“You have two out of five manager positions in place on a daily basis, so when you have a problem, you think you are fixing it when you are NOT fixing it,” I offered.

“What do you mean?” Derrick asked.

“When you have a problem, you think you are fixing it. In fact, you have a supervisor in play to make sure the problem gets fixed.”

“So, the problem is fixed,” Derrick insisted.

“No, the problem is fixed, but the system is still broken. You are missing three of five Managers, so you are not paying proper attention to your systems.

“You see, Derrick, when you have a problem, everyone scrambles to fix the problem. Even experienced Managers put on their superhero cape and leap in front of their biggest customer to save the day.

“What they need to focus on,” I continued, “is not the problem. They need to focus on the system. Why didn’t the system prevent that problem? Or at least mitigate the damage from the problem? Their role is NOT to fix the problem, but to fix the system.” -TF

“I understand how we calculate profit, but what does that have to do with my organizational chart?” Derrick asked.

“You design a predictable profit into your price, but what is it that keeps your profit predictable when you actually deliver your product or service?” I replied.

Derrick was thinking. “It becomes predictable when we are able to do the same thing over and over, the same way, with the same methods, in the same amount of time, with the same amount of scrap.”

“And how do you make all that happen over and over?”

“Well, we have designed a system and we train everyone to work the system.”

“And so, if something is happening with the predictability of your profit, what’s wrong, where do you look?” I continued.

“Something has to be wrong with the system,” Derrick nodded.

“So, where do you look?” I insisted.

“We should try to find out what’s wrong with the system.”

“Remember, I said that your problem is seldom a what, almost always a who?”

Derrick grinned. “So, that’s why you want to look at the org chart.”

“What would be the benefit of drawing a flow chart of this system?” I asked. Valerie had solved the problem, but I wanted her to transform the solution into a system that could be used again.

“For starters, drawing a picture of the system helps me get it straight in my own mind, and makes it easier to explain it to someone else,” she replied.

“And what if one of your team members has a suggestion for improvement?”

“They can go right to the spot on the picture and we can talk about it.” Valerie was already pulling a piece of paper to the table.

“Valerie, what’s different about your supervisor solving this problem yesterday and the work you are about to do now, as a manager?”

“Well, my supervisor solved the problem to get us out of a jam, yesterday. I am working on a system to prevent the jam from happening again. My supervisor was working for one day. I am working on the future.”

“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.” -TF

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“Well, I thought our team did pretty well, given the circumstances,” Valerie continued to protest.

“Yes, they did,” I replied. “And those circumstances should never have existed. To come down to the wire and find you are missing 500 critical parts on an order should never have happened.”

Valerie shifted in her chair. “But stuff happens.”

“Yes, stuff happens all the time and that’s why your system should detect these conditions. When did you find out that your supplier had shipped 500 defective parts?”

Valerie looked to the left. “Three weeks ago.”

“What difference would it have made if your system had delivered a report three weeks ago that showed 500 rejected parts along with replacement lead time, a list of alternate parts vendors and their lead times, along with all orders pending that required that part?”

Valerie’s head was nodding. “We would have had three weeks to work on the problem instead of three days.”

“And what is your most important system to think about when you are a manager?” I asked. Wes was beginning to see just how big his job really was.

He knew the answer to this question had to be something central, something core to the role of a manager. But, he was struggling. Not because he didn’t know the answer, but he had never really thought about it.

“What is the most difficult part of being a manager?” I followed up.

“That’s easy, it’s the people,” Wes replied.

“So, what’s the most important system to think about when you are a manager?” I repeated.

“The people system?” Wes floated.

I nodded. “Think about all the elements surrounding the members of your team. It’s pretty complicated stuff. First you have to decide on the roles that need to be played, then the skills necessary, the capability (measured in time span) necessary. You have to consider how to bring new people on to the team, what training is necessary. You have to test them to determine their skill level, design increasingly complex task sequences to find their failure points. You have to determine coaching times, mentoring times, recharging times, performance standards and goals. To be effective, as a manager, you have to create a system.” -TF