Tag Archives: system

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.

Level 5 – Level 5 Executive
Level 4 – Effective Leader
Level 3 – Competent Manager
Level 2 – Contributing Team Member
Level 1 – Highly 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 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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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.”

Predictability and Uncertainty

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“I understand how we calculate profit, but what does that have to do with my organizational chart?” Derrick asked.

“You design a predictable profit into your price, but what is it that keeps your profit predictable when you actually deliver your product or service?” I replied.

Derrick was thinking. “It becomes predictable when we are able to do the same thing over and over, the same way, with the same methods, in the same amount of time, with the same amount of scrap.”

“And how do you make all that happen over and over?”

“Well, we have designed a system and we train everyone to work the system.”

“And so, if something is happening with the predictability of your profit, what’s wrong, where do you look?” I continued.

“Something has to be wrong with the system,” Derrick nodded.

“So, where do you look?” I insisted.

“We should try to find out what’s wrong with the system.”

“Remember, I said that your problem is seldom a what, almost always a who?”

Derrick grinned. “So, that’s why you want to look at the org chart.”