Delegate It Out

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“But, I still feel there is some tension in the meeting, especially when I start talking about quotas for the day and some of the production problems that need to be corrected,” Nathan explained.

“So, delegate it out,” I said.

“What do you mean?”

“Look, Nathan. Where do the quota numbers come from?”

“Well, there is a Production Release report that gets posted at 5:00pm for the next day. That is the number that I go over in my morning meeting.”

“So, it is just a number that comes off of a report? And, you are the bad guy because you know the number and report it in the meeting?”

“Exactly,” nodded Nathan. “I feel like a tyrant, when it is just my job.”

“So, assign the Quota Number report to another team member. During your meeting, ask them to talk about the number from the Production Release report.” I could see Nathan pondering my proposal. “Who could you assign that to?” I asked.

“I could assign that to Rachel,” Nathan replied. I could see a sense of relief wash over his face.

“Let me know the difference in your meeting tomorrow.”

State of Mind of the Group

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“It’s the difference between work and non-work,” I said. “Both work and non-work are states of mind. Non-work is an unconscious state of mind. Work is a conscious state of mind. Non-work just happens on its own with no particular direction. Work only happens when there is a purpose.”

Nathan and I had been discussing a simple start to a meeting where he asked each team member to contribute a piece of good news to start the meeting.

“So, I am connecting this exercise at the beginning of the meeting with a state of mind?” Nathan asked.

“Absolutely,” I responded. “Thoughts drive behavior. And if your thoughts connect to a purpose, then you are more likely to engage in work. If your thoughts are not connected to a purpose, then your behavior is likely to be unconscious and non-productive. How you think is everything.”

One Simple Change

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“So, tell me how your meeting went,” I said.

Nathan was a bit cheery. “It was really different. We have never had a meeting like that.”

“What was different?”

“I only made that one simple change at the beginning. I started with that exercise at the beginning. Good News. I asked everyone in the group to share one piece of Good News from the previous week.” Nathan was finally smiling.

“And?” I asked.

“At first, some were having difficulty. You know, thinking of something positive. If I had asked for Negative News, that would have been easy. But Good News was a struggle.”

“So, what did you learn?”

Nathan was finally seeing some progress. “Thinking about something positive requires work, but it moves people in the right direction. Once they began to work, the rest of the meeting stayed with the same momentum. It’s funny, the only thing I did differently was the way I started the meeting.”

When to Add a CFO

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From the Ask Tom mailbag –

Question:
Our company is thinking about adding a CFO to manage our accounting. We are growing. At what point do we need a CFO?

Response:
As companies grow, this is the normal maturation of the most important administrative function, keeping track of the money. (DROOM – Don’t ever run out of money).

When I look at levels of work in accounting, here are some of my guidelines.
S-I (1 day to 3 months timespan). This is all the transactional stuff, vouching invoices to be paid, creating invoices to customers, data entry of timecards, materials to work-in-process. This would also include reconciliation of transaction documents to transaction schedules (as entered).

S-II (3 months to 12 months timespan). These are higher order transaction functions, like payroll (especially payroll with a 401k plan). Also longer period reconciliation routines like monthly bank recs or monthly credit card reconciliations, routine journal entries. High S-II approaches that of a full charge bookkeeper.

S-III (1 year to 2 years). Emerging (low) S-III would be a full charge bookkeeper, where transaction activities have impact on the EOY (end of year) compiled financials (this requires a minimum 13 month timespan). This level also creates the transaction systems to record depreciation entries, simple inventory management, over and under billings to WIP. This would include job cost systems where project accounting likely survives a fiscal year. Hi-S-III would be a controller level.

S-IV (2 years to 5 years). This is an integration role (CFO) which would include software and accounting administration of more complex transaction activity, like bill of materials inventory management, complex work-in-process, enterprise software integration. S-IV would be accountable for modeling cash flow based on 36 month trailing stats overlaid to macro-economic trends to determine credit facilities (lines of credit, term loans) to cross periods of economic contraction. Analysis at this level would provide financial coaching to S-III department managers related to metrics of labor, materials, consumables, capital equipment, short and long term budgeting.

Conscious Thought

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“But most of the time, I don’t think about what I am thinking about,” Nathan defended.

“You are right,” I responded. “Most people are not aware of their thoughts. Most people are unconscious.” Nathan was with me so far.

“Nathan, have you ever noticed people talking around the water cooler?”

“Well, yeah. It’s a popular gathering place.”

“And what do they talk about, around the water cooler?”

Nathan was quick to reply, “Oh, boy, usually it’s the juicy stuff. Fastest grapevine in the west.”

“Positive stuff, or negative stuff?” I asked.

Nathan chuckled, “Oh, negative, for sure.”

“It’s negative and it’s unconscious,” I explained. “People don’t do it on purpose, negative talk is unconscious. That is why it is so important to become conscious about your thoughts. Positive thoughts require conscious thought.

“It’s time for you to start thinking on purpose.”

Impact of Thoughts

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“You’re serious,” said Nathan.

“As serious as a heart attack,” I replied.

“You want me to actually try to think about Mr. Johnston watching me whenever I have a big decision to make?”

“It’s better than allowing your worst boss into your head.”

“It’s funny,” said Nathan. “It kind of makes sense. I just don’t know why. It’s weird.”

“Here’s the thing, Nathan. You are what you think about. Only you have control over what you think about. You can think positive thoughts or you can think negative thoughts. But whichever thoughts you think will be the thoughts that influence your decisions, your problem solving. Those thoughts will ultimately define who you are.”

Face of the Boss

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“So, when things get tough, in your new role as a manager, the face of your old boss appears.” I repeated, confirming what Nathan had described. Nathan nodded, so I continued.

“Management skills are often passed down that way, for better or worse. Experience teaches, our parents teach, old bosses teach. It’s just that sometimes the lessons learned are not the right lessons. A dog teaches a boy fidelity, perseverance and to turn around three times before lying down. (Credit to humorist Robert Benchley).

“So, what are the right lessons?” Nathan inquired.

“Well, we have the example of your worst boss. So, who was your best boss?”

Nathan had to think for quite a bit. I could see he was struggling. “Yes, I remember. I don’t know why I didn’t think of him. Mr. Johnston, that was his name.”

“And what were the qualities that made him such a good boss?”

“It’s funny, he never yelled, he never got upset, he was always calm. If I made a mistake, he helped me correct it. When I was about to do something stupid, he would stop me and make me think it over.”

“So, here is where we start,” I said. “We start by replacing your worst boss with Mr. Johnston. When you are faced with a management issue, and you begin to hear your worst boss in your mind, I want you to turn your head and think about Mr. Johnston watching you.”

Nathan smiled and nodded. “You mean, I need to kind of fake myself out.”

“Not at all. You already fake yourself out when you listen to your worst boss. I want you to listen to Mr. Johnston.”

Who Sits on Your Shoulder?

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My mood was upbeat, but this conversation with Nathan was not lifting his spirits. His team was not on a mutiny, but they weren’t paying much attention to him.

“So, you have had a bit of difficulty getting out of the gate with your team. As you think about yourself, as a manager, who comes to mind, from your past? Who is that person sitting on your shoulder, whispering in your ear, giving you advice?”

Nathan looked stunned. “That’s weird,” he said. “As I go through my day, I have this silent conversation in my head with an old boss of mine. Whenever I have a decision to make, he pops into my head. It’s like he is watching me and I still have to do it his way. That was years ago, but he still influences me.”

“Was he a good boss?” I asked.

“No, everybody hated him. That is why it’s so weird. I think he was the worst boss I ever had and I am acting just like he did.”

“So, why do you think he has such an influence on you, today?”

“I don’t know,” Nathan said slowly.

“Would you like to be a different manager than your old boss?”

Finally, Nathan smiled. “Yes, absolutely,” he replied.

“Well, that is where we start.”

Sidelined by the Team

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Nathan, a new manager, had been sidelined by his team. “What happened?” I asked.

“I don’t know. I was giving orders for the day and a couple of the guys wandered off and before you know it, I was in the room by myself.”

“What do you think happened?” I continued.

“Well, Troy had been on my case since I was first made manager. Seems he thought he was in line for the job. But the company picked me.”

“So, now, what do you think your challenge is?”

Nathan was quiet, then finally spoke, “Somehow, I have to get them to trust me.”

“Nathan, it’s a long road, to get your team to trust you, even if they have known you for a long time. Where do you think you will start?”

Nathan was still quiet. I poked my head out the door. His team hadn’t abandoned him. They were all at their workstations, doing their work, but it didn’t seem like Nathan was having his way.

“Nathan, I think your team will work okay for the rest of the day. The schedules that were posted yesterday haven’t changed that much. Let’s take a hike down to the coffee shop and talk about a new strategy. It’s tough being the new boss.”

Showing Up on Time?

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“What did you learn?” I asked. Martin had finished a couple of days speaking with his team about their individual values.

“I gotta tell you,” Martin started, “I have never had this kind of conversation with my team before. I rounded them up the next morning and before we started the shift, I just floated a couple of questions.

  • When we work well together, what is it that we do to make that happen?
  • What could we do more of, to be more effective as a team?

“All of the things they talked about were heavy with value words. Not only do I have more insight into what makes my team tick, they have a better insight. They have never talked about this stuff before.”

“And, how is this going to help you, as a manager?” I asked.

“Easy,” Martin replied. “Something as simple as everyone showing up on time. No one really understood how important it was to show up at 8:00am. Up until now.”