Disabling the Team

“You know, you are right,” I told Gretchen. “Your team, over time, has systematically become incapable of solving problems.”

Gretchen didn’t speak, but began to slowly nod her head.

“How did they get that way? What happened to them?” I asked.

“What do you mean, what happened to them?” Gretchen’s nodding stopped.

“When the people on your team started working here, they were full of questions. They were curious. They experimented. They made mistakes. They learned.”

Gretchen began to nod again.

“But, now, you tell me they act more like zombies. So what happened to them?” I was looking directly at Gretchen, not blinking. Her nod stopped again, so I continued.

“Gretchen, what do managers do to their teams that systematically, over time, disables them from being able to solve even the simplest of problems?”

Dolts and Zombies

“I know you think your solution is better than anything your team might come up,” I agreed. “Do you think that is really the point?”

Gretchen was resisting. “But, I don’t have time to have a meeting, and besides, I don’t think my team wants to be creative. Sometimes they act like dolts.”

“They act like dolts when you solve a problem like this for them?”

“Well, yeah. I can solve problems like this pretty easy. I have been in the business for six years. I have the experience. But when I tell them what to do, they’re like zombies from the Night of the Living Dead. Some of them walk around like they still don’t know what to do, even though I gave them the solution.”

“Why do you think that is?” I asked.

“Like I said, I just don’t think they care,” Gretchen insisted.

“You are right. They don’t care about your solution.”

This caught Gretchen off-guard. She didn’t expect me to agree so easily. “They don’t care about your solution,” I repeated. “So, who’s solution do they care about?”

“Well, I’m the only one who can solve the problem,” Gretchen tersely replied.

“Indeed?” -TF

Opportunistic Predator

From the Ask Tom mailbag.

Question:
Ever since the recession, our company has been scrambling. There was a time when things were calmer, predictable. Now, our management meetings seem disorganized, we are all over the place, decisions are haphazard. We have an agenda, we follow the agenda, but our direction seems muddled.

Response:
You are clearly in the deep stages of Go-Go. You describe a normal organization, out of the start-up phase, yet still struggling out of its cocoon. And many companies were put here by the recession.

During the recession, our focus shifted from operating systems toward survival and sales. Get some sales, nothing else mattered. Get sales and get profitable.

To survive, we chased rabbits, abandoned our core, taking any opportunity that created a sale. We are now entrenched in opportunity seeking, reactive in our behavior.

We did this because we had to. We had no choice. We had to survive.

The counter-intuitive move is to slow down and think. Our markets have moved, they are different, now. Things are improving (slowly). There are patterns of viability forming and we have to pay attention. Market analysis is the next step. We have to move from being an opportunistic predator to an intentional sleuth. As our markets return, we have to understand their new patterns and adapt our internal systems carefully.

Logistically, this means drawing new pictures and flow charts, identifying market needs, not one-off opportunities. As we draw this picture, our market will become clearer and our decisions will make more sense.

When the Team Gets Ahead

“And what if your team gets ahead of the production schedule during the day? Should that be part of the agreement you have with them?” I asked.

“Oh, they never get ahead,” Gail disagreed.

“Sure they do. When you post the production schedule, you allow for line changeovers, material inspection, and machine slowdowns. There are days when everything goes right, the stars line up. When they get ahead, what should your team do?”

Gail had never considered this. “I guess, it would be the same deal. If they get behind, or if they get ahead, they should come and find me.”

“Because, what decisions would you make, as a manager, if your team is ahead of schedule?”

“I could throw a pizza party,” Gail laughed. “Seriously, I could pull a couple of people over to another project, to machine maintenance, there are always secondary priorities.”

“And your team doesn’t know about these secondary priorities?”

“It’s not that I am hiding things from them, but we always have some design prototype we are working on. Short term, my team needs to get the daily production out, but if I can put a couple of people on a prototype for a half-hour, we might have a brand new product for our sales team. We have a management briefing every week from our R and D department where I find out about special projects.”

“And who decides these priorities on the floor?”

“I do,” Gail nodded. “It’s a critical part of my role, to coordinate both daily production and special projects. I have to use my best judgment.”

My Overtime Budget is Precious

“That’s funny,” Gail laughed. “Usually, when I have the production meeting and I find out the team is behind, I yell at them. But if they find me, whenever we are five units behind, we can do something about it, in real time, this is different.”

“How so?” I asked.

“Well, I can fire up another workstation, bring in one more line person, or I can look at my overtime budget, maybe we can work a little more that day, or I can even look at the customer order. Some customers, we have an arrangement where we can short-ship.”

“So, you, as the manager, can make a decision, solve the problem?”

Gail was nodding. “Yes.”

“And just to be clear. Your team cannot make those decisions.”

“No. They are not in a position to know the priority of work through the floor. That is sometimes fluid depending on direction we get from the sales department. And my overtime budget is precious. I have to consider several factors before I touch that budget. And to make a decision to short-ship a customer is delicate. It has to be the right customer and the right circumstance. No, those are my decisions, as the manager.”

Production Thresholds

“It’s a contract,” I explained. “When your team gets behind, it is up to them to pick up the pace. That is why your feedback loop has to let them know how many units produced versus the target.”

“So, if they are only a couple of units behind, they can probably make that up. You see, usually, I don’t find out they are behind until it’s too late,” Gail described.

“Of course not. They don’t want to get yelled at. But you don’t have time to monitor the production rate, so when you find out, that’s why it’s too late. Your team, on the other hand, is always monitoring production rate. They are in the best position to know when they are behind, or ahead.”

“So, I strike a deal with them. Every time they get a certain number of units behind, and five units is the right number, that’s when things get out of hand. Every time they get five units behind, they have to find me.”

“That’s the contract. Now, what are you going to do when they find and tell you they are five units behind?” I asked.

Discretionary Judgment of the Team

I could tell Gail was uncomfortable.

“Do you trust your team?” I asked.

“Of course, I do,” Gail snapped without blinking.

“Then why don’t you turn your control system into a feedback loop so your team can see the production pace through the day?”

“But what if they really get behind and I don’t know about it,” she pushed back. “There will be hell to pay with my boss if something goes wrong and I don’t know about it.”

“Do you trust your team?” I asked again.

Gail was slower to respond this time. “Well, yes,” she nodded.

“Then strike an agreement with your team,” I replied. “You figure out the threshold of the pace, so if they get ten units behind or five units behind, whatever you are comfortable with, that your team is required to pull you in to make a decision.”

“And so if they are only four units behind?”

“Then, it is within the discretionary judgment of the team, to adjust their own pace to make up the four units. But if it slips to five units, they call you.”

The color was coming back into Gail’s face.

Immediate Corrective Action

“I am in the best position to judge the pace and quality from our production team,” Gail explained. “My control system collects the data and I get that report.”

“And when you get that report, if the pace is behind, what can you do about it?” I asked.

“I can call a production meeting and stress how important it is that we stay on track.” Gail stopped. “It seems I have those meetings every couple of days.”

“Why don’t you stop? Stop the meetings?”

“I can’t do that,” she gasped. “All hell would break loose and the team would never know how behind they are.”

“I thought you said you had a control system that monitored production output? Why don’t you let your team monitor the control system, and not every couple of days, let them monitor it in real time?”

Gail was almost trembling. In her mind, she was losing control.

“Gail, who is in the best position to take immediate corrective action if we are behind schedule? The only thing you can do is call a meeting.”

Best Position to Make the Judgment

“I’m not being lazy, wishing my team would hold themselves accountable, instead of me, having to play the heavy role?” Gail was serious.

“Not lazy at all. We didn’t hire you to be an enforcement officer. We hired you to be a manager. We expect you to be an effective manager, not a traffic cop trying to meet a ticket quota,” I replied.

“So, what’s the shift I have to make?” Gail was curious.

“You are right. It’s a shift, but only a shift. And the shift isn’t necessarily all about you. The biggest shift is in your control system.”

“My control system?” Gail pushed back. “I still have to make sure we are meeting our standards for pace and quality.”

“And who is in the best position to make that judgment?” I asked.

Shifting Accountability from the Manager

Just landed in Newark, up here for three days, working with Dick Shorten’s Vistage groups on the research of Elliott Jaques.

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“I hope that worked,” Gail blurted.

“How so?” I asked.

“I know I am supposed to hold my team accountable,” she replied. “Sometimes, I feel like a babysitter.”

“If you didn’t feel like a babysitter, what would be different?” I pushed.

“If I don’t come down hard, let my team know I really mean business, it seems like they consistently underperform. But if I am in their face, they actually step up and get the job done.”

“How much of your energy does that take?”

“It’s not just energy,” Gail lamented, “Is this what management is all about, because it’s not really that much fun.”

“So, what would be different, if you could find a better way?”

“I don’t know. Instead of me, is there any way they could hold themselves accountable?”