What is the relationship between two people who are required to work together? Organizational structure is the way we define that working relationship with respect to accountability and authority. And, there are two types. One vertical and one horizontal.

Vertical relationships, we understand pretty easily. These are managerial relationships, with a manager and a team member. Between the two, accountability and authority are assumptive. The manager has the authority to determine what work needs to be done, how that work is done, how its output will be measured (pace and quality). The manager has the authority to make decisions and solve problems, simultaneous with the accountability for that output.

This is not a power dynamic based on a power hierarchy. This is a competence dynamic based on a competence hierarchy. It is the intelligent manager, with the authority to make decisions, who has the accountability to determine all the variables around that decision. That includes data collection, asking questions and listening to feedback from the team. Woe is the manager who fails to consider these variables in the face of a decision. For it is the manager who will be held to account for the consequences of that decision.

That’s how competence hierarchies work.

“Okay, you want your project managers to show up early, so they can fix stuff they forgot to coordinate yesterday, but that’s not what you want?” I asked.

“No,” Saul pushed back.  “I want my project managers to show up a week early and figure out what they forgot to coordinate yesterday.  In fact, I want them to show up three weeks early and figure out what they forgot to coordinate.”

Saul stopped.  “I did have one project manager, I gotta tell you.  All my other project managers would have the excuse that we couldn’t start the job today, because the permit didn’t get approved yesterday.  This one project manager, though, would say the same thing, but that we couldn’t start the job three weeks from now because the permit wasn’t approved yesterday.  Three weeks notice for a permit gives us plenty of time to reallocate resources appropriately.”

So, you want your project managers thinking three weeks into the future?” I nodded.

“No, I want my best project managers to think three months into the future,” Saul smiled.  “Now, that would be a schedule I could work with.”

“Did you hear the one about the horse that walked into a bar?” I asked. “The bartender walked up and said – why the long face?”

Dalton looked up and a grin flashed across his face. “You’re talking about me, aren’t you?” he said.

I nodded. “Why the long face?”

Dalton sat up. “I just had a talk with my manager about my team’s performance, or should I say lack of performance. I tried to tell him the reasons why, materials late, a machine that broke down, Fred didn’t show up for work and didn’t even call in.” Dalton stopped. “My manager didn’t want to hear the reasons. He just told me to get out there and fix it.”

“And?” I prodded.

“And, I’m not sure what to do. I am almost in shock that my manager didn’t want to hear my story. My stomach is upside down. I feel guilty, like it’s all my fault. I know I will figure it out, but right now, it doesn’t feel very good.”

“May I share something with you?” I asked. “It’s not going to make your long face go away, but it will give you a place to start.”

Dalton’s eyes widened. He leaned forward.

I continued. “Whenever I am in distress, I realize that all of my discomfort is self-generated. All of my emotions like disappointment, resentment, anger, stress, guilt all comes from inside me. I may want to place that feeling on something outside of me, like my manager, but until I acknowledge that it is me, creating those emotions, I will stay stuck in that emotion.”

“Yeah, but this is different,” Dalton protested.

“I said ALL my distress. If you allow even one exception, you start down a slippery slope of placing all blame on things around you, instead of looking inside. So, why the long face?”

“Is is possible for sales to sell so much stuff that operations struggles to fulfill?” I asked.

“Yes, it happens,” Hector replied.

“So, what’s the problem?” I added.

Hector scratched the back of his neck. “Well, I would say that we have a communication problem. Sales isn’t communicating effectively with operations. Or, it could be a personality conflict that the sales manager doesn’t like the operations manager.”

“It always looks like a communication problem,” I replied. “But, more likely it is a structural problem, looking at output capacity. The output capacity of sales has outstripped the output capacity of operations. You can have all the communication seminars you want or conduct personality testing, but you will still not fix the problem until you understand the output capacity of each function. The solution is optimizing the output of each function so that it doesn’t outstrip the capacity of its neighboring functions. That’s integration.”

“I think we are having a communication breakdown,” James shook his head.

“How, so?” I asked.

“My Sales Manager says the Operations Manager told him to stop selling, that Operatons was having trouble keeping up with the orders already in backlog.”

“That communication sounds pretty clear to me,” I replied.

“But, it’s creating friction between the two departments,” James said.

“I don’t think you have a communication problem. I think you have an accountability and authority problem.”

“What do you mean?” James wanted to know.

“Is the Sales Manager the manager of the Operations Manager?”

“No.”

“Is the Operations Manager the manager of the Sales Manager?”

“No”

“So, you have two people who have to work together, but neither is each other’s manager. And, you failed to define, in that working relationship, what is the accountability and who has the authority to make which decisions. It looks like a communication breakdown, but it’s an accountability and authority problem.”