From the Ask Tom Mailbag:

Question:
I listened with great interest to your presentation on Time Span. Intriguing. But where do we start? Specifically, where does a small company start?

Response:
It’s difficult for me to understand what you understand about Time Span, so let’s start from this basic fundamental. Time Span comes from the inside kernel of every goal. A goal is a “what, by when?” It is the “by when?” (Time Span) that gives us insight into the complexity of the goal (task assignment).

And so, that’s where I start. As a manager, if I can more clearly understand the complexity of the task assignment, I can more clearly understand the capability required to be effective in that role. The biggest mistake most managers make is underestimating the capability required for effectively completing the task.

It’s all about the work. That’s where I start.

It starts with the Role Description, examining the task assignments, the accountabilities inside the role. I know this sounds like managerial fundamentals, and it is. But managerial fundamentals with new eyes.

From the Ask Tom mailbox:

Question:
You said that Time Span could be used to measure complexity. Not sure I understand the connection?

Response:
There are two kinds of complexity in the world. Time Span can be used to measure one of them.

The first kind of complexity is detail, detailed complexity. This is the world of engineering. Computers are useful in managing detailed complexity. Lots of moving parts.

But there is another kind of complexity, more difficult to deal with. It is the uncertainty in the future. And the further something is, out in the future, the more uncertain it is.

If you have a project that must be completed by tomorrow, the level of uncertainty is small. You will only be using materials on hand, working with people you already know, with guidelines that are already nailed down, because the project must be completed by tomorrow.

If you have a project that will take 24 months to complete, all kinds of things can change between now and the project due date. The material you intended to use may no longer be available when you need it. The people you work with now may be different than the people you work with next year. And the guidelines you have in your hand now, will most definitely change between now and 24 months from now.

The complexity of a one day task assignment versus a 24 month task assignment can be calibrated by simply measuring the Time Span of the due date.

From the Ask Tom mailbag:

Question:
Are there roles with KRAs (Key Result Areas) in multiple strata?

Response:
Of course. Every role has Time Span task assignments all over the place. When we define that a role requires a specific Stratum capability, (this is a Stratum III role), we have identified that the longest Time Span task is between 12 and 24 months.

But Stratum III roles will contain Stratum II (3-12 months) and even Stratum I (1 day-3 months) task assignments.

If I am a Manager at a CPA firm, Stratum III capability required, I still have to complete a time sheet each day (Stratum I task). I will do my best to minimize the time required, use available technology, but at the end of the day, it’s my time sheet.

I may also be accountable for scheduling staff on specific projects (Stratum II capability required). For this task, I will do my best to minimize the time required, use available technology AND identify the sub-tasks that can be delegated to team members. Indeed, I may have a supervisor (Stratum II role) that I can delegate the entire task to, yet at the end of the day, I am accountable for scheduling staff.

We calibrate the Stratum capability required in a role by identifying the longest Time Span task assignment.

From the Ask Tom mailbag:

Question:
When you talk about the various roles in the organization, you say that Stratum I roles are typically involved in production. And you also said that in some business models, production roles were calibrated differently? We have a CPA firm.

Response:
Regardless of the business model, regardless of the job title or description of the role, the calibration comes from inspecting the Time Span of the task assignments within the role. In a typical CPA firm, you could see these roles.

• Clerical (word processing, spreadsheet, document assembly)
• Preparer (bookkeeping, tax return)
• In-charge (reviews preparation, coordinates task assignments in the client account)
• Manager (reviews the in-charge’s review, determines which task assignments apply to a client account)
• Partner (reviews the manager’s review, creates and maintains client relationship)

Each of these roles participates in production, yet the Time Span of their tasks is very different.

Preparer – production activities include the direct output from accounting tasks, return preparation. This would typically require Stratum II capability. While the observable mechanical activity for a monthly compilation (financial statement) appears to take less than one month, the impact of the work carries through to the annual financial statement. Stratum II (3 months – 12 months).

In-Charge – reviews the preparer’s work, stage one review, looking for mathematical errors, misapplied calculations, omissions. The In-Charge operates as a supervisor, making sure all work is completed, accurately in a timely manner. This work likely requires high Stratum II capability. Note – the In-Charge role is not a managerial role. The In-Charge is NOT the Preparer’s manager. The relationship between the In-Charge and the Preparer is a Cross-Functional relationship, Prescriber. Stratum II (3 months – 12 months).

Manager – reviews the In-Charge’s work, stage two review, looking for all required components. There is some final stage proofing on reconciliations to ensure accuracy, but the Manager’s review is looking for correct application of accounting methods (depreciation, accruals, reserves). This role is a managerial role, requiring Stratum III capability. The manager is likely the manager of both the Preparer and the In-Charge. Stratum III (1 year – 2 years).

Partner – reviews the Manager’s work, stage three review, looking for conceptual assumptions that fit within a multi-year treatment of the client’s business including loss-carryforwards, statutory interpretations, accelerations. This role requires Stratum IV capability (2 years – 5 years). There may also be direct production work related to bankruptcy, merger, acquisitions.

Regardless of the business model, regardless of the job title or description of the role, the calibration comes from inspecting the Time Span of the task assignments within the role.

“Well, if you are going to hold me accountable, as Ryan’s manager, for his success or failure in this new promotion, then I am not so sure. My hunch is strong, but it is just a hunch,” Cheryl explained.

“Now, that you are more clear where the accountability lies for this decision to promote Ryan,” I pressed, “what is the risk, if your hunch is wrong?”

“We will either have to fire him or demote him. I don’t like either.”

“In what way can we create evidence that this is the RIGHT decision,” I asked, “without giving him a raise, a promotion or the corner office?”

Cheryl paused, her eyes thinking. “I suppose, I could give him a project.”

“And how complex will that project be?”

“It would have to be similar to the projects in the his new role,” she concluded.

“So, if the project was successful, you would have your evidence. And if the project failed?”

“If the project failed, then I would have a failed project, but I would still have Ryan.”

“I am afraid,” Susan spoke. “My company is growing, but we are not as profitable as we could be. Don’t get me wrong, we are still profitable, but the percentage is shrinking as our revenues grow.”

“What do you think is happening?” I asked.

“We have always been good at getting the work out the door. If there is ever a problem, we are like a bulldog, whatever it takes, to complete the order. Problem is, we have to be bulldogs more often, which means we dip into overtime, eat the freight, expedite production, which all erodes our profit.”

“When did you notice this?”

Susan had to stop and run images through her mind. “We’ve been on a roll the past three months. I mean, in the past, we have had occasional spikes, and we could always push our way through, but now, the push is constant and we are paying the price.”

“So, it’s more than making sure all the work gets done, we have to get the work done – efficiently, and profitably. Efficiency and profitability doesn’t come by pushing with tenacity. It comes from a system. It’s a different way of looking at the work.”

From the Ask Tom mailbag:

Question
I have a team member who has always been the “go to” person on his team for as long as I can remember. Anytime anyone needs help, they call on him. He is an expert on how our machines run. He is always cheery, enthusiastic. So I promoted him to supervisor. That means, now, he is in charge of scheduling, making sure each day’s production is complete, checking raw materials for the next day. It doesn’t seem like a lot of responsibility, but I think the promotion was a mistake.

Response
It doesn’t seem like a lot to you, because those responsibilities are well within your Time Span capability. You have a team member with a high interest in machines and how they run. He can probably listen from across the room and tell if something is wrong with a machine.

In his new role, listening to a machine doesn’t go far. You are asking him to use a new set of tools – schedules and checklists. Machines work in real time. Schedules work into the future. He may not be interested in the work of a supervisor and you may be asking him to play a Time Span role beyond his capability.

There is one simple way to find out. Ask him.