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.

Ran Out of Gas

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“Why do you think your Quality Circles program eventually ran out of gas?” I asked. Jamie and I had been talking about how to bring people to perform at their highest level of capability.

“I don’t know,” Jamie explained, “people just sort of lost interest, I guess.”

“And why did they lose interest?”

“Well, at first, there was this gung-ho enthusiasm, you know. It was new, but eventually the newness wore off.”

“When you look at the Quality Circles program that your company developed, what did you design in to sustain the program?”

Jamie almost chortled. “Designed? We figured if it got started, it would just keep going.”

“Jamie, if you could, think back. Exactly how long did it take for the Quality Circles behavior to die off?”

“I remember, pretty clearly, we started right after the new year, but by Saint Patrick’s Day, it was over.”

“So, it took two and half months for the behavior to die off.” Jamie nodded. “And you spent a bunch of money on a consultant to show you how to do this?”

“Oh, yeah, we had a couple of books that we had to read, and we had meetings, planning sessions. It was a big production, right down to the costumes.”

“Costumes?”

“Well, yeah, we all had these shirts we were supposed to wear. It was okay, at first, but after a while, people started making fun of the people who wore the shirts.”

“So, there was all kind of activity and planning and thinking about this beforehand, but not much thinking about what happened after. Jamie, I want you to think long and hard about this sequence. A lot of activity before the behavior, then the behavior, then the behavior died off.”

Jamie squinted her eyes, clearly imagining the sequence. “So, we did a lot of stuff up front, but didn’t do much on the back end.”

“Yes, so what do you think was missing?” -TF

Everyone Got Pumped Up

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“So, if, for the moment, we put aside bonus and incentives, tell me, how do you bring out the best in people?” asked Jamie.

“You tell me,” I replied. “What kinds of things have you tried, besides bonus and incentives?”

Jamie had to stop and think. Slowly she retrieved an idea her company had tried in the past. “Quality Circles,” she floated. “A couple of years ago, we tried Quality Circles.”

“And how did that work out?”

“Well, it seemed okay, for a while. Everyone got pumped up, we had some meetings. Some of the meetings generated some quality improvements. Is that bringing out the best in people?” she asked.

“It’s a start. What happened to the program?”

“I don’t know. It just sort of died. We got busy, skipped a couple of meetings, before you knew it, we were off the wagon.”
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In the past, what kind of programs has your company tried, to bring out the best in people? Over the long haul, how did they work out? -TF

Bringing Out the Best in People

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For the past two weeks, we have been talking about bonus and incentive systems, how they work, how they don’t work, issues of accountability. I have had more questions, emails and posted comments than any other time since we started this blog.

But we’re done. Change the subject. Because all these histrionics about bonus and incentive systems all scream at the following question. When all is said and all is done,

How do we bring out the best in people?

Next week, we will re-focus the discussion on that central question. Meanwhile, how do you bring out the best in your people? -TF

We still have three seats left in our Leadership program that begins next Wednesday in Fort Lauderdale. If you are thinking about putting someone into that program, please reply to this email or visit www.workingleadership.com. -TF

As Things Grow More Complicated

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“And where do you want accountability, solely on your shoulders, as the manager, or do you want the entire group accountable for their own performance?” I repeated.

“I want my whole team accountable,” Reggie replied.

“You see, Reggie, in the beginning, as a manager of a small team, you can take the brunt of the responsibility, because the responsibility is small. As time goes by, if you want to step up to larger responsibility, you will find that strategy will fail you. You, as the manager, can no longer solve all the problems, catch every package that falls off a forklift, fix every little discrepancy that comes roaring at you. If you try to do it all, by yourself, you will fail.

“So, you have managers who know they have to get their teams involved, to get their teams to hold themselves accountable. But they don’t know how. So, some consultant recommends a bonus program to get buy in. And you have seen, first hand, what that does to accountability.”

Reggie took a deep breath. “So, it was okay when things were small and times were good. But now that we are growing, more and more people are trying to game the bonus system.”

“And, lord help you, when times go bad, and they will. A bonus system during bad times is a sure-fire morale killer.”

“I think, the biggest lesson, for me,” Reggie replied, “is that, as things grow bigger and more complicated, I have to learn how to hold my people accountable to the performance standards that we set. And a bonus system doesn’t substitute for that skill.”

Where Do You Want Accountability?

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“Of course, no one is happy,” Reggie quickly responded. “The performance standard is not accomplished. I don’t care, as the manager, whether or not I pay the bonus. What I care about is the performance standard.”

“But, implicit in your agreement to pay a bonus for achieving a specific standard, was not paying the bonus if the standard was not achieved, so you cannot be angry, you cannot be upset and you certainly cannot hold them accountable for the underperformance. By agreeing to the bonus, you have told your team, it is okay for you to do less than your best. Accountability is out the window.”

Reggie was not happy. He did not like to hear this.

“Now, let’s go back to the conversation. You remember the conversation where you got your team talking about the performance standards instead of you?”

Reggie remembered. “This is where, instead of me telling them, I ask them questions, begin a discussion and together, we set the performance standard?”

“Yes, and what happens to accountability in this circumstance? Remember, there is no bonus, only you and your team. Where does accountability land in this conversation?”

Reggie was thinking through the conversation. Finally, he concluded, “If the group sets the performance standard, then accountability rests with the group.”

“And where do you want accountability, solely on your shoulders as the manager, or do you want the entire group accountable for their own performance?” -TF

Who is Accountable?

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Quick reminder. We still have space available in two of our Leadership programs. The program is six weeks (six sessions) in length, one program to be held in Fort Lauderdale FL (kicks off Wednesday, September 12), the other in Orlando FL (kicks off Monday, September 24). For more information, visit www.workingleadership.com.

Reggie and I kicked around his bonus system last week. Moving away from bonus as motivation requires a different mindthink on the part of the manager. Last Friday, we talked about the first shift, moving performance talk from the manager to the team. We talked about how the manager creates that conversation.

“Reggie, when you are barking all the orders, and telling people, if they will just perform to this standard or that standard, they will get an extra bump in their paycheck, where does that place accountability?”

Reggie looked at me for a minute, shook his head, “I’m not sure what you mean, where does that place accountability?”

“Reggie, the reason this is a difficult concept, is that most managers rarely talk about accountability. Back to the question. Where does a bonus system place accountability for performance?”

“I still don’t know what you mean?”

“The manager says, if you perform to this standard, you get an extra $100 in your paycheck this week. What happens to accountability for performance to the standard?”

Reggie was working through this in his head. “Well, the manager has done his job. He defined the performance standard and calculated the bonus, so it’s now on the team member?”

“Not quite,” I said. “The team member now has the choice to perform, or not perform and understands the consequences. If the team member underperforms, $100 of their promised pay will be withheld.

“So, the team member underperforms and does not receive the bonus. They’re okay with it, because, in the end, they didn’t have to work that hard after all. And the manager must be okay with it, because he doesn’t have to pay the $100.

“So the performance standard is not achieved. Who is accountable for the underperformance? Is everybody happy?” -TF

Mission Accomplished

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“Yes, but if people are afraid to participate, afraid to contribute their ideas in a meeting, how do you deal with that?” Reggie asked.

“Do your team members have ideas?” I responded.

“Well, yes, some sort of an ideas.”

“So, the problem is, to get the idea out of their head, with zero possibility that it might be rejected by the group? How would you do that?” I stared at Reggie while I reached over and pulled a pen out of my pocket and set it on the table.

“Get them to write their idea down?” Reggie guessed. I nodded. “But still, how do you get them to share their ideas with each other, with the group?”

“It’s too late, the idea is already out of their head. By the way, what happens to the quality of any idea as it moves from the mind to a piece of paper?”

“Well, it improves.”

“So, now, each person owns a much improved idea on a piece of paper in front of them. Divide the group into teams of two or three and have them share their idea with that small group. I guarantee, there will be no hesitation in that small group.

“The next step is to have the small groups report their ideas to the large group. The quality of ideas will be very high and everyone will have participated. Remember, the purpose of this meeting was simply to get your people discussing ideas with each other.” -TF

No One Can Be Wrong

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“How could you create an environment of trust, where, no matter the contribution, it was accepted and valued?” I repeated.

Reggie was stumped, at least for the moment. I think it was more that he didn’t think this kind of conversation was possible with his team.

“Reggie, what if you opened the meeting with something like this, a Good News exercise? Go around the room and have each person describe something good that had happened to them in the past week, business or personal.”

Reggie began to stare at the right hand corner of the ceiling, making a picture in his mind.

I broke his concentration. “What do you accomplish with an exercise like that?” I asked.

Reggie’s head began to slowly nod, then he spoke. “Okay, first everybody participates. Second, no one can be wrong.”

“Exactly, that’s where we start.” -TF

Accepted and Valued

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Great comments yesterday from Dean and Prices on Reggie’s Challenge.
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“So, Reggie, here is my challenge to you. In what way can you get your managers to talk about those behaviors instead of you?”

“But I’m the manager,” Reggie protested. “I thought I was the one to set the direction. I thought I was the one to give the marching orders. I thought it was my responsibility to tell them what to do. It’s my responsibility to manage them.”

“Reggie, people don’t want to be managed. People want to be lead. It is your responsibility to set the direction, but from there, your role becomes leadership. How do you get people to think? How do you get people to consider different alternatives? How do you get people talking?”

Reggie was quick to respond, “That’s easy. You just ask them questions. But I have tried that before and most times, I don’t get any response.”

“And why don’t you get a response. What’s the problem? What’s going on the mind of your team member?”

“Well,” Reggie started, “sometimes they just don’t have anything to say, and sometimes they are afraid to say anything.”

“Where does that fear come from?” I continued.

Reggie stopped. “I guess they don’t want to be wrong.”

“How could you change that? How could you create an environment of trust, where no matter the contribution, it was accepted and valued?” -TF

The First Change

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“So, you tell me. What could we do differently to get the behaviors we want that drive the results that we want?” Reggie insisted.

“You already have the first two steps,” I began. “The first thing you did was define the purpose for the program. You said the purpose to keep your managers focused on the company’s goals and to engage in behaviors to create those results.” Reggie nodded his head in agreement.

“Your second step was to communicate those behaviors you identified to drive the results you wanted, right? You did that in your individual KRA meetings.” Reggie continued to nod his head.

“So, if you didn’t have the bonus program, in two cases you would have achieved the results you wanted anyway?” More nods.

“And if you didn’t have the bonus program, three of your managers would not have spent counterproductive time trying to game your gross margin system?

“And if you didn’t have the bonus program, two more of your managers would not have become discouraged halfway through the quarter?”

“Okay, I’m with you,” Reggie interrupted. “But, what can I do differently, to make sure I get the behaviors I want?”

“Every week, you sat down with each manager and reviewed the behaviors you wanted, right? And each week, each manager promised to try very hard to do what you talked about, yes?”

“Yes.”

“So, stop talking about it. You stop talking about those behaviors.” Reggie looked puzzled. I continued, “The wrong person is doing all the talking. You stop talking. Your managers need to be talking about this stuff, not you. The first thing that needs to change is who is doing the talking.

“So, Reggie, here is my challenge to you. In what way can you get your managers to talk about those behaviors instead of you?” -TF