Category Archives: Accountability

Only One Manager

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“You are not a manager, so people can report to you,” I chided. “You think your biggest question about management is, who reports to you. That is not the critical question.

“For you, it is a question of control. For me, it is a question of output, production, getting the work done. For me, the question is, which manager should be held accountable for the output of the team?”

Paula stopped. In mid-thought, she blurted, “But my direct reports, they report to me.”

“That’s a nice thought,” I nodded. “And the truth is, your team members report to people all over the organization. One of your team reports its daily unit production to accounting so they can tweak their forecasts. One of your engineers is responsible for a project segment in another department. You loaned one of your team leaders to the sales department for technical support in a rocky sales presentation. Your team reports to people all over the organization.”

Paula’s eyes were growing wider, so I stopped, but only for a moment. “Each member of your team reports to people all over the organization, but they can only have one manager, one manager that I can hold accountable for their output.”

Accounting – What’s the Level of Work?

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From the Ask Tom mailbag –

Question:
We are working on the structure of our accounting department. We have a comprehensive list (spreadsheet) of ALL the tasks that need to be completed from daily transactions, to weekly flash reports, to monthly financial statements, to quarterly reports and annual compilation activities. But all this work keys around, seems to be performed by one individual, the accounting manager. We have two additional people in that department, but we need help figuring how to distribute the work to the right person.

Response:
This is an accounting department, but the same principle applies, no matter the discipline. The futile approach would ask “Can this person do this and can that person do that?” The result would be a helter-skelter mish-mash of who would be accountable for what. It might help, but you would remain in a state of disorganization. Especially where you have a spreadsheet of tasks, enough to go around for three people in your accounting department, you need a systematic way of figuring this out. This is not complicated.

You say you have a spreadsheet. As comb through the list of tasks, the central question is to identify the Level of Work. Add a column in your spreadsheet that identifies the Level of Work (LOW) for each task. Your Accounting Manager needs to self perform those tasks at S-III and delegate S-II and S-I tasks.

S-I – Clerical, transactional input from coded paperwork, proofing batch transactions for accuracy, printing reports and schedules. This would include A/P and A/R data entry, timesheet entry, including job cost transaction input for labor and materials. Matching paperwork from work orders and POs to invoices received from vendors. Collecting, sorting and filing required paperwork to support higher level decisions related to disbursements or billing activities. [Scope of task assignments range from (1) day to (1) week to (1) month with no task assignments longer than (3) months].

S-II – Coding paperwork (making decisions) for transactional input, coding job costs of materials and labor including split allocations according to formula or system criteria created by manager. Reconciliation of accounts to workpapers. Second level review of transaction input from S-I activities. Compilation activities of reports and schedules required for routine reports for accuracy, completeness according to a publishing schedule created by manager. [Scope of longest task assignments range from (3) months to (12) months].

S-III – Creation of systems for all accounting functions, including documentation of steps, checks and balances, reconciliation points, review steps, identification of thresholds, risk assessment, and operating parameters. Third level review (signature) of transaction schedules for execution of disbursements (cash), movement of cash and cash management. Forecasting and budgeting. Cross-functional work with departments and divisions to support the financial analysis required for operational decisions (bid profitability, bid qualifying, project budgets, work-in-process, milestone completions, payment apps, collections). [Scope of longest task assignment range from (12) to (24) months].

You can flesh these guidelines out to assist in identifying the Level of Work in each line of your spreadsheet. Once the Level of Work is defined, it is easy to determine what tasks the Accounting Manager must self-perform and what tasks can (should) be delegated to appropriate team members.

In Conflict with an Official Rule?

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“Why is culture important?” I asked.

“It’s the way things are,” Ryan explained. “It’s that unwritten set of rules that governs our behavior, that determines the way we work together.”

“And why is it important?” I repeated.

“Every company has a culture, whether they like or not. It’s an undercurrent, sometimes silent, sometimes outspoken.”

“And if there is an official rule that is in conflict with a cultural (unwritten) rule, which wins?”

“Culture always wins. For better or worse, culture always wins.”

Blame and Excuses

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“It’s like they fight all the time,” Sheldon explained. “Each manager thinks they know how to run the whole company, if I would just step out of the way.”

“What’s happening, explain the friction?” I asked.

“Once again, the project was late and when it was delivered to the client, it didn’t work. Pretty simple explanation. It’s the fix that’s complicated. When we only did one project at a time, everything seemed to work well. On time, on budget, never missed a beat. Then we got two projects, three. We now have seven projects in-house and they all have problems, missed deadlines, cost overruns and quality issues.”

“And?”

“The project manager is ripping his hair out. The response he is getting from all the other managers is a mix of blame and excuses,” Sheldon shrugged.

“What do they say?” I prompted.

“Want a list?” Sheldon chuckled.

  • The Sales Manager says he asked Engineering for timetable before he promised a delivery date.
  • The Engineering Manager says there were too many changes in the scope of work.
  • The Ops Manager says the timetable from Engineering was unrealistic.
  • The Accounting Manager says the budget didn’t allow for any profit.
  • The Marketing Manager says that if he had known the priority of the client, he would have put more people into the product rollout.

“So, who is right?” I smiled.

“That’s the problem. They are all right. Every word is true.”

Spinning Wheels

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From the Ask Tom mailbag –

Question:
In your Time Span workshop, you describe the friction between various departments, Ops-Sales-Customer Service-Accounting. You suggest this is a structural issue. In my company, we absolutely see this friction, but to me, it looks more like a personality conflict.

Response:
Most managerial issues look like a symptom, that’s why they are so difficult to resolve. The two most often cited problems (symptoms) are communication breakdowns and personality conflicts. You can have all the communication seminars you can afford, you can give everyone a personality test, the problems will remain.

The friction you describe between your departments is structural. Each department works from an internally focused agenda, with little consideration for other agendas in other departments. The exterior looks like a breakdown in communication. Not so.

Why is the agenda in each department internally focused? Simple. We, executive management, told them they had to be internally focused. We told each department they had to be efficient, profitable, no waste, no scrap, high utilization rates of internal resources, we told them they had to be internally focused.

In the heady days of growth, as these departments were emerging and developing, this internal focus was necessary, to gain those efficiencies, to make the output predictable. Absolutely normal. But now, that internal focus works against us. For the organization to move to the next level, those departments have to work together, support each other, cooperate, trade inside information, share planning, cross-train personnel.

You can spin your wheels with personality tests, but the fix is Integration. We have to integrate our systems and sub-systems together into a Whole System.

How Long Have You Been Working This Late?

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It was 6:30p when I stopped by Miguel’s office. “What’s up?” I asked.

Miguel picked his eyes up off the paper, holding his place on the schedule with a ballpoint pen. “Just going over tomorrow. It’s going to be another big day. Three special orders to get out the door.”

“Where is everyone, why are you still here?”

“Oh, we shut down at 4:30p. My crew is up with the chickens, tomorrow we start at 6:30a. I run a staggered shift. The first guys get the day started, then we’re full strength by 7:30a. The first wave is off by 3:30p, while the second wave picks up the pieces for the day.”

“Why are you still here?” I repeated.

“Well, there is just a bunch of little things that have to be done each day. Sort of out of control, huh? This won’t last forever. My schedule is getting better.”

“How long have you been working this late?”

“Gosh, ever since I became the supervisor, I guess. But it’s going to get better, soon.” Miguel looked optimistic.

I didn’t believe him.

Things Fall Apart

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“I don’t think you have an attitude problem. I don’t think you have clearly defined the accountability and the authority that goes along with that dotted line. That’s why dotted lines are so dangerous,” I said.

“So, what should I do? This Key Result Area is not a high priority, but the work still has to get done,” Megan explained.

“You are shooting yourself in the foot when you describe -it’s not a high priority-. If the work in this area is not done, what happens to its priority?” I asked.

Megan thought. “You’re right, the tasks will take about five hours a week, but if they are not completed, all hell breaks loose, other things begin to fall apart.”

“So, what should you do with that dotted line?” I pressed.

“Get rid of it, change its color, make it bold,” Megan retreated. “I guess I have to specifically define what I want, how much time it should take and what the result should be.”

“You guess?”

It’s Just a Dotted Line on the Org Chart

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It’s been a whirlwind of a week. I would like to welcome our new subscribers from workshops in Minneapolis, Des Moines and Austin.
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“What do you mean, she doesn’t know she is accountable? It’s very clear to me,” Megan complained. “She has a very clear dotted line to that area of responsibility. I know it’s not her highest priority, but still, she is responsible.”

“So, there is a conflict in her priorities?” I asked.

“Not a conflict, really, she has to get it all done. Just because it’s a dotted line doesn’t mean she can ignore it. Besides, at the bottom of her job description, it says, -and all other duties assigned.- That should cover it.”

“As her manager, what do you observe about the way she handles the conflict in her priorities?” I pressed.

Megan thought. “I think it’s an attitude problem. It’s almost as if she doesn’t care about one part of her job.”

“I thought it was just a dotted line?” I smiled.

Megan stopped cold. “You think the problem is the dotted line?”

“Dotted lines create ambiguity. Ambiguity kills accountability. What do you think?”

Full Speed Off the Cliff

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From the Ask Tom mailbag –

Question:
I just joined the HR team here, working on a project to identify the complexity of mental processing of our team members. I just wanted to know, is there any effective tool/test available to identify the 4 types of mental processes. Can you please suggest other techniques apart from interviews to identify the 4 processes. I would be required to use this for recruiting and to assess the (CMP) of current employees.

Response:
STOP! You are headed in the wrong direction off a cliff.

I know you think you want to get inside the heads of your employees and have some support for a number (1-4) that you think will be helpful in selecting talent. DON’T PLAY AMATEUR PSYCHOLOGIST! You didn’t take courses in psychology, you don’t have a degree, much less an advanced degree in psychology, you are not certified by your state to practice psychoanalysis. Don’t play amateur psychologist.

Play to your strengths as a manager.

The four states of mental processing (Declarative, Cumulative, Serial, Parallel) can easily be used to determine the Level of Work. That focus will put you on solid ground. What’s the Level of Work? Look at your Role Description. In each Key Result Area (KRA), what’s the Level of Work? What are the decisions to be made in the role? What are the problems to be solved in the role? What are the accountabilities in each KRA? Write those elements into your Role Description.

With the Role Description in hand, create a bank of written interview questions, ten questions for each KRA that will reveal the candidates real experience making those decisions and solving those problems. I know this looks like work, it is. This is managerial work. Don’t play amateur psychologist, play to your strengths, as a manager. It’s all about the work. It’s all about the Levels of Work.

Flowcharting the System

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“So, what does it take to create a system like that?” I asked. “To create a system that would notify for rejected parts along with lead times for replacement parts and alternate suppliers?”

Valerie was shaking her head. “I know our computer software pretty well and to program that functionality would be pretty expensive.”

I reached in my bag and pulled out a handful of 3×5 index cards. “Suppose I said that you were not allowed to modify your software and the only tool you could use were these 3×5 cards? Now build a system. Let’s start with how frequently it happens.”

“You’re right,” Valerie started. “It doesn’t happen that often. Our QC guy who certifies incoming parts, could send a card with the details to our purchasing person. Our purchasing person has access to lead times and alternate vendors. Purchasing gets their order quantities from sales orders, so they could run a reverse report to find out what orders would be impacted, that’s easy.”

“What else do we need to know to effectively respond?”

“We would need to get our sales people involved to find out what wiggle room we have on those orders. Since we are three weeks ahead of the game, there are all kinds of adjustments that can be made with ample notification.”

“If I asked to draw a picture of this on a piece of paper using circles, arrows and labels, could you do that?”

“You mean, like a flow chart?” Valerie asked.

“Like a flow chart.”