Tag Archives: decision making

Matching the Work

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“I’m a structure guy,” Pablo said. “When you think about effective managerial leadership, I think the focus is on the structure.”

“It’s not on charisma, likeability, luck?” I asked, knowing the answer.

Pablo gave me a knowing smile. “The first key area for any manager, is to design and build the team. Individual achievement is a myth. If you want to create something great, it takes a team, a collection of teams, organized to get work done.”

“Before I do anything else, I have to build the team?” I wanted to know.

“Before you build the team, you have to design it,” Pablo continued. “That’s where most companies make their first missteps. As time goes by, there is too much to do, always work left over. Someone has a brilliant idea, let’s hire some more people. And, they do this without any thought of the overall design of the team to get work done.”

“So, first I have to think about the work?”

“And, not just task assignments, we have to figure out what problems must be solved and what decisions have to be made. With that, then we have to determine the level of problem solving and the level of decision required on the team, to make sure when we start to match up the people, we can select the right ones.”

All About the Work

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“Brent, let me get this straight. You said that your salespeople may not be doing their best because they may not be interested in the work? Do your salespeople understand the work?”

“You’re right! Sometimes, it’s like they are brain dead. They are just mechanistic, going through the motions,” Brent described.

“So, they understand the prescribed duties, show up, make a presentation, ask for the order. But let me confirm, they may not understand the problems that must be solved or the decisions that must be made to create a successful sale?”

“Exactly, I mean we train them and train them again on the presentation, until they have it memorized, down cold, but you are right, that does not make a successful sale. The success of the sale depends much more on the questions they ask and the data they collect about the customer’s problem.”

“So, as the Sales Manager, do you sit with your team and talk about the problems that must be solved and the decisions that must be made during the sales call? That’s where the work is. That’s where the excitement is. That’s where the challenge is. If you are looking for interest from the salesperson, the connection is in the work, not the prescribed duties.”

A Sale That Sticks

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“You are going to have to go slow, because I am still not getting it,” Brent shook his head.

“In order to close the sale by the end of the second sales call, what are the problems that must be solved and the decisions that must be made by the salesperson?” I repeated.

“Well, we know that to make a sale that sticks, that doesn’t get canceled or delayed, we have to collect certain information, then do some research and then present a case that is difficult to resist. Right now, it can’t even be, just a good deal. It has to be difficult to turn down.

“If the first meeting is going too fast or the data we collect is too superficial, we cannot do the analysis and we won’t be able to make an irresistible offer. The salesperson has to use judgment to determine if the information is right. It’s almost a gut decision.”

“So, the work of the salesperson is using discretion to judge the pace and quality of data collected in the first sales call?” I confirmed.

“Absolutely, the customer, in the first three minutes will tell you how this sale is going down, if you listen.”

The Decisions of a Salesperson

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“You’ve described the work of a salesperson as probing and connecting. Probing for the customer’s pain and connecting it to our product or service?” I asked, not waiting for an answer. “So, a sale that requires more than order taking likely requires a higher level of complexity?”

Marlena nodded. “We used to think we could hire anyone, give them a list of features and benefits to recite to the customer and that would be sufficient.”

“And?” I asked.

“And, sometimes they would get lucky, but our hit ratio was less than stellar,” Marlena explained. “We finally stumbled on a salesperson that was closing ninety percent. Her process was simple. In a screening phone call, she identified the customer’s pain.”

“Let me stop you there,” I interrupted. “At that point, what was the decision?”

Marlena paused. “More than one decision. Was the customer’s pain something we could solve? Was the pain strong enough to prompt the customer to take action? Would the customer see enough value in our solution to pay the price we needed to make it a win-win?”

“So, when I ask you the question, what’s the work of a salesperson, what are the problems to be solved and what are the decisions to be made, you now have a much clearer idea?”

What’s the Work?

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“We have an opening on the team,” Marlena announced.

“And, you would like my help?” I asked.

“Yes, what kind of person should we hire?” she wanted to know.

“What’s the work?” I asked.

“It’s a project manager role, coordinating and organizing all the elements of projects we have in-house,” Marlena replied. “I am thinking we should hire someone who is analytical, good attention to detail, works well under pressure. Oh, and they have to work well with people, because there are people involved in all our projects. I think it is a very specific personality profile.”

I chuckled. “So, this person would only be able to work in the project manager role you have in mind?”

“Not necessarily, there may be other things they could do, but you have to be a special sort of person to be a project manager. There’s a lot of multi-tasking, to make sure none of the balls get dropped.”

“Marlena, the things you describe are character traits for most all jobs. Most every role requires someone who is reasonably analytical, reasonably organized, has reasonable attention to detail and can reasonably pace a project so that it meets internal deadlines. You seem to be focused on things you might describe as character traits. I want you to shift your focus to behaviors. Behaviors is how work gets done. My first question to you was – What’s the work? We often get carried away trying to climb inside the personality heads of candidates without a clear understanding of What’s the work?“

In the Weeds

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“So, timespan helps us understand the dysfunction of having a manager who is too close, who struggles to bring value to the problem solving and decision making of the team?” I clarified.

“Too close, and also too far,” Pablo replied.

“How so?” I asked.

“You have had the experience of a manager who breathes down your neck, but have you also had the experience of team members too far away?” Pablo wanted to know.

“You mean, where a team member is more than one stratum level below?”

“Yes,” Pablo nodded. “And, how did that feel?”

“As a manager in that situation, frustrating,” I replied. “As a manager, I was dragged into the weeds, solving problems that should have been taken care of without me.”

“Timespan helps us determine, not only whether a person should be selected for a role, but how to accurately design the working relationships between those roles.”

“Like giving a person a more correct title?” I asked.

“Not at all, companies use job title all over the place. I don’t care about titles. When we accurately design working relationships, I care more about defining, in that relationship, what is the accountability and what is the authority?”

“Authority?”

“Authority to make decisions and solve problems the way I would have them solved.”

Accurate Measure of Capability

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“To do otherwise, to create an org structure, working relationships based on something besides timespan, creates dysfunction within an organization?” I asked.

“One doesn’t have to work in a company for very long to have the following experience,” Pablo explained. “As a team member, have you ever had a manager who micro-managed your every step, who was always breathing down your neck?”

I nodded, “Yes.”

“And what did you think of that working relationship?” Pablo wanted to know.

“At first, mildly annoying, frustrating, then intolerable. A personality quirk,” I surmised.

“Rarely,” Pablo chuckled. “At your level-of-work, you were vested with an undefined timespan of discretion, decision making? Am I right?”

Another affirmative, “Yes.”

“And, because your authority to make a decision was not defined, your manager presumed to make your decisions for you. A micro-manager. In fact, and this goes all the way to the CEO, your manager did not trust you to make the decisions appropriate for your role, appropriate for your level-of-work.”

“And, accordingly, my manager was accountable for my output, so was accountable for my decisions, hence the distrust of my decisions,” I flatly stated.

“Without timespan,” Pablo said, “your manager had no defined criteria related to decision making appropriate to your role, appropriate to your level of work. But, with timespan, your manager has a very clear understanding of decision making appropriate to your level of work. With this understanding, those decisions delegated to you and those decisions reserved for your manager become clear. Your experience was not a personality quirk, it was ambiguity related to decision making and problem solving.”

“But, what if my manager still didn’t trust me to make the right decision,” I countered. “After all, my manager is accountable for my output.”

“That’s where timespan changes the game. Instead of an ambiguous level of distrust, your manager now has a clear idea of the authority required to be effective in your role.”

“Okay, my manager has a clear idea of the authority required, but still distrusts me.”

“Then, how did you end up in the role in the first place?” Pablo asked. “If your manager is accountable for your output, and knows precisely the timespan of discretion, it is incumbent on your manager to hire a person who has the capability, necessary experience and skill to make those decisions. Timespan becomes an accurate measure of decision making.”

Accurate Measure of a Decision

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“So you are suggesting that managerial layers in an organization rests on the two ideas of accountability and authority?” I restated as a question.

“I am not suggesting,” Pablo replied. “To do otherwise creates the organizational dysfunction we so often see.”

“And you are connecting timespan to those two ideas, accountability and authority?”

“Timespan is like the discovery of the thermometer. Our ability to accurately measure temperature led to the precision of melting points, the beginning of chemistry, as a science. Timespan is the beginning of management, as a science. Our ability to accurately measure accountability and authority provides us a precise method of organizing structure.”

“Structure being, the way we define the working relationships between people?” I added.

Pablo looked at me carefully, then clarified. “Structure being the way we define accountability and authority, the working relationships between roles. Timespan works to define those two things.

  • A supervisor (S-II) is accountable for the output of the team for timespans ranging from one day to three months, with the longest authority for decision making at 12 months.
  • A manager (S-III) is accountable for the output of the supervisory team for timespans up to 12 months, with the longest authority for decision making at 24 months or two years.
  • An executive manager (S-IV) is accountable for the output of the managerial team for timespans up to 2 years, with the longest authority for decision making at 5 years.
  • The CEO (S-V) of a single business unit is accountable for the output of the executive management team up to 5 years, with the longest authority for decision making at 10 years.

“Ten years?” I wondered.

“Unless it is a larger organization,” Pablo continued.

  • The CEO (S-VI) of a multiple business unit (holding) company is accountable for the output of the single business unit CEO up to ten years, with the longest authority for decision making at 20 years.

“And?” I nodded.

Pablo smiled. “You’re playing in the major league, my friend?”

  • The CEO (S-VII) of a multiple business unit conglomerate is accountable for the output of the holding company CEO up to 20 years, with the longest authority for decision making at 50 years.

“And, what kind of company might that be?” I wanted to know.

“Those would be the largest of global companies, Apple, Halliburton, Microsoft and government entities, US, China, Russia.” Pablo sighed. “Those are the organizations whose decisions will impact lives for the next 50 years, maybe more.”

Like a Horse and Carriage

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“We have to put leadership back in the hands of CEOs and their managers,” Pablo said. “Relying on control systems to manage our companies misleads us into the false sense that we actually have control.”

“You mean we don’t,” I stopped. “You mean we don’t have control?”

“Not over the things that really matter,” Pablo replied. “We don’t have control over our markets. We don’t have control over social trends, stock prices, pilot error. We only have the illusion of control. When we run our companies solely by its Key Performance Indicators, we remove discretionary judgement in the face of uncontrollable things. We have to put leadership back in the hands of CEOs and their managers.”

“By doing what?” I asked.

“By taking advantage of decision making and judgement at all managerial levels. The future is uncertain, ambiguous. Decisions made in the face of uncertainty and ambiguity are not calculated algorithms. If they were, we could let computers rule the world.

“We are back to two words,” Pablo continued, “accountability and authority.”

“Those are the two defined elements in structure,” I connected.

“Only when we vest decision making authority in the role of the CEO and the roles of managers, do we take advantage of their capability to do so. And only when we do that, can we truly hold them accountable for the results (output) of their teams.”

“I’m going to push back,” I countered. “I think most CEOs assume decision making authority at the highest level.”

“Some do,” Pablo agreed. “But, many run the company by the numbers, or offload accountability to their executive team, attempting to engage in democratic decision making. Then, wonder why the direction of the company goes off balance. We typically place accountability one level-of-work too low in the organization. Accountability and authority go together, you can’t have one without the other.

“Except in government,” Pablo smiled. “I always find it amusing, a government oversight committee, thinks it has all the authority without any accountability. If you have the authority, you have to have the accountability that goes with it.”

Structural Quagmire That Starts at the Top

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“Let me push back,” I said. “I assume that CEOs do have a firm grasp on the managerial relationships inside their company.”

“And, you would be missing the critical overlay that timespan brings to the overall structure,” Pablo explained. “With timespan as the overlay, the CEO will discover that not all people on the executive team have defined roles at S-IV (Multi-system Integration). Most CEOs have too many direct reports, or if I can more accurately describe – the CEO is the direct manager of too many people.”

“I have seen that,” I replied.

“Or, over time, team members with solid S-III (Single System) capability are promoted to S-IV (Multi-system Integration) roles where they struggle. This over-promotion (Peter Principle) causes the CEO to be dragged into system integration issues. Problem solving and decision making has no systemic or disciplined structure. There is no generally understood order, titles become jumbled and subject to individual interpretation. But, here is the real problem. The CEO gets the feeling that the CEO role is to be the glue that holds this house of straw together.”

“I have seen that as well.”

“And, if there is underperformance, the CEO believes it to be a fault of the team member, when it is really a problem of structure. There is a design problem that is covered over by the CEO in heroic attempts to make people smarter. And if there is continued underperformance, then the team becomes the culprit. Finger pointing surfaces down into middle management, and the band plays on.”