Category Archives: Teams

Biggest Variable in Workforce Planning

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“What things do you need to pay attention to that will have an impact one year from now?” I asked.

“This company is pretty stable in what it does,” Melanie replied. “We may replace a machine or our volume might go up or down. But what is really volatile, is the people. You never know what is going to happen with the people.” Melanie’s mind began to race like she had just discovered uranium. “The biggest change is always the people. And even if the people don’t change, the people change. It’s still the same people, but, they are not the same people.”

Melanie’s discovery of uranium was shifting to panic. This new world that opened up just a few seconds ago, suddenly got very scary.

“It’s not just the people that change,” I smiled. “It’s the relationships. Organizational structure is the working relationships between our team members.”

“So, as a manager, I have to see the way things are now, and think about the impact a year from now?”

“Yes,” I nodded. -Tom

Built on a Dollar More?

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“Now, you have me confused,” Max protested. “Yes, the bonus becomes an entitlement, so it loses its power to motivate.”

“Is it possible,” I asked, “that the bonus never had the power to motivate in the first place? Let’s talk about you. You said, that sometimes you enjoy work. Why do you work?”

“I told you. I get a sense of accomplishment. Some of the work, I actually enjoy.”

“Like what?”

“Sometimes, I get someone on the crew, it’s their first job. They become part of a team, working together and I can see a sense of pride on their face. As a manager, I enjoy that. I get my own sense of accomplishment.”

“And, their first paycheck?” I prompted.

“Yes, there is a smile on their face.”

“So, compensation is important, but if that is all there is, your team members will jump to another company for an extra dollar an hour. So, how do you build your system? How do you, as a manager, build your culture? Do you build your culture around a bonus, or do you build it around accomplishment? You only get what you focus on.”

Sure Fire Participation

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“Yes, but if people are afraid to participate, afraid to contribute their ideas in a meeting, how do you deal with that?” Reggie asked.

“Do your team members have ideas?” I responded.

“Well, yes, some sort of an ideas.”

“So, the problem is, to get the idea out of their head, with zero possibility that it might be rejected by the group? How would you do that?” I stared at Reggie while I reached over and pulled a pen out of my pocket and set it on the table.

“Get them to write their idea down?” Reggie guessed. I nodded. “But still, how do you get them to share their ideas with each other, with the group?”

“It’s too late, the idea is already out of their head. By the way, what happens to the quality of any idea as it moves from the mind to a piece of paper?”

“Well, it improves.”

“So, now, each person owns a much improved idea on a piece of paper in front of them. Divide the group into teams of two or three and have them share their idea with that small group. I guarantee, there will be no hesitation in that small group.

“The next step is to have the small groups report their ideas to the large group. The quality of ideas will be very high and everyone will have participated. Remember, the purpose of this meeting was simply to get your people discussing ideas with each other.”

Before the Team Can Get Better

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“I am really disappointed in my team,” Carole began. “I really need to get them to step up their game.”

“Whenever I watch a team,” I replied, “to see how it is performing, I always end up watching the leader. Most times, the competency of the team reveals the competency of the leader.”

“Are you saying that the lack of performance of my team, is my fault?” Carole defended.

“No, I am saying, before the team can step up, it’s the leader who has to step up. Before the team can change, the leader has to change. The team you have right now, is the team you deserve. If you think your team should be more effective, you have to become more effective. Your team and their output is the product of your effectiveness as a manager.”

“Zappos just abolished bosses” – Baloney

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“The latest management trend to sweep Silicon Valley requires CEOs to formally relinquish their authority and grants special protection for every employee to experiment with ideas. It’s called holacracy and big name tech leaders have jumped on the bandwagon,” proclaims Gregory Ferenstein in his post on Vox, July 11, 2014.

“Zappos CEO Tony Hsieh announced that he will transition his entire Las Vegas company — with a billion dollars of revenue and 1500 workers — to holacracy by the end of 2014.”

Holacracy is described as the latest management craze and it is just that – craziness. The problem with craziness is that a manager or CEO will read his article and naively follow a prescription that will cost hard dollars and create untold havoc. Following Ferenstein’s prescription could be fatal.

Holacracy is a weasel word. It attempts to use new (made up) terminology to mask a vague notion of contrived credibility.

“Holacracy is management by committee with an emphasis on experimentation. The CEO formally relinquishes authority to a constitution and re-organizes everyone into decentralized teams that choose their own roles roles and goals,” explains Ferenstein. Think about this. What is delegation? Delegation is the assignment of accountability and authority to complete a task. Delegation shifts the accountability and authority to a “decentralized” team that chooses to complete the task (or not).

And believe me. If the “decentralized” team chooses not to complete the task and adopts a six hour lunch break, some manager will step in and say “Guys and gals, that is not what we had in mind.”

If you read this column regularly, you know I am a structure guy focused on the research of Elliott Jaques. This notion of giving a team direction (an objective) and providing them latitude (time span of discretion), within limits, to solve a problem is not a new notion. Holacracy is baloney (weasel word).

Ferenstein would argue with the words “within limits.” He would argue that Hsieh would set those limits free. That will not be the case. Hsieh will define those limits (discretionary authority). Holacracy obscures what is really happening using words without meaning.

“Advocates for holacracy argue that centralization of power suffocates innovation.” Here is the biggest problem with Ferenstein’s description – most managers, CEOs and writers about management DO NOT UNDERSTAND the purpose for hierarchy. They believe that management is all about centralization of power. Hierarchy has little to do with power. Hierarchy has everything to do with accountability and authority.

So, is Tony Hseih misguided in his actions and decisions related to his management structure? No. What IS MISGUIDED is the understanding of what he is doing and its description as holacracy. Over my next few posts, we will look closer at what Tony is doing and see that it is nothing new. And if Tony understood his decisions more clearly, in the context that I will describe, those decisions would be more effective in creating his image of an organization.

The purpose of an organization is not to broker power, but to get work done. I know that is what Tony wants to do. The question is, what does that structure look like? It ain’t holacracy.

How to Build a Team, Where to Start?

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“So, Roger. I am not going to give you all ten projects,” I repeated. “Not yet. Before I do that, we have some growing to do. You handled three projects superbly, the fourth you began to be late and by the fifth project, things really began to slip. But, you have potential. Ten simultaneous projects will require a different approach from you.”

“You said I would have to build a team,” Roger replied.

“Yes, and building a team is more complex than building a checklist.”

“I think I can step back from all my projects and see the things about those projects that are identical, the things that are similar and the things that are different. That’s why my checklists are helpful. But building a team, I am not sure where to start,” Roger admitted.

“At the beginning, of course,” I smiled. “Let’s start with something you know how to do. You are good at making a list. I want you to make a list of everyone on your current team.”

“I can do that,” Roger agreed. “Any particular order?”

“Yes, you know that some of your team members are more capable than others. You know that, because you have worked with them, watched them make decisions and solve problems. I want you to put your team members in order, with the most capable at the top and the least capable at the bottom. When you have finished that list, let’s get together and you can tell me about each one.”

The Shift in Becoming a Manager

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“What would you have to do differently to accomplish ten projects in the same time that you now run five projects? No overtime,” I challenged.

“One thing is for sure, I can’t keep it all in my head,” Roger mused. “You know, some projects, you can manage with sticky notes. When you gave me my third and fourth project, I had to start making lists. When you gave me my fifth project, I realized my lists had similarities and I created a template with all the possible elements. Given another project, I can start with my template rather than creating a list from scratch.”

“But if I give you ten simultaneous projects, what would you have to do differently?” I repeated.

Roger shook his head. “I can’t manage ten projects at the same time, even with my templates,” he concluded. “Something would always be falling through the cracks. I would need some help.”

I nodded in agreement. “Roger, we didn’t start working with you because you could manage a project, or two projects. To manage ten projects, you will need some help, you will need a team. The reason we want to assign you ten simultaneous projects is not so you can build a better template (though that is helpful), but so that you will build a team. This is a dramatic shift from being a supervisor, to becoming a manager. It’s a higher level of work.”

The Realization of a Manager

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“But, what if one of my team members doesn’t show up?” Sheri defended. “How can I be held accountable for that?”

“You are not accountable for the team member not showing up,” I replied. “But you are accountable for the output of the team who is now short one team member. I hold you accountable for having back up, cross trained team members to pick up the slack. I hold you accountable for knowing your team well enough to anticipate who is not going to show up, and having an alternate plan in that event.”

Sheri was quiet. While she was backpedaling, she knew she was still on the hook.

“Being accountable for the output of the team changes everything,” I continued. “Once you realize that accountability, your behavior changes.

  • You have to know your team members
  • You have to provide clear expectations within the team’s capability to deliver
  • You have to prepare your team to handle the inevitable problems that will come up
  • Your team has to practice to become fluent in handling those problems
  • You have to provide context for the work that your team will be a part of
  • You have to inspect the output to make sure it meets quality standards within time limits

This is all about people, this is all about your team. And, as the manager, you are accountable for their output.”
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Hiring Talent Summer Camp kicks off next Monday. Follow this link to pre-register.

The Team Will Never Be Much Better Than the Leader

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“So, I have the team I deserve,” Sheri nodded.

“Yes,” I agreed. “And understand the team you have, will never be much better than you. If you want the team to get better, who has to get better first?”

Sheri was still nodding in agreement, but while her head was moving, her brain was pushing back. She still wanted to lay the blame on her team. “Okay, the team did not do what they were supposed to do, but you seem to say that it is my fault.”

“Fault, schmaltz,” I chuckled. “I don’t care whose fault it is. But, I do hold you accountable for the output of the team. All crumbs, always, lead to the manager. As the manager, you control all the resources for the team. You control the work instructions, you pick the team, you pick the number of people on the team. You pick the roles for people to play, you design the workflow. I hold the team member accountable for showing up and doing their best, but I hold the manager accountable for the output.”
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Hiring Talent Summer Camp kicks off next Monday. Follow this link to pre-register.

How Many People Can One Person Manage?

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From the Ask Tom mailbag –

Question:
How many people can a person effectively manage?

Response:
This is a great question.  As I travel around North America, I talk to hundreds of managers each year, there is always this question, stated in different ways.

  • How many people can one person effectively manage?
  • What is the appropriate span of control?
  • When does a manager get spread too thin?

To answer this question, we need to reframe the assumption.  It is not a matter of management or control, it is a matter of accountability.  Here is my reframed question –

  • How many people can one manager be accountable for?

This shifts our understanding of the role and helps us answer the question.  The magic maximum number is “about” 70.  But it depends.  It depends on the variability of the work.  If the work is very repetitive and work instructions seldom change, one manager can be accountable for a fairly large group.  If however, if the work changes from day to day, hour to hour, where work instructions must be adapted constantly from a set of guidelines, that number may drop to four.

Let’s take a military example.  One drill sergeant, in basic training, where work instructions are repetitive, may be accountable for the work output of a high number of raw recruits.  On the other hand, in a Navy Seal team, with specialized missions requiring high levels of judgment which may change minute to minute, one team leader may only be effectively accountable for five or six team members.

What is the level of work on your team, what is its variability, how much judgment is required related to work instructions, what is the risk of underperformance?  Those are the questions you have to answer first.