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I just got back from a road trip to Pennsylvania, working with two groups on the research of Elliott Jaques. As part of the workshop, we spent time looking at their biggest managerial issues.

Accountability. Accountability was a big one.

  • We find out a project is behind schedule. How do we get it back on track without being a bully?
  • Some defects in finished goods make it into the hands of our customers. How can we get our team members more focused on quality when we aren’t around to check?
  • How do we make our control systems more effective, without looking like a police force?

The next Subject Area in Working Leadership Online is Accountability – Control Systems and Feedback Loops. We are opening 50 Introductory Memberships (Free) for this program. If you would like to get on the list, please let me know. This program kicks off next Tuesday, June 1, so sign up today.

Control Systems and Feedback Loops

“So, let’s make the list. As you look at your control system, what makes it less effective?” I pressed.

“You talked about delay,” Ronnie replied. “You are right, delay makes the control system less effective. But, updating more often, is going to take up too much time for my manager.”

“But DELAY still makes the list,” I insisted.

“Okay,” Ronnie relented. “But I don’t see how my manager can do more.”

“Then, let’s have your manager do less. After all, if there is a problem with production, who is in the best position to take corrective action?”

“Well, the corrective action would be taken by the team.”

“Then, why don’t we change this control system into a feedback loop? Why don’t we have the feedback loop tell the team, and why don’t we run the feedback loop in real time? The manager just gets in the way.”

It’s Late and Unreliable

“Let’s run this timeline, again, looking at your control system,” I nudged. “Monday, your production team shows up for work. They have daily and weekly targets. A machine breaks down and they lose 45 minutes of production before they can get going again. How does your control system capture that?”

“The control system is counting,” Ronnie replied. “And it is sophisticated enough to detect the change in throughput.”

“So, that’s Monday. And on Friday, the control system automatically compiles a report and forwards it to the manager, five days after the machine broke down.”

“Yes, I mean, the manager is busy. We could compile the report every day, but the manager is busy. Besides, it’s not a good idea to have him yelling at his team every day.”

“Why have him yell at them, at all?” I asked.

“What do you mean?” Ronnie pushed back. “It’s my manager’s job to hold his team accountable. We are very big on accountability around here.”

“But, bottom line, your production crew is double-passing finished goods under the counter, or skipping the counter, making the whole system unreliable. So, where is your control system? It’s late, it’s unreliable and puts the manager in between the feedback and the production team.”

Ronnie stopped. I could tell he was frustrated. “So, what should we do?”

“First, let’s list the problems and see how we can change the system to make it more effective.”

Where the Team Screwed Up

‘What do you mean?” Ronnie asked.

“Describe, again, your control system,” I replied.

“We distribute the task assignments for the day, for the week,” Ronnie began. “The team does the work. The control system counts the output. The output is compiled and delivered to the manager at the end of the week. The manager looks at the output and meets with the team to talk about their performance.”

“You mean, where the team screwed up?”

“Well, yeah. If they screw up, it’s up to the manager to address the situation,” Ronnie defended.

“I see.”

Control System Gone Whacky

“I knew it,” Ronnie complained. “We set up a control system to hold people more accountable and now somebody has sandbagged the control system.”

“What do you mean?” I asked.

“Look, we have a tight production budget. We cannot afford screw-ups, on either the pace or the quality of the output. Sometimes, production gets behind and we don’t find out about it until it’s too late. So, our QC people put in a control system that counts production every five minutes. The data is collected, compiled on a report and automatically emailed to the manager every Friday. He can see trends in pace, shift productivity and work station productivity.”

“What does the manager do with the report?”

“Every Monday, he meets with the production team to talk about the report. The team can really see where they screwed up,” Ronnie smiled.

“So, what’s the problem?”

“The control system count was off. We had to bring in another QC inspector to do an independent audit of the finished inventory. At first, the count between the control system and the inventory was pretty close, but after a couple of weeks, the numbers went whacky. Turns out, the production team has been messing with the control system counter. They were swiping finished goods through the counter multiple times one day and skipping the counter on other days. The control system was always wrong.”

“Imagine that?” I said.

The Real Role of First Line Management

“Volume is lower, but you are further behind, shipping late, back-ordering and allowing stock outs. You have a veteran crew and the same manager. The biggest difference is that you are working without two supervisors. Is that about it?” I verified.

“You got it,” Edgar nodded.

“So, what were the two supervisors doing that seems to make all the difference?”

“You know, supervising. Helping a technician who didn’t quite know what to do. Fixing a broken machine. Covering for someone on vacation. That’s why we figured we could do without them. I mean, we still have a machinist who can fix machines when they go down.”

“So, who schedules the technicians to work the production shifts?”

“We just put everyone on a regular rotation to work their hours during the week to cover one full shift and a swing shift. That way, no one has to really schedule the technicians.”

“So, you always have the right technicians scheduled to do the right production work?”

Edgar stopped. His eyes fluttered, but still no response.

“And who makes sure you have the right raw materials before each production run? Who checks to make sure an order is pulled from finished goods instead of making a production run to cover? Who is making sure machines are maintained on a PM schedule so they get pulled down only when they are idle?”

Edgar was still silent. “No one is doing any of that, anymore,” he finally replied.

“Edgar, there is a very specific role, this first line management stuff. It is between a production role and a systems role. To make sure production gets done, on time, to spec, working our strategic constraint. Many companies don’t see it, or don’t define it effectively. And that’s why, the harder you work, the behinder you get.”

What Else is Different?

“How long has this been going on,” I asked.

“It’s funny,” Edgar replied. “Our production volume isn’t as high as in 2007, but we are further behind. My manager just can’t seem to get ahead of the eight-ball.”

“Besides your lower production volume, what else is different?”

“Since the recession, we have had to cut back on staff, but we have the same number of production people per units produced, so that shouldn’t make a difference.”

“What else is missing?”

“Well, we had to let go of two supervisors, but that’s only two people out of a production team of 50. And besides, our production people know the work, they don’t need that much supervision.”

Band-Aid Fixes

“We’ve grown,” explained Edgar. “We have developed systems to make sure our product is consistently made. But we keep running into delivery problems, running behind, backorders, line shutdowns. There always seems to be a problem making sure things get done.”

“Which one person has that responsibility?” I asked.

“Well, that should be the manager,” Edgar replied. “But I wonder sometimes. Have you ever seen someone in the weeds?”

“What do you mean?”

“In the weeds. Like in a restaurant, where the waiter has too many tables. He can go as fast as he wants, but never catches up and every customer stays upset.”

“So, describe your manager’s role? What do you expect from him?”

Edgar paused, “He’s the manager, he’s in charge of everything that goes on out there. It’s quite a big job. We have several assembly lines, lots of machines, each a little different. We have raw material and finished goods inventories.”

“Where does the breakdown occur?” I pressed.

“There are two kinds of problems I see my manager facing. Sometimes he seems to fix the same problem over and over, one band-aid after the another. Other times, he can tweak our system to fix the problem once and prevent it from happening again. I call it a system fix.”

“And?”

“Sometimes, there is too much going on and he can’t study a problem long enough to make a system fix, so he is back to band-aids. And that’s when we get behind.”

Make Better Matches

“If I have been making these judgments about capability all along, using my intuition,” Brent wondered, “then why is delegation is so difficult? I mean, picking the right person for an assignment? Why am I disappointed so often?”

“I don’t know. What do you think?” I replied.

Brent’s eyes went to the corner of the ceiling before settling back to the conversation. “I think,” he started, “I think that sometimes I don’t think things through. I mean, I know when a task should be completed. And I know the Time Span capability of my team members. I guess I don’t think about matching those up. In fact, it’s only now, after doing that ranking exercise, that I understand, my team members are truly different.”

“Really?” I smiled.

“No, for some reason, I always thought everyone on my team should be able to see the task, see the problem, see the solution and just handle it. Now I see, clearly, some people on my team just don’t get it.”

“But you knew that all along.”

“Yes, I did. But instead of making a decision based on capability, I just picked somebody, anybody and then complained about them when they failed.”

“And, so, the reason for the failure?”

“I picked the wrong person. As the manager, I am accountable for the failure. To be more effective, I have to make better matches between Time Span requirements and Time Span capability.”

A New Way to Measure Capability

Brent took his time creating the list. Seven people he ranked, longest Time Span capability at the top of the list, down to the shortest Time Span capability. It took him about 45 seconds. His decisions were deliberate, twice, he changed his mind, pushing someone ahead of another. He looked up, with a question on his face.

“What do you think?” I asked. “You did that pretty quickly.”

“I thought it would be hard,” he replied. “But, it really wasn’t that difficult.”

“Look at your list,” I directed. “What do you think? How accurate do you think you are, in your ranking?”

Brent took another look, moving his eyes from top to bottom. His head nodded to the left, then looked up. “I’m good. I think this pretty well says it, don’t think I would make a change. This is the way I see it.”

“Excellent. But why are you so confident that your assessment of your team is accurate. We have only been talking about Time Span for a short while, and you spent less than a minute ranking your team. Why, so confident?”

“It wasn’t really that hard. I don’t know. When I was thinking about this person or that person, it’s like I already knew, didn’t have to think about it all that much.”

“The reason you are so confident, and the reason it took you less than a minute to rank this list, is that you have been thinking about this exercise ever since you became a manager. Every manager constantly keeps a running assessment of the Time Span capability of each team member from their very first task assignment. You just didn’t have a language to talk about it, or a way to measure it. Until now.”