Follow-up or Fold-up

Ever get frustrated by sitting in agonizing meetings and nothing gets resolved? We all have and nothing is more discouraging. Solutions to problems cannot always be made during the meeting but an action plan leading to a solution can and should be developed before the meeting is adjourned. It is the responsibility of the person chairing the meeting to facilitate the development of the plan.

The plan itself can be quite simple. Usually between three and five actions can easily be defined to pursue. If more are recognized as important, some may be put into a “holding pen” until other more important actions are completed.

The action statement may be the definition of the problem as known at the time. This will undoubtedly change as progress is made and a better understanding of the real problem is revealed. The statement of importance is necessary because people naturally are more productive when they know the importance of their work. Defining how progress will be measured is key to know when the task is on the right path and also when the task is completed so the individual and/or team assigned to it can go forward to other actions.

The objective needs to be defined before the meeting is adjourned so that agreement is reached among interested parties of what is to be accomplished. Then, someone has to step up and take responsibility for achieving the results, to be the leader of the action. Finally, a targeted completion date needs to be determined so the activity does not drag out unnecessarily.

Action Plan

Item	Action	Why is this important?	How will we measure it?	Objective	Leader	Completion Date

Completing the action may take several forms. The solution to some problems is so obvious once the problem is identified; the leader only needs to “just do it”. Others may be likened to low-hanging fruit where minimal investigation or data gathering is necessary to find the best solution. Others may require more work and in that case, the seven-step problem solving process developed by Japanese academicians can be used.

Step 1.a is to define the problem. It is best to do this in pencil because what we think is the problem may not be the real problem when we dig deeper. 1.b is to collect data and portray it in chart form to prove that the problem is real. Step 2 is to examine the current situation from several points of view; typically different times, places, types, and symptoms. Again this data should be displayed in chart form. It is at this point that I usually have to rewrite my problem statement.

Step 3.a is to analyze all possible causes that can be identified in a brainstorming exercise and then form our hypothesis as to the leading cause. Step 3.b is to collect data to prove that our hypothesis is supported and we have identified to best cause to address.

Step 4 is usually the easiest step, act on the cause, because if we have done our homework correctly in the previous steps, the proper cause of action is now obvious. Step 5 is to collect data as in step 1.b and compare to prove that our action is producing favorable results. If not, we have to go back to resetting our hypothesis as to the root cause of the problem.

Step 6 is to standardize the changes to make sure they are implemented throughout the organization. Step 7 is to draw conclusions and analyze what was learned that could be applied elsewhere.

Next comes the most important activity of the action process and that is follow-up by management. We have gained nothing if the plan is allowed to languish and become forgotten. Periodic follow-up will keep attention on the actions and they can be completed and people allowed to move on to other activities. Human nature drives us to get results if we know our progress is being observed.

The prognosis is not good for organizations that allow problems to smolder and not get resolved. Developing an action plan and following up on progress can make our lives easier and work more satisfying.

Business Management Education for Professionals

Several years ago, Dan Johnson, Pastor of Good Samaritan United Methodist Church in Edina shared with me an enigma that Pastors’ face. They go to school and get their degree in theology and then get assigned to a church. Their education has been very thorough on religious subjects but nothing on business and now they are faced with managing a fairly large business. Dan started a Leadership Academy for Ministers in which he arranged for leaders from industry come in and present subjects in their area of expertise. These classes were filled to capacity with Ministers from around the state eager to learn.

Dan recognized and filled one of societies unmet needs. A similar need undoubtedly exists for doctors, lawyers, accountants, veterinarians, and other professionals. They enthusiastically pursue an education in their field of interest, which does not include classes on leadership and management of a business.

Doctors, for example, are drawn to health care because they want to dedicate their life’s work on doing something good, helping patients. Altruism is key to their makeup and they cannot succeed as physicians without it. They value their independence but medicine is seeing an explosion of knowledge, is increasingly complex, and requires increasing numbers of specialists in narrow fields, therefore creating the need to work in teams in clinics and hospitals. Choices for top management or administers of clinics and hospitals can be of two types-professional managers without a degree in medicine who face the constant lack of respect by doctors because of the lack of understanding of medicine, or doctors who lack education in how to manage a business.

Heading the management team in healthcare is difficult because of the idealistic nature of the people that it attracts who value their autonomy. Healthcare leaders need to work carefully to develop a shared vision of the future state of the organization and then get all involved in identifying the necessary steps to achieve that vision. How to do that takes education and training.

A classmate of mine at Pepperdine University of Los Angeles was a sharecropper’s daughter who made her way up through a medical degree and a promising career as a family doctor. She decided she was going to open a clinic in Watts, a poorer section of Los Angeles, but recognized her shortcomings in running a business. She enrolled in an executive  program for a Masters Degree in Business Administration in order to enhance her chances of success. This entailed 25-30 hours per week for two years of study and classes in addition to her medical practice, but she did it.  That takes extraordinary dedication.

Similar scenarios exist for lawyers, accountants, and other professionals. Forward thinking educational institutions will imbed basic business courses in their curricula but there will be an additional need for training by consultants and specialized schools at the time needed. If the need is exposed, it will be filled but the real dilemma may be for the new leaders of professional groups to realize they are missing something in their education.

Choosing a Board for Your Organization

Are you ready to get advice on how to run your company? Are you open to being directed on how to run your company? Unless you have a publicly traded company, in which you must have a Board of Directors, you have options.

An Advisory Board is a body that advises the management of an organization. It does not have authority to vote on corporate matters nor does it have legal fiduciary responsibility. It is a way for top management to utilize the brainpower of several respected individuals but it is up to management to heed or ignore the input.

Individuals for the Board of Advisors are typically people known and respected by the Chief Executive of the organization. They tend to be people with broad experience but not necessarily in the same line of business. They should be willing to speak forthrightly to the CEO, be willing to listen, and put forth recommendations. They tend to be unpaid for this service so their time is mostly spent with the CEO discussing problems he/she brings to meetings. No time or action is expected from the Board of Advisors other than what they spend in meetings, which are typically held monthly. The agenda is set by the CEO and includes a review of financial performance and projections and problems where the CEO would like advice.

Alternately, an organization may decide it would benefit from a formal Board of Directors who jointly oversee the activities of the company or organization and are elected or appointed by the owners or stockholders. A board's activities are typically detailed in the organization's bylaws. The bylaws commonly also specify the number of members of the board, how they are to be chosen, and when they are to meet. It is a good idea to have an uneven number of members of the Board so as to avoid a tie vote or stalemate. The ideal number is considered to be seven. That would allow for one to be committee chair for each of the three standing committees; Audit, Human Resources (sometimes called Compensation), and Strategy. They should have expertise in the field of their committee. One member of the Board is the CEO of the organization and the other three should have expertise in the organization’s line of business.

Typical duties of the Audit Committee include:

·      ensuring the availability of adequate financial resources;

•                approving annual budgets;

•                accounting to the stakeholders for the organization's performance;

Usual duties for the Human Resources Committee are:

•                setting the salaries and compensation of company management.

•                selecting, appointing, supporting and reviewing the performance of the chief executive

Normal duties for the Strategy Committee are:

·      governing the organization by establishing direction, broad policies, and objectives;

The legal responsibilities of boards and board members vary with the nature of the organization, and with the jurisdiction within which it operates. Board members are expected to spend at least two days per month discussing potential problems with employees at all levels. This is in addition to the Board meeting on site with additional time in research outside the facility. For these reasons, board members are usually limited to belonging to no more than two boards of for-profit organizations. To have this time available, they are usually retired from their personal careers and are considered to be professional board directors. All are independent of the organization except for the CEO.

So, what is the right kind of board for your organization? Questions to be considered are:

·      Are you a public or private organization? Public organizations require a Board of Directors.

·      Are you willing to give up some of your power?

·      Do you have the ability to pay professional directors? Advisory Board members typically not paid fees other than expense reimbursements.

·      Do you have the ability to attract professional directors?

·      Do you recognize the value of professional directors?

Establishing a Board is a very important decision to be made by the owners and should not be made lightly. The additional brainpower can be very valuable but there are tradeoffs.

“Management Is the Most Creative of Arts”

We cannot manage today like we did in the past and hope to be successful. Change is upon us in management just like in everything else.

The 1950s and 60s brought new insight into management techniques that we now call Traditional Management. The leading managing technique at the time was based on Plan, Organize, Direct, and Control. Management was taught to carefully plan what was to be accomplished, organize the structure and resources of the organization to achieve the plan, direct the people on what to do, and control their actions to conform to the plan. This placed a heavy burden on relatively few managers to be the brains to develop the right plan, organize correctly, oversee activity of the workers, and make sure they did not deviate from plan. This lent focus and structure to work and was successful in its time. However it did not make use of all of the brainpower of the organization and led to micro-management of the workers.

The initial work of W. Edwards Deming and other statisticians during World II to use statistical techniques to improve work processes and adopted by companies throughout Japan in the 50s and 60s was finally recognized in this country in the 80s. Thus began the era of Scientific Management. Frederick Winslow Taylor is credited with contributions to Scientific Management, but his work was more exhortation rather than supplying people with processes that would allow them to do better. Largely ignored in America during the 50s through 70s, Scientific Management was embraced by the Japanese under the tutelage of Dr. Deming and their business turnaround was miraculous. A notable exception to the void in usage of Scientific Management in America was at Ford Motor Company

Robert S. McNamara and the “Whiz Kids” created favorable publicity for Scientific Management with their contributions to the turnaround at Ford in the 60s and 70s. Universities started offering courses in business statistics to teach quantitative decision-making. Facts and figures were used for data-driven diagnosis and determination of action. A resultant complication was focus on the numbers to the detriment of understanding of human behavior and motivation, although both Deming and MacNamara warned against this. Management focused on rational solutions for problems in order to maximize financial returns for the companies and its owners. Over time, the need to balance rational decision making by data with social responsibility made its presence. The desire to bring positive change to the world is a force to be considered. All employees, customers, owners, and neighbors must be treated with mutual trust, respect, dignity, and consideration of their needs.

Popular methods today can be titled System Management with the intent to optimize the system for all shareholders. It recognizes that all employees have brains and should be utilized to make decisions and corrective actions. People have an inherent need to be a part of a team, feel needed and appreciated, but most important derive satisfaction of doing work that is worthwhile. It is a blend of the above management styles with some added features required by today’s complex operations.

Whereas Traditional Management focused on Plan, Organize, Direct, and Control, and Scientific Management used a similar simple guide, Plan, Do, Check (Study), and Act, System Management can be described with Plan, Develop, Communicate, and Monitor.

Plan in this case starts at the aim (Vision) of the total organization and all other plans should be judged on their contribution to the greater aim of the organization. It is the responsibility of top leadership to develop the Aim.

The next step by various levels of management is to develop the systems and processes that will achieve the plan. People do the best job they can within the processes supplied to them but usually only management has the authority to create or change processes.

The third step of Evolving Management is communication of “what”, “how”, and “why” of work activities to everyone involved. What and how are fairly straight forward but the why is probably most important. When people understand the why of activity, they are intrinsically motivated to accomplish results and intrinsic motivation of far more powerful than any attempts at extrinsic motivation. Remember there are two parts to communication-sending and receiving, so management needs to engage in discussion to not only explain the plan, systems, and processes but to spend an equal amount of time listening to feedback from others who are doing the work or otherwise involved. Then they need to be open to modify the plans, systems, and processes with the new information gained. The Japanese call this, “catch-ball” because they liken it to tossing a ball back and forth until there is understanding and agreement.

The fourth step is to monitor progress with data on achieving the plan. The purpose is to be able to take corrective action if the systems and processes do not achieve the intended purpose in the time frame needed. An important distinction here is that management is checking on the performance of the systems and processes and not the people. Of equal importance, this step provides opportunities for management to coach and develop employees. It is helpful to view the manager as a coach whose role is to develop the talent the people.  In order to coach, the manager needs to know what is happening, therefore monitoring provides the data and information needed for coaching. Development of people is a key purpose of management.

We have progressed from Traditional Management to Scientific Management to System Management. Management, like technology, is constantly changing and improving. We cannot be content with our old styles but constantly evolving in order to be successful in today’s complex and changing world.