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.

Shift to Efficiency

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“You were more organized, but you almost went broke?” I pressed.

“Yes, we managed to get all the orders out the door, but it cost more to produce, than the revenue could cover,” Arianne replied.

“So, you needed to raise your prices?”

“Not that simple,” she explained. “We had competition. Our competitors price-to-the-customer was 15 percent below our cost to produce the same product. We waited for two years for them to go out of business. There was no way they could sustain that loss. But after two years, we figured out they weren’t losing money after all. They had found ways to be more efficient and productive.”

“What did you do?”

“It wasn’t enough to be organized. We had to examine every step. Turns out there were more efficient ways to work. We changed the sequence of some of the steps. Some steps could be done at the same time by different teams, increasing throughput. It was amazing. We cut our lead time from six weeks to four weeks. Higher throughput with the same number of people, with the same equipment, in the same facility, we lowered our cost. We shifted from just getting the orders out the door, to a consistent, predictable system.”

“Problem solved?” I asked.

“Not really. That’s when our troubles really began.”

That Sounds More Organized

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“Why are we having this discussion in the first place?” I asked. “What do you see, as a manager, that is creating a problem?”

Arianne was puzzled. She knew the answer, but didn’t know the words to express it. “There are all kinds of issues. I guess it’s just getting organized. Our company has grown, things are more complicated, now. It used to be, everybody did a little bit of everything, and somehow, all the work got done. Now we have more customers, way more customers, and the volume, we now do, in one day, what we used to do in a month. We started out with eight people, now we have eighty-five.”

“When you think back to when your company was small, and then you added more people, what was the biggest change that you noticed?” I pressed.

“I remember, clearly, everybody was doing a little bit of everything, and then we had to divide up the work. Some people would work on one part, others would work on another part, and someone else was assigned to find new customers,” Arianne explained.

“Well, that sounds more organized,” I observed.

“Are you kidding. That was the beginning of the first set of problems. We ended up with two people doing the same thing, duplicating work. And other work that no one was doing, gaps all over. I felt like Hans Brinker, plugging the dike with my thumb. But there were too many gaps. Too many customers, too many orders. It was a mess.”

“What did you do?”

“Somehow, we got it sorted out. We drew a big flowchart on the wall, with boxes for each of the major steps. It became easier to see the holes in the dike, and where work was duplicated. We made checklists, created push schedules. It was a lot of work, a lot of effort, a bunch of overtime, but at least we got all the work out the door.” Arianne took a breath.

“Well, that sounds more organized,” I repeated.

“Are you kidding,” Arianne sat forward. “That was when we almost went broke.”

What is Work?

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“What’s the Level of Work?” I asked.

Arianne puzzled her face. “We’re looking at two roles. One is a finish carpenter and the other is a machine operator. The carpenter is finishing wood products within one sixteenth of an inch. The machine operator is working to tolerances of four decimal places. I would say the machine operator role is a higher level of work, it’s more precise.”

“Is it a higher level?” I insisted.

Arianne paused, “I guess I am just thinking out loud. I don’t know.”

“As a manager, working with a team member, after you have provided work instructions, what is the most valuable thing to talk about?”

“Working through things that aren’t in the instructions,” Arianne was quick to respond. “Talking about the problems that might occur, and the decisions that might pop up.”

“And that’s how I measure the Level of Work. What are the problems to be solved and the decisions to be made? These require judgment on the part of the team member, and that’s where the complexity of the work is revealed. The machine operator may be working to four decimal places, but the machine is making the cuts according to a computer program. The finish carpenter, working to one-sixteenth of an inch is taking manual measurements and constantly using judgment. The likelihood of field adjustments and variance in materials is high.

“Working with my team, the most important discussion is -what decisions do you have to make in the course of your work. What problems do you have to solve?”

Hiring is an Annoyance

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Julia hesitated before she asked the obvious question. “So, you think I should become involved in the hiring process earlier?”

Julia, a division manager, had described how job openings were listed on the internet, with resumes sent to the receptionist. The receptionist followed some basic criteria to sort the resumes into two piles, in and out. Two supervisors, then, picked through the in pile. They would make a few phone calls and get some candidates to the office for interviews. If they liked them, they would kick the candidates upstairs for another round of interviews with the department managers. Only then, would Julia see the successful candidates.

Julia’s description was predictable, “I can’t believe these candidates made it this far in the process. They were awful, totally unqualified, but the best that’s out there. It’s really difficult to find good people these days.”

Julia’s process is upside down. The front end is handled by the wrong people moving candidates up the food chain. Here’s why this happens. For managers like Julia, hiring is a distraction, an annoyance to be handled quickly so she can get back to important manager stuff.

Didn’t Leave for Better Wages

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The resignation letter stared at Adrian. His best team member, Eric, had just quit. Eric was employee of the year last December and just received a raise two months ago. He was in line to become lead technician in his department. What could be better? What else could Adrian, his manager, have done?

I inquired about the exit interview conducted by the HR coordinator. The form stated that Eric left for better wages.

Adrian was worried. Three years ago, Eric entered the company as an inexperienced recruit among a group of seasoned veterans. Over time, his personal productivity outpaced the entire team. In Eric’s absence, Adrian feared the overall output of the team would falter. Eric often carried the whole group.

I called Eric, already gainfully employed (at a lower wage) in another company. Happy with his decision, Eric shared his story. On a crew of six, Eric had consistently accounted for 50 percent of the output. The other team members were slackers riding on his coattails. I asked what Adrian could have done differently. The advice was quick and simple. “Cut the dead wood. Release the poorest performers and productivity would have increased, even with a reduced headcount.”

Adrian is left with the remnants of a mediocre team. But before he can heed the advice, he has to find another Eric.

His ASAP, Your ASAP

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Sondra finished her project over the weekend.

“Last week, you assigned this task to Dale, but you ended up doing it,” I observed. I could tell she was very pleased with the project result, but miffed that she spent the weekend working when Dale had all of last week to work on it.

“I thought a lot about what you said about being more explicit about my deadline. Next time, I will try to remember that,” Sondra replied.

“More than that, the target completion time is essential to the task assignment. Dale gets all kinds of assignments. To complete them, he has to use his own discretion, primarily about pace and quality. Most of the decisions he makes are about pace and quality. Without a target completion time, he has no frame of reference in which to make his decisions. His ASAP will ALWAYS be different than your ASAP. ASAP is not a target completion time.”

Sondra smiled. I took a look at her project. It was really very good. She will make her client meeting today and life will go on.

By When?

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Sondra was holding her head between her hands, staring directly down to the surface of her desk. I tapped the door and she looked at me over her glasses.

“Why the long face, said the bartender to the horse?” I asked.

She smiled through her temporary state of mind. “Gotta work tomorrow, Saturday,” she replied.

“Not the end of the world, what’s the matter?”

“I assigned a project, a major project to Dale on Monday. He asked when I needed it. I said ASAP. Today is Friday. He hasn’t started it and he is leaving town for the weekend.”

“So, what does ASAP mean?”

“It means it’s important and I need it right away. The client meeting is first thing Monday. Another communication breakdown.”

“Oh, it looks like a breakdown in communication,” I replied. “But the responsibility lies with you, the Manager.”

“What do you mean? I told him it was important and that I needed it as soon as possible.” Sondra had pushed herself back from the desk, arms extended.

I shook my head. “This is basic goal setting and you have committed the classic mistake. When you assign a task, any task to achieve a goal, what are the elements in that assignment?”

“Well, I tell them what I want them to do, you know, how many of whatever, and any important details.”

“And what else?”

Sondra was stumped. But in all fairness, her mind was thinking about Saturday. I am sure by now, she just wished I would go away.

“How about when you want the project completed by?” I prompted.

“Well, if it has a deadline, but if I just need it done, it’s going to take whatever time it takes.”

I shook my head. “No,” I said slowly. “Every task assignment ALWAYS has an expected completion time. The classic mistake most managers make is ignoring the importance of the expected completion time. Tell you what. You come in tomorrow, on Saturday, finish your project, that should have been finished yesterday and on Monday, we will talk about the importance of expected completion times.”

Who Is Accountable for the Goal?

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“Our goal, their goal? What’s the difference?” Brent retorted.

“The difference is your relationship with the team, their relationship with you and your understanding of who is accountable,” I replied. “When they don’t meet your goal and you come down on them, how do you think they feel? What is their attitude toward you?”

“They know I am disappointed in them.”

“No, they get pissed at you.”

“Pissed at me?” Brent sat back. “I am not the one who is supposed to be selling, they are.”

“You are right. As the leader, I expect you to devote full attention to the management of this sales force. Which is why they are pissed at you.”

“I still don’t get it. Why are they upset with me?”

“Assuming they are doing their best, and you are still falling short of your goal, who is the only one who can hire more salespeople? Who is the only one who can schedule overtime? Who is the only one who change the assignment of leads? Who is the only one who can change their collateral literature? Who is the only one who can set selling margins?”

Brent was silent, then finally spoke, “That would be me.”

Group Accountability?

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“At first, this group dynamics stuff looked interesting, you know, everyone together under a team incentive bonus. It sounded exciting in the seminar, but in real life, this is painful,” Naomi explained. “The worst part, is we’re not getting any work done.”

“So, who is accountable?” I asked.

“I think everyone has to take a small part of the responsibility for the team not cooperating,” Naomi replied.

“No, I don’t mean who is responsible for the mess. I mean, who is accountable for the goal?” I insisted.

“The goal? We’re not even talking about the goal. We are just talking about cooperating better together, as a team.”

“Perhaps, that’s the problem,” I suggested. “You are spending so much time trying to cooperate as a group, that you forgot, we are trying to get some work done around here.

“Is it possible,” I continued, “that you have been misdirected to think more about shared fate and group dynamics than you have about your team. A team is not a group. A group may be bound together by shared fate, but a team is bound together by a goal. Stop thinking about group dynamics and start thinking about the goal. That’s why we are here in the first place.”

The Manager is Accountable

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“Roger, the reason we are having this conversation is that I don’t believe your accountability on this project is clear. As the manager on the Phoenix project, you are accountable for the output of your team. You have been working with this project team for more than two years. You are accountable for who is on the team and off the team. You are accountable for monitoring the pace and quality of the team’s output. You are accountable for the work environment.” I stopped, so Roger could catch his breath.

“I know, I know I am accountable. But, if I have team members who are slow walking the job? I mean, I set the example. I am here early. I stay late. I’m engaged,” Roger defended.

“So, let’s say the pace is not meeting what the client expects, or what you expect, as the manager. What could be happening?” I asked.

Roger’s eyes flew to the ceiling, searching for answers in the back of his brain. His head began to nod.

  • “Could be an attitude problem.
  • Or, could be that the expectations are out of line.
  • Could be that the work instructions aren’t clear.
  • Maybe the training wasn’t effective.
  • Maybe we don’t have the right tools available.
  • Or, the way we have the work layout isn’t efficient.”

I could see a clearer understanding infecting Roger’s take on the problem.

“Roger, everything on your list could be valid. Which of those could you have influence on, as the manager of your team?”

Roger’s nod stopped, his eyes intent. “I can impact all of them.”

“So, I expect to see this list written. Then some analysis, which are you going to tackle first? What steps will you take, as the manager, to inspect the work instructions, check out the traininig, look at the work layout.

“This meeting is adjourned. Let’s meet tomorrow morning at ten, and you can tell me your intentions.”