What Helps, What Hampers?

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“It’s people that are difficult,” Marion began. “Keeping a machine productive is easy. I can calculate its capacity and then stack work in front of it accordingly. But people aren’t machines. How can I calculate capacity and then stack work in front of people?”

“Machines are easier,” I replied. “Machines work the same way, day in, day out. People don’t. People are subject to daily changes and long term changes. As a Manager, you have to stay in front of that growth curve.

“When you look at the role of each of your team members, let’s start with these three questions.

  • What is the work that is necessary in each team member’s role?
  • What is it that you do, as a Manager, that is helpful in their work?
  • What is it that you do, as a Manager, that hampers their work?

Marion smiled, “Well, I already know that.”

“Perhaps, but you might compare notes with your team members.” -TF

The Idle Machine

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Luis was not having fun. He remembered how difficult it was for the company to make payments on the third machine.

“Management is about making resources productive. This third machine is not productive. The floor space it sits on is not productive,” I said.

“But we paid a lot of money for that machine, and our company cannot get out of its lease for this space. And what are we going to do if we need the machine?” Luis objected.

“Anyone can manage an idle machine. What are you going to do?” -TF

Current Capacity

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Luis began an aggressive calling plan to get his money collected, put holds on new orders for customers who were past due and began requiring deposits on large orders. Nothing happened at first. Luis stayed off kilter for the better part of two weeks. Slowly, he calmed. Payments began to come in, not enough to have a party, but enough to breathe.

“Management is about making resources productive,” I repeated. The first thing to manage is capital. Next are your physical assets.

“Our building, our equipment?” Luis confirmed.

“The first decision is to decide what is necessary. You haven’t thought about that since this company was a start up. Back then, you thought about it a lot. You outsourced some production until you could afford your own machine. Then you bought a second machine. You moved into a new building so you could bring in a third machine.

“Now, you can’t keep the second machine busy. You tell me, what is necessary?” -TF

Show Me the Money

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“Where’s the money?” I asked.

Luis looked at me and squinted. “What do you mean, where’s the money?”

“Look, you asked me to come here and help you straighten out this mess. Where’s the money?” I repeated.

“That’s the problem, there isn’t any money,” Luis replied.

“Yes, there is, there always is. Luis, the first resource a manager has to manage is capital. But before you can manage it, you have to find out where it is. Sometimes you think you know where it should be, but if that’s not where it is, you can’t manage it.

Sometimes your capital is tied up in a machine. Sometimes your capital is tied up in unbilled work in process. Sometimes your capital is tied up in Accounts Receivable. Once you find out where your capital is, only then can you manage it. So, where’s the money?”

A raw nerve had been struck. Luis shuffled some papers on his desk. “It’s here,” he said, pointing to the third column in his AR aging report. “It’s over 60.”

“Well, now we know where it is, we can manage it.” -TF

Making Resources Productive

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“The forecast was a bit optimistic,” Miguel observed. “We went back and looked at our sales activity. Not our sales results, because those were dismal. I gotta tell you, my guys were pounding the shoe leather. It’s funny. The same salespeople with the same customers, but not closing sales like they did three quarters ago.”

“Working harder isn’t working anymore?” I asked.

“No, I think my guys are going to have to work differently, not harder,” Miguel replied.

“And who will decide what they do differently?”

“What do you mean?”

“Whose job is it, to decide what is necessary? How to go to market? To make the efforts of your salespeople more productive?”

Miguel’s face slowly revealed a mild panic. He stared straight ahead. “It’s me.”

“It’s time,” I nodded. “It is the job of the manager to take the resources of the company and make them productive. It is only managers who make those resources productive. As a manager in this company, you are the only one who can make your sales team productive. The job of management is more important than ever. The decisions you make in the next twelve months will determine whether your company will survive.” -TF

Trouble at Ridgemont High

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My friends, as we look forward to 2008, understand that January 2009 will be a very different landscape. And we have twelve months to prepare. While Investor’s Business Daily proclaims we are teetering on a recession, that teetering point is still some months away. This is not a time for panic, but a time for preparation.

Lee Thayer, (Leadership 2004), speaks about necessity and its importance in the workplace. The entrepreneur, who starts a business, only puts in place that which is necessary. Only necessary equipment is purchased. Only necessary people are hired.

As time advances, and the business becomes more complex, necessity becomes more complex. And management decisions are made to bring on more infrastructure to support that complexity. Sometimes those decisions are accurate; sometimes those decisions miss the mark.

During this next year of preparation, look around. Re-think your work-flow. Re-think your personnel structure. Carefully examine what your customer wants, to make sure what you deliver is necessary.

Over the next few weeks, I will share with you economic insights to help you prepare. Those of you connected to residential housing are already working hard to survive in a recessionary climate. For those, thankfully, outside that environment, who think you have dodged a bullet, pay attention. January 2009 will be a very different landscape. -TF

Is Your Market Changing?

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“Good work, so far,” I said. “If things work out this way.”

“Well, it’s a plan,” Miguel replied.

“What if things don’t work out this way?”

Miguel closed his eyes, trying to visualize something he had not considered. When he opened his eyes, I could tell he had drawn a blank.

“You expect things to occur, your customers to want a certain product line and your volume of orders to reach a specific threshold. What will you do if these things don’t happen?” I continued.

Miguel shifted in his chair. “I know. I was thinking, as I put this plan together, am I working to finish the plan just to get it done? Or am I really thinking through different scenarios. This year already seems a bit weird. Sales have been sluggish even though we have really been working our bids.”

“So, what do you think?” I asked.

“I think I need to spend some more time playing the what-if game.”

Customer Focus Gap

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Joel posted this question in response to yesterday’s post.

Question:

I am assembling a “Mission statement/mission focus” plan, and I have a question: I think my team simply needs a more positive and customer driven focus. Misbehavior is not the main problem (as far as I can see), but if I can tune up any issues at the same time it would be fine. What changes would you make to the above plan?

Response:

Widen the question. How can we, as Managers, create a discussion about any topic to stimulate thinking, and a positive response in behavior?

Using this skill is one of the most important activities of the Manager. I use this process in the classroom and in most meetings I run.

It’s a simple Gap Analysis, containing three parts.

  • What is the major benefit if we solve [this problem], make progress in [this area]?
  • What is stopping us from solving [this problem] or making progress in [this area]?
  • What can we, as a team, do get [this problem] solved?

Here is what it sounds like related to customer service issues.

  • What are the major benefits if we are able to create a culture that focuses on the customer?
  • What are the conditions, what are the elements that stop us from focusing on the customer?
  • In what way can we, as a team, make changes to create a culture that focuses on the customer?

Get your team together. I usually allow seven minutes for each question, with seven minutes as a wrap-up. This is a powerful thirty minute meeting. -TF

Changing a Mindset

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Our next Leadership program kicks off Wednesday, January 9, in Fort Lauderdale. For registration, simply reply to this email or visit www.workingleadership.com.
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In response to yesterday’s post, about the Manager with problem employees rule-breaking behind his back.

I see three origins of this behavior.

  • Malicious, destructive rule breaking.
  • Lazy, non-compliant rule breaking, when the boss is not around.
  • Fun rule breaking, light hearted, poking fun at authority, when the boss is not around.

Here is one thing we understand.

The team members know the rules. People don’t break the rules without knowing the rules. So, this is not a training issue. This is a mindset issue, which is a bigger problem.

Changing a mindset rarely comes from the outside. A Manager cannot dictate that a person change a mindset. Those of you with children can attest. It simply does not work.

The solution will require a multiple set of meetings. I would recommend twice a week, 10 minutes per meeting. So, pick a Monday and Thursday, or Tuesday and Friday, first thing in the morning. As the Leader, simply ask these questions and flipchart the responses from your team. Keep your thoughts to yourself. Post the flipcharts in the break room and leave them there.

  • Meeting 1: How are we doing, working together as a team?
  • Meeting 2: What impact do we, as a team, have on the customer?
  • Meeting 3: In what way can we, as a team, have a more positive impact on the customer?
  • Meeting 4: What impact does our individual behavior have on the behavior of our other team members?
  • Meeting 5: In what way can we, as a team, have a positive impact, helping each other create a more positive customer experience?

The purpose of these meetings is to:

  • Get the team talking about behavior, not the manager talking about behavior.
  • Re-focus the energy of the team from misbehavior to customer focus.
  • Get the team to create its own accountability for behavior, even when the Manager is not around. -TF

Rule Breaking

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Our next Leadership program kicks off Wednesday, January 9, in Fort Lauderdale. For registration, simply reply to this email or visit www.workingleadership.com.
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From the Ask Tom mailbag:

Question:

I am a young store manager of two and a half years with no previous managerial experience. Through this time, I have problem employees doing things behind my back, against the rules. I never have enough information to reveal the responsible person or the only information I get is confidential. Mostly, I do not have the time to be involved all day with rule breaking when I am not in the store. What can I do differently to improve this situation?

Response:

It is difficult to understand the nature of the rule breaking, so I can see three causes.

  • Malicious, destructive rule breaking, when your back is turned.
  • Lazy, non-compliant rule breaking, when the boss is not around.
  • Fun rule breaking, light hearted, poking fun at authority, when the boss is not around.

For your part, it probably doesn’t matter. If your boss was aware of the hijinks behavior, it would reflect poorly on you as the Manager. This is tricky, and the solution is likely counter-intuitive. Your efforts could easily backfire and make the situation worse.

So, let’s get some input from others. If you have a response for this dilemma, please post your comment below. If you would like to read the responses, just follow the link to today’s post. I will have some thoughts tomorrow. -TF