“And what if your team gets ahead of the production schedule during the day? Should that be part of the agreement you have with them?” I asked.

“Oh, they never get ahead,” Gail disagreed.

“Sure they do. When you post the production schedule, you allow for line changeovers, material inspection, and machine slowdowns. There are days when everything goes right, the stars line up. When they get ahead, what should your team do?”

Gail had never considered this. “I guess, it would be the same deal. If they get behind, or if they get ahead, they should come and find me.”

“Because, what decisions would you make, as a manager, if your team is ahead of schedule?”

“I could throw a pizza party,” Gail laughed. “Seriously, I could pull a couple of people over to another project, to machine maintenance, there are always secondary priorities.”

“And your team doesn’t know about these secondary priorities?”

“It’s not that I am hiding things from them, but we always have some design prototype we are working on. Short term, my team needs to get the daily production out, but if I can put a couple of people on a prototype for a half-hour, we might have a brand new product for our sales team. We have a management briefing every week from our R and D department where I find out about special projects.”

“And who decides these priorities on the floor?”

“I do,” Gail nodded. “It’s a critical part of my role, to coordinate both daily production and special projects. I have to use my best judgment.”

“That’s funny,” Gail laughed. “Usually, when I have the production meeting and I find out the team is behind, I yell at them. But if they find me, whenever we are five units behind, we can do something about it, in real time, this is different.”

“How so?” I asked.

“Well, I can fire up another workstation, bring in one more line person, or I can look at my overtime budget, maybe we can work a little more that day, or I can even look at the customer order. Some customers, we have an arrangement where we can short-ship.”

“So, you, as the manager, can make a decision, solve the problem?”

Gail was nodding. “Yes.”

“And just to be clear. Your team cannot make those decisions.”

“No. They are not in a position to know the priority of work through the floor. That is sometimes fluid depending on direction we get from the sales department. And my overtime budget is precious. I have to consider several factors before I touch that budget. And to make a decision to short-ship a customer is delicate. It has to be the right customer and the right circumstance. No, those are my decisions, as the manager.”

“It’s a contract,” I explained. “When your team gets behind, it is up to them to pick up the pace. That is why your feedback loop has to let them know how many units produced versus the target.”

“So, if they are only a couple of units behind, they can probably make that up. You see, usually, I don’t find out they are behind until it’s too late,” Gail described.

“Of course not. They don’t want to get yelled at. But you don’t have time to monitor the production rate, so when you find out, that’s why it’s too late. Your team, on the other hand, is always monitoring production rate. They are in the best position to know when they are behind, or ahead.”

“So, I strike a deal with them. Every time they get a certain number of units behind, and five units is the right number, that’s when things get out of hand. Every time they get five units behind, they have to find me.”

“That’s the contract. Now, what are you going to do when they find and tell you they are five units behind?” I asked.

I could tell Gail was uncomfortable.

“Do you trust your team?” I asked.

“Of course, I do,” Gail snapped without blinking.

“Then why don’t you turn your control system into a feedback loop so your team can see the production pace through the day?”

“But what if they really get behind and I don’t know about it,” she pushed back. “There will be hell to pay with my boss if something goes wrong and I don’t know about it.”

“Do you trust your team?” I asked again.

Gail was slower to respond this time. “Well, yes,” she nodded.

“Then strike an agreement with your team,” I replied. “You figure out the threshold of the pace, so if they get ten units behind or five units behind, whatever you are comfortable with, that your team is required to pull you in to make a decision.”

“And so if they are only four units behind?”

“Then, it is within the discretionary judgment of the team, to adjust their own pace to make up the four units. But if it slips to five units, they call you.”

The color was coming back into Gail’s face.

“I am in the best position to judge the pace and quality from our production team,” Gail explained. “My control system collects the data and I get that report.”

“And when you get that report, if the pace is behind, what can you do about it?” I asked.

“I can call a production meeting and stress how important it is that we stay on track.” Gail stopped. “It seems I have those meetings every couple of days.”

“Why don’t you stop? Stop the meetings?”

“I can’t do that,” she gasped. “All hell would break loose and the team would never know how behind they are.”

“I thought you said you had a control system that monitored production output? Why don’t you let your team monitor the control system, and not every couple of days, let them monitor it in real time?”

Gail was almost trembling. In her mind, she was losing control.

“Gail, who is in the best position to take immediate corrective action if we are behind schedule? The only thing you can do is call a meeting.”

Just landed in Newark, up here for three days, working with Dick Shorten’s Vistage groups on the research of Elliott Jaques.

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“I hope that worked,” Gail blurted.

“How so?” I asked.

“I know I am supposed to hold my team accountable,” she replied. “Sometimes, I feel like a babysitter.”

“If you didn’t feel like a babysitter, what would be different?” I pushed.

“If I don’t come down hard, let my team know I really mean business, it seems like they consistently underperform. But if I am in their face, they actually step up and get the job done.”

“How much of your energy does that take?”

“It’s not just energy,” Gail lamented, “Is this what management is all about, because it’s not really that much fun.”

“So, what would be different, if you could find a better way?”

“I don’t know. Instead of me, is there any way they could hold themselves accountable?”

‘What do you mean?” Ronnie asked.

“Describe, again, your control system,” I replied.

“We distribute the task assignments for the day, for the week,” Ronnie began. “The team does the work. The control system counts the output. The output is compiled and delivered to the manager at the end of the week. The manager looks at the output and meets with the team to talk about their performance.”

“You mean, where the team screwed up?”

“Well, yeah. If they screw up, it’s up to the manager to address the situation,” Ronnie defended.

“I see.”

“I knew it,” Ronnie complained. “We set up a control system to hold people more accountable and now somebody has sandbagged the control system.”

“What do you mean?” I asked.

“Look, we have a tight production budget. We cannot afford screw-ups, on either the pace or the quality of the output. Sometimes, production gets behind and we don’t find out about it until it’s too late. So, our QC people put in a control system that counts production every five minutes. The data is collected, compiled on a report and automatically emailed to the manager every Friday. He can see trends in pace, shift productivity and work station productivity.”

“What does the manager do with the report?”

“Every Monday, he meets with the production team to talk about the report. The team can really see where they screwed up,” Ronnie smiled.

“So, what’s the problem?”

“The control system count was off. We had to bring in another QC inspector to do an independent audit of the finished inventory. At first, the count between the control system and the inventory was pretty close, but after a couple of weeks, the numbers went whacky. Turns out, the production team has been messing with the control system counter. They were swiping finished goods through the counter multiple times one day and skipping the counter on other days. The control system was always wrong.”

“Imagine that?” I said.