“DO YOU…

1. IMPROVE basic, measured efficiencies continuously?
2. THINK simply and directly about what you are doing and why?
3. BEHAVE towards others as you wish them to behave towards you?
4. EVALUATE each business and business opportunity with total, fact-based objectivity?
5. CONCENTRATE on what you do well?
6. ASK questions ceaselessly about performance, markets and objectives?
7. MAKE MONEY- knowing that, if you don’t, you can’t make anything else?
8. ECONOMISE always seeking Limo (Least Input for Most Output)?
9. FLATTEN the organisation to spread authority and responsibility?
10. ADMIT to your own failings and shortcomings and correct them?
11. SHARE the benefits of success with all those who helped to achieve it?
12. TIGHTEN up the organisation wherever and whenever you can because familiarity breeds slackness?
13. ENABLE everybody to optimise their individual and group contribution?
14. SERVE your customers with all their requirements to standards of perceived excellence in quality?
15. TRANSFORM performance by innovating creatively in products and processes including the processes of management?

Again from this email concerning this list: “These questions penetrate to the heart of successful management. They have passed, and will pass, the test of time.

This list looks a lot like others I have seen, and certainly many entries would be on such a list that I might create. But, whenever I see lists like this, I say to myself, “Great, but how do I do this?” Lets just take number 15, for example,  “Transform performance by innovating….”. What business processes do I put in place that assure that these results are regularly and sustainably produced? Or, what approaches and tools do I deploy to achieve number 8, “Economize…” ? Again, are there tools and approaches available that assure the we meet number 13, “ENABLE everybody to optimize their individual and group contribution?”

Without wasting further time with rhetorical questions, let me point out that in fact there are well-developed, well-tested systems of business processes available for a manager who wants and needs to achieve positive answers to questions like those posed by Heller. These include Lean^[[2]] , Baldrige^[[3]] , EFQM^[[4]] , or ISO9001-2008^[[5]]. None of these are simple cookbooks of management. The reality of management problems is much more complex and requires some subtlety in thinking through how to apply the principles and practices of these management systems to the individual enterprise. Nevertheless, these management systems provide the tools to systematically achieve results that answer the 15 points of this checklist, and more.

There is something else that interests me about lists like Heller’s 15. These lists almost always contain a provocative overlap between the attributes and skills of the manager and those of the organization. This overlap produces an opportunity (and responsibility) for the manager to drive the development and maintenance of these attributes in the organization. On the other hand, without the manager embodying a number of these attributes and skills, the organization will not come to embody them. In this case the manager’s performance is a negative driver of performance.

Lets take a look at a couple of Heller’s 15 as examples of this overlap phenomenon.

Number 4, “EVALUATE each business and business opportunity with total, fact-based objectivity?” calls for a fact-based approach to business. If the manager does not act, think, and talk in a fact-based manner consistently and rigorously, the organization will veer off this path quickly in response. If a manager does not gather facts and make decisions based on facts^[[6]] the organization will note this and begin to act in a fashion consistent with whatever decision making process the manager uses. This is a simple fact of life. People will do as the boss does, not as the boss says. On the other hand, if the manager is fact-centered in decision making, the organization will respond in like.

Number 13, “ENABLE everybody to optimise their individual and group contribution?”, is another interesting example of the overlap between the personal approaches and performance of the manager and and those of the organization. Central to every high-performance organization is the challenge to create an environment in which every person can and does make a fully engaged and productive contribution to the organization. The manager’s involvement in cross-functional team-based work expressly embodies this approach. After all, the people who report to a general manager (CEO, divisional manager, owner) are by definition cross-functional and they should solve the organization’s challenges as a cross-functional team. If the manager carries out his/her work in a cross-functional team-based manner, this will drive and support similar approaches throughout the organization. And, similar to our earlier discussion, failure here will support traditional management methods of command and control.

This overlap between the individual and the organizational is a great resource for the manager who wants to build a high-performance organization. They can make a direct contribution to the transformation by learning new approaches and skills and applying them in their day-to-day work. And, really, the principles and practices are quite straight forward. It requires more persistence than genius to build high-performance organizations. The transformation process is not like building a rocket where every part must work perfectly to even get off the launch pad.

1. http://www.thinkingmanagers.com/
2. Lean is the American name for the Toyota Production System, also more broadly the Toyota Business System. There is no standards organization for lean principles and practices. A good starting point is Womack, James P., and Daniel T. Jones. Lean Thinking: Banish Waste and Create Wealth in Your Corporation, Revised and Updated. 2nd ed. Free Press, 2003 and The Lean Enterprise Institute
3. Baldrige National Quality Program Criteria
4. European Foundation for Quality Management
5. International Organization for Standardization ISO9001-2008 Quality management systems — Requirements
6. Here is an interesting point about “facts”. Facts are by definition observable and independent of any individual. Facts exist in the shared space of the organization; they do not belong to any person, but to the organization.

In the world of planning and strategy, there is a truism that too much planning, too much detail, too much analysis, leads to inaction, to a loss of opportunity. Along the same line of observation, in the world of learning to becoming a more effective manager, there can be too much study, too much thinking, too much integration of the many many skills and aptitudes required to become more effective. In both strategy and management skills action is almost always preferable to another round of study. Action bumps you up against the real world and provides the real basis for improving skills and results.

But, that still leaves us with the nagging question as a manager, especially for rookie managers and supervisors, how do I get started?

Based on many years of personal work as a manager and many years coaching managers, here are three steps you can take that will get you into action and guarantee striking results. These results will come in your personal effectiveness and in of the results of the organization you manage.  Remember,  by results, I am referring to the three meanings Drucker defined: (1) direct business results (usually measured in $s); (2) improved organizational culture (values); and (3) development of people.^[[1]]

1. Stop Answering Questions

If most managers could listen to themselves, the proverbial fly on the wall, for just a few hours, they would discover that they are chronically enabling dependency all around them and undermining whatever formal delegation systems are in place. How is this happening? Just listen and you will hear a stream of questions coming at them followed by answers in response. You are enabling the following the reflexive pattern: ask the expert and be rewarded with answers. Ask the boss, get an answer, and be safe from responsibility for the answers.

If you want to get people to take responsibility and be involved in the business, you can’t go on answering all these questions. They will just go on asking whether they need to or not. And, you are spending an enormous amount of your time, your most valuable resource, to answering all of these questions.

What should a manager do to break this pattern?

Simply announce to the troops, “If you want to ask me a question, you have to have at least three possible answers thought through before I will consider your question. If you are having trouble coming up with answers, ask others to help you. Group thinking is always the best thinking.”

Shortly I will go into a few further refinements to make this a really effective policy. For the moment though, think of how simple it would be to put this new policy into action. The really tough step is entirely in the mind and habits of you the manager. You have to get up every morning and look yourself in the mirror and say, “My job as manager is to create an environment in which everyone can participate fully and will take responsibility. To help this along, I will help people by not answering their questions. And I will examine and fix why it is that they can not answer most of the questions that arise in their day-to-day work.”

One of the reasons managers answer so many questions from their staff and others in the company is that they fear that if they don’t, then really important issues and opportunities may be addressed incorrectly or sub optimally.

A key to getting out of the round of endless questions while still being involved in important ones, is to set some boundaries, some limits.

This might sound like this: “I want you to develop three solutions before you come to ask me a question. Ask your colleagues for help if you get stuck. But, in the case of the following critical customer, Immense Big Machines, Inc., I want to be informed of any issues involving delay or cost overruns in Project XZY.”

With the right boundaries set around your new rule, you can still be assured of being involved where you need to be.

Once you put this policy into action you are likely to see that many of your reports’ questions arise because they lack information and decision making tools. Glance down to Step 3 It’s Your Fault – Take Responsibility below and you will see that you have to take action to get these tools into place to enable your report to work effectively.

Finally, to make your staff and others in the company comfortable about taking responsibility for solving problems and answering their own questions, you need to have environment in which mistakes are expected and dealt with positively. Remember, if you are not making mistakes, you are doubtless doing very little and learning not at all. Mistakes need to be analyzed and the lessons learned. Perhaps the only rule about mistakes is that they should not be repeated.

As a bit of personal history, I implemented this step myself out of self-preservation in the midst of merging four sales departments into one. For the first couple of days some Regional Managers were frightened to death that they would make mistakes. These folks had worked for years before I came on the scene for managers who acted like your worst image of tank commanders. Other Regional Managers were delighted immediately. All of them made mistakes. The company was not adversely effected and within a few weeks almost all found their legs, helped work out the decision algorithms we needed, and I had much more time available to address all of the other issues revealed by this merger. One final note though, one manager never became comfortable making her own decisions. No amount of work on my part and her compatriots convinced her that she really should and could make decisions. Within two months she moved on, of her own accord, to a staff position in another business unit where she would not be confronted with the stream of business decisions about pricing and production priorities that every Regional Manager faced.

2. Seize Your Time – Don’t Manage It

In recent work with managers on time management, we have taken a new tack on this old problem of time.  We have encouraged managers to simply seize a block of time during the week and get to work on the really important things they feel they need to do to improve their contribution to their company.

It works like this. Look at the next week’s calendar and mark off one, or better, two hours on some day where there is nothing now scheduled or their are meetings or tasks that really can be skipped. Send an email around to everyone who reports to you announcing this time as your Private Work session. Tell them that you will be working on an important initiative and that barring a fire, you are not to be disturbed until the session is over.

When the hour arrives put a sign on your door or at the entrance to your cubicle, “Private Work Session – Do Not Disturb“. Turn off your email, instant messaging, cell phone, Blackberry, or any other communication device that can interrupt. Sit down at your desk or work table and get to work on that project that you have not gotten to because of all the other “important” tasks in your day-to-day work life.

Managers who have taken the step to seize their own time have found that they make real progress on their projects and the company does not grind to a halt.  They become daring and schedule two or three hours for the next week. Seizing personal work time also energizes their efforts to really learn how to manage their time. They already can see that they can make real progress working on the future of the company instead of constantly balled up in the day-to-day activties of the company. It is a demonstration of the power of spending significant time working on your company instead of just in it.

3. It’s Your Fault, Take Responsibility

Attracting, selecting, training, mentoring, and pruning human resources are among the most important tasks a manager confronts. Almost everyone agrees that, at every level of organizations, managers need to be devoting a significant portion of their time addressing the people needs of the firm, business unit, or department. Without the right people in the right positions, no strategy, no matter how clever, can succeed.

To be truly successful in meeting these responsibilities, a manager must embrace an all important management rule: “If an employee is working below expected or required performance it is always the manager’s fault.”

Read that through again. The manager is always responsible for sub-par work by any employee in their work group.

The first place to look for the source of poor performance is the manager. After all, the manager hired or selected the person. The manager defines the work, provides tools, training, and all other resources required for the job.  The manager is responsible for the success of every person they supervise.

An important effect of this rule is that it prevents you from entering the whinny land of thinking, or worse, saying:  “Why doesn’t Joseph pay more attention to detail?” “Mirabelle keeps making the same errors over and over in these quotes.” “Walt just doesn’t get the big picture of where this project is going and he is heading down the wrong track, for the umpteenth time.”

Embrace your responsibilities and powers to make your personnel successful.

• Make sure that you really have well thought out and planned jobs.
• Are job definitions focused on results?
• Are the task definitions actionable?
• Do the skills listed actually match up with the results you want to achieve?
• Have you provided the training required?
• Do your personnel understand where the company is going strategically and is it clear how the results of their jobs connect with these strategies?
• Have you acted promptly to provide feedback and take corrective action to support performance?
• Do you have a company culture that embraces, supports, and demands full participation by everyone?

Selection and promoting personnel are management tasks with a high error factor. Every manager needs to acknowledge that their judgments in selection and promotion of personnel are not perfect, not even close to perfect, . So, faced with a weak performance from a new hire or newly promoted person, managers must ask the question early, “Did I make a mistake here?” If you come to that conclusion you need to act promptly to correct the error.

The central point is that you selected your personnel, you set the conditions and environment of their work, your provide the tools and training, you set the expectations, the results required. If you are not getting top performance from your personnel, look to the basics, look to your own responsibilities as a manager first. After all, if you are really holding yourself accountable for these responsibilities, you will achieve equal or better performance from everyone in your organization.

The Three Steps Taken Together

These three disruptive steps will make you a more effective manager. Stop Answering Questions reveals where you need to improve training, data resources, and decision making algorithms. This step also firmly embraces and puts into action the third step, It’s Your Fault, Take Responsibility. It is a certainty that implementing the first step will librate those who report to you to perform better and by cascading the third step down the chain of command your reports will apply the first step to those who report to them with equally robust and invigorating results. Meanwhile, you will have implemented the second step, Seize Your Time – Don’t Manage It. This will lead to some significant achievements on your part. You will be able to work on forward looking projects that will move your group ahead. After a bit, you will be able to recommend that your reports apply all three rules to their own work.

1. see Chapter 2 – What Can I Contribute? in his book The Effective Executive

No Significant Differences between Stars and Average in Intelligence, Problem-solving or Technical Skills

So it was with some anticipation that I read through Robert E. Kelley’s  How to Be a Star at Work: 9 Breakthrough Strategies You Need to Succeed (Three Rivers Press, 1999).  This book is based on research at Bell Labs in the 1980s, and 3M a bit later, on the differences between “stars” and average managers.  . Learning to be an effective manager is a multi-disciplinary-multi-modal effort. Clearly an important step is to understand what constitutes the approaches, practices, and skills of an effective manager. Based on work with hundreds of managers, Kelley found that there was no significant difference between “star” and average managers in their raw intelligence, problem solving skills, and technical skill attributes.This may seem surprising until you remember that accomplishing real results in the business world is not a based on individual performance but on the collective efforts of a whole organization. There are almost no significant business problems (or technical ones, too) that can be solved by a single individual. In fact, it is the job of a manager to bring together all of the resources required to achieve real results, focus them on the task and push, pull, inveigle, cajole, lead, or any other verb that describes the persuading that goes on to organize groups in action to achieve real results. Viewed from this perspective it seems less surprising that being a “star” manager has more to do with attributes other than raw intelligence, problem-solving, and technical knowledge.

Better Strategies and Skills in nine areas

What Kelley did find was that the stars has better strategies and skills in nine areas:

1. Initiative – working the white spaces of the organization
2. Networking – knowing who knows what in the company’
3. Self-management – managing your whole life at work
4. Getting the big picture
5. Followership – checking your ego at the door and leading in assists
6. Teamwork
7. Leadership – doing small-”l” leadership in a big”L”world
8. Organizational savvy
9. Show-and-Tell: persuading your audience with the right message

There is some overlap among these nine strategies. For instance Followership, Teamwork, and Small “l” leadership are clearly interdependent ideas. But I do not want to quible here. If you compare this list with the attributes of high performance organizations you will find useful correlations and synergies.

This book is widely available through your local library and from bookstores local and online.

1. see Henry Mintzberg, Managers Not MBAs: A Hard Look at the Soft Practice of Managing and Management Development, 1st ed. (Berrett-Koehler Publishers, 2004) for more on this.

This podcast lasts for 8 minutes 49 seconds.

A written format is available here.

The first step in the hiring process is to define the job you want filled. What specific results should the CFO produce for you and your company? Are you concerned about running out of cash because you have taken on a big project but will not get paid until completion? You worry about having enough cash on a regular basis. You are not certain that the bookkeeping is being done in an efficient and rigorous manner? What else of a financial character concerns you? Is your CPA driving you crazy with questions or suggestions that you do not entirely understand?

Make a list. Look back at the seven reasons I gave in my earlier article and see if this don’t provoke some additions to your list of worries. When you have completed your list, these are the problems, largely, that the CFO should solve.

Do not spend too much time thinking about exactly which functional skills are required to produce these results. It is the job of candidate CFOs to demonstrate to you that they have solved problems like yours and produced the required results. You are not hiring a trainee or development project, you are hiring an experienced CFO.

A few concrete skills and experiences you should look for.

First, your CFO must know how to get their hands dirty. This means they must have active skills to build spreadsheets and extract information from financial software systems and paper documents. Second, they must know how to present this to you in a clear, actionable format. A key task for them is to get financial information about company performance into your hands in a timely fashion and in a format that leads to making decisions. Third, preferably they will have experience in your industry so that they can set the analysis within the context your business lives in. Fourth, they should have worked as part of a team so that they have the skills to present the financial “score” clearly and then engage in a dialogue with the other management team members to help drive the business forward in a coherent fashion. At the level of the CFO, finance is not an isolated function, rather, it plays an integral role in managing the ongoing business and developing new strategies.

Write a one page description of the results you require and the skills and experiences that you think will be needed. Keep this simple - bulleted lists are great. You will use this when you go to the next step.

Where to go hunting?

You should certainly alert your close business associates that you are looking for a part-time CFO.  Do a Google search. There are now plenty of providers of these services. Here is a saved Google search (opens new browser window). Put an ad on Craigslist.

I would suggest starting out with the consulting firms that specialize in this work. Interview a couple. You will learn a great deal about how they might approach your situation. This may help you sharpen what you want to achieve. Under no circumstances should you pay for an assessment or any other consulting projects as part of this interviewing. Any consultant should be more than willing to come to your office to talk things over without any further obligation. Since they are experienced, they will conduct their assessment of the situation right in front of you and with considerable accuracy in under an hour. Don’t forget consultants interview far more companies than you.

You may be overwhelmed by the number of candidates. Just pick out three or four who really seem solid. If you are comfortable on the telephone, conduct a telephone interview to sort out the persons you want to invite for a face-to-face.  This article is not the place to discuss interviewing strategies and techniques, but certainly keep in mind that you will be looking to confirm that they can deliver the results you are looking for and have the inter-personal skills to work well with you and the other members of your company. Envision this selection process just as you would for a permanent full-time employee. A CFO, even a part-time one, should be a significant asset in your business, not a simple replaceable part.

The Deal.

Experienced consultants will always present you with a proposal that describes the scope of the tasks, what they will do, and what the “deliverables”, the results, will be. This proposal will also indicate some level of effort that they expect to put into the job. Keep in mind that they do not have to be on site to be productive. The proposal will also define some compensation arrangement for the work. Some will charge on an “as consumed” basis to an hourly or daily rate. Others will propose a fixed monthly charge for the level of effort described. Everything is negotiable, so think through how you would like to work. Always make sure to include an early review period (more on this below) and a cancellation process that is mutual and no-fault. Finally, you should look for a non-disclosure statement as part of any contract to protect your confidential business information.

Getting to Work.

Set time aside immediately to introduce your new CFO to every aspect of your business. They really need to understand what the business is about, who the customers and vendors are, and a myriad of other facts. Include a discussion of your forward looking plans and strategies so the the CFO can set these objectives in view as analyzes are developed.

Be sure to check in regularly with your CFO to make sure that progress is being made on the results you need. Set an early time for a formal review session. A month to two months from the start date would be right. You want to take an early reading of how the CFO is functioning. You will almost always have to make course corrections both to objectives and work processes. However, if you see that you or the CFO have made a mistake and the relationship will not work out, do not delay. Bring the relationship to a halt right away.^[[1]] Find another CFO and ask the old CFO to bring the new one up to speed. You are dealing with professional consultants, not employees. They never like to loose a client, but they will certainly do their best to make the transition smooth. They need you to think well of them.

This is just the beginning of your work with your new CFO. It will be productive. Have fun.

1. I wrote about this issue in an earlier article, “Managers – Early Intervention Is Key To Getting Your People Right” (opens in new window), that you can review if you find yourself in this situation.

I have talked about this earlier in these postings, Seize Your Time – gaining control over Too Much Information and Multitasking, Too Much Information, Interruptions, and High Performance

Many people see their emails, instant messaging, Twittering, Blackberries and iPhone (to mention just a few interrupters) as beasts that they must satisfy instantaneously and continuously. Everything is in real time.

The first question to be asked is, “Do all of these interruptions really have equal claim on my time?” If you work in a customer service call center, then truly that ringing phone does have claim on your next free moment. But, in reality customer inquiries can be filtered and sorted for action as appropriate.

A second point to be considered is how inefficient and unreliable all of these little interruptions make us. Despite all of the blather about “multitasking”, human beings really can only do one thing at a time. When we are “multitasking, we are really performing a whole series of tasks sequentially. The brain is expending lots of energy and taking extra time to keep track of which tasks are in queue and what the status is of the last one we worked on and the next one we pick up. Worse, in most ways, is the fact that all of this is making us perform at a lower quality level. All of the back and forthing introduces errors and the interruptions are preventing us from really devoting enough time to energize our creativity and problem solving aptitudes.

Multitasking is a fraudulent idea.

Lets take a line of thought about emails and see if we can develop some actions that you can take that will bring at least this interrupter under your control.

Look over the emails you have received over the last day to week. How many of these really required instant action -  did the sender expect you to be sitting at your computer waiting for the email gong to put you into action? Did the sender really think that they were emailing to the equivalent of a customer service center where they could expect that someone would immediately read their email and respond? What would have been a reasonable response time for these emails? Today? End of Business Tomorrow? Do all of the emails requiring response in less than a day come from a predictable set of people? If so, do they really need this, or is it just a bad habit that you have encouraged? Perhaps, you can set some new expectations for them.

But, lets say there are some people who require responses in less than a day. Set up an email filter (“Smart Folder” in the Apple MAC world) where these emails will automatically be sorted. Now when you go to your email application, you only need to look at that folder. Everything else can wait until one of your regularly scheduled trips to the email box.

And that brings us to the next step. Set up a schedule for checking and responding to email. For most, first thing in the morning and at the end of the day will do it. Then, you have to stick with it. For me the challenge is my iPod Touch. I carry it around in my pocket and there is an enormous temptation to take it out and look at my emails.

Take this one step with emails. Don’t worry about all those other interrupters. Rome was not built in a day and you will not change your multitasking habits over night. Prove that you can gain control over just your emails. See what the results are. Then, you can move on to the others.

Remember, time is the one resource you have that can not be bought or inventoried. To be productive and sucessful you must make the best use of this most valuable asset.

“You have to walk the talk.”

A central truth is that managers must model high performance principles and practices in order for the organization to adopt them. This is the old saw, “You have to walk the talk.” However, it is not necessary to perform everything perfectly right from the start. High performance management is a learn-by-doing process.

The great news is that once you begin to learn and apply high performance practices, people in your organization will notice and they will begin to adopt them too.

What are some of the key principles and practices?

Personal practices that drive manager performance

1. There really is no independent organization that represents “lean”. Nevertheless, the Lean Institute is a great resource with lots of  information and educational activities.

Business coaching results come in three areas:

Customers This means revenue, profits, and number of customers. For managers of internal departments or functions this means internal budget results and internal customer satisfaction. It is a regular practice to spend time on a monthly or quarterly basis reviewing the financial results. This provides us with the metrics to judge the success of the work we are doing together. Clients always find that they can point to results on the top or bottom line that is clearly connected to our work together. Values Building solid company values is critical to success. Good values sustain the high performance organization. Good values flow directly from management. Managers must embody and model good values. People Hiring, selecting, training, and pruning human resources is another critical success factor. High performance managers spend a significant portion of their time assuring that the right people are in place and that those people are empowered, engaged, and accountable.

Can You Learn To Be A More Effective Manager?

There are many who think that being an effective manager is a set of skills one is born with. Great managers are seen by this view as near super-heroes. Learning to be an effective manager is not possible. And, much confusion is sown by debates of “leaders” versus “managers”.

Much is known about what characterizes effective managers.

The practical principles and practices are quite clearly understood and defined.  This might seem to be a bold claim, but we make it because we are practicing it. You can read more about this on the “Management Principles & Practices” page.

Learning to be a manager is not a simple task.

Management is a complex and demanding endeavor. Nevertheless, as you will learn, the basic principles are simple conceptually, though requiring great persistence and much practice to master.

Our Approach to Learning

Our approach to becoming a more effective manager uses a learn-by-doing approach with “just-in-time” coaching to give you the basics and keep you on track. You will be highly motivated throughout because the tasks are not homework exercises. You will be learning as you tackle the most compelling issues facing you and your business.

Contact us now to talk further about how this works.