Excellent Managers Excel At The Basics

Excellent leaders have a great awareness of the basics and make sure they are done exceptionally well.  Keep things as simple as possible.

“I emphasize the importance of details.  You must perfect every fundamental of your business if you expect it to perform well.”  Ray Kroc, Founder of McDonald’s

I’ve always been amazed at how many managers look for the magic switch that suddenly fixes every problem.  Success is a process of doing a lot of little things right.  The greatest inventions and achievements came after countless trials, errors, and failures.  From each step, a small nugget of knowledge was gained and forward progress was achieved.  Eventually these small nuggets begin to make a big pile of knowledge and the problems diminished.  The last piece of knowledge that we need to finish the job is usually discovered as a result of the accumulated knowledge we gained throughout the process. 

Check your Recording Practices

If your recording practices are flawed your true efficiency and productivity won’t be known.  If you are setting productivity goals, be sure the numbers you are basing them on are accurate.

The more variables involved, the more likely you’ll find problems.  Likewise, if the goals were set a while ago, it might be time to look at them again.  If technology or procedures have changed, the goals might be dramatically understated.  The ideal goal is one that requires some stretching, yet is achievable.  If you make it too easy, it won’t be effective in raising your efficiency.  Similarly, if the goal is set too high, it will do nothing but frustrate your employees.

There’s a lot more to the basic equation, Productivity = Hours / Pieces Worked, than first meets the eye.  These include: 

1. What hours are currently counted?
2. Whose hours are included?
3. Are there any other operations that should have their hours included?
4. Are there any operations that shouldn’t be included?
5. How do you measure productivity in areas where piece counts are unavailable?
6. Of the pieces worked, are reject and discarded pieces subtracted out?
7. What level of quality is required and how do you verify it?

The general process of evaluating procedures is to map every input into the operation, identify errors; and calculate the real throughput that is possible on machines.  When I say real throughput, I don’t mean the throughput that is possible if there are no mechanical or operator problems.  I’m talking about the throughput that is possible on most days, allowing for a certain amount of time for mechanical and operator problems.

For example, my company had machines that had listed throughputs of 40,000 pieces per hour.  However, in actual use they did about 32,000 pieces per hour.  If you were to base your budgeted hours and productivity goals on the higher figure, you would be gravely disappointed in the results.  The latter number is the more appropriate number to base any projections.

Re-evaluate any goals that may be outdated once new technology, modifications, or improved processes are put into place.  The worst thing you can do is have goals that aren’t in line with the capabilities of machines and people.

Effective Delegation

Personal and organizational growth is dependent upon effective delegation, which is important to effective management.  Effective management must focus on results instead of methods.  Stewardship delegation involves giving people a choice of method and makes them responsible for results.  It takes more time up front, but it’s time well spent.  Stewardship delegation includes:

1. Clear, joint understanding of the desired results.
2. Established guidelines that identify the parameters the individual must work within.  Minimize parameters to every extent possible, while listing formidable restrictions.
3. Identify what resources he or she may draw on, including financial, technical, organizational, and human resources.  Let them know what they can’t do, but not what to do.
4. Discuss how performance will be measured and at what intervals reporting and evaluation will be done.
5. Specify the end result of either a positive or negative evaluation in regard to such things as awards and/or different job opportunities.

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Improving Performance – The PRICE system

Blanchard and Lorber, Ph. D’s and co-authors of Putting the One Minute Manager to Work, explain how to involve everyone in improving performance in their PRICE system.

They suggest the following five steps:

1. Pinpoint:  define key performance areas in observable, measurable terms.
2. Record:  performance measurement
3. Involve:
1. Share information with whoever is accountable and/or can influence performance
2. Involve in establishing activators (areas of accountability, performance standards, instructions)
3. Consequences for goal accomplishment have to be agreed upon.
4. Coach:  how are you going to supervise, observe their performance, and give them feedback
5. Evaluate:
1. How will it be done
2. Anticipated payoff for established performance
3. Involve employee via self-evaluation
4. As performance improves feedback sessions should be scheduled less frequently.  You want to gradually give more and more responsibility to them for monitoring their own performance.

Like any other system, if it is failing, check the input variables for inaccuracies, inconsistencies, consequences, etc.  Perhaps the goal is too easy, or maybe too difficult to achieve.  Maybe there are non-motivating consequences involved.

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