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.

Best Perspective of the Candidate

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Byron was a bit unsettled. “Do you mean that I should read those resumes? I’m not the hiring manager,” he stated flatly.

“No, and we already established that the hiring manager is too close to the position, is threatened by the hire and does not have enough perspective to see the correct talent pool. That is why it is your role.”

“But, I am not the hiring manager,” he continued to protest.

“No, you are the Manager Once Removed. Are you threatened by this hire?” I asked.

“Well, no, this position is two levels down from me.”

“Exactly, and do you have better perspective on what is really required for success in this position?”

Byron nodded. “But reading resumes. I don’t have time to read resumes and this is not my hire.”

“I am not asking you to make the hire. That is still Ron’s job. Your role in the hiring process, as the Manager Once Removed, is to create the Talent Pool. You create the Talent Pool of qualified candidates. Ron makes the hire from the Pool.”

Early Decisions in Hiring

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Ron settled in a chair across from Byron, his manager. We exchanged appropriate pleasantries and set the context for the conversation. Byron finally drilled in.

“Ron, you know I don’t think these three candidates are qualified for the position,” Byron started. “But you said these were the only ones who fit our budget.”

“Yep, I know things are tight around here,” Ron replied. “I figured I could save the company some money, bring in one of these people. I could show them the ropes, take them in under my wing and everything would be fine.”

“Were there other candidates that were too expensive for us?” Byron asked.

“Sure, we had seven other resumes, but they were no bargain. We would have to pay full boat for any of them.”

We thanked Ron for his time and he left Byron and I to debrief.

“Byron, I don’t know, but my guess is that there are seven resumes of candidates that we need to look at. So, tell me, why do you think Ron is having difficulty with this hire, looking at the wrong talent pool of people?”

Byron was troubled, but the fog was lifting. “I think Ron was threatened by those resumes that he described as too expensive. You are right. Some of the salary requirements are close to what Ron is making. And I don’t think Ron has enough perspective to truly understand what will be required in this supervisor position.”

“Byron, let me recap. This whole process started at the bottom with Irene, the receptionist, through another supervisor and finally to the hiring manager. None are making good decisions in this selection process.

“So, who should be driving this? Who is left? Who understands what is truly required and is not threatened by this hire?”

“Do you mean, me?” Byron asked.

Focused

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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! In the past, we tried to figure out what TO do. Now we have to make decisions on what NOT to do.”

Best of Times

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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. A little success can create a whole lot of overhead.”**

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**Red Scott’s Cardinals

An Idle Machine

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Luis was not having fun. He remembered how difficult it was for the company to make payments on the third machine.

“Management is about making resources productive. This third machine is not productive. The floor space it sits on is not productive,” I said.

“But we paid a lot of money for that machine, and our company cannot get out of its lease for this space. And what are we going to do if we need the machine?” Luis objected.

“Anyone can manage an idle machine. What are you going to do?”

Make Assets Productive

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Luis began an aggressive calling plan to get his money collected, put holds on new orders for customers who were past due and began requiring deposits on large orders. Nothing happened at first. Luis stayed off kilter for the better part of two weeks. Slowly, he calmed. Payments began to come in, not enough to have a party, but enough to breathe.

“Management is about making resources productive,” I repeated. The first thing to manage is capital. Next are your physical assets.

“Our building, our equipment?” Luis confirmed.

“The first decision is to decide what is necessary. You haven’t thought about that since this company was a start up. Back then, you thought about it a lot. You outsourced some production until you could afford your own machine. Then you bought a second machine. You moved into a new building so you could bring in a third machine.

“Now, you can’t keep the second machine busy. You tell me, what is necessary?”

Where is the Money?

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“Where’s the money?” I asked.

Luis looked at me and squinted. “What do you mean, where’s the money?”

“Look, you asked me to come here and help you straighten out this mess. Where’s the money?” I repeated.

“That’s the problem, there isn’t any money,” Luis replied.

“Yes, there is, there always is. Luis, the first resource a manager has to manage is capital. But before you can manage it, you have to find out where it is. Sometimes you think you know where it should be, but if that’s not where it is, you can’t manage it.

Sometimes your capital is tied up in a machine. Sometimes your capital is tied up in unbilled work in process. Sometimes your capital is tied up in Accounts Receivable. Once you find out where your capital is, only then can you manage it. So, where’s the money?”

A raw nerve had been struck. Luis shuffled some papers on his desk. “It’s here,” he said, pointing to the third column in his AR aging report. “It’s over 60.”

“Well, now we know where it is, we can manage it.”

Resolution or Commitment

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“Goals. Who needs ’em?” asked Yolanda. “Every year, I set goals. It’s kind of like my New Year’s Resolutions. By the end of February, I can’t even remember what they were.”

“Oh? So, tell me about your resolution for this year.” Yolanda looked a bit uncomfortable.

“Well, I haven’t exactly worked it out, yet. Until I am sure, I would rather not go blabbing it around.”

“Have you thought, perhaps, that’s why your New Year’s resolution never works?”

“What do you mean?”

“Yolanda, your New Year’s resolution never works, because you never committed to it. You never clearly defined it. Did you ever write it down?” Yolanda was silent. “Here is the management skill. Goals work just like New Year’s resolutions. If you really want to make a change, write it down. Then say it to yourself out loud. Then say it out loud in front of a group of people. And if you really want to make it stick, give that group permission to hold you accountable for the goal. Take that written goal and post it somewhere public, where you see it every day, where others see it every day. You can start with a 3×5 card taped to your mirror.”

What is your resolution this year? What major thing do you want to achieve? Have you written it down? Have you shared it with your team? I am curious. What do you do to keep your goals visible throughout the year?

It’s Not Working Harder

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“The difference in the two jobs was night and day,” Caitland explained. “The higher paying job had a better title. Managing Director, I think. The other company had lower pay, a lower title, but the work was more interesting, more challenging, in the end, more satisfying.”

“What was it about the work that made it more satisfying?” I asked.

“The Managing Director job was just that. I managed and I directed. Actually, it was a glorified supervisor position. Very frustrating. I was supposed to make sure the work got done, but I felt like I was putting my thumb in the dike. I could easily see better ways to achieve the goals, systems that we could create to more effectively solve the same problems over and over. But my boss was resistant. He said that creating those systems would be a waste of time, there were always too many exceptions.”

“And why was the other position more satisfying?” I repeated.

“A lot less stress, even though we produced more than double the output of the other company. It’s funny, I never fixed a problem while I was there. I only focused on systems. I would fix the system and the system would fix ten problems. We seldom worked overtime, but were much more productive.”
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As we wind into this holiday season, Management Blog is winding down its publishing year. We will see you in January 2024. Until then, have a Merry Christmas. Enjoy the time with family and friends. See you soon. -Tom

What’s the Difference in the Work?

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“As a manager, if all you can offer is money, what kind of issues do you constantly face? More importantly, if we are trying to get some work done around here, how can we bring out the best in people?” I repeated.

Caitland hesitated. “I guess my experience is from my first few jobs. Money was the only reason I worked. It’s how I put myself through school. The only reason I worked was for the money. And if I got a better offer, more money, for another job, I jumped on it.”

“Did you ever take a job, based on compensation, that you wished you hadn’t taken? Even though the money was better than your previous job?” I pressed.

She nodded her head. “Yes, but, in my mind, I told myself they were paying for a lousy job and that’s why the money was better. Funny. They were paying for a lousy job.”

“And have you ever taken a job that was so interesting that the money didn’t matter?”

Again, Caitland nodded. “Yes, don’t tell anyone, but this job, I would work for free.”

“So, tell me, what’s the difference in the work?”