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Creating a Climate for Great Managers

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Why Managers Matter

We’ve seen that managers are critically important for several reasons.

First, managers are the key to helping each employee turn their talent into the most effective performance for the organization.

Second, managers trump companies. Even if someone loves the mission and vision of an organization and resonates with its top leadership, if their immediate manager is poor, their job satisfaction will be diminished and their effectiveness will be reduced.[1]

Third, managers themselves become more effective when they have great managers. If we were to ask “what do great managers need?,” the answer would be: “Great managers.” Great managers need great managers.

The Importance of Creating a Climate for Great Managers

But over all this, great managers exist within the context of the overall organization. Thus, the organization plays a substantial role in producing and retaining great managers by creating a climate that will be more conducive or less conducive to this.

In particular, an organization creates a climate that is either favorable or disfavorable to great managers through its web of policies, practice, and language.

Policies that are restrictive, for example, work against the manager who aims to liberate and empower his employees. Policies that affirm the fundamental value of autonomy, on the other hand, reinforce and further the efforts of great managers. The efforts of great managers are amplified or diminished by the overall company environment.

How to Create a Climate for Great Managers

Marcus Buckingham outlines four things that senior management can do to create a climate for great managers.[2] I will outline his four and then add two of my own.

1. Keep the focus on outcomes

Buckingham writes: “The role of the company is to identify the desired end. The role of the individual is to find the best means possible to achieve that end. Therefore strong companies become experts in the destination and give the individual the thrill of the journey.”[3]

He then gives the following practical suggestions for keeping the focus on outcomes:

  • Define each role in outcome terms as much as possible.
  • “Find a way to rate, rank, or count as many of these outcomes as possible. Measurement always improves performance.”
  • For roles relating to customers, “the four most important outcomes for a customer are accuracy, availability, partnership, and advice.”
  • “Hold managers accountable for their employees’ responses to the twelve questions.” (See the document “Employee Engagement” for the list of the twelve questions and their meaning.)

2. Value world-class performance in every role

Every role that is performed at excellence deserves respect and has its own nobility. In order to create heroes in every role, consider:

  • Setting up graded levels of achievement in as many roles as possible. “Identify specific criteria for moving up from one level to the next.” “Take every level seriously.”
  • Creating broad banded compensation plans.
  • Celebrating “personal bests.” “Many people like to compete with themselves. Design a system so that each person can keep track of his or her performance monthly or quarterly. Use this system to celebrate monthly or quarterly ‘personal bests,’ as and when they occur. A growing number of ‘personal bests’ means a growing company.”

3. Study your best

“Strong companies learn from their very best. Internal best practice discovery is one of their most important rituals.”

  • Consider building a talent profile for each role, based on studying your best in each role.
  • “Revise all training to incorporate what you have learned about excellence in each role.”
  • “Set up an internal ‘university.’ The main function of this university should be to provide a forum for showcasing how your best, in every role, do what they do. As far as is possible, every employee should be exposed to the thinking, the actions, and the satisfactions of your best, in every role.”

4. Use the language of great management

“Language affects thinking. Thinking affects behavior. Companies must change how people speak if they are to change how people behave. Strong companies turn the language of great managers into the common language.”[4]

  • “Teach the Four Keys of great managers. In particular emphasize the difference among skills, knowledge, and talents. Make sure people know that all roles, performed at excellence, require talent, that a talent is any recurring pattern of thought, feeling, or behavior, and that talents are extraordinarily difficult to teach.”
  • “Change recruiting practices, job descriptions, and resume qualifications to reflect the critical importance and the broader definition of a talent.”
  • “Revise all training content to reflect the differences among skills, knowledge, and talents. A great company is clear about what can be trained and what cannot.”
  • “Remove the remedial element from training. Send your most talented people to learn new skills and knowledge that can complement their talents. Stop sending less talented people to training classes to be ‘fixed.’”
  • “Give every employee the benefit of feedback….[But] stop using [any specific tools] if they are focused on identifying what needs to be fixed.”
  • “Start the great managers performance management routine.”

5. Teach on the nature of management

This is an extension of Buckingham’s third and fourth points. We should teach managers specifically what it means to be strengths-based, what management is at its core (turning talent into performance), and how to implement the four keys.

6. Create systems and structures that embody these principles

The principles of strengths-based, effective management need to be woven in to the fabric and systems of the organization.

In this regard, some of the key systems that we are seeking to implement at Next include: Strengths-based hiring, strengths-based performance management, strengths-based career development, talent profile, strengths based training, etc.

 

Notes

[1] See Buckingham, First, Break All the Rules, pp. 32; 34-36.

[2] See First, Break All the Rules, pp. 236 – 238. Buckingham points out convention wisdom, which holds that

[3] First, Break All the Rules, 236.

[4] First, Break All the Rules, p. 237.

Why (and How) to Use a Feed Reader

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This is a guest post by Mike Anderson of The Resurgence.

Here are five reasons to use a feed reader (such as Google Reader) to keep up with blogs:

1. You never miss a blog post from your favorite sites
Once you subscribe to a feed, your feed reader will make sure that you see every new post from that feed. Whether you want to read your websites once a week, once a day, or every ten minutes, any unread items will be saved for you.

2. You can scan a ton of articles quickly
When using a feed reader, you can quickly filter through the articles that you don’t want to read. When surfing the web, you have to shuffle through different interfaces, type in web addresses, and surf bookmarks. This takes a ton of time. It’s much better to have the content you want delivered to you than to have to go find it every time you get online.

3. Melting-pot learning
One of the great side-effects of using a feed reader is that you begin to learn about various memes in a melting-pot fashion, where ideas flavor each other. You’ll learn new ideas over time, and understand the relationships between them.

4. You can save articles for later
Feed readers allow you to save articles to read for later. In Google Reader, you can put a star next to items you like and come back later to read them in full. You can also tag articles and search for them later.

5. You can always be up to date with the Resurgence
I am so excited to see theResurgence.com have an impact by training missional leaders. I want more people to sign up for the feed so that they don’t miss anything here. We’re bringing in numerous experts from different backgrounds to help form a Christ-centered vision for our lives, and I don’t want any of you to miss out on that.

So those are five reasons to use a feed reader to keep up with blogs. This leads naturally to the question of how to use a feed reader. Mike also has a video that shows this in very simple terms, using Google Reader:

Apple's Basic Philosophy

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Steve Jobs, from an article in Fortune a few years ago:

“We don’t think in terms of power,” says Jobs. “We think about creating new innovative products that will surprise and delight our customers. Happy and loyal customers are what give Apple its ‘power.’ At the heart of it, though, we simply try to make great products that we want for ourselves, and hope that customers will love them as much as we do. And I think after all these years we’ve gotten pretty decent at it.”

This is another example of the importance of beliefs in an organization. It is yet another illustration (with the results that follow) of what Jim Collins and Jerry Porras found in Built to Last:

…truly great organizations think of themselves in a fundamentally different way than mediocre enterprises. They have a guiding philosophy or a spirit about them, a reason for being that goes far beyond the mundane or the mercenary.

And while we’re at it, here’s another example from A.G. Lafley of Procter & Gamble, in Harvard Business Review:

I learned many things from Peter [Drucker] over the years, but far and away the most important were the simplest: “The purpose of a company is to create a customer” and “A business…is defined by the want the customer satisfies when he or she buys a product or a service. To satisfy the customer is the mission and purpose of every business.”

At P&G we keep Peter’s words in mind with every decision. We declared that the consumer — not the CEO — is boss, and made it our purpose to touch more consumes and improve more of each consumer’s life. When we look at the business from the perspective of the consumer, we can see the need to win at two moments of truth: First, when she buys a P&G brand or product in a store, and second, when she or another family member uses that product in the home….By putting customers first, we’ve nearly doubled the number served, from 2 billion to 3.8 billion; doubled sales; and tripled P&G profits in the first nine years of the twenty-first century.

Drucker: The Essence of a Company is Making a Difference

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Here is a very good summary of Peter Drucker’s thinking on “the essence of a company,” by Oscar Motomura in a recent issue of Harvard Business Review:

When I first met Peter Drucker, 15 years ago, he shared with me ideas that have deeply influenced my work ever since. Chief among them was that beyond just making a profit or creating wealth for stakeholders, the essence of a company is making a difference, being really useful, and creating something the world truly needs.

That higher purpose, Drucker pointed out, has to be something grand — like General Electric’s ambition to be, as he put it, “the leader in making science work for humanity” — and not superficial, like so many of the mission statements that companies have nowadays.

Why is such a creed so important? Because without a compelling raison d’etre, a company can’t hope to tap the full potential of its employees. “The number of people who are really motivated by money is very small,” Drucker told me. “Most people need to feel that they are here for a purpose, and unless an organization can connect to this need to leave something behind that makes this a better world, or at least a different one, it won’t be successful over time.”

Rescuing Ambition

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Dave Harvey’s excellent book, Rescuing Ambition, releases next month. Through the end of Friday, you can pre-order it for 35% off at Crossway’s microsite.

Harvey argues that ambition needs to be rescued from a false understanding. We tend to think of it “as nothing more than the drive for personal honor or fame.” And ambition that terminates on ourselves, to be sure, is dishonorable. But ambition directed towards a purpose larger than ourselves — ambition for the glory of God and the good of the world — is not only good and right, but essential.

Ambition in this sense is a God-implanted drive to improve, produce, develop, create, and make things better. When ambition dies or is neglected, big dreams die. And when big dreams die, the world misses out, and we fail to realize the full potential that God has given us.

I think that Harvey is right on in this. We have let ambition lie neglected, and as a result have become too accustomed to dreaming small dreams. By rescuing ambition, Harvey encourages us to dream big dreams that are worthy of a big God, instead of being content with life as usual and the status quo.

(This is very related to the topic of productivity, by the way, because ambition drives productivity. Further, I argue in the about page that productivity is not simply about our own personal effectiveness, but is ultimately about helping to make our places of work, our communities, and society more effective. The kind of ambition that Harvey is talking about fuels the drive to be productive in this holistic way. Without ambition, you are more likely to be concerned merely with your own productivity, which aborts the whole concept and turns it inward. Productivity is really about making things better in all areas of life — especially our work, communities, churches, and society.)

So I’m very excited about Harvey’s book. Which makes it fitting that this is the first book for which I have written a blurb. Here’s the blurb I wrote for the book, which sums up my above sentiments:

Dave Harvey teaches us that God wants ambition back in our understanding of godliness and spiritual health. As Christians, we are to be zealous for good works (Titus 2:13) — that is, ambitious for them. We are to be people who dream and do big things for the glory of God and the good of others. This is a critical book for the church today because it helps us recover the spirit of William Carey, who ambitiously said ‘Expect great things from God. Attempt great things for God.

For more on ambition, let me also recommend John Piper’s sermon Holy Ambition: To Preach Where Christ has not Been Named.

Time Leveraging vs. Time Management

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Here are a few notes I took a while ago from the Harvard Business Review book Taking Control of Your Time on the concept of time leveraging versus time management:

Two key concepts: Time leveraging and time management. Time leveraging is allocating time to the things that give the greatest return. Time management is about discipline and execution—making sure you aren’t wasting your time and that you are following your plan.

You have to have a vision of how you want to spend your time. This vision has to have a clear view of priorities.

Leveraging time is a strategy of using time in an intelligent way to pursue your most important goals. Managing time is the day-to-day process you use to leverage the time—the scheduling, to-do lists, delegating, and other systems. Without the strategy, time management won’t necessarily help you achieve your goals.

Leverage: Taking the smallest action that will yield the largest result.

Goal is first effectiveness, not efficiency.