Not a Communication Breakdown

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“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.”

Act of Creation

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From the Ask Tom mailbag –

Question:
I see the guidelines for creating a vision, but it seems a little far-fetched. Actually, I think most vision statements are far-fetched. They are too vague, or too warm and fuzzy. They describe a world that doesn’t exist.

Response:
Exactly, a world that doesn’t exist. Planning is about creating the future. And you are right, most vision statements are too vague. A vision statement should describe a specific point in time and should be detailed, rather than vague. Whenever I write a plan, my vision statement is often the longest part of the whole plan. It is detailed in its description of how things look and how things work. The more descriptive the vision, the easier the rest of planning steps flow.

What Gets You Out of Bed?

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Question:
You said the first step in planning is NOT goal setting. But when we plan, we sit around the table and set goals. What did we miss?

Response:
The biggest problem in planning is the “shoot from the hip” goal setting exercise. Setting goals are important, and there are two critical steps that come first.

In my younger days, my alarm would go off at 3:30a. In a groggy stupor, I would sit up and reach for the clock. Something kept me from sailing it across the room. Something kept me moving, out of bed, lacing my shoes for a 15 mile run to the beach and back. It was NOT the goal of running 15 miles. In fact, the thought of running 15 miles at 3:30a was about as negative as I could think.

I was training for a marathon. And the one thing that moved me forward was NOT the goal of 15 miles for the day, not even the goal of completing the marathon. The only thing that moved me forward was the vision of me, crossing the finish line.

The first step in the planning process is to create a clear and compelling vision. It is the only tool, for the manager, to paint a picture of the future, to create enthusiasm and excitement in the team to go forward.

Yes, I was quite dapper, hair in the wind, tape across my chest, crowd cheering me on, slim in my running togs. Shoes laced, out the door, training for a marathon. The first step in planning is to create a clear and compelling vision.

What’s the Level of Work?

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“But, we need to ramp up quickly,” Bruce explained. “We have a lot riding on this project.”

“What’s the rush,” I asked.

“We didn’t know if we were going to get the project, it was a very competitive bid process. But we pulled it off, at least the contract. It’s fast track, four months to complete with liquidated damages on the back end if we miss the deadline.”

“When you say ramp up, what do you mean?” I wanted to know.

“We have the production crew to do the work, they’re coming off of another project. But, the project manager is moving to Seattle to start another job. He was good, and a great opportunity for him. Unfortunately, that leaves us in the lurch. I need a project manager and I need one, now!”

“What’s the level of work on this project?”

Bruce stopped to think. “It’s only a four month project, so that’s S-II. I am hoping there will be a decent candidate pool. Sometimes, we post for a job and no one shows up.”

“How does risk play into understanding the level of work in this project?” I pressed.

“There are lots of moving parts, lots of detail, and if we miss the deadline, our profit could be wiped out pretty quick,” he replied.

“But, we have computer software to handle the detail,” I nodded. “What about the risk embedded in the uncertainty of the project?”

“What do you mean?” Bruce furrowed his brow.

“Will you need to trust your suppliers to deliver on time? Hold their pricing? Are the materials in the spec even available? What’s the lead time on materials? Will you depend on your client for approvals? What could hold up the permits for approval? I know you will have subs on the job. Are they dependable and available in each phase schedule? What if there are change orders? How quickly can you identify something out of scope and its impact on the contract? Is the client litigious? To keep the project on track, how will you schedule quality inspections to make sure each phase meets spec before you can move to the next phase?”

I saw the blood begin to drain from Bruce’s face. I continued. “I think this project has more to it than the 4 months timespan after mobilization. The relationships and synchronicity required have to be developed way before mobilization. The trust in your subcontractors needs to already be in place now. This is more likely an S-III project that started before you even got the contract. The biggest mistake most companies make is underestimating the level of work in the project.”

Uncertainty in the Project

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“Let’s look at some of the specific decisions that you have to make today that will have impact later in the project?” I said.

Taylor sat back. “Okay. Let’s just look at the buy out,” he started. “In the buy out, I have to purchase some large pieces of equipment that will be installed. I have to work with our project managers and also with our purchasing guy. Here are some of my decisions that I have to make today, but it may be months before we find out if it was the right decision.

“Will the price of this equipment (to be installed) go up or go down. If I make a commitment now and the price goes up, I am a hero. If I wait to make the purchase and the price goes up, I am a goat.

“Will the vendor that supplies the equipment still be in business a year from now. I may have to put down some deposit money. But even if we lose the deposit money, the real risk is trying to scramble at the last minute to find an alternate supplier. The costs may have changed and some of this stuff has lead times. If the project gets delayed because we don’t have the equipment on-site to be installed, we may be liable for a delay claim.”

Taylor stopped.

Hiring Criteria

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“Tell me, Julian.  Why did you pick this person out of the candidate pool?  Is he really the best candidate for the open position on your team?” I asked.

“I don’t think you understand,” Julian replied. “I don’t only have to think about the best person for the job. I also have a budget to think about. I get a little spiff on gross margin, but my net to the bottom in my department makes up the biggest part of my bonus.”

“I am looking at the salary requirements of the three final candidates. They are all within the salary range for the position. Why did you pick this one? I know his salary requirement is $20,000 less than the other two candidates, but is that really why you picked him?”

“Well, the best candidate is the one from Missouri,” Julian explained. “Best experience, interviewed the best. He has already relocated here. But his salary requirements, that’s almost as much as I am making. I just don’t think we need that much horsepower in this role.”

“And, the candidate you picked?”

“You’re right, not as much experience, especially on the equipment system we use. He will require a little training, maybe some hand holding until he gets the hang of things.”

“And, this new candidate, if something happens to you, would he be able to take over your position in time?”

“Of course not,” Julian pushed back. “If something happened to me, it would be tough. The company would have to recruit someone from the outside. I have a big job. I wouldn’t be easy to replace me.”

The Best of Intentions

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“But everyone understood that we had to land the project for the team to get their bonus,” Lindsey protested.

“No, you understood that. The team understood something different. If they gave it their best and worked really hard, the team would get the bonus. So, they worked really hard and gave it their best. The only person who was in position to make decisions was the manager. The team didn’t get their bonus because of their manager.”

Lindsey was quiet. “So, we set up a system that, in the end, created a divide between the manager and the team.”

But, the Team Missed the Deadline

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Lindsey had a puzzled look on her face. “I don’t understand. The team missed the deadline. We lost the project. If not the team, who do we hold accountable for the result? And believe me, this was a big deal. There was a big team bonus riding on this project.”

I started, slowly. “Who knew about the project first? Who had knowledge about the context of the project among all the other projects in the company? Who had the ability to allocate additional personnel to the project team to meet the deadline? Who had the authority to bump other project schedules to meet this deadline? Who was in a position to authorize overtime for this project?”

“Well, the Memphis team Manager,” she replied.

Who Do You Hold to Account

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“I don’t see it,” Lindsey grimaced. “As a company, it is certainly not our intention to pit management against team members.”

“Yet, you feel a growing divide, and you are blaming the uncertainty in the economy,” I replied.

“Well, yes, if it weren’t for the economy, I don’t think this would happen.”

“Let’s take a look at managerial accountability. Who do you hold accountable for the output of any of your teams? They have a goal, the goal is not reached. Who do you hold accountable?”

“You’re right. Just last week, our Memphis project team missed a deadline that cost us the opportunity to land a project. It wasn’t my team, but anyone could see from a couple of weeks before, that they weren’t going to meet the time constraints.”

“Who did you hold accountable for missing the deadline?” I asked.

“Well, it was the Memphis project team.”

“Wrong, it’s not the team we should hold accountable for the result.”

The Third Part of the Story

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“I don’t understand,” Roger shook his head. “If Brad would just start earlier on these longer projects, things would be under control, and he wouldn’t be cutting unnecessary corners which compromise project quality.”

“Why do you think he procrastinates until the end?” I asked.

Roger shook his head.

“Because,” I continued, “he cannot see the end until he is two months away. On a project with a nine month deadline, Brad cannot see the end. It is too far away. There is so much uncertainty between now and nine months from now, that he cannot see it.

“So he takes no action.

“Of course, the pressure of the project builds, because now things are getting late, but even that is not what finally kicks Brad into action. With sixty days to go, Brad can now see the end. And when Brad can see the end, he starts to act. It is frustrating for us, because we saw this nine months ago.

“Everyone has a story. And every story has a beginning, middle and an end. When you listen to someone’s story, you will hear the Time Span of their story. They cannot take action in their story until they see the end of their story.”