Tag Archives: decisions

Focused

“You are right,” Byron continued. “The things that hurt us now, are decisions we made a couple of years ago when times were good. It seemed like a good idea at the time. We didn’t think very hard about some of our bone-headed moves.”

“And, now?” I asked.

“And, now we have to get lean. Maybe really lean. It may get worse. We have to be able to take a couple more punches and still be able to maneuver, be able to take advantage of opportunities, but it’s difficult.”

“What is so difficult about it?”

“Well, now, everything has to be focused on a result. If it doesn’t produce a result, it has to go. It’s not pleasant. In many cases, we have to learn to say NO! In the past, we tried to figure out what TO do. Now we have to make decisions on what NOT to do.”

Best of Times

“I’m not sure what happened,” Byron explained. “Our company was voted the number one employer two years ago. We have the best employee benefits, we have the best equipment, we have roomy workspaces, our sales people get trip incentives. All of a sudden, to stay profitable, we have to lay some people off. The mood around here turned south very quickly.”

“Times have been good?” I asked.

“Up ’till now.”

“What happened?”

“Sales have been off. Suddenly all these great things about our company are costing us out of business.”

“When were the decisions made that put you upside-down on your cost structure?”

Byron had to think back. “Three or four years ago, I guess. Those were the best of times.”

“It’s in the Best of Times that we make our biggest mistakes.  A little success can create a whole lot of overhead.”**


**Red Scott’s Cardinals

Look Again at the Decisions

“I know I have heard that before,” Vicki replied. “As the manager, it’s not my job to motivate, I am supposed to create an environment. So, what does that mean? We have work to do here.”

“This is all about work,” I replied. “And by work, I mean making decisions and solving problems.”

“But my people know what they have to do, and there aren’t that many decisions to make.”

“Look again,” I encouraged. “Your team is making decisions all the time, if you let them. Most of their decisions fall into two categories, quality and pace.”

Vicki looked puzzled, “What do you mean?”

“How many units are supposed to come off the line by lunch time?” I asked.

“Fifteen,” she replied.

“And so, as the morning goes on, your team is making decisions about how quickly they should go without compromising quality? And if there is a quality issue, they have to solve the problem and make up the pace to reach the goal by noon?”

“Yes.”

“And, what happens if they discover that they can maintain the quality standards, and produce 20 units by noon?” I smiled.

“Well, they would probably knock off at 15, or slow the pace down because the goal was 15.”

“But that would violate the contract,” I prompted.

“The contract?” Vicki repeated.

“The contract to do their best. Part of the contract means if they can complete more than the goal using their assigned resources in the allotted time, they are supposed to tell you, as the manager.

“See,” I continued. “That is why 15 is your goal, not their goal. It is the manager who is responsible for the result. And that is the first thing to understand about creating this environment.”

Forcing the Issue

“I cannot believe the way people are responding to this situation,” Lydia explained. “They know the right thing to do, but they are all wimps, now that they have to stand up for it.”

“What is your position?” I asked.

“To do the right thing. I laid out the steps we need to take, who we need to contact and how we need to present the facts. I know it’s unpopular, but it’s the right thing to do.”

“How are you going to persuade the team to take the right action?”

“I’m the leader, so I could just force the issue, take the steps on my own,” she replied.

“And what kind of leadership is that?”

Lydia thought, grinned, then slowly nodded. “That would be tyrannical leadership, I suppose.”

“And if you are a tyrant and force it, then you let the team off the hook. They are no longer responsible for taking action. You cripple them from being responsible in the future.”

What Are the Decisions?

“You mean they might not be doing their best, because they are not interested in the work?” Brent repeated.

“So, tell me what is it, about the work, that is not interesting?” I asked.

“Look, we are in sales. This is a struggling economy, supply chain issues. It’s easy to not get excited.”

“You are not answering the question. Tell me about the work,” I insisted.

“We show up to an appointment, make a presentation and ask for the business.”

“That’s a good start,” I nodded. “Those are the prescribed duties. Now tell me about the decisions your salespeople have to make when they are on these appointments.”

“I don’t understand,” Brent furrowed his brow.

“I think that’s the disconnect. You are right. Showing up and making a presentation is not very interesting. Of course, that is what you have trained them to do, but that is not the work of a salesperson.”

A Well Argued Decision

“Let’s take meetings,” Pablo suggested. “Lots of managers AND their teams work hard to gain concensus, avoid conflict, at times even attempt to make decisions democratically.”

“I have seen that,” I said.

“And that manager of the team, also has a manager, let’s call that role, the manager-once-removed, the manager’s manager,” Pablo described the setup. “If the team and their manager engage in democratic decision making and make a bone-headed decision, who does the manager-once-removed hold accountable?”

Manager-Once-Removed (MOR)
————————-
Manager
————————-
Team

“Well, I assume it would be the whole team, manager included,” I observed.

“Who is the manager-once-removed going to call into the office to discuss this bone-headed decision, the whole team? If we are going to call in the whole team, what do we need the manager for?”

“I’m listening,” I said.

“And, what of the dynamics in the decision meeting? If the decision is to be democratic, then team members will lobby their own agendas, sometimes hidden politics emerge to gain support from other members, perhaps a little arm-twisting. The manager almost becomes a bystander. And, yet, at the end of the day, it is the manager called to account for the bone-headed decision.”

“And?” I asked.

“It is only when the manager becomes accountable for the decision, that we can make headway,” Pablo described. “Team members now show up to provide feedback and support to the manager, who will make and be accountable for the decision. The team will play devil’s advocate, argue this position or that position, in short, create conflict. The point of the meeting is not to manage conflict, but create it, for the benefit of the decision. Don’t manage conflict, manage agreement.”

“And, the benefit?”

“A well argued decision,” Pablo said. “This only happens when we understand the working relationship between the team and the manager, with the manager accountable for the output of the team.”

Bring Value to Decision Making

“So, you believe, when your manager left you to solve the problem, simply by asking you questions, that brought value to your thinking. Are you sure your manager wasn’t just being lazy, maybe indecisive herself?” I asked.

“Oh, no. Quite the contrary,” Kim replied.

“Are you sure?”

“Absolutely, my manager was clear about decision making. We even had three meetings together just to make a list of all the decisions that needed to be made in our department. Then we grouped the decisions according to who had the authority. Here is the list –

  • Decisions I could make, and didn’t even have to tell my manager.
  • Decisions I could make, but had to tell my manager, after the decision was made.
  • Decisions I could make, but had to tell my manager, before the decision was made.
  • Decisions I had to discuss with my manager, but the decision was still mine to make.
  • Decisions I had to discuss with my manager, but the decision was my manager’s.
  • Decisions my manager would make without discussion.

So, my manager was clear about decision making authority in our working relationship.”

What to Mitigate, What to Prevent?

Four ways to look at risk.

  • Risk with low probability and minimal damage
  • Risk with high probability and minimal damage
  • Risk with low probability and catastrophic damage
  • Risk with high probability and catastrophic damage

Risk with low probability and minimal damage can be self-insured, meaning I am willing to accept the risk and endure the consequences.

Risk with high probability and minimal damage will depend on my threshold and tolerance for pain. Even a splinter in a finger can be annoying.

Risk with low probability and catastrophic damage creates mitigation behavior. I may be willing to accept the risk, but in the event the risk occurs, I want to mitigate the damage. I may seek outside protection, an insurance product. Insurance rates depend on low probability to calculate the premium.

Risk with high probability and catastrophic damage creates prevention behavior. To protect my best prevention behavior that inevitably fails, I may seek outside protection, an insurance policy. Insurance rates consider the high probability to calculate the premium and often, actively participate in the prevention behavior.

What risks come with your business model? How do you manage that risk?

How Will You Learn?

The cherub faces in my leadership class looked up, all smiles, ready to take notes, write down all the answers.

“Why are you here?” I asked.

“Well, to listen and learn,” came a response from the back.

“Listening to me will not make you a more effective manager,” I replied. “What I have to say is only my understanding, for me.” I stopped. “So, how will you learn? Listening to me will not make you a more effective manager. Reading my blog will not make you a more effective manager. How will you learn?”

There was an uncomfortable silence. Sometimes silence does the heavy lifting.

“What you learn will only get started in this room. The real learning happens outside of this room, when you take the words and try them out in your own problems and decisions. My understanding means nothing (except to me). What is your understanding?

The Decision is Yours

Victor was staring at the floor, head cupped in both hands. “What a stupid decision.” He was quiet. I was quiet. Silence can do a lot of heavy lifting.

Finally, he continued. “I want to involve my team in decision making. But when we take a vote, they often make the wrong decision. As their manager, I feel like a heel, going against their vote. But I don’t want to let them do something stupid and waste a bunch of time.” He lifted his head.

“Victor, first, do not let them vote. Between you and your boss, who is accountable for this decision?”

“Well, I am,” he said.

“If you are held accountable for the decision, then you have to make the decision. You can involve your team, ask them for input, but you are the manager, the decision is yours to make. Here is what this sounds like to your team.

“Hey, Team. As your manager, I have a decision to make. This is an important decision and will have an impact on every team member here. So, I want to you to help me consider all the angles. After I consider your input, I have to make this decision. When I do make this decision, I will need your support and your full efforts to make this happen. So, who has the first idea?

“Victor, understand, people will support a world they help to create, even if it is not totally their idea. You should involve them, but the decision is yours.”