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.

The Manager’s Meeting

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In response to Michelle’s comment to yesterday’s post.

Question:

Will you expand upon the idea of planning like a democracy? Democracy implies to me that decisions are up for a vote and majority wins.

I am certainly all for a manager soliciting the best advice from his team, but ultimately the manager must have the authority to decide, as it is the manager who is accountable for the output of the team.

My experience is that teams are OK with the ultimate decision being that of their manager, as long as they know this upfront. Employees advise and recommend, but the manager decides.

Conversely, when a manager says or implies he’s running a democracy and the majority recommends something that the manager ultimately overrules, the team feels betrayed – and rightfully so.

Your thoughts?

Response:

In his book Driving Force, Peter Schutz characterizes the distinction between planning and implementation using analogies to organizational processes of dictatorship and democracy. His distinction is to make the point that most managers reverse the process, making decisions like a dictator and then wondering why the implementation is wrought with democratic slowness.

For implementation to be competitive, it requires the streamline efficiencies analogous to those found in a dictatorship. In implementation, there is seldom time for discussion, divergent opinions or tactful instruction.

To implement in this way, however, requires the planning process to incorporate processes analogous to those found in democracies. Planning must include the participation of those stakeholders in discussion, alternatives, contingencies, related issues, including the impact on all parties.

Your question centers around the specific accountabilities in the process of decision making. You are correct, the manager must make and be held accountable for the decision. And in fact, team members who participated in the process do not have to agree with the decision; they only have to agree to support the implementation of the decision made by the manager. It is their participation that is critical. People will support a world they help to create.

Elliott Jaques (Requisite Organization) goes so far as to rename the weekly team meeting to the weekly manager’s meeting to clarify the accountability.

Execute Like a Dictator

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From the Ask Tom mailbag:

Question:

I have been with the company for only 7 months now, and am very thankful I’ve found this site.

The biggest problem I face is three years of rapid growth in a family owned company. The culture is not keeping up with the changes in methods required to handle the increased volume. People still are working from memory instead of set processes, and are reluctant to train others in what they were solely responsible for years. Trying to force these changes seems to only increase turnover.

How can I influence my “older,” and most valued for technical skills, employees to change their ways of thinking?

Response:

If you continue to force these changes, two things might happen that will solve your situation. Turnover will eventually remove the resistance. The inevitable recession (Q1-2009) will reduce your volume so you won’t need to worry about it.

In the meantime, think about these two things, planning and execution. Of the two, which is more difficult?

Flawless execution, to the fundamental processes, with speed and accuracy is best accomplished under a form of organization government known as a dictatorship; tyrannical may be the most effective. (BTW, you cannot be the dictator).

But, to be able to execute flawlessly, requires a planning process to support it. And this planning process must be created under a very different form of government, a democracy. I know it is slow, requires participation, accommodation, discussion with divergent points of view, but it is absolutely necessary.

Plan like a democracy, execute like a dictatorship. It sounds as if you have things backwards. You are planning like a dictator, and you are experiencing democratic execution. You are dictating and forcing processes, but the execution is slow, with much discussion (grumbling), divergent points of view and resistance.

You have to reverse the process. Call a meeting. Explain the situation. You have increasing volume and the need for greater speed. Tell them the meeting will reconvene in twenty four hours, at which time, you will listen to their plan to handle the increased volume. Adjourn the meeting.

This message was brought home to me by Peter Schutz. You can read more about him in a post from November 10, 2006, Winning Depends on It. -TF

The System is the Problem

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“Well, we run a pretty complicated system, here,” Derrick said. “If I had to design the system, the people system, I would really have to sit down and flow chart it out.”

“Is it all about getting the work done?” I asked.

“No, not really,” Derrick struggled. “It’s not just getting the work done, often it’s the way we get the work done. I need dedicated supervisors to just make sure the work is flowing, that it doesn’t get hung up, and that the work product meets our customers’ specs.”

“Is it just about making sure the work gets done, on time, on spec?”

“No, you can get the work done on time, on spec and still lose a ton of money,” Derrick answered. “We also have to think about efficiency. That is why our systems are so important.”

“So, is it all about getting the work done, on time, on spec in an efficient way, according to a system?” I asked.

“You would think so,” Derrick nodded. “But one thing I have noticed, when we get a system humming, its momentum begins to wreak havoc on another system. Like sales, as soon as we get our sales system humming, our volume picks up and outstrips our capacity to produce. So we ramp up our capacity to produce and that outstrips our raw material flow. There always seems to be this major moving target that throws a monkey wrench into the works.

“All of these decisions are made by people, and they are all interdependent. You are right. The way I create this people system will have a dramatic effect not only on our ability to produce, but it will also impact the individual behavior of the players I have working in the system.

“I am beginning to wonder if many of the problems that I see between people and the problems I observe in performance or underperformance are caused more by the system and less by the people I am blaming things on.”

What is Necessary?

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“Where do we start?” I repeated. “If the system has the most impact in productivity, efficiency, anything connected to people working together, where do we start?”

Derrick looked at me blinking. “That’s a pretty big question,” he finally replied. “I think about a lot of things during the day, but to answer that question, I have to put almost everything else aside.”

“Yes, if you stripped everything else away, back to a blank sheet, how would you design the organizational system? What are the first things to think about?”

“Well, it has to go back to purpose,” Derrick nodded his head. “I am an entrepreneur. When I think about machinery, equipment, facilities, I only think about what is necessary to achieve the purpose. So, it gets back to vision and mission.”

“So, if you connect back to vision and mission, you would put in place only what is necessary?”

“Yes.”

“When you think about machines, equipment and facilities, what is necessary, is pretty easy. When you think about the people you will need, what do you think about?” -TF

System of Roles and Relationships

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“It’s the system, Derrick,” I began. “If you imagine the relationships between Managers and their direct reports, between team members and their Managers-Once-Removed. If you can see these relationships as a system of people, do you think the structure of the system has anything to do with the way that people behave inside of this system?

“It’s the way that we define those relationships, define those roles. It’s the system. Unfortunately, most managers, most VPs, most Chief Executives never sit down to think about this structure, this system. And the system has the largest impact on things like productivity, efficiency and even morale.

“There are excellent systems and there are poor systems. Tell me, what do you think is the difference? Where should we look first?” -TF

System Variables

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“What do you mean, I avoid making judgments about team members who report to me?” asked Derrick. “We have a very sophisticated performance appraisal system. It is based on something called Management by Objectives. And we have bonus compensation tied to it. The employee always knows where they stand based on the measurements.”

“What is it that you measure?” I replied.

“Well, it’s based on a number of things, for example, if they are able to meet production quota each month, that counts.”

“And what are the variables that influence production to quota?”

“It’s pretty cut and dried, they either make it or they don’t.”

I stopped for a moment to let Derrick catch his breath. “So, you are telling me, that your raw materials always meet spec and go right onto the line?”

Derrick turned his head slightly, looked at the floor, then back at me. “Well, no, sometimes we have to reject some of the material and that slows things down.”

“And what about the production machine, the one you were going to replace last year, but didn’t. You know, the bottleneck in your system, where all the materials stack up in front, waiting to go through?”

Derrick laughed, “You’re right on that one. That machine comes down about twice a week. We really should have replaced it. Maybe next summer. That’s why it’s important that everyone works extra hard to make sure they get their bonus.”

“So, let me understand this,” I responded. “Two system variables, raw material spec and machine down-time can have dramatic impact on production to quota, and you think you are managing employee performance based on that number?” -TF

A Judgment Most Avoid

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Picking up our discussion about Results vs. Effectiveness, Kurt posed the question.

Question:
Results can be measured, how do you measure effectiveness?

Response:
Effectiveness is a matter of judgment. Effectiveness is a matter of managerial judgment. How well does Rudy perform in the achievement of the desired goal? Given all the ins and outs, the difficulties faced, the unanticipated, unplanned monkey wrenches that get in the way, how well does Rudy perform?

This is a matter of managerial judgment.

Given that:
1. Any task (or role) requires a certain capability.
2. The person assigned has the appropriate capability.

The judgment is whether the person is committing their full capability to the task (or role).

This is NOT a “matter of counting outputs, super credits for super outputs, or penalties for lateness or sub-standard quality.” * This is about bringing their full capability to the completion of the task.

It is the job of the manager to observe and account for all the surrounding circumstances and make this most important judgment. And it is precisely this judgment that most managers avoid.

*Elliott Jaques, Requisite Organization, 1989.

Thanks Giving

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We have just rounded the turn on three years at Management Skills Blog. Our first post was November 15, 2004. I had no idea. This is post #757. I am amazed.

I am amazed at the number of readers and the widespread geography. A few weeks ago, we created a survey. Here are the top ten countries.

  • United States
  • Canada
  • India
  • Australia
  • United Kingdom
  • Denmark
  • Belgium
  • Pakistan
  • Taiwan
  • Sweden

I always wonder who stumbles across this blog. (71) percent of readers are either Chief Executives (23 percent), Vice-Presidents/Sr Managers/Directors (21 percent), or Managers/Supervisors (27 percent).

I am amazed at the experience of those responding to the survey. (51) percent have more than ten years in management, (22) percent of readers have more than twenty years in management.

Finally I am amazed at those readers who tell me that their day starts with Management Skills Blog and a cup of coffee. For all of you I am grateful. As much as you may be drawn to read, I am also drawn to write.

In the United States, this is Thanksgiving week, with the actual eating festivities this Thursday. Management Skills Blog will return next Monday. Until then, Happy Thanksgiving. -TF

Results vs. Effectiveness

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“I’m curious, though,” Jonas remarked. “As we create these tests for Rudy, to determine his capability in longer Time Span tasks, I am wondering how long this assessment period will take? If we test his capability on a 12 month Time Span task, does that mean we have to wait for the results after 12 months to make our decision? We base our Performance Appraisals on results. In fact, we hired a consultant to come in to develop our Results-based Performance Appraisal System.”

I held back, all but a glint of a smile. “You bring up a very interesting question. Many companies proclaim an undying commitment to a results orientation. Management For Results. But let me ask you this, Jonas. When you observe a 12 month Time Span task, do you have to wait 12 months for the results to determine whether the person is being effective in the position?”

Now, it was Jonas’ turn to smile, as he shook his head from side to side. “No, you don’t. You can tell way before that.” Jonas stopped, then continued. “I wonder about our system of Performance Appraisals. Perhaps instead of Manage for Results, we should Manage for Effectiveness?”

Only Then, The Promotion

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Jonas leaned forward, his face brightened. His concern about Rudy and wondering about Rudy’s capability turned to curiosity. “You’re right. Off the top of my head, here are a couple of things.”

I held up my hand. “Wait a minute, Jonas. We are not going to work off the top of our head on this. Our testing needs to be scientific, so we can make a valid judgment about Rudy’s effectiveness working at longer Time Span tasks.

“First we need to make a list of 2-3 things that we might challenge Rudy with. On that list, with each of the challenges, we need to determine the Time Span associated with the task. We have made a judgment that Rudy is effective at nine-months, so these challenges need to have Time Spans longer than nine-months.

“If we can identify a longer Time Span task and Rudy is effective at that task, we will have some confirmation for our decision. If we can test Rudy over 2-3 of these challenges, and he is successful, then he will actually earn the promotion. And we will some confidence that our decision is sound. Only then, do we make the promotion.” –TF