How Cleaning Away Company Inertia Can Boost Your Profits
by Woodruff Imberman, Ph.D.
July 1, 2009
Owners of job shop platers, anodizers and coaters need
a sense of urgency in their shops to survive today’s economy –
urgency to meet goals, to satisfy customers and to boost productivity. The
inertia of business as usual is no longer an option as a tsunami of bad
economic news washes over the surface coatings industry – and perhaps your
company too.
Creating a sense of urgency often means an
owner/executive of a small business needs to develop a stronger leadership
system so he can focus on key company goals, instill in his managers a desire
to do their utmost to reach those goals, and overcome organizational inertia
before the status quo turns into status woe. A performance coach can often help
small business executives institute these changes quickly.
What is A Performance Coach
A performance coach is a seasoned executive who
understands plating and job shop coating, the organizational dynamics of
smaller companies where single managers juggle multiple tasks, who knows the
difficulties an entrepreneur has in focusing on his company’s key goals while
delegating less-important matters, and who can advise him how to re-energize
his workforce – from direct reports on down. In short, he can help rid a
company of inertia.
What is Inertia?
Inertia is “business as usual” – an acceptance
of the status quo that tolerates mid-management excuses rather than reasons for
not achieving goals. Inertia can be overcome with a formal compensation system
that rewards managers based on their results and with an informal
communications effort that motivates them to work together to achieve overall
company goals. Most importantly, inertia can be overcome when an
executive/owner is taught to focus on the “big picture” – the goals his company
must meet if it to be successful – and help his subordinates achieve their part
in making the big picture a reality rather than a dream. According to
management guru Peter Drucker, “Inertia in management is responsible for more
loss of marketshare, more loss of competitive position, and more loss of business
growth than any other factor. (Drucker, Peter, Managing for the Future: the
1990s)
What is Leadership?
Leadership is the ability to discern what needs
to be done, what goals must be met, and how to motivate associates and
subordinates to make those needs and goals their own priorities. Leadership is
not to be confused with affability, nor, perhaps, with setting goals through
consensus. While the need for mutual support and teamwork is clear, so are
ambitious goals. Every business needs a leader to set the goals and priorities
for his company. Although every company is a team, every team needs a leader,
and everybody on a team must cooperate to reach the ambitious goals he sets.
A leader has a strong internal drive to improve both personally and
organizationally, and a dissatisfaction with any performance short of that. His
leadership inspires subordinates to do the same. Leadership is not the result
of consensus, does not necessarily produce popularity, but does generate a
sense of achievement. My experience suggests exerting such leadership is not as
simple as it sounds.
What Often Really Happens
Despite their honest belief that they strive to
improve results, many executives accept substandard results because they are
reluctant to upset anybody by insisting on better performance. In today’s
economy, many executives ask how they can do a better job of managing their
organizations to create the urgency they want. They ask how they can motivate
subordinates to exert the extra effort needed to fulfill their individual
objectives, so they themselves can focus on the “big picture” – the overall
goals their company needs to reach to survive, and perhaps even to prosper, in
the current recession.
There are several reasons why executives find a performance coach helpful in
answering these questions, solving these problems. First, most executives and
managers in smaller companies wear many hats, and are busy doing a multitude of
tasks. It takes a management system to enable them to back away from details
and prevent subordinate managers from “delegating upwards” responsibilities
they are reluctant to undertake. Second, many owner/executives have grown their
companies because of they have excelled in a particular activity, be it
marketing, sales, finance or manufacturing. They cling to the matters with
which they are most familiar.
In a growing company, an entrepreneur is responsible for everything. Even with
the many hats he wears, the long hours he works, he sometimes is reluctant to
let go of the details of the activities with which he is comfortable and
familiar. Just what trade show to attend, or just how to schedule the plant for
speedier deliveries of past-due orders are no longer his job. Those are for
subordinates. Many entrepreneurs are uncomfortable taking the jump from
handling familiar details to the unfamiliar of dealing with the “big picture.”
They are unfamiliar with asking, “How does doing X help us meet our key goals?”
And they are uncomfortable with the question, “Just how are my subordinate
managers helping us reach our key goals?”
How to Do It
Creating a
sense of urgency in meeting company goals is often accomplished both formally
and informally. Formally, it first requires a system to ensure managers
understand what their goals are, and confirms for the executive that his
managers understand what is expected of them. Second, it requires a system of
aligning individual rewards to individual results. This means gathering and
reviewing operating statistics, i.e., just how managers are doing with regard
to their goals. And finally, it requires a feedback mechanism so that managers
are constantly aware of the progress they are making towards their goals.
Informally, creating a sense of urgency requires constant discussion with and
listening to subordinates on both an individual and group basis. This interplay
puts everybody on the same page and aware of any problems. It involves
give-and-take discussions and sending informal signals to subordinates in order
to create an environment that makes managers want to work together to achieve
overall company goals.
How a Performance Coach Can Help a Busy Executive
Most surface finishers today face purchasing
agents shopping for cheap suppliers.
Executives of the most successful
suppliers use performance coaches to take the following
steps:
-
Help them focus their own individual efforts in defining their company’s key
objectives and then developing a system to monitor how well subordinate
managers do in reaching those objectives.
Show their managers and supervisors how to improve their own effectiveness by
teaching them how to focus their time on those activities that contribute the
most in reaching their individual goals.
-
Develop feedback mechanisms to inform managers of the company’s progress in
meeting overall objectives, and the managers’ own progress in meeting their
parts of those objectives.
-
Tie managerial and supervisory compensation to their progress in attaining
their individual goals, which further the company’s key objectives.
- Train supervisors to organize and manage their departments’ work, not just
their employees’ behavior.
-
And improve worker productivity through motivational tools including innovative
pay-for-performance compensation programs.
In today’s down markets, most
customers are paging through the lists of platers, anodizers and job shop
coaters, seeking only the few, the most efficient, the ones with the highest
quality for the lowest prices. Only those will survive. Think about it –
perhaps a Performance Coach can help your company be one of
them.
Dr. Woodruff Imberman is President
of Imberman and DeForest, Inc., management consultants based in Evanston, IL.
His firm specializes in improving managerial effectiveness, supervisory
training, productivity improvement, and performance based pay systems. He can
be contacted at IMBandDEF@aol.com, or by calling 847/733.0071. )
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