Tag Archives: manager

Accounting – What’s the Level of Work?

From the Ask Tom mailbag –

Question:
We are working on the structure of our accounting department. We have a comprehensive list (spreadsheet) of ALL the tasks that need to be completed from daily transactions, to weekly flash reports, to monthly financial statements, to quarterly reports and annual compilation activities. But all this work keys around, seems to be performed by one individual, the accounting manager. We have two additional people in that department, but we need help figuring how to distribute the work to the right person.

Response:
This is an accounting department, but the same principle applies, no matter the discipline. The futile approach would ask “Can this person do this and can that person do that?” The result would be a helter-skelter mish-mash of who would be accountable for what. It might help, but you would remain in a state of disorganization. Especially where you have a spreadsheet of tasks, enough to go around for three people in your accounting department, you need a systematic way of figuring this out. This is not complicated.

You say you have a spreadsheet. As comb through the list of tasks, the central question is to identify the Level of Work. Add a column in your spreadsheet that identifies the Level of Work (LOW) for each task. Your Accounting Manager needs to self perform those tasks at S-III and delegate S-II and S-I tasks.

S-I – Clerical, transactional input from coded paperwork, proofing batch transactions for accuracy, printing reports and schedules. This would include A/P and A/R data entry, timesheet entry, including job cost transaction input for labor and materials. Matching paperwork from work orders and POs to invoices received from vendors. Collecting, sorting and filing required paperwork to support higher level decisions related to disbursements or billing activities. [Scope of task assignments range from (1) day to (1) week to (1) month with no task assignments longer than (3) months].

S-II – Coding paperwork (making decisions) for transactional input, coding job costs of materials and labor including split allocations according to formula or system criteria created by manager. Reconciliation of accounts to workpapers. Second level review of transaction input from S-I activities. Compilation activities of reports and schedules required for routine reports for accuracy, completeness according to a publishing schedule created by manager. [Scope of longest task assignments range from (3) months to (12) months].

S-III – Creation of systems for all accounting functions, including documentation of steps, checks and balances, reconciliation points, review steps, identification of thresholds, risk assessment, and operating parameters. Third level review (signature) of transaction schedules for execution of disbursements (cash), movement of cash and cash management. Forecasting and budgeting. Cross-functional work with departments and divisions to support the financial analysis required for operational decisions (bid profitability, bid qualifying, project budgets, work-in-process, milestone completions, payment apps, collections). [Scope of longest task assignment range from (12) to (24) months].

You can flesh these guidelines out to assist in identifying the Level of Work in each line of your spreadsheet. Once the Level of Work is defined, it is easy to determine what tasks the Accounting Manager must self-perform and what tasks can (should) be delegated to appropriate team members.

Things Fall Apart

“I don’t think you have an attitude problem. I don’t think you have clearly defined the accountability and the authority that goes along with that dotted line. That’s why dotted lines are so dangerous,” I said.

“So, what should I do? This Key Result Area is not a high priority, but the work still has to get done,” Megan explained.

“You are shooting yourself in the foot when you describe -it’s not a high priority-. If the work in this area is not done, what happens to its priority?” I asked.

Megan thought. “You’re right, the tasks will take about five hours a week, but if they are not completed, all hell breaks loose, other things begin to fall apart.”

“So, what should you do with that dotted line?” I pressed.

“Get rid of it, change its color, make it bold,” Megan retreated. “I guess I have to specifically define what I want, how much time it should take and what the result should be.”

“You guess?”

It’s Just a Dotted Line on the Org Chart

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“What do you mean, she doesn’t know she is accountable? It’s very clear to me,” Megan complained. “She has a very clear dotted line to that area of responsibility. I know it’s not her highest priority, but still, she is responsible.”

“So, there is a conflict in her priorities?” I asked.

“Not a conflict, really, she has to get it all done. Just because it’s a dotted line doesn’t mean she can ignore it. Besides, at the bottom of her job description, it says, -and all other duties assigned.- That should cover it.”

“As her manager, what do you observe about the way she handles the conflict in her priorities?” I pressed.

Megan thought. “I think it’s an attitude problem. It’s almost as if she doesn’t care about one part of her job.”

“I thought it was just a dotted line?” I smiled.

Megan stopped cold. “You think the problem is the dotted line?”

“Dotted lines create ambiguity. Ambiguity kills accountability. What do you think?”

Scrambling Around

“Then what is my role, as the manager?” Valerie asked. “I do all the same stuff as the supervisor, it’s just that most of the time, I handle the bigger problems.”

“Bigger problems, like what?” I followed.

“Like last week, we had a large order for a customer, an international customer, and one of the components from a supplier was defective, 500 units we had to reject. The customer is screaming because he already sold the first three shipments that we can’t deliver.”

“What did you do, as the manager?”

“Well, I scrambled around and found 500 units from a supplier in California. In fact, they were leftover stock and we got them cheaper than our normal supplier.”

“Why didn’t your supervisor locate them for you?” I asked.

Valerie looked sideways. “Well, actually he did. I said I scrambled, meaning my supervisor scrambled. He is the one who found the parts. It was kind of a lucky break that solved the problem.”

“So your supervisor did his job, as a supervisor, and you failed to do your job as a manager.”

Valerie looked puzzled.

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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It’s a Cakewalk

From the Ask Tom mailbag –

Question:

I just read your latest newsletter regarding team interviewing. I am a lousy interviewer but trying to get better. I am intrigued by the 50-60 interview questions that need to be prepared as I have a tendency to just wing it.

Do you have a source or listing of that many questions? I’m having a hard time envisioning what a comprehensive list might look like.

Response:
When I first introduce this concept of 50-60 written prepared questions, most interviewers freak out. Looks like a lot of work. No idea where to start? Can I short-cut the work and find the questions online?

The answer is, there is no short-cut. I do NOT have a list you can copy. But, here is the source of the questions.

The template I use to create a Role Description is organized around Key Result Areas (KRAs). When you look at any role, there are tasks that go together, typically related to a single goal or objective. In any role, there are typically 5-8 major goals or objectives, with related tasks in each goal area.

Looks like this –

Role Description
KRA #1
Tasks/Activities
_____________________
_____________________
_____________________
Accountability
_____________________
KRA #2
Tasks/Activities
_____________________
_____________________
_____________________
Accountability
_____________________
KRA #3
Tasks/Activities
_____________________
_____________________
_____________________
Accountability
_____________________
and so on…

Use the Role Description to craft ten questions in each KRA. If you have six KRAs, you will have 60 written prepared questions. It’s a cakewalk.

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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.”

Problem Fixed, System Broken

“You have two out of five manager positions in place on a daily basis, so when you have a problem, you fix the problem, but not the system,” I offered.

“So, the problem is fixed,” Derrick insisted.

“Yes, the problem is fixed, but the system is still broken. You are missing three of five Managers, so you are not paying proper attention to your systems.

“You see, Derrick, when you have a problem, everyone scrambles to fix the problem. Even experienced Managers put on their superhero cape and leap in front of their biggest customer to save the day.

“What your managers need to focus on,” I continued, “is the system. Why didn’t the system prevent that problem? Or at least mitigate the damage from the problem? Their role is to fix the system.”

Not a What, But a Who

Derrick located a copy of the org chart. “A little out of date,” he remarked.

“It’s time stamped only three weeks ago,” I said.

“Yeah, well, it’s still out of date.”

“So, if I think you have a system problem, where should I look on the org chart?” I asked.

“All these people are doing production, and the supervisors make sure production gets done. You have to be looking at our managers, they create our systems, monitor and improve our systems,” Derrick observed.

“Yes, and I see you have five manager positions. These are the roles accountable for your systems.”

“That’s why it’s a little out of date. One manager got promoted to Vice President and we figured he could still cover his old position. This manager, here, got an offer from another company, and we decided that we might be able to do without for a while. And our controller wanted to move to the northern part of the state. And with the internet, she does her work from home.”

“Let me get this straight. You have five manager positions, monitoring your systems, yet only two out of five actually show up for work here?”

Poof, You’re a Manager

From the Ask Tom Mailbag –

Question:
Hey Tom, I want your opinion on something…Why do the wrong people end up in management/leadership positions? What are the first three reasons that come to mind?

Response:
While it’s fun to poke at dysfunction, especially in managerial positions (just read Dilbert, my favorite), there are shining examples of high performing managers in most organizations. But there are a few stinky ones out there.

Next-in-line – Most teams will eventually lose their manager, either to a promotion, to another company or to trout fishing in Montana. In many cases, that team will end up with the next-in-line. This person may have been a competent assistant, been on the team the longest or simply showed up for work early on the wrong day. Poof – you’re a manager.

Mis-selection – Companies recruiting from the outside often make a poor hiring decision. For the most part, they have no clue about what it takes to be an effective manager. Clueless, they fumble through a stack of resumes, ask the wrong questions during interviews and end up with an empty suit. Poof – you’re a manager.

Skill-set – Many people are perfectly capable to be effective in a managerial role, but have never been trained in specific skills. Being a manager has a great deal to do with “who” you are, yet there are several leadership skills (yes, trainable skills) that must be learned and practiced. Most companies don’t have internal capabilities to teach or coach those skills. Poof – you’re a manager. Good luck.
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