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.

Tricked

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“So, what makes you most unhappy about the performance appraisal process?” I asked.

Ben winced, “I really hate the whole process. It’s like my Manager gets to play God for a day and make a singular judgment about my value as a person. In many cases, he’s not in a position to really observe my behavior, and sometimes, he just comes up with the wrong conclusion. He just doesn’t have all the facts.”

“So, sometimes, your Manager is just plain wrong?”

“I have never really said it that way, but, in a nutshell that’s it.”

“Has your Manager ever tried to get your side of the story?”

Ben sat back, up straight. “You know, yes, he did, but it was almost underhanded. He came up with this self evaluation form, where I had to evaluate my own performance.”

“That sounds like a good idea, but I gather you’re not too wild about the result?”

“You’re not kidding. Here’s what he said. If I put something down and he agreed with it, then we didn’t need to talk about it. But if I put something down and he didn’t agree, then he would tell me where I was wrong. It’s almost like I was tricked into going first.”

The Truth About Performance Appraisals

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“What do you hate about performance appraisals?” I asked, gazing into a classroom full of rolling eyes. The snickers and muffled laughter hinted that I struck a chord.

Each table created responses that sounded like these:

  • They are a waste of time.
  • They are supposed to cover a whole year, but no one remembers anything earlier than three weeks ago.
  • My manager hardly knows what I do, anyway.
  • My manager is just trying to remember the bad stuff, so he doesn’t have to give me a raise.
  • The only score I ever get is a 3 out of 5, because any other score requires an explanation, and no one wants to spend the time on the paperwork.
  • My manager is out of touch with the problems I face on a daily basis, and he uses some sort of rating system that doesn’t make any sense.
  • Sometimes, I think my manager is wrong about the way he sees things.

If you are a regular reader of Dilbert, you can come up with another hundred observations. The reason they are funny is that they most accurately describe the truth.

So, if we were to create an appraisal system that addresses these issues, what elements would we include? -TF

That Time of Year

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From the Ask Tom mailbag:

Question:

This is the time of year when I’m expected to conduct annual performance reviews on my engineering staff. For the most part it’s a positive experience because I have a good group. It’s a part of my job that I really don’t look forward to though, since there are some people who will be disappointed with my evaluation. I’m looking for ways that would make this process more objective to eliminate any perception of personal bias. Do you have any suggestions or procedures for conducting these discussions that could help?

Response:

Before you can determine an appropriate format for a performance appraisal, you first must determine your purpose.

Temper your consideration with the research findings of Dr. Edward Deming related to performance appraisals. “Those efforts that focus on improving the attentiveness, carefulness, speed, etc., of individual workers—without changing the systems, processes, and methods–constitute a low-yield strategy with negligible short-term results.”

I would concur with Dr. Deming, that if you are conducting annual performance appraisals “just because,” then it is likely a waste of your time.

So, over the next couple of days, we will explore this slippery slope. Here are some purposes we will talk about.

  • Reviewing a team members participation in the systems, processes and methods to identify improvements to those systems, processes and methods.
  • Establishing the scope of a role, both the required elements and the discretionary elements.
  • Personal effectiveness related to the established role.
  • Capability assessment related to Time Span (for the purpose of additional responsibility or promotion).

Each of these purposes is a conversation, but a different conversation, with a different format to get there. -TF
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Our next Leadership program begins February 27 in Fort Lauderdale. For more information, visit www.workingleadership.com.

Creating Undergrowth

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“It’s strange,” Byron said. “A couple of years ago, we were on top of the world. We were the industry leader, now things are tightening. You just never know.”

“So, this was not predictable?” I asked.

“No, our growth curves just showed, no turning back. I mean, it wasn’t hockey stick growth, but continued growth just the same. We just didn’t think we would have to pull in our horns.”

“So, Byron, what’s the purpose for a forest fire?”

“What do you mean? How can a forest fire have a purpose?”

“From an ecological sense?”

Byron thought for a minute. “I have heard that when a forest becomes choked with undergrowth, a fire can clear it out. Though it appears devastating, that’s what brings on new growth.”

“What could that tell us about business cycles?” I probed.
“Sometimes the market gets overgrown and has to be cleared out?” Byron tested.

“Yes, in fact, if you look at macro economic climates, you will see very distinct cycles. Occasionally, there has to be a clearing of the undergrowth. So, what if you looked at your own internal business cycles, within your own company. What do you now see?”

Byron pondered. “I see that, as we grew, some of the things we created weren’t good for the long term health of the company. They seemed like a good idea at the time, but, perhaps, we were just creating undergrowth.”

Our Proud Service

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“But the project you are talking about abandoning is a service that we have provided for more than a decade. Our customers have come to expect it. Heck, part of our reputation stands on it,” Byron protested.

“So, is it your moral duty to continue something that is no longer producing results? Or can you accept that, what you are known for, once served a market, but that market was temporary? And that proud service no longer satisfies a customer need.” -TF

Not More Research

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Byron was thinking back. “I think we have done what you suggested. Every year, in our annual business plan, we look at the cost structure in each of our project areas. And each year, we find one or two things that don’t quite measure up.”

“What was the last project that didn’t measure up,” I asked. “And what did you decide about it?”

Byron’s curiosity turned into a muffled laugh. “You’re right. Now that I think about it, the people involved, in the last project going south, negotiated more time and actually spent a ton of market research money to find out that there wasn’t as big a market as they thought. Their dwindling net profit went underwater the more they studied it.”

“And now?”

Byron shook his head. “They are still holding on to some hope that the market will turn around.”

“The answer is NOT, how can we make another research study? The answer is, how can we get out of this? Or, at least, how can we put a tourniquet on the bleeding?” -TF
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The failure to accomplish a goal does not prove that more efforts and resources are needed. The failure to accomplish a goal may indicate that efforts should be stopped and a different path should be taken.

Old Indian saying, “When the horse is dead, it is time to get off.”

Absolute Minimum

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“I know how to say NO to new things coming up, but most of our troubles are from decisions we have already made,” Byron confided.

“Each year, don’t you review your decisions about what you will and will not do, including the cost structure for each of those decisions?” I asked.

“You mean, our budget?”

I nodded. “Yes, your budget. When you look at each budget item, whether it is a direct cost or an indirect cost, you have to ask this question.

“Is this absolutely necessary?

“If the answer is NO, get rid of it, dismantle it, idle it.

“If the answer is YES, move to the next question. What is the absolute minimum necessary to perform this function to our spec.?” -TF
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This conversation with Byron is essential. By this time next year, the US will be in the thick of a downturn. There is still time to adequately plan your company’s scenario to adjust.

Note that if your industry is connected to residential housing, you are already in the thick of it.

Just Say No!

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“You are right,” Byron continued. “The things that hurt us now are decisions we made a couple of years ago when times were good. It seemed like a good idea at the time. We didn’t think very hard about some of our bone-headed moves.”

“And, now?” I asked.

“And, now we have to get lean. Maybe really lean. It may get worse. We have to be able to take a couple more punches and still be able to maneuver, be able to take advantage of opportunities, but it’s difficult.”

“What is so difficult about it?”

“Well, now, everything has to be focused on a result. If it doesn’t produce a result, it has to go. It’s not pleasant. In many cases, we have to learn to say NO! So often, we try to figure out what TO do. Now we have to make decisions on what NOT to do.”
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Quick look ahead. Our next Leadership program begins in Fort Lauderdale on February 27 and on March 3 in Miami. Visit www.workingleadership.com.

Not Under Pressure

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“I’m not sure what happened,” Byron explained. “Our company was voted the number one employer two years ago. We have the best employee benefits, we have the best equipment, we have roomy workspaces, our sales people get trip incentives. All of a sudden, to stay profitable, we have to lay some people off. The mood around here turned south very quickly.”

“Times have been good?” I asked.

“Up ’till now.”

“What happened?”

“Sales have been off. Suddenly all these great things about our company are costing us out of business.”

“When were the decisions made that put you upside-down on your cost structure?”

Byron had to think back. “Three or four years ago, I guess. Those were the best of times.”

“It’s in the Best of Times that we make our biggest mistakes.” -TF

Decision Tree

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Gregory St. Germain sits in Broward County jail because of a Decision Tree. At the city commission meeting, last night, in addition to an official commendation, my wife received more than one stern warning about citizens confronting criminals. (Link to story at the bottom of this post).

People ask me what my wife was thinking? She used a Decision Tree. In a split second, she reviewed these questions.

  • How large is the intruder? Is he bigger than me?
  • Is he moving toward me or away from me?
  • What is his mental state? Aggression? Or fear?
  • Does he show any signs of a weapon?

In a split second, the answer to all those questions was NO. The Decision Tree gave my wife the confidence (and poise) to give chase, pull the intruder off the fence and put his face in the dirt.

If the answer to any of those questions had been different, it would have changed her response.

Decision Trees can be valuable in making quick decisions, but only if you plan them in advance and train to them. Police officers and EMTs use Decision Trees all the time to govern their behavior. Managers can do the same.

Most management circumstances can be anticipated. Decision Trees can be explored in advance. Given a situation in your company, you and your team can be trained in the discipline of a Decision Tree.

How will your team respond? -TF
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If you missed the story, here is the CNN link.