Category Archives: Accountability

Current Goal, Five Years Ago

From the Ask Tom mailbag –

Question:
It seems that long term goals are hard to articulate. In setting long term goals, would you agree that they are by nature more ambiguous? Should we worry less about being precise?

Response:
A long term goal, by its nature?

Five years ago, our one year goal was a five year goal. What has changed in the four years between?

The goal has taken shape, become clearer, better defined, more concrete. It has also taken turns and twists, met with contingency and unexpected, yes unintended consequences. It is now more certain, less left to chance. Murphy has less time to play.

It is the Time Span of Intention, the most important judgment for a Manager, to determine those things necessary in the future.

Ambiguous?

Precise?

Things Change

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Krista had a sheepish look on her face when I asked to see her list of goals for the next three months.

“I don’t really have a list,” she said. “I mean, I know what I am supposed to do. I keep it in my head.”

“Then how do you organize your list, if you don’t have it written down? How do you share your goals with other people? How do you change and update them? Most importantly, how do you make decisions about goals?”

“Well, when I started this job, my manager explained things to me. I had a job description and I signed off on it. Is that what you mean?”

“How long ago was that?” I asked.

“About two and half years ago,” she replied.

“Your customers have changed, your market has changed, technology has changed, regulations in your industry have changed, your team has changed. Do mean that your goals have NOT changed in two and half years?”

Objective or Subjective?

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“Our company has adopted something called Management by Objectives. MBO they call it,” Sara reported.

“And why did your company adopt that strategy?” I asked.

“There were some who said that our appraisal system was too subjective, that it needed to be measurable. So everyone had to sit down and make up some objectives.”

“And why do you think your company made that decision?”

“Some of the managers were uncomfortable making judgments about a team member’s performance. There were squabbles, disagreements and the whole thing turned into a big distraction.”

“And how is MBO working out for you?”

“Well, it has just as many downsides as the old system,” Sara replied. “Some people get so focused on their own objectives, they forget about the other people they work with. Cooperation gets stopped dead in its tracks. And sometimes the objectives are not really in the control of the team member. We seem to spend more time talking about how unfair the system is than we do about improving individual effectiveness.”

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?”

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?”

Ten Cents an Hour More?

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“But, you can’t make your living if you only work for free,” Caitland pushed back.

“No, we do have to survive. We need food and shelter. And we will work to make sure we have those things in good supply,” I replied. “But if that is the only meaning someone gets out of their job, what do you think happens?”

“That’s easy. If they find another job that pays ten cents an hour more, they’re gone. Or worse yet, they come back and try to negotiate for more money every other week.”

“So, 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?”