Author Archive

The (not so) hidden key to integrating business units

“I’ve got some issues between my two key General Managers” said Ingvild, the CEO.

“Lucky there’s a CEO then” I replied, “but I guess you’re not exactly feeling lucky”.

She laughed.  “Not so much.”

“Tell me what’s happening”

“Well you know Sue, she’s our GM of Development.  Her job is to come up with what’s next.  We discuss as an Exec team, in the end I make decisions about where we want to be in five years or so, whether it fits our purpose,  and her area is there to develop the offers and the opportunities in those new areas.”

“OK.  Who else?”

“Janet.  She’s our GM of Operations, and she’s there to bring into existence the stuff that Sue is confident is viable as well as deliver the usual stuff.  So it’s sort of like ‘Sue tests and learns, confirms viability, Janet plays a part in this, then once we’re go, Janet’s area integrates the new stuff into Operations.  How she does this is up to her, sometimes it changes one of her areas, other times she starts a new area.”

“Right.  So what’s the problem?” I asked.

“Well, it’s basically infighting.” Ingvild continued. “And the crux of it is that Janet’s Ops area thinks Sue’s Development area is unreasonable.”

“Are they?”

“Well…I don’t think so.  I’ve seen R&D or Development areas before, and Sue is solid.  Not slow by any means, but not churning stuff out at a rate that’s unreasonable.”

“And what does Janet say from the Ops view?”

“She and her people say that Sue’s area has no idea the pressure they are under, that they don’t have time for new stuff all the time.  But I’ve got a problem with ‘no new stuff’, because as you keep reminding us, without development this is going to eventually lead to us falling gently off a cliff as our offerings gradually become old school.”

“Is Ops right in their view.  Do they not have time for new stuff?”

“Well, that’s the thing.  I look at what Operations produces, they’re working hard, getting stuff done at a rate that’s pretty impressive”.

I sat and waited for her to go on.  After a while she continued.

“So I’m at a loss.  I’ve got a situation with two competent GMs, I’m happy with both of them, but together, it’s just not happening.  And before you go on…” she smiled….”I am fully aware that this is my problem and no one else’s.”

“That will save us a lot of time” I laughed.  “So here’s what happening.  The work of your team is not integrated“. Read more…

Self-organising doesn’t mean self-directed

“The thing about Scrum” I was saying to Melinda, one of my ex-colleagues and also one of the kindest and nicest people I’d ever worked with….”is that nearly all of it makes sense in a way that’s totally requisite.”

“Scrum?” she asked.

“Sorry, what I mean by Scrum is the software development method that’s based on principles of Agile.  The Agile stuff is about frequent checking in with the customer, that developers can sort themselves out, a whole approach that makes sure a team’s collective capability is used well.  What Scrum does is nicely define roles within a team under the Agile philosophy so that everyone knows what they’re doing.  That’s my potted overview anyway.”

“Isn’t that the stuff you teach with requisite?  That by clearly defining the role relationships in terms of who can ask who to start or stop things, people can be freed up from one of most common sources of conflict?”

“Yep, all the role relationships in a Scrum Team are a version of natural requisite role relationships.  No issue there.”

“So what’s the problem?” Read more…

Why do you use this ‘requisite’ stuff?

“So you’re telling me you want to help me to get my 1,500 people to align behind delivering the strategy I’ve put in place and you’re going to use thinking from the 1950s?”

It was a fair point!  I’d known Mary for a while, she loved to learn by challenging.  “Let me ask you this.” I ventured carefully.  “Would you say gravity existed in the 1950s?”

“Yep”

“And would you say it’s a relevant principle to be observed by those doing work that involves things falling?”

“Yep”

“And do you know when Newton first put forward his concept of gravity?”

“Well I know it wasn’t yesterday” said Mary.  “When was it?”

“It was the late 1600s.” I answered.  “So anyone using gravity is using principles that were first written about over 300 years ago.  And they are still using them today.  So I wouldn’t call that an old theory, I’d be more likely to call that a well-founded and useful theory”.

“But Einstein showed that a lot of Newton’s work wasn’t quite right didn’t he?”

“Sure….if you’re getting near the speed of light Newton doesn’t hold up so good.  And particularly if you’re Neo and you swallow the red pill.  But remember, when we’re choosing principles, it’s about which ones work best in terms of explaining and predicting what’s going on.  And Newton’s law of gravity does a pretty good job in most cases.”

“OK….so what’s this got to do with the price of eggs?”

“Well, let me go back one more step first.  Did gravity exist before Newton?”

“What do you mean?”

“I mean, were things floating around all over the place until that supposed apple happened to hit Newton on the scone, then suddenly he wrote stuff down and things stuck to the ground?”

“I see what you’re getting at.  Connect the dots for me”.

“The principles we use explain why organisations are going the way they are and predict how they are likely to go in the future in terms of letting their people deliver effectively and allow them to use their full capabilities.  The principles were always there.  A guy called Elliott Jaques pieced a lot of it together, others such as Gillian Stamp, another researcher named Luc Hoebeke and countless more all combine to uncover the principles of how human capability works within organisations, and how to arrange and organise things so people can do their best work.” Read more…

Who’s fault is organisational pain?

“My Distribution area is driving me insane!”  So declared Lisa, and I could see genuine anger in her eyes.  Lisa owned the company.

“You mean Teresa’s area?  What’s going on” I asked.  Teresa was Senior Manager Distribution.

“I’ve tried everything we’ve been speaking about.  I’ve asked Teresa to put together her plan for the next 18 months.  I’ve asked her to get more clear in assigning work.  I’ve asked her to make sure she’s got the capability that she needs…”  Lisa paused.

“Go on” I said.

“And she’s been in your workshops.  The one we did last year, then I know you ran a 2-day session for her and her directs so they would all understand the management practices we’re putting in here.  Everyone else got one day, but I wanted her to have the extra training.   Despite all that…”

“Despite all that…What are you seeing?”

“Well despite all that, her area has missed on delivery targets to our retail network again, I don’t know how many times this year, cost per delivery continues to rise, and I just found out today that we had a bunch of customers at one of our stores who were ready for the new range in the catalogue….but do you think that range had been delivered?”

I nodded in understanding.

“WELL DO YOU?”

I jumped as I’d assumed the question was rhetorical.

“I’m guessing no” I said quietly.  “And I also know this….you’ve got a problem”.

“You’re damn right I’ve got a problem.  It’s called Teresa.”

“Actually, you are 100% wrong.” Read more…

No therapy required: How to get your people working together

Have you, or are you about to, invest money in getting your people to work better as a team?  To get them to get along, to understand each other, to form closer bonds so work will truly flow across your organisation like the ball moving from defence to attack?

Your motives are pure.  You want your people to work better together.

But there’s something you need to do first.  Here it is, the biggest piece of obvious you will have read for quite some time:

To get your people to work better together, tell them how their roles work together.

That’s it!

Are you laughing?  Does this seem too simple to you?  Well it is simple.  A better word for it is foundational.

Would you agree that it’s a foundational condition for effectiveness that people in roles have an understanding of how their roles fit together?  That things are easy when people ‘know where they stand’, when they know who can ask who to do what in terms of their core jobs,  the reason they are there?

We need this sorted.  Your people need this sorted.

So you have a choice.  You can invest in friendship training, and then hope that your people can figure out for themselves how their roles fit together.  They might even do so.  And if you can afford the coffees and the lunches and your competitors and/or customers are happy to wait….sounds great.

Here’s the other way.  Decide, then tell them how their roles work together.  Here’s some examples:* Read more…

From the Inbox: Who approves reclassification requests?

A question from my Inbox (feel free to ask your own, click here)

Hi Adam,

A question: We’re reviewing our policies at the moment, and this came up: Should the Manager-once-Removed have a role in assessing role reclassification requests?  Any light you can shed appreciated.

Hey there,

The answer is: the MoR is not just involved, they actually make the decision!  Because in a well-designed hierarchy, the MoR is the supplier of resources (in this case, salary budget) to the Manager of the person making the request (I’m assuming the request takes the Manager out of agreed budget limits).

Let’s take a typical hierarchy of Specialist – Senior Manager – General Manager.

The mental leap here is that it’s the Senior Manager requesting the reclassification based on a recommendation from the Specialist. The Specialist is providing advice on how more could be delivered (or is actually being delivered) and the resourcing required, the Senior Manager agrees, and it’s the General Manager, as the Manager-once-Removed to the Specialist, who makes the decision.  This is because they are the supplier of resources (salary) to the Senior Manager.

The Senior Manager says something like this to their GM: “This is what I can deliver with more funding; the funding would go to a reclassification of Jim’s role.”

You could draw the analogy to the Senior Manager asking for funding for an upgraded piece of technology to deliver more, but remember people have feelings, so don’t get carried away with this comparison (unless you’ve got Sarah Connor in your team).

Cheers,

Adam.

 

You pay them a lot of money, so….

“OK” Gemma said.  “So let my people know what I expect, set them up to deliver it, then expect it.  That’s all I have to do is it?”  Gemma and I were working through the true work of her Executive role.  And her tone of voice made it clear this wasn’t exactly a question.

“No, that’s not all you have to do” I replied.  “There’s other stuff.  But let’s be clear – if any of the above three are missed, or you don’t give these three the priority they need, then you owe money.”

“Owe money?  To who?”

“Who do you think?  The organisation!  You are paid to make sure that the work of each of your managers is valuable, so the extent to which you are not doing this is the amount of salary you owe back”

“Alright, I see what you mean.  But I’m pretty sure I’ve done this.  At least the first one, I’ve let my people know what I expect”.

“When did that happen?” I asked

“The planning process” Gemma replied.  “Three months ago.  I had each of my Senior Managers write out the plan for their area, real strategic stuff, looking into the future.  Was a challenge for them to be honest, they were used to just doing a budget for next year”.

“What did you do with these plans?”

“I reviewed them.  Made comments, some changes, then gave them back to them.”

“So how did they know what their plan was supposed to cover?” I asked.

“They had a template”

I hadn’t been clear.  “Sorry, what I meant was, how did they know what they were planning to deliver? How did they know their key results, the things the organisation really needed?”

“Well, us Execs had developed the purpose of the organisation together and the key strategies, I communicated that, so then I expected them to work out how they were going to contribute.”

“And where you didn’t agree with them, you then corrected it.  Like a teacher marking an assignment”

“That’s not what I meant.”

“I know.  But it’s what you did.”

“But they are Senior Managers.  They are paid a lot of money, I shouldn’t have to tell them what to do”.

“Nope.  It’s the exact opposite.  They are paid a lot of money…so maybe you should tell them what to do”.

 

Leadership – it can’t be that simple

I could tell Gemma was frustrated.  Normally she stood up and greeted visitors with a smile, but this time she sat sullenly in her chair.  I sat opposite her just as a thick report landed in my lap.

“What’s this?” I asked.

“The latest leadership thing” she replied.

I flicked through.  Spiderweb diagrams, colours, bar charts.  Looked nice.  Even had some words.

“So what are you going to do with this?” was my next question.

“Well, perhaps I can run a gap analysis with…THIS” and this time landed a 5-page brochure in my lap.

I flicked through.  Spiderweb diagrams, colours, bar charts.  Looked nice.  Even had some words.

“I get the impression you’re not happy” I ventured.

“Not happy?  Well then I need to adjust my leadership style.  Perhaps I need….THIS” she said loudly, poking her monitor then spinning it to show me a website with the words ‘LEADERSHIP COMPETENCIES’ blazoned across the top, and a colourful diagram with the words ‘competencies’ written in the middle.  I spied the words ‘strategic architect’ before she angrily spun the monitor back around.

I waited.  Gemma stared at me, then gradually a smile appeared.

“What’s the problem?” I asked.

“This leadership business.  Leadership, leadership, leadership.  All over the place.  My people have been subjected to all sorts of soul-searching, feedback and various versions of amateur therapy and it seems that the whole thing is just a bunch of teaching adults how to get along.”

“Do you think most adults get along?”

“What do you mean?”

“I mean, do you think most adults in the world have the ability to work with another adult without ending up in a fight?”

Gemma raised her eyebrows.  “I suppose….” she said.

“So maybe the reason leadership in your organisation isn’t delivering any more results is that you’re teaching adults what they already know”

Gemma slumped back in her char.

“Any ideas then?”

“Yep.  We’re going to do this.  We’re going to ask every manager in the organisation to:

  1. Let their people know what’s expected of them
  2. Set them up so they can deliver it
  3. Then expect it”

Gemma looked at me like I had just turned into Beetlejuice.  “It can’t be that simple”

“Why not?”

From the Inbox: Advice on performance reviews

From the Inbox, a question from a small business owner:

Hi Adam,

I  think it is time to do a performance review for my staff. 

I know I have asked this once before but wanted to get your thoughts on options for methods on doing it. 

I am pretty keen to get the individual employees ideas on how they have gone against some KPI’s set up last year also. 

Anything you are able to help with appreciated as always.

————————

Performance reviews – the mindset to have is you are the coach sitting down with the player to go over the year with them – what they did well, what was not so good, what they were asked to get better at, how they did (this means you a keep a notebook during the year where you note each piece of feedback…start that now for next year)

The individual employee’s ideas on their performance, while important,  is not the most important thing.  Regardless of how well a player thinks they are performing, what they need to know to get better is the coach’s judgement on how they are doing, and examples as to why the coach came to that conclusion.

This does not mean, however, that it’s a one-way street.  Read more…

Don’t (automatically) blame the performance appraisal

“We’re thinking about ditching performance appraisals” said Bill.  He was the CEO, I was sitting down with him and Theo his GM of HR.  “Or at least revamping the whole thing.”

“Run me through it” I prompted.  “What are you seeing that makes you think they aren’t working?”

Theo answered; “Formal feedback and anecdotal evidence.  We put out some simple questions, namely, to each employee; ‘I find the performance appraisal process to be useful to me in my work’, and to each manager ‘I find the performance appraisal process helps me to make my people more valuable’.  Both with the usual 5-point system between ‘not at all’ and ‘absolutely’.”

“What did you get?”

Bill jumped in; “We struggled to get to 3….which meant ‘somewhat’.  Mostly got 1s and 2s which means ‘not at all’ or ‘barely’ some value.”

“So as you can see…” Theo continued…”the system that my area leads isn’t too flash!”

“Maybe not” I answered. “But there’s a fair chance you’re looking at a symptom here, not a cause.”

“How can perform appraisals not working be a symptom?” asked Theo.  “A symptom of what?”

“Ineffective organisational design.” Read more…