The Sorry State of Management?

Yesterday I trained a group of around 20 managers all of whom were members of the Chamber of Commerce. It was a free ‘taster’ session – a 2 hour glimpse into the power of real management development to improve performance and relationships at work.

Feedback from the group was VERY positive! There was consensus that if we used the ideas discussed consistently and courageously we could probably expect productivity gains in the region of 25 – 40%.

Yet some of those who attended felt they could never put these ideas into practice:

‘Our directors want us to spend less time managing and more time working. They want to see nothing get in the way of production’.

‘Our directors have cut budgets for training and development – we even had a hard time getting away for free training sessions like this one.’

‘I have a member of staff who always hits targets, but she does it at the expense of her colleagues. She lies and cheats and upsets everybody. I have tried to give her feedback and would like to fire her – but because she sells so well my boss won’t hear of it.’

‘In my job customers ring up and often shout and swear at me. My boss says I just need to be more assertive’.

This is a reality of working life for many in SMEs.  This is why so many SMEs erode quality of life and wellbeing rather than contribute to it for their employees.

It reflects the somewhat sorry state of management and enterprise education today.

• Why don’t we do a better job of helping more SME entrepreneurs to manage more effectively?
• Why do so many businesses avoid learning how to manage constructively?
• Why do people choose to work for such poor bosses?
• Are we turning into The Apprentice on a national scale? Rude, brutish, short-sighted and backstabbing?

Conscious Capitalism

I have been watching a movement develop over recent years called ‘conscious capitalism’ or ‘conscious business’.  It provides a different take on what it means to be a ‘social enterprise’.  The idea is being pioneered by amongst others, John Mackey, CEO of Wholefoods Supermarket.  In a recent speech he says:

A Conscious Business is one which has two major attributes that define it:

1. It has a deeper purpose beyond only making profits. Just like individual people by following their hearts can discover their own sense of deeper purpose, so can the business enterprise. I believe that great businesses have great purposes that inspire them to higher levels of success. Think for a moment about some of the greatest businesses in the world and ask yourself whether they exist to fulfill a greater purpose beyond only maximizing profits. Certainly Apple does, driven by its intense desire to create “insanely great” technology which transforms our lives in positive ways. Clearly Google does too with its passion for discovery and desire to operate an ethical company. One of the best examples in the world is Grameen Bank in Bangladesh founded by 2006 Nobel Peace Prize winner Muhammed Yunus, which exists to end poverty in Bangladesh and throughout the world. Every business has the potential to discover and actualize its higher purpose—it has the potential to become more conscious.
2. The Conscious Business also understands the interdependency of all of the major stakeholder groups—customers, employees, investors, suppliers, communities, and the environment—and the business is managed to consciously create value for all of these major stakeholders. Instead of viewing the stakeholders in terms of win-lose relationships with conflicts of interest dominating their interactions, the Conscious Business understands that there is a harmony of interests between the stakeholder groups and that by working together greater value can be created for all of them. At Whole Foods we understand that management’s most important job is to make sure the team members are well trained and happy at their work. The team members in turn understand that their job is to satisfy and delight the customers and happy customers result in happy investors through the prosperity of the business. A virtuous circle is created with all of the stakeholders flourishing together.

Who will create the Conscious Businesses of the 21st century—businesses that have deeper purpose and are managed consciously to create value on behalf of all of the stakeholders?

John Mackey, May 2008

This feels to me like a much more coherent, honest and powerful approach to making business work for the planet than cleaving it along  ‘social enterprise = good; for profit = bad’ divide.

Of course words are relatively easy (although John Mackey has found that words have got him into lots of how water in the past.  We have to judge the movement by its achievements.  But I am hopeful.

You can read a much fuller paper by John Mackey called ‘Conscious Capitalism’ here.

Mini Me or Maxi You?

When you teach, coach and instill a new way of thinking into every employee in your company, so that when employees are faced with any decision, they would do whatever YOU would do as the business owner or leader, you very quickly create a company which stands out in its market place as one which is attentive, alert and focused on its customers needs.

Richard Parkes Cordock

Richard Parkes Cordock produces great advice for managers and entrepreneurs.  I am an especially big fan of the Millionaire MBA programme.

However I think he has got this bit wrong.

I want to employ people:

• who can do things that I can’t do,
• who can see choices that I can’t see,
• who act from their own unique perspective to take the action that they believe will be best for them and the business.

Success depends on diversity not a monoculture of mini mes.

Measuring Management

Managers spend much of their time measuring – market share, year on year sales, voids, arrears, return on investment, customer satisfaction, orders fulfilled, calls handled per hour, orders placed, orders fulfilled (again), total invoiced, hours billed, attendance, productivity per employee etc

Why the obsession with measuring stuff?

Because it gives us the data to recognise what has changed, what needs to change, and when we make the change – whether it has had the impact we planned.

But none of these metrics are about US – the manager.  They are all about the performance of the system and the people that we manage.  And this often lets us of the hook for making real change in the way we manage.

What if we measured some more personal aspects of our management efforts?

• how much time we spend listening in 121 conversation with team members
• how many times we give REAL feedback – affirmative and adjusting – each day/week
• how often we make sarcastic or cynical comments
• how many times we interrupt others mid-sentence
• how often we check our blackberry in meetings
• how often we talk about values and vision
• the amount of time we spend in meetings that are inefficient or worse
• how many coaching contracts we put in place with our team members
• what percentage of coaching contracts achieved their goals
• how many significant tasks we genuinely delegated (rather than then allocated) because they provide great development opportunities
• percentage of working time allocated to pursuing key objectives
• how often we acknowledge our own development opportunities and make planned conscious change in our behaviours

I am convinced that if we started to measure our own personal performance in relation to some of these more personal aspects of management, most of us would we would pretty quickly get some powerful data on what we needed to change.  Measurement would also pretty quickly confront us with the fact that our perceptions of our performance are markedly different from reality.

As we make planned changes based on measurements of our own personal behaviours we will soon see a very positive impact in some of the more traditional areas where measurement prevails.  The act of measurement itself would also increase the likelihood of planned changes being implemented and seen through.  That after all is perhaps the main reason why we measure.

To make sure that important things get done.

More Customer Service Craziness?

Mobile phones and insurance policies.

I like NEITHER.  Yet renewal time comes around and we dutifully spend hours on web sites to ‘compare the market’ and get great prices.

So this morning, after a mammoth web-surfing session I rang KWIK FIT Insurance Services to tell that we were not renewing our existing policy because we had found a better price and insurance coverage elsewhere.  I was put on hold while they transferred my call to someone who could ‘cancel down’ their renewal quote.

In fact I was transferred to someone who was trained to stop me placing my business elsewhere.  He asked me why I hadn’t rung them for a quote as they can offer better deals over the phone than they do over the net!

Not what I wanted to hear!

Mobile phone companies are the same.  They only offer you their best deals once you have already decided to place you business elsewhere!

Bad psychology and bad business!

So – in spite of all the recommendations to use web-based comparison sites to get the best deals and safe money – the best bet is to use those sites to find the best deal you can – and then ring up call centres and haggle to see who will beat the deal!

Hardly model customer service though is it?

So much for progress.

If you read my HP rant then you maybe interested to hear how it finally got resolved!   Eventually they told me they would issue me with a letter to authorise the seller to replace the machine. Yippee!  Then two days letter I got a call from an engineer telling me he was outside my house wanting to repair the machine!  I am the other side of the city about to go into a meeting.  No-one has mentioned this change of plan to me – or that the engineer was coming!!

Eventually without any further dealings with call centres I was able to get the engineer access to the machine and he replaced the motherboard.  Should be back in busniess soon!

Management Lessons from Frazer Irving

Had the privilege of attending my first Creative Networks event at Leeds College of Art.  Frazer Irving – a wonderful illustrator talked about his career – from which I took the following:

1. the seeds of your future are often sown early
2. just because it sells does not mean it is good – heroin is not better than tofu – even if it does shift more units
3. provoke, invoke, evoke
4. 5 years of crappy jobs and being on the dole – being on the dole were the ‘happy days’
5. ideas burning on the inside
6. managers/editors can leave you with tears streaming down your face and your soul ripped out and thrown on the floor
7. the bad times provide the fuel and drive to allow the good
8. an incessant streak of optimism helps – on being rejected by judges in a portrait competition Frazer chose to believe it was because he wasn’t important – although it might have been because I wasn’t very good
9. it takes a lot of time, training, passion and life experience to really master your subject
10. great technology combined with great passion and skills produce remarkable, beautiful and important results
11. sometimes you need someone to say ‘chin up – you will be alright’
12. sometimes when your art is ripped off it gets you great new gigs – life-changing breaks…
13. be a slave to the muse – let the story dictate the style
14. it is really about finding out who you are and what you can become
15. treat me as a ‘pencil monkey’ and you will get mediocrity
16. in the comic world a lot of bad product is there because of poor management – comics and every other industry on the planet – management is perfectly evolved to get the results it gets
17. if it is bad it is (nearly always) because the managers/editors have put the wrong people on the job
18. if you have recruited the wrong people then forcing them to compromise WILL lead to mediocrity
19. recruit great talent carefully and then trust it do deliver on its own terms – not yours
20. when your hobby becomes your job – you get another hobby
21. musicians jam and sometimes the results are great – what is the jamming equivalent for you?
22. be careful about your reputation – one person saying you migh tnot hit a deadline in a public forum can be a killer
23. sometimes it is best not to claim the credit for all your ideas
24. it really is full of ups and downs – but you come out of the downs with even more resources – psychological and technical if not financial

This was a great networking event – convival atmosphere – great facilities – good food – great speakers and good managment.

If only all networking opportunities were this good!

The Advantage of Social Enterprise

Rob Greenland over at The Social Business has written a piece about how the ‘table’ that social enterprise has fought so hard to get a place at has collapsed.  I am assuming Rob means the table where policy is thrashed out and funds are allocated.

The high political table.

The table of the bureaucrats and the planners.

Rob’s analysis is that this table has collapsed.  They have no cash to spend since the bankers have grabbed it all.  So “What is a social entrepreneur meant to do now?” Rob asks.

Well I think the collapse of this table could be just the tonic that the social enterprise sector needs.

The sectors’ advantage is not in being a cheaper route to market for bureaucrats  – implementing their policies and plans (although this may be a legitimate benefit it CAN offer).  Its’ advantage lies in the ability of social entrepreneurs to tell stories of social change, social injustice and progress. In being able to attract, retain and develop talented and committed people who share in the vision and have the potential to manifest it.  In harnessing the potential of those affected by injustice and using it to drive progress.

So instead of trying to manoeuvre to catch the crumbs from the top table perhaps the sector should focus on sharpening vision, improving stories, and building a movement that people will want to join and work in because of its autonomy, independence and creativity; its ability to provide fulfillment and a decent wage – not because of the funding streams that it can secure (along with KPIs, evaluation frameworks and other game playing  inducements attendant with the mainstream).

When we are sat at the top table we have our backs to the real social enterprise marketplace.

Of course the sector needs to maintain good relationships with the ‘top table’.  It needs to influence, lobby, advise and occasionally disrupt.  If it can secure investment on its terms than so much the better.  But it needs to ensure that the money and power available does not corrupt – as it so often has.  That the pull of the cash does not lure us away from core purpose and beliefs.  That it does not allow us to kid ourselves that the latest funding stream to ‘do things to people’ might just work – this time – if we can only get our hands on the cash.  The social enteprise sector has to have the guts to be uncompromising on vision, values and beliefs.  It has to maintain integrity.

This requires the sector to develop an entreprenurial management and leadership culture.  A progressive mindset.  Progressive management.  Not Political.

The social entrepreneur needs to be comfortable and competent at managing and leading through vision, values, social goals and objectives and then relying on creativity and innovation to secure sustainable investments.  They must be obsessed with the social change they are trying to deliver and the recruitment and retention of a tribe of professionals and volunteers who can help.  Not with reading the political runes.  They need to promote change, not maintenance, autonomy not dependence (on the top or any other table), courage not conventionality.

The advantage of social enterprise is that it can be transformational.  People will join a transformational movement and bring to it their passion, creativity and hard work.  Turn it into another transactional part of the prevailing bureaucracy and this advantage will be lost.

And finally of course any organisation can be a social enterprise regardless of structure.  Many ‘for profits’ have learned how to create social change and a sustainable profit!

Performance Management, Performance Reviews and Appraisals

I was asked by a manager yesterday to help to clarify the difference between performance management and appraisal.  I don’t think I did a great job  so I thought I would try again!

Performance management is a system with four parts:

1. Specify the desired level of performance for the thing you are trying to manage (people, programs, products or services)
2. Measuring performance – collecting and recording reliable data, both quantitative and qualitative
3. Using data to compare actual performance to what is desired – recognising gaps between what is desired and what highlighting –  variances
4. Communicating performance information – to those that are most able to use it to make progress

Performance management can happen at a number of different levels:

1. The performance of strategies and plans at the organisational level
2. The performance of products, services and programs
3. The performance of teams, department or units
4. The performance of individual employees

A key task for a manager is to decide at which level an investment in performance management is most likely to pay off.  In my experience an investment in the performance management of individual employees drives improvements at the team, product/service and organisational levels.

Performance Reviews and Appraisals are a small but important part of good performance management at the level of the individual employee and the team or business unit.  When aggregated they can also provide powerful contributions to performance management at the organisational level.

However these ‘one-off’ annual interventions need to be supplemented by more frequent processes for measurement, monitoring and change to keep up with the dynamic context in which organisations operate.  These interventions would include:

• 121s and quarterly reviews,
• feedback,
• coaching and
• delegation.

Collectively these provide a manager with a powerful framework for the performance management of individuals and teams.  Few managers that I meet consistnelty use these intervnetions with rigour, conviction and compassion. As a consequence they are at best ‘mediocre’.  Without them the likelihood of real progress being made is small.  Putting these simple interventions into practice can transform mediocrity into excellence.

Measurement is central to performance management, but it is a double edged sword that has to handled skillfully.

“People revert to metrics out of fear, not out of vision.”

(Patrick Lencioni)

Measurement is often about the minimum requirements and rarely helps to articulate a grand design.  It tends to lead to reductionist thinking and may have little to do with the ‘high ground’ of excellence.

“Managers who don’t know how to measure what they want settle for wanting what they can measure.”

( Ackoff & Addison)

Most managers spend to little time considering what they expect from an excellent employee.

• What would excellence look like?
• How would I recognise it?
• How would I ensure that excellence was contagious?

Even if managers do have a conception of excellence they rarely build in the time to collect the data and establish the working relationships necessary to achieve it.  Typically this means observing people at work, giving feedback, coaching and so on.  What Tom Peters referred to as ‘Managing By Wandering Around’.

Instead managers retreat to the easy, low ground of using what they can easily measure as a proxy for performance.  They become mole whackers.  Things that are difficult to measure are neglected, while things that are easy to measure become important.

Performance management is just a tool. It can be used to

• move your agenda forward – what is your agenda? What does progress look like?
• provide powerful messages about what matters – it doesn’t have to be precise, just influential – what are you trying to influence?

Are you Getting the Gifts?

Initiative, creativity and passion are gifts.

They are benefactions that employees choose, day by day and moment by moment, to give or withhold.

They cannot be commanded.

Gary Hamel – The Future of Management

Nor can they be bought.

You can’t get these gifts from employees by challenging them to work harder.

Nor by exhorting them to ‘beat the competition’ or ‘care for the customers’.

You will only get these gifts from employees when you give them a purpose that merits their best.

The Fine Art of Progress

I get fired up about management because it the best tool for helping both organisations and the people that work in them to make progress.

Outstanding managers are able to facilitate the progress of both the individual and the organisation and to connect these in a way that results in win/wins for both.

They do this by:

• regularly creating time and space to allow people to understand what progress looks and feels like right now – for them and for the organisation
• building a consensus around the ‘direction(s) in which progress lies’
• enabling people to make things happen in pursuit of progress – they promote a ‘bias for action’
• by building the skills and confidence of people to act creatively and pro-actively in pursuit of progress within the mission, vision and values of the organisation.

One of the greatest opportunities for performance improvement is to take more time to explore these questions about progress in some depth and then to link them to immediate next steps – practical things that individuals and groups can do to close the gap between where we are now and where we want to be.  And this is what Brilliant 121s are all about.