like a class. I spent ten minutes with the four of them. It was really common sense. I don’t see why they didn’t get it. If I had smarter production people, they would have figured it out on their own,” Max was clearly frustrated.

“You see something they don’t see?”

“Yes. And how.”

“Did you ever think, you see something they cannot see?”

Is Your Infrastructure Ready to Grow?

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“You want to grow bigger? What do you need to focus on? Because I don’t think you are ready.” I asked.

The group looked at each other, not sure, maybe some ideas rattling around in their heads, but no one wanted to speak first.

“Before you think about getting bigger,” I continued, “what is your biggest challenge, right now? Look, you called me in here. You all look tired, worn out. You have been working way past 5p every day. And now, you have an opportunity to take a risk, which will grow your company 30 percent over the next 12 months. What is your biggest challenge, right now? What has to get fixed before you even think about taking this next risk?”

“We feel like we are fighting too many fires, right now,” Marcus explained. “And this new project will fail, if we don’t get some of these fires under control.”

“Why are these fires happening?”

“Our team members run into problems they are not capable of solving. We tried to empower them, but that still doesn’t mean they have the capability to make the right decisions. So we are down in the trenches with them, helping to put out the fire.”

“Is it possible, that you don’t have a clear understanding of the level of work in those roles? And that you have placed people in those roles who do NOT have the capability to solve the problems and make the decisions that go with the role?”

“Isn’t that what I just said?” Marcus replied.

“You described the people you placed in the role, but the root cause of the underperformance is that you, as the manager, don’t clearly understand the level of work in those roles. The biggest mistake most organizations make is underestimating the level of work in the role. Without identifying the level of work in the role, most organizations hire someone without the necessary capability. And then wonder why the fires begin to flare.”

Why We Have Supervisors

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“Yes,” Samuel appeared a bit agitated. “But, you are dealing with the rank and file. You are sitting in a pretty nice boardroom, Catherine. You have a nice salary. I know you and I may have bouts of frustration with our work, but at the end of the day, we have it pretty good. But, the rank and file, that is another question. In their jobs, they must all be frustrated. I mean, it is pretty lackluster work. That’s why we have to have supervisors, to keep them in line, to make sure they don’t sit around and play on their smartphones all day.”

Catherine’s blood pressure began to rise. Her face flushed. “Mr. Pierce, it is coming clear to me why Outbound Air, as a small upstart airline, got into so much trouble after your company bought it. It appears, I have as much work to do with the board of directors as I do with the team.”

“Catherine, I am all ears,” Samuel responded. “But I must tell you, we have a large investment in this airline, we have poured in a lot of capital to introduce jet service to the fleet. Your intentions with the company must be grounded in a solid return on that investment.”

“I appreciate your reminder of the value of the shareholders who bear the risk. And that risk is shared by our workforce. Each team member comes to work every day with the full intention of doing their best. They want work that gives them the opportunity to use their full potential. They want to spread their wings and receive fair compensation for that work. They want to use their brain, to exercise judgement in making decisions to reach a goal. They have goals, just like you have goals. They have a need, not only to bring value to their own lives, but to bring value to the lives of the people who work around them. As the chairman of the board, if you do not recognize that, my work as CEO is already doomed. All crumbs lead to the top.”
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This is the beginning of the sequel to Outbound Air. Find out how Catherine got here.

Parlor Games at Best

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Samuel Pierce felt it was his duty, as Chairman of the Board, to make sure the new CEO was grounded in reality. “Catherine, I just want to make sure that you are up to the challenges you face as the new CEO, and that you are not being too idealistic.”

Catherine Nibali was chosen as the successor CEO to a company in trouble.

“You will have the union to deal with,” Samuel warned. “I know it was here when you arrived, but it is here nonetheless.”

“That’s true,” Catherine agreed. “The existence of a union is only one indicator of the deeply ingrained misconceptions this company drifted into. The people systems were based on false assumptions of managerial leadership. It’s no wonder the union was able to take hold. But, Samuel, there is more. The union is only the tip of the iceberg.”

“With all due respect,” Samuel interrupted. “Your predecessor, Al Ripley, tried a number of things. He re-engineered many of the work processes, he allowed group dynamic exercises, ropes courses, results based incentives, group bonuses.”

It was Catherine’s turn to interrupt. “Exactly,” she stared directly at Samuel. “Parlor games. Parlor games that, at best, might create a small burst of productivity, but in the long run, laid the ground for the union and shaped a culture that provokes disruptive behavior. We stand for what we tolerate.”
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This is the beginning of the next book, sequel to Outbound Air. Find out how Catherine got here.

But, We Have a Company to Run

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“But, we have an airline to run,” Samuel continued to object. “As chairman of the board, it is my primary responsibility to make sure we have the right person at the helm. It is not my responsibility to micro-manage you, meddle in the way you run things. But, the way you run things makes me wonder if we have the right person at the helm.”

“Look, Sam,” Catherine replied, “we can squeeze the legroom, rearrange the seating on the planes. We can start charging for checked baggage. We can add a service fee if someone wants a soda. But that is not our problem.”

Catherine looked intently at Sam, sitting at the head of the boardroom. In the periphery, she could see the logos of the other companies in the portfolio. Outbound Air was the company in trouble and she had been selected to turn it profitable. She continued.

“Sam, we have close to a thousand employees now. They work 40 hours per week. Economically, they depend on us. Our compensation system and job opportunities directly impact how they live, now, next week and next year. Their self-esteem, what they achieve in life, in large part, depends on the role they play for us. How we set expectations, how we define their working relationships, how we evaluate their effectiveness, all, have direct impact on their contribution. They come home at night, frustrated or satisfied based on how things went that day. The way we design the environment of their work has way more impact on our bottom line than any fees we may charge for luggage.”
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The saga of Outbound Air continues. Find out how Catherine got here.

Kiss Off

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“Catherine, we hired you to run this company, and we want to give you free rein, but you must admit that some of your initiatives don’t translate into profit for this quarter.” Samuel Pierce was chairman of the board. He was not happy, but he was willing to listen.

“Sam, you didn’t hire me to focus on the next three months,” Catherine replied. “This company has some real problems that will take time to repair. In the short term, we will suffer. We will suffer some profit. I am not here to turn a single quarterly number. I am here to create a sustained profitability stream.”

“But, these employee initiatives are going to erode profitability. You want to change the wage structure. Your personnel plan adds in management overhead. These are long term things that will last beyond the next quarter. Are you sure you know what you are doing?”

Catherine took a moment. “On the surface, my role is to operate the business functions, define the metrics, create revenue and hold expenses. We can do that, and, in the short term, we can make a tidy profit. AND, my role is to create a sound and effective managerial system that will sustain those business functions. As CEO, right now, I have to focus on our people system, because it’s broken. As long as the people system is broken, you can kiss off all the rest.”
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The saga of Outbound Air continues. Find out how Catherine got here.

Structure and Culture

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Thinking out loud here.

During the past two days, I have laid out posts related to –

  • In spite of clear work instructions, does culture trump output?
  • In spite of personality inputs, does culture trump output?

If you learn anything about me, you know that I am a structure guy.

  • For those who think their organizational challenges revolve around personality, I tell you, it’s not a personality problem.
  • For those who think they have a communication problem, it’s not a communication problem, it’s a structure problem.

Structure is the defined accountability and authority in working relationships, both managerial relationships and cross-functional working relationships. Structure is the context, in which we work.

Culture is that set of beliefs that drive our required behaviors in the work that we do together. Culture is the context, in which we work.

So, I am beginning to wonder if organizational structure and culture are inextricably tied together. Does structure equal culture? Does culture equal structure? Do the warm and fuzzy concepts of culture have a science underneath defined by levels of work and structure?

I believe so.

Culture Trumps Personality

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“Yes, my work instructions were very clear, but we still had re-work on the back end. Like the team didn’t listen to what I told them. Even after I had them repeat the instructions back to me. I am a new manager to this team, but they seemed to understand what I said,” Rory explained.

“Tell me about the team,” I wanted to know.

“Not much to tell. When I took over the role, I asked to see the employee files. Our company does a pretty good workup on personality profiles, even for technicians. The profiles were normal, what I would expect. The company even created a standard profile for a technician that they were hiring to. Each team member was pretty much the same. They each showed attention to detail, compliance to rules and standards, persistence to complete a project. I don’t understand what happened to them.”

“What do you think changed?” I asked.

“It’s like they were different people when they took the profile and when they were actually in the work environment. It’s like when they walked out onto the field of work, things changed,” Rory shook his head.

“What do you think changed?” I repeated.

“The work environment,” Rory was searching for an answer. “The environment they were working in did not demand the attention to detail, compliance or persistence they had all demonstrated on their profiles.”

“It was a different context?” I wondered. “It was a different context. So, the work environment, the context trumps personality?”
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For a more complete example of Culture Trumping Personality.

Culture Trumps Clarity

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“But, I set the context for my team. We talked about the work we would receive from the process step before. We talked about how we would inspect our work before we handed it off to the next process step. I thought I was very clear,” Rory complained.

“So, what happened?” I asked.

“It’s like the team wasn’t listening,” he replied. “I even had them repeat the steps back to me, to make sure I was understood.”

“So, what happened?” I repeated. “Why did you feel the need to be so explicit? Why the need for clarity?”

“We’ve had quality problems out of this team, seems like, forever. They don’t seem to care. They come to work, go through the motions. End of day, they head home. That’s why I was called in to manage this team.”

“So, what was different, after you explained the sequence, described the context for their work?” I probed.

“Nothing changed. We had the same incidence of quality re-works. Almost like shoddy work is part of the team culture.”

“So, what you are telling me is that culture trumps clear work instructions?”
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Interesting perspective from Gustavo Grodnitzky in Culture Trumps Everything.