Tag Archives: decision making

The Learning Never Stops

We are in the process of learning and the learning never stops.
What are the impacts to your business model?

  • Pretty much everyone has discovered Zoom. It is not as good as being in person, but it works pretty well. We are learning its impact on travel budgets, travel time avoided, continuity stops and starts between travel trips that did not occur.
  • Individual initiative. We have learned who can work independently (making decisions and solving problems) and who struggles without constant oversight.
  • Necessity of being there. When it is not possible (or prudent) to be there, we learn more about the necessity of being there. Human inspection is replaced by remote sensors, providing not periodic data, but constant 24/7 data.
  • Distributed decision making. If it is convenient for managers to make decisions, decisions get made by managers. With a distributed workforce, where it is not convenient (incomplete data, delay) for managers to make decisions, decisions get made by the most appropriate person.

What are the impacts to your business model?

Am I Capable?

From the Ask Tom mailbag –

Question:
I have been an avid reader of Jaques’ books for quite some time, and I have a question: most of what you say is to help managers and HR workers to find and hire the correct people.

But what about someone who is creating a company (my case)? How can I accurately measure my own capability, and, therefore, structure my company correctly so that its complexity doesn’t surpass my own level of thinking, while also hiring subordinates exactly one stratum below, in the case of the first hire(s)?

I would be very much interested since I’m having a hard time to be objective trying to evaluate myself.

Response:
How does the song go? “Lookin’ for love in all the wrong places.”

First, your interest in assessing your own cognitive capacity will almost always lead you astray. Don’t attempt to assess yourself, assess the work.

Second, a start-up organization has a different focus than other, more mature organizations. There are so many missing pieces and fewer resources to work with. The start-up has a quick timeline to death.

So, my first question is always, what’s the work? As you describe the work, what is the decision making and problem solving necessary? More specifically, what is the level of decision making and level of problem solving required to make a go as a start-up?

Here are some other necessary questions for your start-up.

  • What is the (market) problem you are trying to solve?
  • Does your product or service solve that market problem?
  • Can you price your product or service high enough to allow for a profit?
  • Is your market big enough to provide enough volume for your product or service? Is your market big enough for a business or just big enough for a hobby?

The first focus for every start-up is sales. Can you get your product or service into the market place and please find a customer to buy it?

In the beginning, the level of problem solving is very tactical. Can you make it and will someone buy it? That’s about it. That is why there are so many budding entrepreneurs out there. That is also why so many fail. They cannot get their company to the next level of problem solving.

Once you have a sustained momentum of sales, the next level is all about process. You see, if you can create a sustained momentum of revenue, you will also create competitors. The next level is about process. Can you produce your product or service faster, better, cheaper than your competitor? This is a different level of decision making, a different level of problem solving. It is precisely this level that washes out most start-ups.

So, focus on the work. Do you have the (cognitive) capability to effectively make the decisions and solve the problems that are necessary at the level of work in your organization? Stay out of your own head and focus on the work.

BTW, we have only described the first two levels, there are more.

Structure and Creativity – Part II

From the Ask Tom mailbag-

This continues my response to the following question –

Question:
In your model, whose job is it to balance structure and innovation? (or structure that permits innovation?) How is this implemented? Is it a time span issue vs. a creativity/mindset issue? I worry about calcification and lean against structure which prevents innovation.

Response:
It is easy to fear organizational calcification. Much of management literature rails against terminology about command and control, even the subtle reporting relationship reeks iron fists and thumbs of oppression. This is why our understanding of functional organizational structure is so important. And important to you because of your interest, mandate that an organization be creative.

I define work narrowly looking at two things, decision making and problem solving. This discussion is to firmly attach creativity to decision making and problem solving, within the confines of a structure that eschews rigidity.

First, an exercise, in creativity. I ask a group of student within a 60-second period to name (write down) things that are round, as many as possible in 60-seconds. That’s the goal. You would assume those that name 30 are more creative than those that name six. I immediately get a question, “do you mean round and flat like a coin or round like a sphere?” I say, “there are no rules, no restrictions, it’s up to your own definition.” There is no structure to the exercise save the limit of time.

Inevitably, the clock winds down and most participants have a list of six to eight and most have a look of frustration on their face that they performed so dismally. I ask for sample responses –

  • ball
  • coin
  • planet
  • wheel
  • manhole cover
  • marble
  • watchface

Stop, time’s up!

Remember, the goal is to be as creative as possible and name as many as possible. I say, “ball. What about a tennis ball? A baseball? A basketball?”

“Wait, that’s cheating,” the group responds. I smile.

Here is the point. Instead of instructions where there is no structure, let me create a structure that guides you to be more creative.

Name as many coins that are round –

  • penny
  • nickel
  • dime
  • quarter
  • 50-cent piece
  • silver dollar
  • gold dubloon

Name as many planets that are round –

  • Mercury
  • Venus
  • Mars
  • Neptune
  • Uranus
  • Jupiter
  • Earth
  • Saturn

Name as many balls that are round –

  • tennis ball
  • baseball
  • basketball
  • bowling ball
  • golf ball
  • volleyball
  • cricket ball
  • soccer ball

The more structure in the assignment, the more creative, the more possibilities. This is a concept called idea fluency.

I need you to shift your understanding (not change, just shift) about organizational structure where we create working relationships between people where they engage in work using the fullest extent of their capability to make decisions and solve problems.

Elliott’s model helps us understand that there are different levels of decision making and different levels of problem solving. It is incumbent on every manager to understand those levels and engage the fullest capability of their team members in the work at hand.

Placing accountability for team output at the feet of the manager dramatically shifts managerial behavior to create more productive and creative working environments.

Humpty Dumpty Sat on a Wall

All the king’s horses and all the king’s men couldn’t put Humpty together again.

Yesterday, someone asked me, as we move from shelter-in-place to a re-open of the economy, what should a CEO think about? Of course, there is work to be done, and we will bring people back to do that work, but what should the CEO think about?

  • What does my market environment look like in three months time, one year’s time, two years time? This includes market demand, regulations, capital requirements, availability of labor and technology.
  • What should my company look like in three months time, one year’s time, two years time?
  • What are the internal functions necessary to support my product or service in that market demand?
  • Inside each function, what is the level of decision making and problem solving?
  • What roles do I need to make those decisions and solve those problems?
  • Do I have people on my team who can effectively play those roles?

There are two concepts embedded in these questions.
Necessity
Levels of work (levels of decision making, levels of problem solving)

Necessity
If your company considered the purchase of a $100,000 machine, and it was NOT necessary, would you buy it? That same decision has to be made about the roles inside the company. Now, is an opportunity to examine your organizational design and ask, is this necessary?

Levels of Work
Most CEOs do not think about the work necessary to make the product or provide the service. Understanding the level of decision making and the level of problem solving are specific clues to the talent you need. Now, is an opportunity to examine the levels of work and ask, do I have the people on my team who can effectively make those decisions and solve those problems.

It’s Probably Not Important

“How do you know what-you-need to know?” I asked. “You lost the contract, because you understood the problem, had a great solution, but did not know how the decision was to be made. How do you know what-you-need-to-know?”

Jordan thought for a minute. “I guess, the first step is assuming we already know everything we need-to-know. It’s easy to get suckered into thinking that what-we-know matches the reality of the situation. We have to get really clear on what-we-know and what-we-don’t-know.”

“And, what do we assume about what-we-don’t-know?” I pressed.

“We assume what-we-don’t-know is probably not important, that if it was important, we would already know about it, and included it as part of our understanding. That was our first mistake.”

—-
Hiring Talent – 2020 was released on Mon, Jan 13, 2020. Limited to 20, participants must be part of the hiring process, as either hiring manager, part of the hiring team, human resources or manager-once-removed. Program details are here – Hiring Talent – 2020. If you would like to register please complete the form on the Hiring Talent link. The first 20 respondents will receive a discount code for a $99 credit toward the program.

What You Need to Know

“Unbelievable,” Jordan shook his head. “We thought we had it nailed. We knew what the problem was, had a great solution. We were so confident this project was ours for the taking.”

“And?” I asked.

“What we didn’t know was our competitor had a relationship with their corporate attorney, who whispered in the ear of the CFO, who controlled the budget for the project.”

“So, what did you learn?”

“Sometimes, what we know about the problem and the solution to the problem isn’t what we need to know about how the decision will be made.”

—-
Hiring Talent – 2020 was released on Mon, Jan 13, 2020. Limited to 20, participants must be part of the hiring process, as either hiring manager, part of the hiring team, human resources or manager-once-removed. Program details are here – Hiring Talent – 2020. If you would like to register please complete the form on the Hiring Talent link. The first 20 respondents will receive a discount code for a $99 credit toward the program.

How to Define Decision Making in a Role

In a role, until we identify the specific decisions to be made and specific problems to be solved, the hiring manager will never hire the right person. This is not magic.

For a technician –
In this key area, what are the decisions that have to be made?
What is the time frame for those decisions?

  • Am I working fast enough to accomplish the output assigned to me today?
  • Does my output meet the quality spec assigned to the work today?
  • Does my attention to quality slow down my output?
  • If I work faster, does quality suffer?

In this key area, what problems have to be solved?
What is the time frame for those solutions?

  • Is this machine noise normal or abnormal?
  • If the machine noise is abnormal, do I need to shut the machine down, now?
  • Can I wait to shut down the machine when it finishes its current cycle?
  • Can I wait to shut down the machine at the end of my shift? And then, call maintenance?

For a project manager –
In this key area, what are the decisions that have to be made?
What is the time frame of those decisions?

  • Is the average output of production this week, sufficient to meet the output target for the month?
  • If output will fall short, what things can I shift in production to speed things up overall? More hands on deck? Overtime?
  • If output will overshoot, are we cutting corners in quality? Did I overestimate resources required? Can I temporarily reassign team members to another area?
  • If output will overshoot, are we using up raw materials in one process that may be needed in another process? What are the lead times on the raw materials? Re-order thresholds?

In this key area, what problems have to be solved?
What is the time frame for those solutions?

  • How often will we sample output for quality problems?
  • In what step of each process do we sample output for quality problems?
  • Should we discover a quality problem, what is our first step to prevent more output that does not meet spec?
  • When we solve a quality problem, how does that change our sample frequency?

It’s all about the work. Every role contains appropriate problem solving and decision making.

Four Power Questions Before the Interview

It’s all about the work. Most managers make hiring mistakes because they didn’t know what they were looking for in the first place.

  • How to know what you are looking for?
  • How to transform that vague picture into specific deliverables?
  • How to communicate that picture and deliverables to the hiring team, to make sure you are right?

I will know it when I see it, sets up the hiring manager for failure. Success is based on luck.

Work is a funny notion. Many managers focus on getting in touch with candidates, all warm and fuzzy. Not my purpose. Instead, get in touch with reality. The purpose of hiring is to get some work done.

Work is making decisions and solving problems. Few hiring managers think about the problems that have to be solved and the decisions that have to be made in a team member’s role. That is where it starts. The hiring manager is looking for someone to make specific decisions and solve specific problems. Until we figure that out, we will never hire the right person.

Here are the power questions to answer before you get into the interview room –

  • In this key area, what decisions have to be made?
  • What is the time frame for those decisions?
  • In this key area, what problems have to be solved?
  • What is the time frame for those solutions?

How Culture Touches the Work

Culture is that unwritten set of rules that defines and enforces the required behaviors in the work that we do together. Many things we do are written down and comprise our standard operating procedures. But most things are unwritten. And, when we think of culture, here are some things that are often missed.

  • Who can belong to our team? (Membership)
  • Who has the authority to make decisions, in what situations?
  • How are team members given work assignments?
  • How often are team members given work assignments?
  • Do team members depend on work product from other team members?
  • How do team members hand off work to other team members? (Integration)
  • When a team member completes a work assignment, how does their supervisor know?
  • When a team member completes a work assignment, how do they know what to work on next?
  • Does anyone review or inspect their work?
  • How often is their work reviewed or inspected?
  • Are they permitted to continue on additional work before their current work has been reviewed?
  • Do they work on multiple assignments simultaneously?

The people system is the most important system you work on. This is just the start.

Do I Have the Authority?

“But, I am the manager, shouldn’t I have the authority to make some decisions around here?” Amber asked.

“Ah, yes. Authority,” I replied. “You must understand, however, that authority comes with accountability. Neither comes first. You cannot have the authority to make a decision without the accountability for the outcome of that decision. Conversely, you cannot be held to account for the outcome unless you have the authority to make the decision.”

“So, just exactly what decisions do I have the authority to make around here?” Amber pressed on.

“To know that, you have to examine your goals and objectives.” Amber had an unspoken question on her face. I continued, “Your goals and objectives, agreed upon by you and your manager, set the context for your accountability (output) and the authority you have to make decisions to reach those goals.

“In the beginning, that authority may be unclear. That is why you meet with your manager more frequently, to clarify the context, define the accountability and determine your authority. As time goes by, your confidence will increase and so will your understanding of the discretion you have to make appropriate decisions.

“The most important understanding, where you have authority to make decisions regarding the output of your team, you also have accountability for that outcome. Do not think you can have the authority without the accountability.”