Category Archives: Decision Making

Your Market Won’t Allow It

In the past few months, you made decisions you never thought you would make. And, you will have more problems to solve and more decisions to make. We are closer to the beginning of this recession than we are to the end.

This will be the test for management. Yet, I am calm about the decisions you will make. The market will not allow you to make bad decisions. There will be quick and irreversible punishment for bad decisions. Those who make bad decisions will not be around to tell their story.

But, the worst of your decisions are not made when times are bad. The worst of your decisions are made when times are good. It’s just that now, you may have to pay for those bad decisions.

Yesterday, we announced a new online program specifically designed to help management get through the next two years, to create a foundation to take advantage of the recovery (summer of 2010). This program will help managers solve problems and make decisions about your organization. The first project field work will be assigned February 2. If you want more information about this program, or how it works, you can follow this link, www.workingleadership.com, or email me directly.

Trial and Error?

“I don’t like to think about it,” Roselle explained, “but I keep thinking that maybe I’m the next one to get a pink slip.”

“I know, in these times, it is tempting for a company to save overhead costs, to lop off heavier management salaries. And some companies have no other choice,” I replied. “But in times like these, we will see more volatile change than normal, and there will be more management decisions to make in response to that change. Management decisions cannot be made without a manager.”

“I don’t know about that. I have seen some boneheaded people making decisions in my day.”

“Of course you have. Sometimes we leave the wrong decisions to the wrong people. Some people make decisions through trial and error (in front of the customer). Some people are able to tap into their experience, or the experience of other people to see if we have ever solved that problem before. But I have to tell you, some problems you see today, have NOT been solved before. Those problems will require analysis, to get to the root cause before a decision can be made. It is those problems and those decisions which require a competent manager.”

Not Sam’s Problem

“What has to happen in the next two hours that will indicate time well spent,” Sam asked. Each person looked around at each of the other members of this management team, then looked down and began to write.

It was not Sam’s intention to figure out the solution to this problem. It was Sam’s intention to have the group figure out the solution to this problem.

The responses from the team were positive.

  • We have to agree on the purpose. We have to agree on what we are trying to achieve. We have to agree on the goal.
  • We have to agree on what actions we will take. We have to agree on the coordination and interdependencies of those actions. This has to be a period of cooperation.
  • We have to agree on what results we are looking for. We have to agree on what measures we will collect and analyze. We have to agree to raise the flag when something doesn’t look right, not to bury our statistics in a warehouse.

Most importantly, this was no longer Sam’s problem. This problem now belonged to the group. -TF

Hidden Over-Production

The good news was that we had stumbled on the problem early. Sam arrived in Corina’s office about two minutes after the phone call.

“I thought something was up when I was down here a couple of weeks ago,” he reported. “I figured there must have been some snafu in shipping that was causing a bottleneck, and I had some fires somewhere else, so I hoped that shipping would figure it out on their own.”

“We figured it out,” Corina chimed in. “We put the over-production in the Fifth Street Warehouse, so we could keep working around here.”

“But, I thought we sold the Fifth Street Warehouse,” Sam interrupted.

“Almost. But I talked to the Real Estate Department and they hadn’t had any serious offers, the listing had just expired and they were actually glad that we needed the space to put the inventory.”

Sam looked especially troubled. “Corina, I need you to gather the data, the real data on what we have in the warehouse, and your current production rates. We need to do some thinking about this. Let’s meet tomorrow at 10:00 in the conference room.”

PAR

Corina was puzzled. Her simple Cap Ex budget exercise that took her a week to prepare, now knowing it was a 15 month Time Span task, had caused her to think. That’s the point. Defining the Time Span of the task communicates the “real” complexity of the task. This was not a simple exercise. The Cap Ex budget is a complicated task and will require some deep thought, some research, some data gathering.

“Where do I start?” she asked.

“Do you remember my golf analogy?” I replied.

“You mean PAR?”

I nodded.

“P stands for Purpose, A stands for Action, R stands for Results. First I have to define the Purpose?”

I nodded again. “We cannot go any further until we define the purpose. What is the purpose of the organization?”

“The organization?” she leaned back. “But I just run the plant floor?”

“But if you just think about the plant floor, you will make wrong decisions. What is the purpose of the organization?” -TF

Allocation of Your Most Precious Resource

“Looking at the future,” Glen contended, “we are desperately looking for that new something that is going to help replace some our declining lines of business. We find something, we gear up for it, commit some people to the project, but so far, all of those projects have failed. We end up pulling the plug.”

“Who have you committed to these new projects?” I asked.

“Well, they are new projects, so we generally take those people that we can spare from our core project lines.”

“Are these your best and brightest people?”

“Well, no. Our best people are still running our core projects. But we can usually spare a couple of people from one of their teams.”

“So, you are trying to cobble together a launch team, in an untried project area, where unforeseen problems have to be detected and corrected, and you are doing this with spares?”

Decision Tree

Gregory St. Germain sits in Broward County jail because of a Decision Tree. At the city commission meeting, last night, in addition to an official commendation, my wife received more than one stern warning about citizens confronting criminals. (Link to story at the bottom of this post).

People ask me what my wife was thinking? She used a Decision Tree. In a split second, she reviewed these questions.

  • How large is the intruder? Is he bigger than me?
  • Is he moving toward me or away from me?
  • What is his mental state? Aggression? Or fear?
  • Does he show any signs of a weapon?

In a split second, the answer to all those questions was NO. The Decision Tree gave my wife the confidence (and poise) to give chase, pull the intruder off the fence and put his face in the dirt.

If the answer to any of those questions had been different, it would have changed her response.

Decision Trees can be valuable in making quick decisions, but only if you plan them in advance and train to them. Police officers and EMTs use Decision Trees all the time to govern their behavior. Managers can do the same.

Most management circumstances can be anticipated. Decision Trees can be explored in advance. Given a situation in your company, you and your team can be trained in the discipline of a Decision Tree.

How will your team respond? -TF

If you missed the story, here is the CNN link.

Whose Meeting Is It?

Adelle emerged from the conference room after two long hours of debate. She shook her head from side to side, a genuine look of despair. “I tried,” she shrugged, “but we didn’t make a whole lot of progress. What we ended up with was mostly crap.”

I had just arrived on my way to another meeting, but she had my curiosity. “What do you mean?” I asked.

“Oh, we have been trying to figure out the best way to solve this problem and there are a bunch of ideas, but we just can’t reach a consensus on which way to proceed. I am really afraid to get started until I know for sure that everyone is on board. But every time we make a compromise, other people drop off and want something different.”

“What happens to the quality of the solution every time you compromise?”

“That’s the real problem. It’s the compromising that kills it. After listening to all the input, I know what we should do and the little compromises just water it down. We might as well junk the whole project because, in this state, it will not do what the customer wants it to do.”

“Whose meeting was that that you just walked out of?” I asked.

It was Adelle’s turn to ask, “What do you mean?”

“I mean, was it the team’s meeting, or was it your meeting? Let me put it a different way. Who is your boss going to hold accountable for this decision?”

“Oh, I tried that once, blaming a decision on the team. I got the message. My boss is going to hold me accountable for the decision.”

“Then, it wasn’t a team meeting. It was YOUR meeting that the team got invited to. It is your responsibility to listen to the input, and it is also your responsibility to make the decision. And you don’t need agreement, you just need support.”

Adelle had to sit down to think about this one. -TF


Next Sales class starts January 8, 2007. www.workingsales.com
Next Leadership class starts January 22, 2007. www.workingmanagement.com

Part and Parcel

Last March, one of our subscribers in Malaysia, Rose, had a decision to make. She could have remained in her old job, or she could have stepped into this crazy world called management. Being a manager is different. Her life changed. Last week, I got this update from Rose.

“Remember me? Yeah and I’m still surviving after four months as a manager. Things seemed to be turning up not as scary as I expected.

“Anyway, I’m gaining my subordinates’ trust and the projects seemed to be progressing. I’ve implemented some new policies along the way, like implementing tighter inventory movement. My boss appreciates me for that. I’m also able to cut down on customer waiting time in our retail area by teaching key staff members how to maneuver tasks of other employees.

“Although, my direct boss seems to appreciate what I’ve done, she is quite apprehensive when I try to push for market differentiation in our consumer products. Frustrating, but I guess it’s part and parcel of life. She is instrumental in my employment and also the flood gate keeper to all the politics that try to veer into our business unit.

“But, one thing for sure, I’m feeling alive again. And powerful, occasionally, when my subordinates look to me for guidance. Anyway, although I don’t know you personally, Mr. Tom, but you have been most helpful in helping me to make up my mind four months ago. Keep up your good work. May you be blessed.”

Interesting and inspiring. My thanks to Rose for sharing her decision with us. -TF

Not a Management Technique

Rose is one of our subscribers in Malaysia. Last March, she was faced with the dilemma whether or not to take a new job as a manager. In the end, Rose took the job. After giving proper notice, she started in June.

“Remember me? Today is my second day on the job as a new manager. Wow!! Exhilarating and tough. Scares the hell out of me. But anyway, management, especially when it involves strategy at the corporate level is really something new to me! Even with an MBA, it’s not easy!

“I have to think about expanding the business and yet I can’t just do it without considering the brand’s image in the market. I can’t afford to portray the new brand into the lower segment.

“Should I think about franchising or should I get a distributor to take the new product lines into other markets.

“Still, I have to take into account the under capacity of the production department, which is also under my care. How to motivate the production line when they are so new to me? I think I’m going to have high blood pressure soon.”

So Rose took the bold step and jumped into the thick of things. It is one thing to anticipate the challenge. It is another to feel the reality of being overwhelmed. And here you come face to face understanding this is not about management techniques, this is about courage.

It is now some months since these first days in June. I heard from Rose again last week. Her update on Wednesday. -TF