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.

Opportunistic Predator

From the Ask Tom mailbag.

Question:
Ever since the recession, our company has been scrambling. There was a time when things were calmer, predictable. Now, our management meetings seem disorganized, we are all over the place, decisions are haphazard. We have an agenda, we follow the agenda, but our direction seems muddled.

Response:
You are clearly in the deep stages of Go-Go. You describe a normal organization, out of the start-up phase, yet still struggling out of its cocoon. And many companies were put here by the recession.

During the recession, our focus shifted from operating systems toward survival and sales. Get some sales, nothing else mattered. Get sales and get profitable.

To survive, we chased rabbits, abandoned our core, taking any opportunity that created a sale. We are now entrenched in opportunity seeking, reactive in our behavior.

We did this because we had to. We had no choice. We had to survive.

The counter-intuitive move is to slow down and think. Our markets have moved, they are different, now. Things are improving (slowly). There are patterns of viability forming and we have to pay attention. Market analysis is the next step. We have to move from being an opportunistic predator to an intentional sleuth. As our markets return, we have to understand their new patterns and adapt our internal systems carefully.

Logistically, this means drawing new pictures and flow charts, identifying market needs, not one-off opportunities. As we draw this picture, our market will become clearer and our decisions will make more sense.

When the Team Gets Ahead

“And what if your team gets ahead of the production schedule during the day? Should that be part of the agreement you have with them?” I asked.

“Oh, they never get ahead,” Gail disagreed.

“Sure they do. When you post the production schedule, you allow for line changeovers, material inspection, and machine slowdowns. There are days when everything goes right, the stars line up. When they get ahead, what should your team do?”

Gail had never considered this. “I guess, it would be the same deal. If they get behind, or if they get ahead, they should come and find me.”

“Because, what decisions would you make, as a manager, if your team is ahead of schedule?”

“I could throw a pizza party,” Gail laughed. “Seriously, I could pull a couple of people over to another project, to machine maintenance, there are always secondary priorities.”

“And your team doesn’t know about these secondary priorities?”

“It’s not that I am hiding things from them, but we always have some design prototype we are working on. Short term, my team needs to get the daily production out, but if I can put a couple of people on a prototype for a half-hour, we might have a brand new product for our sales team. We have a management briefing every week from our R and D department where I find out about special projects.”

“And who decides these priorities on the floor?”

“I do,” Gail nodded. “It’s a critical part of my role, to coordinate both daily production and special projects. I have to use my best judgment.”

My Overtime Budget is Precious

“That’s funny,” Gail laughed. “Usually, when I have the production meeting and I find out the team is behind, I yell at them. But if they find me, whenever we are five units behind, we can do something about it, in real time, this is different.”

“How so?” I asked.

“Well, I can fire up another workstation, bring in one more line person, or I can look at my overtime budget, maybe we can work a little more that day, or I can even look at the customer order. Some customers, we have an arrangement where we can short-ship.”

“So, you, as the manager, can make a decision, solve the problem?”

Gail was nodding. “Yes.”

“And just to be clear. Your team cannot make those decisions.”

“No. They are not in a position to know the priority of work through the floor. That is sometimes fluid depending on direction we get from the sales department. And my overtime budget is precious. I have to consider several factors before I touch that budget. And to make a decision to short-ship a customer is delicate. It has to be the right customer and the right circumstance. No, those are my decisions, as the manager.”

Production Thresholds

“It’s a contract,” I explained. “When your team gets behind, it is up to them to pick up the pace. That is why your feedback loop has to let them know how many units produced versus the target.”

“So, if they are only a couple of units behind, they can probably make that up. You see, usually, I don’t find out they are behind until it’s too late,” Gail described.

“Of course not. They don’t want to get yelled at. But you don’t have time to monitor the production rate, so when you find out, that’s why it’s too late. Your team, on the other hand, is always monitoring production rate. They are in the best position to know when they are behind, or ahead.”

“So, I strike a deal with them. Every time they get a certain number of units behind, and five units is the right number, that’s when things get out of hand. Every time they get five units behind, they have to find me.”

“That’s the contract. Now, what are you going to do when they find and tell you they are five units behind?” I asked.

Discretionary Judgment of the Team

I could tell Gail was uncomfortable.

“Do you trust your team?” I asked.

“Of course, I do,” Gail snapped without blinking.

“Then why don’t you turn your control system into a feedback loop so your team can see the production pace through the day?”

“But what if they really get behind and I don’t know about it,” she pushed back. “There will be hell to pay with my boss if something goes wrong and I don’t know about it.”

“Do you trust your team?” I asked again.

Gail was slower to respond this time. “Well, yes,” she nodded.

“Then strike an agreement with your team,” I replied. “You figure out the threshold of the pace, so if they get ten units behind or five units behind, whatever you are comfortable with, that your team is required to pull you in to make a decision.”

“And so if they are only four units behind?”

“Then, it is within the discretionary judgment of the team, to adjust their own pace to make up the four units. But if it slips to five units, they call you.”

The color was coming back into Gail’s face.

Immediate Corrective Action

“I am in the best position to judge the pace and quality from our production team,” Gail explained. “My control system collects the data and I get that report.”

“And when you get that report, if the pace is behind, what can you do about it?” I asked.

“I can call a production meeting and stress how important it is that we stay on track.” Gail stopped. “It seems I have those meetings every couple of days.”

“Why don’t you stop? Stop the meetings?”

“I can’t do that,” she gasped. “All hell would break loose and the team would never know how behind they are.”

“I thought you said you had a control system that monitored production output? Why don’t you let your team monitor the control system, and not every couple of days, let them monitor it in real time?”

Gail was almost trembling. In her mind, she was losing control.

“Gail, who is in the best position to take immediate corrective action if we are behind schedule? The only thing you can do is call a meeting.”

Best Position to Make the Judgment

“I’m not being lazy, wishing my team would hold themselves accountable, instead of me, having to play the heavy role?” Gail was serious.

“Not lazy at all. We didn’t hire you to be an enforcement officer. We hired you to be a manager. We expect you to be an effective manager, not a traffic cop trying to meet a ticket quota,” I replied.

“So, what’s the shift I have to make?” Gail was curious.

“You are right. It’s a shift, but only a shift. And the shift isn’t necessarily all about you. The biggest shift is in your control system.”

“My control system?” Gail pushed back. “I still have to make sure we are meeting our standards for pace and quality.”

“And who is in the best position to make that judgment?” I asked.

Shifting Accountability from the Manager

Just landed in Newark, up here for three days, working with Dick Shorten’s Vistage groups on the research of Elliott Jaques.

Still have a few openings in Working Leadership Online. Free Introductory Membership for our next Subject Area – Accountability – Control Systems and Feedback Loops. If you would like to get on the list, follow this link to the Free Introductory Membership.

“I hope that worked,” Gail blurted.

“How so?” I asked.

“I know I am supposed to hold my team accountable,” she replied. “Sometimes, I feel like a babysitter.”

“If you didn’t feel like a babysitter, what would be different?” I pushed.

“If I don’t come down hard, let my team know I really mean business, it seems like they consistently underperform. But if I am in their face, they actually step up and get the job done.”

“How much of your energy does that take?”

“It’s not just energy,” Gail lamented, “Is this what management is all about, because it’s not really that much fun.”

“So, what would be different, if you could find a better way?”

“I don’t know. Instead of me, is there any way they could hold themselves accountable?”

Next Subject

I just got back from a road trip to Pennsylvania, working with two groups on the research of Elliott Jaques. As part of the workshop, we spent time looking at their biggest managerial issues.

Accountability. Accountability was a big one.

  • We find out a project is behind schedule. How do we get it back on track without being a bully?
  • Some defects in finished goods make it into the hands of our customers. How can we get our team members more focused on quality when we aren’t around to check?
  • How do we make our control systems more effective, without looking like a police force?

The next Subject Area in Working Leadership Online is Accountability – Control Systems and Feedback Loops. We are opening 50 Introductory Memberships (Free) for this program. If you would like to get on the list, please let me know. This program kicks off next Tuesday, June 1, so sign up today.

Control Systems and Feedback Loops

“So, let’s make the list. As you look at your control system, what makes it less effective?” I pressed.

“You talked about delay,” Ronnie replied. “You are right, delay makes the control system less effective. But, updating more often, is going to take up too much time for my manager.”

“But DELAY still makes the list,” I insisted.

“Okay,” Ronnie relented. “But I don’t see how my manager can do more.”

“Then, let’s have your manager do less. After all, if there is a problem with production, who is in the best position to take corrective action?”

“Well, the corrective action would be taken by the team.”

“Then, why don’t we change this control system into a feedback loop? Why don’t we have the feedback loop tell the team, and why don’t we run the feedback loop in real time? The manager just gets in the way.”