Tag Archives: accountability

What a System Delivers

“Well, I thought our team did pretty well, given the circumstances,” Valerie continued to protest.

“Yes, they did,” I replied. “And those circumstances should never have existed. To come down to the wire and find you are missing 500 critical parts on an order should never have happened.”

Valerie shifted in her chair. “But stuff happens.”

“Yes, stuff happens all the time and that’s why your system should detect these conditions. When did you find out that your supplier had shipped 500 defective parts?”

Valerie looked to the left. “Three weeks ago.”

“What difference would it have made if your system had delivered a report three weeks ago that showed 500 rejected parts along with replacement lead time, a list of alternate parts vendors and their lead times, along with all orders pending that required that part?”

Valerie’s head was nodding. “We would have had three weeks to work on the problem instead of three days.”

System Detection

“But, we got the parts in and shipped the units. I thought we handled that quite well,” protested Valerie.

“You are right, your supervisor did a good job. That’s what supervisors do. But your work, as a manager, was not done,” I replied. “The job of the manager is to create the system. When you discovered you would be short of parts, it was your supervisors job to go find the parts, but it was your job to ask

  • Why didn’t our system anticipate this shortage?
  • Why didn’t our system detect this shortage as soon as the order was placed into our system?
  • Why didn’t our system spot our supplier’s inventory and indicate a shortfall in those parts?
  • Why didn’t our system have alternate vendors for those critical parts?
  • Why didn’t our system continually track alternate supplier inventories to find odd lots at aggressive pricing?

“The job of the manager is to create the systems, monitor the systems, improve the systems. It’s great that we have a supervisor who knows how to scramble. But I prefer a system that responds to our constantly changing circumstances. The role of the manager is to create those systems.”

From Concrete to Conceptual

From the Ask Tom mailbag –

This is Part 5 of 5 in a series. This post is in response to a question by Herb Koplowitz, contributing editor to Global Organization Design Society. It is based on a discussion about Collins’ organizational model.

Question:
I didn’t read Collins’ levels as layers, but as personality fit to being a good manager. (He actually describes behaviors and then ascribes them to the manager as though ones manager has nothing to do with ones behavior.) Please explain how you see Collins’ levels as relating to Jaques’ strata. What is Stratum I about being a capable individual, what is Stratum II about being a contributing team member?

Response:
Last Friday, we looked at Collins’ Level 4. Today, Level 5.

Level 5 – Collins – Level V Leadership. Decisions inside Stratum V (Requisite Organization) roles consider the organization as a whole in the context of its market. The direct output of this role is the articulation of a clear and compelling vision relevant to the market. There is a shift in thinking from tangible, concrete elements to the world of conceptual ideas.

  • What is the market need?
  • Is the market big enough?
  • What is the product or service that meets that market need?
  • Does the market value the product or service higher than its cost to produce?
  • What is the appropriate organizational structure (what are the Levels of Work) necessary to sustain profitable production?

Understanding that markets always change, these decisions are fluid and adaptive. Stratum V roles require declarative processing at a conceptual level, defining and articulating a clear and compelling vision relevant to the market. Longest Time Span tasks range from 5-10 years.

The understatement of Collins book Good to Great is the short shrift he gives to the infrastructure of Levels I-IV. The most capable CEO (S-V) will falter and fail, if thrust into an organization without the proper infrastructure at Strata I-IV.

What is the most defining characteristic of a successful CEO? It is not personality or charisma. It is that person who has built functional teams at each Level of Work. Where there is weakness at any Level of Work, the organization will cave to that level and remain stuck until they have restored the roles with the necessary capability.

Stay Stuck or Scale?

From the Ask Tom mailbag –

This is Part 4 of 5 in a series. This post is in response to a question by Herb Koplowitz, contributing editor to Global Organization Design Society. It is based on a discussion about Collins’ organizational model.

Question:
I didn’t read Collins’ levels as layers, but as personality fit to being a good manager. (He actually describes behaviors and then ascribes them to the manager as though ones manager has nothing to do with ones behavior.) Please explain how you see Collins’ levels as relating to Jaques’ strata. What is Stratum I about being a capable individual, what is Stratum II about being a contributing team member?

Response:
Last Friday, we looked at Collins’ Level 3. Today, Level 4.

Level 4 – Collins – Effective Leader. Decisions inside Stratum IV (Requisite Organization) roles consider issues of pace and quality related to organizational systems. Stratum IV organizations are typically populated by multiple systems, each competing for budget and managerial attention. Peter Senge (Fifth Discipline) describes this system friction as reinforcing systems and balancing systems. The impact of this friction modulates total organizational output, the capacity of one system throttling the pace of its sister system. The organization can either stay stuck or scale depending on the effectiveness of roles at Stratum IV, to integrate those competing systems (departments, silos) into a whole system, optimized for growth and profitability. Stratum IV roles require parallel processing, seeing system inter-dependencies, contingencies, bottlenecks and constraints. Longest Time Span tasks range from 2-5 years.
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Our next Orientation of Hiring Talent begins today, April 23, 2012. First Session begins next Monday, April 30. For more informaton follow this link – Hiring Talent.

End to End System Accountability

From the Ask Tom mailbag –

This is Part 3 of 5 in a series. This post is in response to a question by Herb Koplowitz, contributing editor to Global Organization Design Society. It is based on a discussion about Collins’ organizational model.

Question:
I didn’t read Collins’ levels as layers, but as personality fit to being a good manager. (He actually describes behaviors and then ascribes them to the manager as though ones manager has nothing to do with ones behavior.) Please explain how you see Collins’ levels as relating to Jaques’ strata. What is Stratum I about being a capable individual, what is Stratum II about being a contributing team member?

Response:
Yesterday, we looked at Collins’ Level 2. Today, Level 3.

Level 3 – Collins – Competent Manager. Decisions inside Stratum III roles (Requisite Organization) revolve around pace and quality, but the scope is extended to the efficiency and predictability of that pace and quality. There is end to end (system) accountability to define the necessity and sequence of steps. Jaques defined four managerial authorities for this role.

  • Selection and de-selection of team membership
  • Defining and assigning tasks to be completed
  • Defining a reasonable amount of time for those tasks to be completed (Time Span)
  • Evaluating the effectiveness of those assigned to complete those tasks

These roles require serial processing, seeing cause-and-effect relationships between steps, and the creation of alternate paths to the goal (planning) in the face of obstacles. Longest Time Span task assignments range from 12-24 months.
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Our next Orientation of Hiring Talent begins April 23, 2012. First Session begins Monday, April 30. For more informaton follow this link – Hiring Talent.

Pace and Quality Output of the Team

From the Ask Tom mailbag –

This is Part 2 of 5 in a series. This post is in response to a question by Herb Koplowitz, contributing editor to Global Organization Design Society. It is based on a discussion about Collins’ organizational model.

  • Level 5 – Level 5 Executive
  • Level 4 – Effective Leader
  • Level 3 – Competent Manager
  • Level 2 – Contributing Team Member
  • Level 1Highly Capable Individual

Question:
I didn’t read Collins’ levels as layers, but as personality fit to being a good manager. (He actually describes behaviors and then ascribes them to the manager as though ones manager has nothing to do with ones behavior.) Please explain how you see Collins’ levels as relating to Jaques’ strata. What is Stratum I about being a capable individual, what is Stratum II about being a contributing team member?

Response:
Yesterday, we looked at Collins’ Level 1. Today, Level 2.

Level 2 – Collins – Contributing Team Member. The central decisions in Stratum II roles (Requisite Organization), are also about pace and quality. But no longer, necessarily about my pace and my quality (individual output), but the output of the team. Calibrating Stratum II roles, I typically see job titles like supervisor, coordinator, project manager. This enlarged role requires a higher level of capability in solving problems and making decisions. It is the first layer in the organization where I hold the supervisor (coordinator, project manager) accountable for the output of the team. These roles require cumulative processing, adding many elements together in a coordinated recipe, with longest Time Span task assignments landing between 3-12 months.

Tomorrow, we will look at the decisions associated with Stratum III.

Collins and Jaques

From the Ask Tom mailbag –

I have to set this up, because the source of this discussion began in January of this year. On this site, under Organizational Models, I listed a specific reference to Jim Collins and his take on organizational layers.

  • Level 5 – Level 5 Executive
  • Level 4 – Effective Leader
  • Level 3 – Competent Manager
  • Level 2 – Contributing Team Member
  • Level 1 – Highly Capable Individual

What makes this question special is that it was posed by Herb Koplowitz. Herb is a contributing editor to the Global Organization Design Society, a deep, international resource on organizational design, based in large part on the research of Elliott Jaques.

This is Part 1 of 5 in a series.

Question:
I didn’t read Collins’ levels as layers, but as personality fit to being a good manager. (He actually describes behaviors and then ascribes them to the manager as though ones manager has nothing to do with ones behavior.) Please explain how you see Collins’ levels as relating to Jaques’ strata. What is Stratum I about being a capable individual, what is Stratum II about being a contributing team member?

Response:
Since 2003, I have conducted more than 300 workshops for more than 3,500 CEOs, sharing the research of Elliott Jaques. By a show of hands, I always ask, who has any exposure to this research. Over the years, less than 100 have raised their hands.

“Next question,” I ask, “Who has read Good to Great, by Jim Collins?” Almost 100 percent have read, own a copy of the book and memorized that most famous bus analogy, right people, right seats.

I look at Collins, not because he is the best place to start, but because his book is a familiar touchstone in the room.

I didn’t piece some of this together until I was working with an independent school district in Detroit. Their organization, mildly different from manufacturing, held roles like superintendents, principals and teachers. There was interest to look at Requisite Organization to see how it might help in understanding the accountability and authority tied to each role.

And everyone in the room was familiar with Good to Great.

Collins provides a chart depicting his framework of Level Five Leadership. His focus in the book was on Level V, leaving us with only brief descriptions of the levels of work below. Rather than pick them apart, I looked for intersection, to see where Jaques could be instructive and helpful in understanding each level described by Collins.

Level V – Level V Leadership
Level IV – Effective Leader
Level III – Competent Manager
Level II – Contributing Team Member
Level I – Individual Contributor

Level 1Collins – Individual Contributor. When I think about the decisions at Stratum I (Requisite Organization), most of those decisions fall to pace and quality.

  • In my role, given my work instructions, am I working fast enough to complete the task within the time span allotted?
  • At that pace, is the output of my work within the quality standards set by my manager?

That is my accountability.

My authority is to adjust my work-pace and attention-to-quality to meet the task assignment. My authority is to judge whether I can meet the pace and quality set by my manager, and if not, then it is my accountability to tell my manager. It is all about me and my work, with the longest Time Span task assignments landing between one day and three months.

Tomorrow, we will look at Collins-Contributing Team Member and Jaques-Stratum II.

MOR on the Hook

From the Ask Tom mailbag –

Question:
We are a small organization and most of our production work is technical, defined at Stratum III. Because we are small, and I am the Hiring Manager, in a Stratum IV role, not sure how to implement the Manager-Once-Removed (MOR) in the hiring process?

Response:
The Manager Once Removed in the hiring process is a critical role.

  • Brings perspective and experience to defining the requirements of the role.
  • Truly understands the Level of Work required for success in the role.
  • Will not allow unqualified candidates into the process.
  • Will not allow the Hiring Manager to short-cut elements of the hiring process.
  • Is accountable for the quality of the hiring decision of the Hiring Manager.

Most MORs don’t take this accountability seriously, but this accountability is dead serious. I hold the MOR accountable for the quality of the decision of the Hiring Manager. This changes a number of things. The MOR is ON the hook.

But, where the Hiring Manager is playing a role in the highest layer of the company, who is the Manager Once Removed?

It’s not an insider, look around, there isn’t anyone. In this case, the answer is outside.

Every player needs a coach, including the person playing the role at the top. It’s either a mentor or most likely, a peer group. Most readers are somehow connected to a peer group organization called Vistage/TEC, when I present workshops to those groups, I say “Look to your right, look to your left, the MOR is sitting in this room.”

The dynamic is different. Outsiders cannot be held accountable for decisions made on the inside. But if there is NO ONE in the role on the inside, my next move is to personal mentor or peer group.

Getting By and Paying the Price

“I know we are missing a couple of Managers,” admitted Derrick. “We intentionally allowed these positions to be open. We thought we could get by, save some salaries. We thought other people could cover for a short time.”

“And now you are paying the price,” I responded.

“I guess we thought our systems were solid,” Derrick hopefully floated.

“Perhaps they were, but things change. Your systems have to be constantly monitored, constantly tweaked. Other people can cover some of the daily work in your manager roles, but they are not going to look at your systems. Not only did you lose the predictability of your momentum, but glitches in your system cost you backtracking to re-locate the source of the problem. That’s why you felt, at times, that you were playing Whack-a-mole.”

“So, what’s the next step?” asked Derrick.

“Two-fold. You have to keep a handle on the Whack-a-mole and you also need to find a new manager.”

The Forbidden Managerial Relationship?

From the Ask Tom mailbag –

Question:
I attended one of your workshops last year and your email is my daily dose of wisdom. Is it the job of the Manager-Once-Removed to step in when he sees an employee’s manager making a mistake. Should the employee be able to go to the Manager-Once-Removed if they believe that their manager is incorrect?

Response:
Many companies are so afraid of undermining authority, that they forbid contact between the Manager-Once-Removed (MOR) and team members two strata below. This is actually a necessary managerial relationship. But it’s different.

Let’s tackle the first issue, this undermining authority business. The problem is in the way we frame our assumption. We assume the team member is accountable for their output under the authority of the Manager.

Stop. We missed where the accountability lies.

It is the Manager who is accountable for the output of the team member.

So, while the work of the Manager is to create work instructions for team members, it is also the work of the Manager to ensure those work instructions will be effective in reaching the goal, the task objective. It is imperative for the Manager to constantly ask questions, of the team members, about the effectiveness of the work instructions. It’s part of the role.

This same accountability works one strata above, as well. Who do I hold accountable for the Manager doing a good job of creating and testing work instructions? That would be the Manager-Once-Removed. So, it is incumbent on the MOR to visit the Manager, review work instructions, ask about the effectiveness of the work instructions in the reality of production.

It is also incumbent on the MOR to visit the production area and ask questions, because I hold the MOR accountable for the effectiveness of the Manager.

It is the role of both the MOR and Manager to bring value to the work, decision making and problem solving, of each team member. They are both accountable for the direct output of those team members one stratum below. This is done most effectively by asking questions and listening.