Management Skills Blog

Blog Archive for the 'Organization Structure' Category

Double Duty

Fri, May 2nd, 2008 by Tom Foster

"So, you are saying that's it's okay for one person to play more than one role in the company, since we are so small. We just don't have enough people to cover everything you've outlined." Wes was piecing this together, looking at the roles and the limited number of people he had available.

"That's why the smallest of companies need only focus on their product or service. They keep all of their performance standards in their heads, because they are the only ones doing the work," I replied.

"It's like a sole practitioner, a CPA or an attorney in a company of one. They alone are doing the work, so there is no need to document processes.

"It's only when that sole practitioner grows, adds people, that processes have to be established. Because now, other people are doing the work and those same performance standards must be maintained.

"At that point, there are really only two roles in the organization. The people who are doing the work and the (no longer sole) practitioner who makes sure the work gets done.

"At the same time the (no longer sole) practitioner is making sure the work gets done, you can almost bet he is also doing some of the work himself. The (no longer sole) practitioner is now playing two roles at the same time." -TF

Double Duty

Thu, May 1st, 2008 by Tom Foster

As Wes studied the chart scrawled across the white board, I could see a question mark on his forehead. "It's all well and good, to say that this layer in the company does the work, and this layer, supervisors, makes sure the work gets done, and the next layer, managers, create the systems in the company." Wes stopped.

"But sometimes, I feel like I have to play a little bit of all of these roles. In some departments, we just can't afford to hire separate people to fill those roles. Sometimes, we have to play double duty."

"That's not unusual," I replied. "I find this chart is especially helpful for lean companies, like yours, where you can't afford to field every position with a different player. But the roles still have to be played, even if some are played by the same person.

"Just remember, that every minute a manager plays the role of a supervisor is a minute that your systems are neglected. Young companies don't have a choice." -TF

The System is the Problem

Fri, November 30th, 2007 by Tom Foster

"Well, we run a pretty complicated system, here," Derrick said. "If I had to design the system, the people system, I would really have to sit down and flow chart it out."

"Is it all about getting the work done?" I asked.

"No, not really," Derrick struggled. "It's not just getting the work done, often it's the way we get the work done. I need dedicated supervisors to just make sure the work is flowing, that it doesn't get hung up, and that the work product meets our customers' specs."

"Is it just about making sure the work gets done, on time, on spec?"

"No, you can get the work done on time, on spec and still lose a ton of money," Derrick answered. "We also have to think about efficiency. That is why our systems are so important."

"So, is it all about getting the work done, on time, on spec in an efficient way, according to a system?" I asked.

"You would think so," Derrick nodded. "But one thing I have noticed, when we get a system humming, its momentum begins to wreak havoc on another system. Like sales, as soon as we get our sales system humming, our volume picks up and outstrips our capacity to produce. So we ramp up our capacity to produce and that outstrips our raw material flow. There always seems to be this major moving target that throws a monkey wrench into the works.

"All of these decisions are made by people, and they are all interdependent. You are right. The way I create this people system will have a dramatic effect not only on our ability to produce, but it will also impact the individual behavior of the players I have working in the system.

"I am beginning to wonder if many of the problems that I see between people and the problems I observe in performance or underperformance are caused more by the system and less by the people I am blaming things on."

What is Necessary?

Thu, November 29th, 2007 by Tom Foster

"Where do we start?" I repeated. "If the system has the most impact in productivity, efficiency, anything connected to people working together, where do we start?"

Derrick looked at me blinking. "That's a pretty big question," he finally replied. "I think about a lot of things during the day, but to answer that question, I have to put almost everything else aside."

"Yes, if you stripped everything else away, back to a blank sheet, how would you design the organizational system? What are the first things to think about?"

"Well, it has to go back to purpose," Derrick nodded his head. "I am an entrepreneur. When I think about machinery, equipment, facilities, I only think about what is necessary to achieve the purpose. So, it gets back to vision and mission."

"So, if you connect back to vision and mission, you would put in place only what is necessary?"

"Yes."

"When you think about machines, equipment and facilities, what is necessary, is pretty easy. When you think about the people you will need, what do you think about?" -TF

The Culprit

Wed, August 15th, 2007 by Tom Foster

Great comments, yesterday, from Barb and Mukul about Reggie and his dilemma.
___

"It was worse than I thought," Reggie stated flatly. "What I didn't realize when I opened up this little fracas, was that the competition started long ago. I nosed around some of my sources. It's been a dysfunctional fight for the past six months, with not only my three candidates, but two others. They are all spread across three departments, so I never saw it."

"What's been going on?" I asked.

"Mostly, it's the subtle non-cooperation of one department with another. Convenient delays, rough hand-offs, missing information. Nothing malicious or brazen, but I have five people working against each other, working against the company."

"Who's the culprit?"

Reggie's demeanor changed. He sat straight up in his chair. The nerve was struck. Chin down, looking over his glasses, furrowed brow, he finally spoke. "I'm the culprit. I thought it was a little healthy competition, but what I created was an environment where individual agendas were more important that teamwork."

"How do we fix it?"

"First, we have to start with the culprit," Reggie shrugged. "And that would be me."