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Managers need to lead

3/17/2011

We will all have experienced good and bad leaders during our lives. Unfortunately having the title “Manager” does not make the leader, which is a shame as management roles involve leadership either directly through managing people, or indirectly by influencing the actions of others.

Hopefully you know at least one good leader:

Someone people want to follow
Someone who makes ideas real for people
Someone who creates energy and drives people towards a common goal

So what is it about a good leader? Research has shown that effective leaders have these common traits:

They think about the job at hand and the people
They are able to achieve goals by enhancing productivity and job satisfaction
They are proactive
They start with the end result in mind
They prioritise and put first things first
They aim for a win-win situation
They listen before they speak / act
They make sure all things work well together
They make sure the right tools / skills are in place

If you know a good leader, take the opportunity to learn from them. You will learn more about leadership from their mentorship then you will from a book. Now, not everyone can be a great leader but that should not stop them from being a good manager. . As a good manager it helps to know the various styles of leadership:

Autocratic – do as I say
Bureaucratic – we must follow the process
Diplomatic – not lazy, just work challenged
Participative – what do you think?
Task-Oriented – we must finish this tonight
People-Oriented – how are you today?

Most managers will have a “one style fits all approach”, but good managers know that they need to adapt their management style to the people they are managing. This is because they will be a diverse group and will differ in: gender, age, race, culture, religion, education, lifestyle, and sexual orientation. They will also know that different people react differently to each style because people are both rational and emotional in behaviour. A persons response is a consequence of rational (conscious) and emotional (unconscious) influences.

To improve a process you'll need to change people's behaviour

3/6/2011

Because people act in response to both internal choices and environmental influences, their behaviour is a function of both who they are and the environment they are in. You also need to remember that everyone is unique and will act differently because of their individual differences in abilities, needs, motivation to work, and work attitudes. This means that to motivate someone or change their behaviour, you will need to select the most suitable approach for the person and situation you facing to achieve the desired change.The basic approaches you can use to change behaviour are:

Positive reinforcement (the carrot) - this is the best way to ensure the behaviour will be repeated
Punishment (the stick) – this can have an immediate effect but it may not last
Extinction (getting left behind) – this achieves change through recognition that the person has no choice
Avoidance learning (bad things happen) – here the person learns that the consequences of not changing are outweighed by the need to change

Ensure master data is consistent

2/28/2011

Master data is crucial and drives an organisations processes, being both an enabler and a control point. Anyone who has implemented an ERP system will know the importance of master data.

What you can do
Set standards for your master data

Formats for capitals, abbreviations, addresses, post codes, tax numbers, contact details, bank accounts, etc

Cleanse your master data

Check that all master data fits within your standards, if not, fix it
Ensure there are the minimal number of vendors, customers, materials, etc., remove any duplicates
If you can not delete files, block any that have not been used for 13 months
Avoid “sundry” accounts - the volume of transactions will be higher than you expect and they are hard to check

Place controls over the creation and maintenance of master data

How a master file is created and who can create it
If it is a significant control point then maintaining master data should be separated from transactional access (eg: setting up vendors should be separate from processing invoices and making payments).

Segregate maintaining master data from other roles to improve focus and control

Trained personnel should maintain master data
Database maintenance is a specialist skill set. Personnel should be methodical, detail focused and almost pedantic.

Ensure forms are standardised, understandable and easy to complete

2/15/2011

Forms give standardisation to a process, but only if they are used. To be used they need to be understandable and easy to complete.

What you can do
Review every form

If there is more than one version reduce it to one
Check each box on the form is used and has a purpose
If possible make forms electronic via email templates, your intranet or even just formatted Excel spreadsheets. This is a good way of forcing people to complete forms fully and you can include authorisation paths for approvals.
Avoid allowing local variation of forms. People will add things that are unnecessary and are probably more about them exerting their own control / influence over the process. Overtime this interference will almost certainly lead to process variation.

Ensure people complete the forms

Forms should be fully completed. If they are not, seen them back. If you keep filling the blanks in for people they will never complete the form correctly.
The first time someone sends in an incomplete form could call them, explain they have not completed the form correctly and, if possible, get the required information over the phone. But the second time just send it back. If they want something urgently they will ensure the form is completed correctly.

Ensure a consistent process across the organisation

2/7/2011

The more variation or steps in a process the higher the cost. A consistent process reduces the potential for errors and the resource effort, benefiting everyone.

What you can do
Make sure everyone understands the process and what they need to do

This is not easy and will be an on-going challenge
For organisation wide processes be strict on limiting variations. If you allow one you can guarantee more will follow

Simplify the process

Eliminate any unnecessary steps
Remove any duplication of controls, they are a waste of time and effort

Document the process

Task people with documenting their processes
If you have not done it before start with your important processes
If you have current documentation then review it for changes
Documenting is the only way of ensuring people will know what to do
You should review your documentation at least once a year

Concentrate work in specific areas

This creates scale within activities and provides support for people performing a common task.
If there is only one location all common activity should be concentrated into one area
If you have more than one location it may be appropriate to split some functions across all of them. But you will have to accept this will reduce efficiency.
If different teams interact regular try to locate them close together

Get people to use your current IT system

1/30/2011

Organisations regularly implement new IT systems without getting the most from their current one. Systems are seldom used to their full potential and if you under utilise your current system you can guarantee you will do the same with the new one.

What you can do
Stop using spreadsheets or work around when the system is capable of handling it

List all spreadsheets or manual processes used that the system can handle
Review the system functionality to ensure it can, completing configuration if required
Train users on the functionality and take away their spreadsheets / work around
Monitor what they are doing to ensure they do not resort to their old ways

Develop a culture that accepts change as business as usual

1/25/2011

No organisation is constant and nothing is ever “perfect” or finished. This means that failure to adapt or being slow to adapt costs money and reduces your competitive advantage. You want an organisation that accepts it needs to change and adapt - you can't just turn this on and off. You need to have developed this attitude so it is there when you need it.

What you can do
Discourage acceptance of the status quo

Involve personnel in identifying improvements
Encourage them to look at what they do differently
Ask them "if they had to start designing the process from scratch what would they change"

Demonstrate that change is required and will happen

If necessary make small changes to demonstrate change will happen. You can then progress to bigger changes
Empower process owners to instigate change (within guidelines). If a process owner can not make minor changes then how can you call them an "owner"

Developing a successful culture and achieving change will be the hardest, but probably the longest lasting, improvement you can do for your organisation. It is hard, takes time and is easier said than done. Important points to achieving a successful culture are:

It starts at the top and is the responsibility of anyone who has “manager” in their job title. Tackling this area is one of the reasons they get paid more.
It requires consistency of message. All managers need to be on the same page and be giving the same message through actions and attitude. If one breaks ranks that person either has to come back into line with the others or should move to another organisation.

Develop a cost and service focused culture

1/16/2011

A key element of a cost and service focused culture is ensuring people understand the impact of their decisions.

When people make decisions they tend to think about themselves and what they know. A consequence of this is that people often make decisions without knowing the real impact - especially the true cost of their decision. If you can show people the true cost of their activities this will improve their decision making and save money.

What you can do

Improve the understanding of performance – what it is, how it is measured and when you know you have achieved it. Celebrate good performance
Show people the true cost of the process, what drives that cost and how they can affect it
Undertake customer service training - not just for front line staff but for all staff to remind them that everyone is a customer whether external or internal to the organisation

Effectively manage people

1/10/2011

People need direction, support and assistance. It is the responsibility of their manager, team leader or supervisor to ensure they get it.

What you can do
Ensure managers, team leaders and supervisors are trained on how to manage people.

Often people are promoted into these roles based on technical / process knowledge. This does not mean they will be good at managing people.
Provide mentoring or training to help them become good managers

Monitor and reward performance

People within a team / organisation know who the good and bad performers are. If they see someone getting away with bad performance then everyone’s performance will begin to drop. If they see a good performer going unrewarded or acknowledged then the same thing will happen – they will decide it is not worth the effort.
Do you pay enough to get the right people for the job? If you pay peanuts expect to get what you pay for. You do not need to be the best payer, just pay a fair wage that attracts good people to the roles.

Monitor working hours

If someone is working regular overtime you want to know why. Do you pay overtime and they are milking the system; or is there to much work; or do they lack the appropriate skills / knowledge.
Long term overtime is counter productive. Work productivity will drop during regular working hours and/or good people will eventually get sick of it and leave.

Monitor people’s attitude to their work and others

People do have off days – we are not talking about this. What you are looking for are people who just do not like their jobs and people who do not get on with others (not just 1 person, but lots of people).
If someone really does not like their job then they will not care about the results of their efforts or the impact their attitude has on others. If they are on a constant downer they will bring the rest of the people down with them, affecting everyone’s performance. You need to get them interested in their job, find them another or encourage them to find a job that they like.
People’s attitudes and personalities can have a big impact on an organisation. They need to fit in.

Provide support and guidance

Managers should be there for their people, but should not be micro managers.
If you have hired the right people provide them with support and guidance while leaving them free to do their job. Good workers will get sick of the micro management style which is restrictive, demeaning, done to heighten the managers self esteem and becomes an excuse for poor quality workers to hide behind.
Micro management is bad for an organisation. It discourages initiative and focuses skills/knowledge within one person, the manager. When that person moves on a vacuum is created.

Reducing staff turnover

1/2/2011

Staff turnover has a big impact on an organisation. It costs the organisation time, money and skills / knowledge. If you want the employee to leave fine, but if you don't there are actions you can take to mitigate the impact of staff turnover.

Plan for high turnover

Forecast your recruitment needs and let an agency know you will look at suitable people if they become available.

Increase staff retention

Rotate staff through roles to increase their skills and make life interesting
Focus on the individual by expanding their opportunities and developing personal career paths
Target “Manager” and “Team Leader” prospects by giving them extra training and responsibility
Provide extra training for high performers
Allow flexible working hours - identify the core hours for the role and allow some flexibility for working hours outside these, while ensuring that role coverage is maintained within teams
Provide non-monetary rewards - time off, a site visit, fun task, special project or even just a thank you
Actively increase role variety and ensure varied tasks shared

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