Category Archives: Leadership

Bringing Value

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Greetings from St. Louis, MO.
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Our next Leadership program begins Wednesday, April 30, 2008. For more information, visit www.workingleadership.com.
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“I’m not sure I know what you mean, bring value to a person’s thinking and their work. I know what it means, I guess, I am not sure how a Manager does that,” asked Ted.

“Do you bring value by telling a person what to do?” I replied.

“Well, I could make suggestions,” Ted answered. “But you are right. Technically, these guys run circles around me. I don’t know the technology and I don’t have their experience.”

“So, even if you did make suggestions, there is a high likelihood that you would be suggesting the wrong thing?”

Ted nodded his head.

“So, if these guys can technically run circles around you and have much more experience, then how can you, as their Manager, bring value to their thinking and their work?”

Ted was stumped.

“As their Manager, Ted, you don’t bring value by telling. You bring value by asking questions.” -TF

Manager’s Commitment

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Greetings from St. Louis, MO.

I would like to welcome our new subscribers from Toronto. I was there last week in a series of workshops on Time Span and the research of Elliott Jaques.
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Our next Leadership program begins Wednesday, April 30, 2008. For more information, visit www.workingleadership.com.
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“Yes, but shouldn’t these people be reporting to me?” asked Ted.

“That depends. Functionally, their roles produce results you are interested in, but are you prepared to be their Manager?” I replied.

“I think so. I think they can report to me. I think I can hold them accountable for producing those results. I think I can check up on them to make sure they are working,” Ted proposed.

“That’s only the surface part of being a Manager.” I stopped to draw a picture. “Here you are, and these people, you believe, should report to you. But are you prepared to be their Manager?

“Your most important role, in the Manager relationship with these guys, is for you to bring value to their thinking and their work.” Ted stared at the simple picture of circles and lines.

“Are you bringing value to their thinking and their work by telling them that their reports are due on Friday and then reminding them Monday morning that their reports are late?”

Ted was still staring, but putting the pieces together. “Well, no, not when you put it that way.”

“Then, how, as their Manager, do you bring that value? And are you committed to bring that value? Are you willing to commit the time to bring that value?

“The answers to these questions will determine whether these people should report to you.” -TF

A New Leader

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The group had been working for ninety minutes. They were working in a simulation to complete a complex task. Once the task sequence and its steps were decided and practiced, the test was to complete the entire sequence in a twenty minute time frame.

I stopped the simulation to ask a simple question. “Which of you has become the leader?” There had been no formal selection, but the group immediately looked at Sam.

“What is it about Sam, that has made him the leader?” I continued.

The team members began to exchange glances, wondering if they were all thinking the same thing. “Well, Sam seemed to know how to organize this thing together,” Marvin volunteered.

“How did he do that? You have not worked together as a team before.”

There was a brief moment, then Kyle piped up. “Sam pulled us all together, asking questions about what each of us thought. Within three minutes, he had formulated a plan, assigned some individual responsibilities and we started working.”

So I am thinking to myself. Sam was chosen as the leader because he had understood the complexity of the situation better (at least faster) than the others.

At that moment, Emma stood up. She had been sitting on the sidelines, in fact, I wondered if she had been paying attention.

“I think we can complete this task in five minutes, instead of twenty,” she said.

All eyes turned. In an instant, a new leader emerged. -TF

Who Should Be the Leader?

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From the Ask Tom mailbag:

Question:

I read the post on Race Day, and I am very curious about how the crew selected the crew leader for Race Day? Did they just elect someone?

Response:

This is a very interesting question. In some of my workshops, I often assign a small group to complete a complex task. While the exercise is to the complete the task, the purpose of the exercise is to put the group in a position where a leader emerges.

So, who becomes the leader? It is seldom put to a vote, but the group always has an intuitive sense who the best person should be.

At first, I thought the decision might be related to technical skills, but that is often not the case. Most often, it is the person who has the time span most suited for the assigned task.

It is the person who understands not only each of the individual steps of the task, but the most appropriate sequence, the relationships of those steps, and most importantly, the people who will be performing each of the steps.

The fascinating part in the selection of this person, is that the members of the group have an intuitive sense of who the leader should be. -TF

Where Do You Spend Your Time

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From the Ask Tom mailbag:

Question:

What is the incentive to the person who performs at a higher level than the status quo, if they are rewarded the same?

Response:

While this sounds like a simple question, it is actually quite complicated. While I am not a fan of performance bonuses, I am a fan of differential pay bands for those who are more effective than others. Simply put, people should not be rewarded the same.

There should be different consequences. But the most powerful consequence may not be compensation.

A study was conducted with a group of factory workers. One group produced a high level of product each day (avg 94), the other group produced a lower level (avg 76). The manager was instructed to change two things.

First, each day, post the personal productivity of individual team members. Second, any team member who improved one day to the next, received a complimentary remark from the manager. No pizza, no bonus, no extra time off, just a complimentary remark.

At the conclusion of the study, the low performing group had improved from (avg 76) to (avg 84). Everyone was quite pleased.

The high performing group improved from (avg 94) to (avg 146).

Most managers end up spending time with their poorest performers. Where is the real payoff? -TF

Bringing Out the Best in People

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For the past two weeks, we have been talking about bonus and incentive systems, how they work, how they don’t work, issues of accountability. I have had more questions, emails and posted comments than any other time since we started this blog.

But we’re done. Change the subject. Because all these histrionics about bonus and incentive systems all scream at the following question. When all is said and all is done,

How do we bring out the best in people?

Next week, we will re-focus the discussion on that central question. Meanwhile, how do you bring out the best in your people? -TF

We still have three seats left in our Leadership program that begins next Wednesday in Fort Lauderdale. If you are thinking about putting someone into that program, please reply to this email or visit www.workingleadership.com. -TF

As Things Grow More Complicated

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“And where do you want accountability, solely on your shoulders, as the manager, or do you want the entire group accountable for their own performance?” I repeated.

“I want my whole team accountable,” Reggie replied.

“You see, Reggie, in the beginning, as a manager of a small team, you can take the brunt of the responsibility, because the responsibility is small. As time goes by, if you want to step up to larger responsibility, you will find that strategy will fail you. You, as the manager, can no longer solve all the problems, catch every package that falls off a forklift, fix every little discrepancy that comes roaring at you. If you try to do it all, by yourself, you will fail.

“So, you have managers who know they have to get their teams involved, to get their teams to hold themselves accountable. But they don’t know how. So, some consultant recommends a bonus program to get buy in. And you have seen, first hand, what that does to accountability.”

Reggie took a deep breath. “So, it was okay when things were small and times were good. But now that we are growing, more and more people are trying to game the bonus system.”

“And, lord help you, when times go bad, and they will. A bonus system during bad times is a sure-fire morale killer.”

“I think, the biggest lesson, for me,” Reggie replied, “is that, as things grow bigger and more complicated, I have to learn how to hold my people accountable to the performance standards that we set. And a bonus system doesn’t substitute for that skill.”

Where Do You Want Accountability?

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“Of course, no one is happy,” Reggie quickly responded. “The performance standard is not accomplished. I don’t care, as the manager, whether or not I pay the bonus. What I care about is the performance standard.”

“But, implicit in your agreement to pay a bonus for achieving a specific standard, was not paying the bonus if the standard was not achieved, so you cannot be angry, you cannot be upset and you certainly cannot hold them accountable for the underperformance. By agreeing to the bonus, you have told your team, it is okay for you to do less than your best. Accountability is out the window.”

Reggie was not happy. He did not like to hear this.

“Now, let’s go back to the conversation. You remember the conversation where you got your team talking about the performance standards instead of you?”

Reggie remembered. “This is where, instead of me telling them, I ask them questions, begin a discussion and together, we set the performance standard?”

“Yes, and what happens to accountability in this circumstance? Remember, there is no bonus, only you and your team. Where does accountability land in this conversation?”

Reggie was thinking through the conversation. Finally, he concluded, “If the group sets the performance standard, then accountability rests with the group.”

“And where do you want accountability, solely on your shoulders as the manager, or do you want the entire group accountable for their own performance?” -TF

Who is Accountable?

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Quick reminder. We still have space available in two of our Leadership programs. The program is six weeks (six sessions) in length, one program to be held in Fort Lauderdale FL (kicks off Wednesday, September 12), the other in Orlando FL (kicks off Monday, September 24). For more information, visit www.workingleadership.com.

Reggie and I kicked around his bonus system last week. Moving away from bonus as motivation requires a different mindthink on the part of the manager. Last Friday, we talked about the first shift, moving performance talk from the manager to the team. We talked about how the manager creates that conversation.

“Reggie, when you are barking all the orders, and telling people, if they will just perform to this standard or that standard, they will get an extra bump in their paycheck, where does that place accountability?”

Reggie looked at me for a minute, shook his head, “I’m not sure what you mean, where does that place accountability?”

“Reggie, the reason this is a difficult concept, is that most managers rarely talk about accountability. Back to the question. Where does a bonus system place accountability for performance?”

“I still don’t know what you mean?”

“The manager says, if you perform to this standard, you get an extra $100 in your paycheck this week. What happens to accountability for performance to the standard?”

Reggie was working through this in his head. “Well, the manager has done his job. He defined the performance standard and calculated the bonus, so it’s now on the team member?”

“Not quite,” I said. “The team member now has the choice to perform, or not perform and understands the consequences. If the team member underperforms, $100 of their promised pay will be withheld.

“So, the team member underperforms and does not receive the bonus. They’re okay with it, because, in the end, they didn’t have to work that hard after all. And the manager must be okay with it, because he doesn’t have to pay the $100.

“So the performance standard is not achieved. Who is accountable for the underperformance? Is everybody happy?” -TF

Accepted and Valued

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Great comments yesterday from Dean and Prices on Reggie’s Challenge.
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“So, Reggie, here is my challenge to you. In what way can you get your managers to talk about those behaviors instead of you?”

“But I’m the manager,” Reggie protested. “I thought I was the one to set the direction. I thought I was the one to give the marching orders. I thought it was my responsibility to tell them what to do. It’s my responsibility to manage them.”

“Reggie, people don’t want to be managed. People want to be lead. It is your responsibility to set the direction, but from there, your role becomes leadership. How do you get people to think? How do you get people to consider different alternatives? How do you get people talking?”

Reggie was quick to respond, “That’s easy. You just ask them questions. But I have tried that before and most times, I don’t get any response.”

“And why don’t you get a response. What’s the problem? What’s going on the mind of your team member?”

“Well,” Reggie started, “sometimes they just don’t have anything to say, and sometimes they are afraid to say anything.”

“Where does that fear come from?” I continued.

Reggie stopped. “I guess they don’t want to be wrong.”

“How could you change that? How could you create an environment of trust, where no matter the contribution, it was accepted and valued?” -TF