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?”
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?”
“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
“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?”
“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?”
“That’s it?” Rose looked puzzled. “But, I work with a bunch of engineers. I am their manager. The engineering team looks to me for advice, guidance and direction. Given a problem, they look to me for the solution. You are suggesting that I just ask questions?”
“Rose, how did you land this job as a manager of a bunch of engineers? Was it because you are so good at solving engineering problems?” I asked.
“No, I am not even an engineer, though I think I have an aptitude for it, that’s not my area of expertise.”
“Then, how did you land this job as manager of engineering?”
Rose stopped to think. “This is the third department assigned to me in as many years. The company has a trouble spot. They make me the manager. I come in and get things organized, figure out the team, who is strong, who the ringleaders are, who needs to go. For about a year, I work with the strongest team members and pick one to take my place.”
“So what’s your plan here?” I wanted to know.
“Same thing,” Rose nodded. “Get things organized, figure out the team. Pick the strongest one to replace me. It will take about a year. I have already been told not to get too comfortable, the company is already working on my next assignment.”
Victoria looked a little down. “Why the long face?” I asked.
“Ugh,” she replied. “I think I just entered the J-curve. We had to let two more people go last week, I had to reassign some of their work to other people. Empowerment, you know the drill. It’s tough getting people to do new kinds of work. Their new responsibilities are suffering, big time.”
“What do you think is the problem?”
“The new things they have to do aren’t that difficult, but I am getting resistance. And some of the new decisions they have to make, well, maybe, with a little experience they will do better.”
“Describe the resistance,” I shifted.
“It’s not really resistance. They don’t say anything. But I can tell. It’s like a blank look. A nod that says yes, but a feeling that says no.”
“What do you think you are going to do, to get a different result?” I pressed.
“I am going to give it more time. Maybe things will improve.” Victoria was an optimist.
“And, what if they don’t improve? First, how will you know whether they are improving? And what if they don’t improve? What will you do differently?”
“I know I have heard that before,” Vicki replied. “As the manager, it’s not my job to motivate, I am supposed to create an environment. So, what does that mean? We have work to do here.”
“This is all about work,” I replied. “And by work, I mean making decisions and solving problems.”
“But my people know what they have to do, and there aren’t that many decisions to make.”
“Look again,” I encouraged. “Your team is making decisions all the time, if you let them. Most of their decisions fall into two categories, quality and pace.”
Vicki looked puzzled, “What do you mean?”
“How many units are supposed to come off the line by lunch time?” I asked.
“Fifteen,” she replied.
“And so, as the morning goes on, your team is making decisions about how quickly they should go without compromising quality? And if there is a quality issue, they have to solve the problem and make up the pace to reach the goal by noon?”
“Yes.”
“And, what happens if they discover that they can maintain the quality standards, and produce 20 units by noon?” I smiled.
“Well, they would probably knock off at 15, or slow the pace down because the goal was 15.”
“But that would violate the contract,” I prompted.
“The contract?” Vicki repeated.
“The contract to do their best. Part of the contract means if they can complete more than the goal using their assigned resources in the allotted time, they are supposed to tell you, as the manager.
“See,” I continued. “That is why 15 is your goal, not their goal. It is the manager who is responsible for the result. And that is the first thing to understand about creating this environment.”
“It gets back to the contract you have with your team,” I said. “Each team member is responsible for doing their best. That’s it. People have a deep need to do their best, a deep need to contribute, a deep need to work.”
“Then, why do I feel like I spend most of my time trying to motivate my team?” Vicki pondered.
“I don’t know, what do you think?” I replied. “Keep in mind, people behave in accordance with the systems we place them in. It is not your job to motivate. It is your job to create the environment where all the motivation hype is not necessary.”
“Okay, I pay him to solve problems and make decisions, not to push the button,” Vicki tested, still resisting. “Aren’t you just being picky?”
“I am. And for a reason,” I replied. “People don’t come to work to push a button. They come to work to solve problems and make decisions. They come to work to contribute. They come to contribute to a group of people who they hold in high regard. Much of their identity is related to the position they hold in your company.
“Our status in life, our place in the world is defined by the groups we belong to. If we don’t belong to a group, we don’t exist.”
Vicki was listening, her posture gaining interest.
“People want work that challenges them to their highest level of capability. In that work, there is true satisfaction. Not by pushing a button, but exercising their full judgment in making decisions toward a goal.”