"TEN KEYS TO GOOD MANAGEMENT IN THE NEW MILLENNIUM"

By James D. Tarr

The new millennium is opening with a business environment radically changed from that of even a few years ago. The pace of change, globalization, the information economy and technology have changed the nature of business and organization the world over. Thanks to the Internet, global connection, markets, information and technology are available to all but the most backward of nations.

Less that 50 years ago in the United States, 72% of employed people were working in what Peter Drucker calls "make and move" jobs. Today, that number is 18% and it’s falling rapidly. The vast majority of people are working in technical or other knowledge jobs. These people are hired not for what they do, but for what they know. Unlike the old machine shop where the foreman was often the best machinist as well as the boss, today most managers have nowhere near the technical skill possessed by their subordinates.

In this environment the management task and style must change. Management, especially middle management, is conservative and change resistant by nature. Many managers continue to pursue a style that worked in the past, even though it may have ceased being effective years ago. I am reminded of the tourist in a foreign country who, when his request is not understood because he does not speak the local language, merely repeats it, only louder. One anonymous person’s definition of insanity is, "Continuing to do the same thing and expecting a different result".

Here are several questions managers might ask themselves as an evaluation of whether they are part of the problem or part of the solution in their organization:

• Is your primary hiring policy to hire the best or hire the cheapest?
• Do you view your primary management task as telling subordinates what to do?
• Do you only provide your subordinates with information on a "need to know" basis?
• Do you "protect" your best subordinates from job opportunities in other areas of the company?
• Do you believe that training is an expense?
• Do you believe that change is disruptive and should be resisted?
• Do you consider the PC on your desk an interactive window into the workings of your organization or a paperweight?
• Which do you spend more time doing, updating your business, technical and organization skills or watching television shows?

• Whatever your answers are personally, do you know the right answers to the above questions for today’s business environment?

The traditional management style of command/control worked very well on the shop floor. The manager was the most skilled employee, the work was visible and measurement was easy. Tasks, skills and expectations were communicated downward ("Work on this"). Results were communicated upward and were unambiguous ("I produced 100 units today"). The manager organized everything because he/she was most knowledgeable and capable. Since work was visible, it was easy to determine if orders were being followed and, if not, corrective action could be taken immediately. Since the skill level required by jobs was typically not high, workers could be replaced if needed. Training requirements were minimal.

Imagine trying to use this method on your top engineer or software designer. You walk past his office and he is sitting there with his feet on the desk, staring at the ceiling. Is he working? Is he "making standard"? Does he have the tools to do the job? Is he stymied by some missing piece of information or is he making excellent progress? Should you interrupt or chastise him or will that risk knocking an organization changing idea out of his short-term memory? Clearly, knowledge work cannot be managed using command/control.

Has the need for managers disappeared in the knowledge organization? I don’t believe so, but it has changed radically. What is the new management task? It is to ensure that subordinates can accomplish their task most effectively. What does this mean? It means that you are responsible for putting together a team that works together and has all the capabilities necessary to win. You must identify barriers and find ways around them. You must open doors to organizational resources necessary for team success. The manager is responsible for providing the skill sets necessary to fulfill the task, either by supplementing the team or providing training in the skills required.

Good communication is critical. The manager is responsible for fostering it among team members, between manager and team and with outside resources. The manager is the proactive developer, operator and repairer of all of these communication links. Success of the team is a direct reflection of a manager’s ability to manage in the knowledge environment.

Because the manager is typically a more senior person in the organization, his/her technical skills are often not the most current. The manager is not usually the most task capable person on the team. Thus, telling subordinates what to do is not a feasible management style. Listening, asking questions, stimulating thinking and creating an environment in which ideas can grow and flourish is the task to which the manager must set herself.

Make no mistake, what I advocate is not "soft management". Business competition is more rigorous than ever before. There is no room for "touchy-feely" management it the hyper competitive atmosphere most companies face today. Managers still have to make the hard decisions, constructively criticize employees when warranted and remove them from the organization when necessary. Managers must manage with respect for each individual and her or his ability to contribute to the organization, a willingness to develop skills identified and an ability to utilize the knowledge of each employee to the fullest.

Given this brief profile of the new management task, here are ten critical success factors that can contribute to management success in the new millennium.

ONE -- TRY A LITTLE CHICKEN SOUP

There is a story in which a person, in response to a problem, makes the suggestion to "try a little chicken soup". To the reply that the problem is very serious and chicken soup probably won’t help, the person responds, "Well, it won’t hurt". These are the little things that create an environment of trust and respect. Individually, they may not change much, but, collectively, if they become the standard operating procedure of a team, they can contribute a great deal to the success of a team. This is also something you can start tomorrow. It doesn’t take corporate policies, computer systems or other resources.

In seminars and speaking engagements I often ask the audience how many of them do not get as much recognition as they would like? Usually, about 90% of the hands in the audience go up. I then ask how many have thanked or complimented anyone in their organization in the last week. Far fewer hands are raised in answer to this question. My informal evaluation is that the ratio is about 10 to 1! Perhaps if we gave more recognition, we would get more recognition.

As a manager you create the environment in your organization. "Good job", "Thank you" and other forms of "attaboys" can go a long way toward creating an environment of respect and conviviality. Don’t expect instant results. If this hasn’t exactly been your "style" in the past, you might get some strange looks and skepticism at first. But stick with it and, over time, you will begin to notice a change. Perhaps someone will even compliment you on the change in your behavior. Here are some guidelines:

• Be sincere – mean what you say. Most employees have "bull detectors" that are well developed from constant use. Insincerity is worse than no sincerity at all.
• One of the things that has been learned in the study of behavior modification is that random reinforcement is far more powerful and long lasting than regular reinforcement. Thanking every little event that happens in a team soon becomes a ritual and has no more power than saying "you know" or "uh". Pick your spots, recognize exceptional events and special effort along with the occasional "thanks for being here".
• Remember, the boss is also sitting in her office wondering how well she is doing. Don’t reserve all recognition for peers and subordinates.
• When you see behavior that you like, reinforce it. The way to get team members to continue to give good effort is to reward it when it occurs.
• Don’t rely on salary increases as a substitute for recognition. Frederick Herzberg stated that money is a "hygiene factor", that is, necessary but not motivational in the long run.
• You reap what you sew. Give recognition as a gift, with no expectations. Accept it also as a gift.

TWO -- WORK YOURSELF OUT OF A JOB

One of the most successful executives I know eliminated the budget for her own position in her annual budget recommendations. She argued that her team was now so capable that she was no longer needed. Interestingly, she was not fired or laid off, but was given an even more responsible position. Ultimately, the only way to take on additional responsibility is to give up responsibility you already have. The only way to do that is to train others to do your current job – all of it!

In today’s rapidly moving organization, we all have too much to do. New tasks accumulate in a seemingly endless stream. Despite the fact that you are obviously the most capable person in the organization, you can’t do it all yourself. Even if you could, you don’t know how. You need a team to accomplish the complex tasks that business organizations require. The good new millennium manager provides his team with opportunities to grow and build skills. Running meetings, making presentations to senior management and coordinating team activities are all skills that will improve both team performance and morale. Watching team members perform these activities is also a good way to identify future stars.

Here are some compelling reasons to make members of your team capable of doing everything you can do:

• If you provide the best opportunities for growth within your organization, you will attract the best people.
• You will develop a reputation as a person who can develop organizations. Once your organization can run effectively without you, you will be available to take on new challenges.
• As your well trained and developed employees receive offers from other parts of the organization (…and they will), you will develop an extensive network of associates throughout your organization. Even if they leave your company, they often go to vendors or customers and continue to be a part of your network.
• Your vacations (YES…vacations!) will be more enjoyable. One of the measures of the new millennium manager is how well his organization functions when he is not around.

THREE – SPEND YOUR LIFE LISTENING, NOT TALKING

The traditional manager listens up the organization and talks down the organization. The new millennium manager talks up the organization and listens down the organization. In the knowledge organization, the good knowledge, ideas and creativity come from the bottom of the organization, not the top. Planning and coordination still reside at the top, but, to be competitive, an organization must use the latest technology available. That typically resides with the younger, newer employees.

The manager’s responsibility is to identify organization requirements, recognize where solutions exist amongst subordinates, and communicate these solutions up the organization.

Up the organization, the new millennium manager:

• Talks, communicates, connects her department and its capabilities with the needs of the organization. She identifies growth opportunities for her subordinates.
• Sells her individual subordinates and team’s skills and capabilities to other departments and higher level managers.
• Presents ideas generated within her organization to other departments and higher levels in the organization.
• Builds a network that will be useful to your organization and subordinates development.

Down the organization, the new millennium manager:

• Listens to subordinates ideas, needs and problems. He provides guidance on the needs of the organization and how subordinates can take advantage of their skills to grow their own careers and benefit the organization.
• Facilitates team development, cross training and the combination of skills to solve problems.
• Teaches, trains, educates and learns. The manager uses his subordinates more current knowledge to upgrade his own skills and provides training resources to improve and maximize the skills of subordinates.
• Builds teamwork and leadership skills amongst subordinates.

FOUR – EVERY DAY IS A PERFORMANCE REVIEW

W. Edwards Deming, the guru of quality, believed that the annual performance review as practiced by most companies was one of the most destructive activities performed by an organization. He believed that if a manager had to wait until the end of the year to tell an employee how she was doing, it didn’t speak very well about communication in the organization. Among the other points he made:

• Annual performance reviews generate risk averse behavior. No risks, no failures, no low ratings on the 0 – 10 scale in the performance review. Set the performance goals as low as your boss allows and make them easily.
• Annual performance reviews reward working within the system, not improving the system. Once goals are set, success or failure in the performance review will be measured on those goals. Initiative becomes irrelevant.
• The performance review becomes an exercise in pleasing the boss. Find out what she likes and parrot it back to her. Reminds you of University, doesn’t it?
• Once performance goals are set, the employee focuses on maximizing performance against the output measures. Quality and actual organizational improvement are forgotten.
• When an employee is trying to look better than others for an upcoming performance review ("Rank your employees from best to worst"), teamwork goes out the window. Backbiting becomes the order of the day.
• Finally, Deming believed that truly objective rating is impossible, especially over the period of a year. Everyone had good days and bad days, successes and failures, good ideas and not so good ideas.

Is there a better method? Should annual performance reviews be abolished? There is and that probably won’t happen. The new millennium manager establishes good communications and makes every day a performance review, focusing on current performance of current activities and ways of improving and growing. The annual performance review then becomes forward looking, not backward looking. After a brief summary of the previous year ("Do we both have a clear understanding of how you have performed and where you are? Do you have any questions before we to on?") the "review" should focus on goals and expectations of both manager and subordinate for the coming year.

FIVE – MAKE THE PEOPLE YOU HIRE THE RIGHT PEOPLE

Often in my career, I have had a manager complain to me that he can’t accomplish anything because he has no capable people. It always makes me wonder who hires all these incompetent people? Does the company have an "Incompetent People Acquisition Committee" somewhere making sure the quality of the company employees doesn’t exceed a certain level?

In most organizations the manager is ultimately responsible for hiring and developing his own subordinates. If his employees are not capable, the manager has no one to blame but himself. The quality of subordinates is the manager’s performance review. Here are some points to make the new millennium manager’s performance review a good one.

• Hire the best – people are an investment. Spend the time (…and money) it takes to hire people. Don’t abdicate your responsibility to Human Resources Departments, personality profiles or background checks. These are important, but supplemental. Your reputation rests on the people you hire.
• Once hired, provide your employees with opportunities for growth. Training is an investment, not an expense. I’ve noticed that companies who don’t believe in training often use the excuse that trained employees will leave and the money will be wasted. I’ve also noticed that companies that believe in training do lose people, but somehow they manage to stay profitable and on top of their industry anyway.
• Challenge your employees and give them experience. Let them lead teams, author reports, make presentations to top management. Give them the opportunity to fail, it is a great learning experience.
• Encourage promotion and transfer. If employees see opportunity for growth in your organization, you will attract the best. Employees that move on will become a part of your ever-expanding network. The constant flow of new, high quality employees will generate a constant flow of new technology and ideas.

SIX – LEAD THE CHARGE

No one would fight very hard for a leader who didn’t lead his troops into battle. It’s the same in business. Most of the time we don’t have to face bullets, but we do have to face fierce internal and external competition, disagreement and stress. Supporting your team in these confrontations is very important. In public forums your team is unified, differences are resolved in private.

When the team loses, the leader takes the responsibility. When the team wins, everyone shares the glory. As the sign on the desk of the 33^rd President of the United States, Harry S. Truman, stated, "The buck stops here". If this seems difficult and unpleasant, it’s the management job and the only way to ensure that your team will be behind you during the difficult times when you really need them.

SEVEN – GOOD ENOUGH NEVER IS…

The best automobile build in 1995 in terms of quality would be considered an average quality car today. The speed of the current computer chip doubles every 18 months. New business processes continually put pressure on established businesses. Competition gets tougher, change becomes more rapid, business becomes more global.

You, your team and your organization must improve just to stay even. To get ahead, you must improve constantly and rapidly. Continuous improvement is a way of life – for you, for your team, for your organization. Your task is to improve yourself and provide opportunities and resources for your team to improve as well. You are only as good as your last success.

EIGHT – TELL THE TRUTH

I have been in many companies that were going through difficult times. Many of these management teams were reluctant to tell their employees the true situation. Responses to questions often ranged from "No comment" to "You have no need to know" to outright lies. Management feared what employees would do with the information.

But nature abhors a vacuum. In each case the rumor mill created a scenario that was far worse than the reality it replaced. In some cases, when the difficult truth was finally revealed, employees were heard to say, "Is that all?" You can’t expect employees to help in difficult times unless they are aware of the exact problem, allowed to participate in the solution and given the understanding of what role they will play in the solution.

The truth is simple, but difficult. It is simple in that it’s easy to remember, it fits the facts and no stories or other fabrications need be made up to create a false reality. It is difficult in that it can be hard to admit a shortcoming, face the fire and express the contrition that telling the truth often entails. A problem cannot be effectively faced and solved, however, until the truth comes out.

The command/control manager could often create the reality for the organization and present it to employees on a "take it or leave it" basis. The new millennium manager’s primary asset is his or her reputation. Reputation in business today is hard to earn and, once broken, is even harder to regain. That isn’t to say that a manager won’t be deceptive, leave an organization and start over, but it’s a risk and can be very disruptive to all concerned. As difficult as the truth can be, the alternative is usually a risk not worth taking.

NINE – BUSINESS IS RISK

The business junkyard is littered with the carcasses of companies that once were large and successful, some that were dominate in their industry. As they became more successful, they began to defend their position and the status quo, rather than continuing to attack the market. Few entrepreneurial businesses outlast their founder. Fewer still last as an independent entity through second generation ownership. In the long view, it’s clear that the risk averse business is in the slow process of failing. Even those that continue to exist often lose their position of dominance and become just another competitor. You can probably name as many organization names as I can.

If risk taking was important in more tranquil times, it is critical today. The pace of business demands that a business organization be constantly vigilant to changes in technology, the marketplace and competition. Scott Blum, founder of Buy.com and ThinkTank.com stated, "The problem with the Internet is 80% of the business goes to No. 1, 15% of the business goes to No. 2. Then Nos. 3 through 350 share 5%."

The new millennium manager cultivates a culture of measured risk, that is, taking risk after appropriate analysis. The manager must be aware that no business decision is made with certainty. Information is partial, analysis is incomplete and outcomes are probabilistic at best.

Success or failure must not be the only criteria by which a manager judges performance of the team. Although no organization can continue to exist in the face of constant failure, taking risks almost guarantees that failures will occur. If a team had given their best effort, that effort, not the outcome, must be rewarded even if it was not successful. Failure to do so will ultimately result in a culture of risk aversion. Remember, failure of a team is primarily the responsibility of the manager.

Failures are often richer learning experiences than successes. They should be analyzed and as much information taken from them as possible.

TEN – ETHICS, MORALS, VALUES

All of us make many decisions each day that could be considered ethical. By this is meant the decision was correct and honest and took into account the best interests of all concerned. Although these are ethical decisions, they do not test the manager’s values, because, in most cases, the decision made is in the decider’s own self interest.

The only time one’s values are tested is when the ethical decision is not in the person’s self-interest. These type of decisions – admitting a mistake, correcting an error, righting a wrong and the like – are difficult choices and can severely test one’s commitment to one’s values. In this sense, the ethical decision is always the harder choice, because it is the choice that squares with the values of the individual making the decision, but is not in his or her best self-interest. In my view, the ethical decision, although it may severely test an individual in the short term, is, in the long term, always the right choice.

A strong set of values makes the choice easy, but the decision hard. The choice is easy because the moral philosophy of the individual clearly dictates what should be done. Deciding to take the ethical path will test the strength and limits of that moral philosophy. I hope that, in some small way, this paper will cause you to consider this as you make decisions, as a manager and as a human being.