FirstCuts Issue 9.0

FirstCuts A Framework Consulting Online eZine High-Stake Interventions -- New Ideas Issue 9 March 15, 2007 Delegating in Caribbean Companies (part 2) by Francis Wade

Editorial A few weeks ago in Jamaica, there was a riot at the construction site of a hotel being built by a Spanish hotel conglomerate: the Fiesta Hotel Group. The bottom line was that a worker was shot, cars were burned, offices were looted and work was suspended for almost two weeks. Now and then I receive a reminder that our work in the region can have very dramatic results, and that when we discuss ideas such as those we tackle in FirstCuts it is not just a matter of intellectual interest, but also a matter of doing work that impacts the lives of workers, families and communities. Until next month, Francis

Delegating in Caribbean Companies (part 2) In last month’s issue of FirstCuts, I wrote about the need for regional executives to think deeply about the process they use to turn over accountabilities to new direct reports. I mentioned the need for executives to systematize the work they do so that it can be captured and passed on effectively. In that issue, I discussed the need for Caribbean executives to produce a “turnover document” for every new accountability. In addition to writing such a document, they must also create ways to progressively delegate the content of a new job. (To see the prior edition of FirstCuts, visit http://urlcut.com/FirstCuts8.) In this issue, we describe the way in which we have worked with executives to produce the critical content included in a turnover document. Once the document is produced, we advocate a phased turnover of tasks to ensure that learning takes place. More on Turnover Documents While turnover documents might include all kinds of important details about a job, at the heart of them is a list of key activities. These activities are discovered by breaking down the job into three tiers, as follows: = Tier 1 consists of a list of top-level Results to be produced = Tier 2 consists of the Targets to be reached to accomplish each result = Tier 3 consists of the individual Tasks that must be performed to hit each target An example of the breakdown of results, targets, and tasks (i.e., the elements that make up a job) for a sales manager might be as follows: = Result: $100 million revenue increase That result might be broken down into two targets: = Target 1: Motivate top salespeople to increase sales by 20% each = Target 2: Create new sales of $10 million for new product X Each of the two targets outlined above can be further broken down into tasks to produce the following: = Target 1: Motivate top salespeople to increase sales by 20% each - Task 1.1: Coach each salesperson to manage time better - Task 1.2: Look at top prospects and determine a way to enter their network of friends and colleagues = Target 2: Create new sales of $10 million for new product X - Task 2.1: Create a list of features and benefits for product X - Task 2.2: Test new product X with five customers in a focus group Ideally, this cascade of results, targets, and tasks should all be prepared in the turnover document for a new manager before he or she ever takes the job. However, once the information has been adequately developed, it would be a mistake to dump the turnover documents into the lap of the new manager. This is a trap into which many impatient executives fall, hoping that a well-written document telling a new manager what to do is all that the new manager needs to be successful. Our research shows that the best executives do things differently— they actually use the turnover documents in phases that coincide with the ability of the new manager to learn the job. A Phased Turnover The safest assumption for executives to make is that new managers know little or nothing about the new job and that they cannot be trusted to undertake it successfully. In the beginning, they should assume that on the new manager’s first day, the executive is responsible for getting 100% of the job done, and this number can only be decreased as the new manager’s capabilities increase. We recommend that executives start the reduction from 100% gradually—and that they first delegate tasks, then targets, and, finally, results. For example, Task 1.1 in the above sales manager turnover document involved the need for the manager to coach salespeople in managing their time. While new sales managers may have generic coaching skills, they probably would not yet know the intricacies of the salesperson-to-sales-manager relationship. They would not yet appreciate the time pressures that salespeople face or the successful coaching techniques that managers before them had used. This information, if passed on by a prior executive, can make all the difference in learning this new skill. Once a crucial set of tasks has been mastered, the executive can then decide that the next objective would be to delegate a particular target. Once the target is mastered by the new manager, it can be delegated. The same applies to the third tier of the job: results. In this way, the manager’s competency grows gradually but steadily, guided at different phases by the turnover document. However, something else is happening while a new manager is becoming more proficient. The executive’s confidence in the manager’s ability, so critical to the process of delegation, steadily grows. As it grows, the executive is increasingly able to supervise the manager through periodic written or verbal reports, and the executive can trust that he or she will be brought in by the manager when help is truly needed. Less of the executive’s precious time is therefore needed. It’s worth repeating that executives must resist the temptation to impatiently walk away from this phased process before the new managers are ready, or before their confidence level is where it should be. The results of doing so can be disastrous. What executives need to know is that this process is not designed to bury them in a world of micromanagement. Instead, they should understand that the time commitment involved is very different from what they might expect from their own past experience. A Different Time Commitment As the executive engages in this process of turning over tasks, targets, and results to the new manager, the time required by the process can vary greatly from day to day. When a new element or skill is being taught, the executive must be prepared to spend a great deal of time helping the manager to understand the details. This kind of hands-on coaching can only be done in person, although it can be facilitated by the existence of a good turnover document. In most cases, questions from the new manager require some thinking, and executives may decide to update the turnover document on the spot, as they remember what is truly needed to execute the job effectively. Over time, however, the time spent up front more than pays off in the manager’s increased capabilities, and when the job is properly delegated, the executive can effectively forget about it. When a new task, target, or result is chosen as the next item to be delegated, the intense time involvement starts again. This sawtooth pattern of time commitment is quite different from the everyday process that we’ve observed. Our experience tells us that busy executives who hire new managers typically hand them little more than a job description. They try to spend time with the manager in the beginning, squeezing in time between other existing commitments. In short order, a crisis hits and the executive becomes too busy to spend time to ask anything more than, “Is everything fine?” When the manager (who, at this point, is undertrained and ill prepared) experiences a significant failure, however, the executive is ready to swoop in to firefight and control the damage. The executive does what many executives do best—which is to save the day, using considerable time and energy. The new manager feels like a bit of a fool. The executive’s trust begins to waiver, and he or she watches the manager more closely. More failures occur, and the firefighting continues until either the manager learns through trial and error or the executive loses patience and fires or ostracizes the manager. In one regional company, an executive explained that he “could not be expected to keep the person on board because he was taking too much of my time … and, after all, no one spent that kind of time with me when I had that same job.” This executive didn’t realize that the manager’s shortfall was actually the executive’s failure—he had done little to prepare the new manager to be successful. Failures and Feedback Even in the best of circumstances, however, failures do occur. At this point, executives must be ready to step in to avert serious problems. Rather than coming in like a hurricane, blowing away the credibility and confidence of the new manager, the executive should instead go back to the drawing board with the manager and reexamine the turnover document. Frequently, the seeds of the failure can be found here—in poor turnover timing, inadequate definitions, and incomplete training. In the most extreme cases, the executive must be prepared to step in and re-assume responsibility for items that had previously been turned over. For example, in the case of the sales manager, if there is a sudden rise in complaints about salespeople being late or a surge in missed appointments, then the executive may decide to resume coaching the salespeople and subject the sales manager to further training. The difference here is that the feedback is used to surgically reverse the turnover, retrain the manager, and develop the manager to the point where the turnover can once again be undertaken. Summary The bottom line is simple: make turnover documents an integral part of your company’s culture, and you will empower your managers to be successful from the very beginning. * P.S. I had promised that I would address the question of why entrepreneurs and small business owners also need turnover documents in this issue. I found that the content would not fit this issue, so instead I have picked up the topic in my blog at this entry: http://urlcut.com/smallbiz Useful Stuff Tips, Ads and Links I referred to Michael Gerber's book in this Issue. His website is also filled with information: http://www.e-myth.com, most of it geared towards entrepreneurs. The ideas that I have extracted for this issue are at the heart of his approach. Back Issues of FirstCuts can be found at http://tinyurl.com/pw7fa We are on the lookout for possible contributors to FirstCuts. If you are interested, send email to francis@fwconsulting.com to be included in a future mailing. Please send this request along to others. To manage this newsletter, we use an excellent programme called AWeber that you can explore here:- http://www.aweber.com/?213577 Subscriber Q&A None this month General and Newsletter Subscription Info To contact us with feedback, questions or praise, email newsletter@fwconsulting.com To subscribe, please send email to firstcuts@aweber.com from the email address that you which to be subscribed from Please feel free to use excerpts from this newsletter as long as you give credit with a link to our page: www.fwconsulting.com FirstCuts © Copyright 2007, Framework Consulting, except where indicated otherwise. All rights reserved worldwide. Reprint only with permission from copyright holder(s). All trademarks are property of their respective owners. All contents provided as is. No express or implied income claims made herein. Your business success is dependent on many factors, including your own abilities. 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