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Lessons from the Great American Leaders & How They Apply Now

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Six Key Benefits of Performance Management

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evaluation

Managers are inundated with a high volume of information and required to make multiple decisions daily. It is often difficult to be fair and consistent in decisions when the manager is operating on a reactive rather than proactive basis.

Performance management gives managers a specific set of parameters to make decisions and act in an active rather than passive mode. This allows them to take the initiative by making quick and effective decisions that positively impact their unit’s efficiency, profitability and overall performance.

Managers who utilize an effective performance management process and program will find that rather than complicate their lives, their jobs are made much easier. Decision-making is greatly simplified by performance management, as it provides a specific set of established parameters with which to make consistent and focused decisions that move the unit forward to the achievement of its goals. These parameters include:

Alignment of Goals and Objectives

The overall purpose of performance management is the alignment of unit/department goals and activities with the overall goals and objectives of the company.

The role of the manager is to ensure that all goals and activities of his or her individual employees directly contribute to the overall success of the unit. In this capacity, the manager establishes the individual goals and targets to assure that the overall objectives are obtained. Once this has been accomplished, any decisions to be made regarding the performance of individual employees must be made with each of their goals in mind. Managers are able to make decisions to ensure that every action and activity an employee makes advances him or her toward the accomplishment of their unit’s goals.

This decision-making parameter prevents individual employees from becoming “loose cannons,” ignoring their unit and company goals and performing in a way they view as expedient. It keeps the employees in line and focused. It also allows managers to fairly and consistently manage and evaluate individual performance against overall team goals.

Focus on the Target Market

Most corporate goals and objectives are designed to move a company forward, while maximizing the utilization of human and physical resources to enhance productivity, efficiency and profitability. In this pursuit, companies are increasingly gearing specific products and services to profitable niche markets where they can gain a competitive advantage.

The use of performance management techniques allows managers to redefine or refine the target market so that it is aligned with the objectives established by senior management. As a decision-making parameter, managers can guide and direct employees through plans to better focus their efforts on these intended niche markets.

As markets are increasingly more competitive, rapid changes and shifts in marketing strategies are often required. The use of performance management criteria allows managers to shift their people’s focus and ensure all decisions they make are consistent with this impetus.

Guidance

The company’s mission statement, goals and objectives provide guidance to the manager and the basis for their performance management program. Additionally, these provide managers with specific parameters with which to guide and direct their own actions and those of their employees, while also giving them the guidance they need when making decisions. There will be times when senior management may need to clarify issues and concerns, but the progression of goals and objectives should flow smoothly from senior management to the individual employee.

Benchmarks for Performance

One of the keystones of performance management is the ability to benchmark the individual work of each employee. These provide managers with the tools to monitor and evaluate performance as well as the basis for any decisions and actions that must be made.

The specific performance of an employee influences all decisions a manager makes concerning that individual. An employee performing at a high level will be given more leeway in the decisions made about him or her since results are being produced. A poorly performing individual will have more stringent decisions made about him or her.

Pinpointing Performance Problems

The use of specific metrics in a performance management program allows managers to make decisions regarding performance breakdowns. Initially, it allows the manager to pinpoint problems and take the proper corrective actions to immediately rectify them before they become a major issue.

Providing Focused Feedback

Performance management allows managers to make decisions and focus their feedback on issues directly related to the achievement of the individual employees goals and objectives. Any other issues distracting the employee that don’t contribute to the unit or department’s performance can be quickly and effectively handled and eliminated.

Excerpt: Performance Management: Pinpoint Management Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011)

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

For Additional Information the Author Recommends the Following Books:

Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series

Maximizing Financial Performance: Pinpoint Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Four Attitudes That Hinder an Empowered Environment

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smallgroup

The forces requiring companies to continually change, transform and improve are becoming progressively more compelling in today’s business environment. This is the result of a globalized economy, the shifting sands of deregulation and regulation, accelerated technological advances, and the competitive challenges posed by emerging companies.

Dealing with these forces can precipitate a crisis atmosphere in many companies as they attempt to retain market share in the midst of breakneck industry changes and political shifts. As these challenges have a definite effect on organizations and their ability to remain flexible and competitive, leaders can easily stumble into any number of pitfalls when striving to meet them. Empowerment is needed for an organization as a whole to surmount problems, issues and events that surface without warning, and to achieve the necessary growth these new pressures demand.

It is important for an organization and its top leaders to understand that power needs to flow to lower-level leaders and employees whose tasks, projects and assignments are needed to deal effectively with critical problems. The capacity of a company to strengthen itself comes from the empowerment of its members, which has its origin in the degree to which the organization is willing to share power with its leaders and employees.

In today’s climate, “power” is not found in controlling events and circumstances within the organization or outside its boundaries. Power is not focused on the personal gain, recognition or advancement of its individual leaders. It is a collective synergy found among all organizational members, a dynamis, or tireless energy that permeates the atmosphere. This is the inevitable result of delegating and including all leaders and employees in all processes that move the organization forward.

Pitfalls emerge when organizations fall short in actually sharing power where and when called for. This is most often the reason why the concept of empowerment fails to take root in an organization and become a concrete, beneficial driving force.

Many organizations often hold beliefs and views that run counter to empowerment. They are often shortsighted and ignore the fact that collectively, their members are the most critical resource they have to move forward. When organizations take a myopic view they fail to realize the actual potential strength they have at their disposal, and do not utilize their leaders and employees to their best advantage. They often claim leadership and empowerment as primary goals, but fall short in actual attempts to develop a climate conducive to supporting them. This is generally the result of falling into common pitfalls.

Maintaining that Power Is a Fixed Sum

Traditional organizational thinking promotes the idea that power is a fixed sum; i.e., if one person has more, others have less. Organizations and individuals within it who share this belief are also reluctant to share power. They hold on tightly to it. However, this philosophy seriously retards the accomplishment of extraordinary things through mutual, collective efforts. This is the real barrier to empowerment: when managers and even employees hoard whatever power they have.

This generates powerlessness in others. In turn it generates organizational systems where political skills become “business as usual.” These are actively used to “cover oneself” and “pass the buck.” They become the preferred styles for handling interdepartmental differences and lagging productivity and results. At the same time these actions and their motives create disharmony and hindering roadblocks to cooperative and creative efforts for necessary innovation. An organization will find its products, quality, and services suffer when these wanting political skills are consistently applied, and where eliminating them is overlooked or ignored.

Failing to Provide Organizational Discretion and Autonomy

Applying discretion and autonomy within an organization comes from actively supporting its members and trusting in their ability to take decisive action whenever and wherever necessary. It includes the right to exercise independent judgment, and to make decisions that affect how one does his or her job without having to check in with upper levels every time issues and concerns surface. Without embracing and promoting elements of discretion and autonomy, an organization’s total support network is diminished and ultimately destroyed.

The opportunity to be flexible, creative and adaptive is what enables an organization to make most productive use of its resources in moving ahead and overcoming challenges. If organizations allow for individual discretion, leaders and employees will have greater opportunity to apply their creativity and collective intelligence. They will have more choices about how to successfully accomplish given goals and objectives.

In addition, when an organization practices flexible discretion, it generates higher levels of responsibility and a greater sense of obligation among all members, as all individually feel more powerful and in control of events and circumstances that would otherwise overwhelm them.

Falling Short in Identifying the Real Sources of an Organization’s Power

Within an organization, traditional power is generally thought of as having and maintaining control over its resources. However, the real power of an organization is found in its individual leaders and through their employee groups. This is where the organization’s crucial problems can be solved to ensure its long-term success and viability. An organization can emphasize its willingness to acknowledge the power of its leaders and employees by:

  • Involving all members in its planning and directives.
  • Allowing delegation to be an active part of its culture with full trust and confidence that goals and objectives will be met.
  • Creating and implementing an empowered spirit and team attitude throughout the organization.
  • Finding unique ways to reward leaders and all other members for accomplishments large and small.

Being Reluctant to Give Power Away to Strengthen Others

Upper management must embrace the idea that the only potential market power and strength they have is maintained by the mutual efforts of their subordinate leaders and employees. It is dependent upon a positive interconnection and interaction among all three parties. Organizations must recognize the necessity of giving power away to others. Upper management must actively practice four principles that strategically strengthen the organization and the members within it. They include:

  • Giving leaders the power to use their own personal judgment in the delegation of critical assignments and decision making. This includes them then empowering their employees to modify methods and processes to increase quality, productivity and innovation.
  • Allowing leaders and other members greater discretion and autonomy over resources, projects, direction and outcomes.
  • Developing an atmosphere that builds relationships, connecting leaders and employees with other powerful people within the organization that can mentor, sponsor and coach them.
  • Promoting visibility and strengthening people within the organization by sharing information and increasing flexibility in work-related activities. Top management must be able to actively enable others to act with the organization’s best interests at heart, with realistic levels of accountability and without the risk of potential negative consequences.

Excerpt: Empowerment: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 19.95 USD

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

For Additional Information the Author Recommends the Following Books:

Performance Management: The Pinpoint Management Skill Development Training Series

Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series

Maximizing Financial Performance: Pinpoint Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

//

Planning as a Means to Generate, Oversee and Measure Results

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manDelegating

Most corporations require leaders to produce an annual plan to project possible future results. Many leaders tend to undertake this assignment with little or no enthusiasm even though it is necessary to forge new paths to generating positive, successful outcomes. Once completed, most annual plans sit on the shelf until the next planning cycle. Many times the rationale is that people are too involved and overwhelmed with daily activities to follow their plan.

Effective leaders tend to view planning as a means to generate, oversee and measure results. Planning gives leaders time to consider how they can improve their own as well as overall workplace performance. It allows leaders to reflect on ways to stretch their employees’ abilities in order to make them a more viable resource for generating and enhancing long-term results. In order to get the best results possible from their leadership efforts, leaders need to prepare for them.

Leaders must recognize that preparing for results does have its challenges, and be aware of them before beginning their next planning cycle.

During planning and budgetary reviews, leaders sometimes develop unreliable projected numbers and assumptions. It is all too easy to develop projections without specific facts to back them up, yet obtaining positive end results relies on sound forecasting.

Many leaders fail to invest the needed effort to review past performance, and this deficiency tends to affect their end outcomes. Some also fall short in taking the necessary time to effectively base future projections and assumptions upon what their organizational units have actually achieved in the past, which distorts expectations.

Obtaining results implies that plans and budgets not be developed in a void. Effective leaders realize that they must build on past successes and determine why and how past failures occurred. They know that to increase results it is essential to plan for strengthening weak and non-performing areas.

Leaders can only accomplish this by thoroughly reviewing past performance in all areas in order to link plans to where the organizational unit currently stands. Performance reviews allow leaders to accurately project their organizational unit’s performance forward in incremental steps. This is the only realistic method of achieving and sustaining growth.

As leaders begin the planning process to increase performance and results, they need to address five specific areas that tend to create the greatest challenges:

Faulty Assumptions

Every plan that is designed to increase results needs to be based upon a series of assumptions. Consisting of future and anticipated variables that impact the actual performance of the plan, assumptions include economic conditions, sales and production forecasts, as well as anticipated major orders.

If assumptions are inaccurate, plans will be worthless and future results will not be realized. For example, if a plan is based upon 10% growth when in reality the economy is causing a 10% decline, everything in the plan is based upon an inaccurate assumption.

When developing their plans, leaders must focus on carefully creating, listing and detailing accurate and realistic assumptions. As conditions change during the year, reviewing assumptions becomes a necessary procedure in order to adjust them to actual conditions. This enables leaders to quickly alter and adapt their plans throughout the year, ensuring the likelihood of obtaining the results they want.

Inaccurate Information

To get results, the development and use of accurate information within the planning process is essential. Accurate information is one of the most important aspects of planning and the most significant step in the plan’s implementation process. Leaders must take the opportunity to examine every aspect of their organizational unit’s past performance. This includes reviewing past plans and budgets against actual performance.

Results-oriented leaders understand what worked in the past and why. They identify areas for improvement, revision, modification or an increased workforce. They then focus on underlying causes that tend to influence or precipitate inadequate employee performance. Leaders who make it a point to conduct exhaustive performance reviews are able to produce accurate information and data, which helps to generate higher levels of results over shorter periods of time.

Once leaders produce a comprehensive review, it becomes much easier to update and maintain their information with a higher degree of accuracy. Leaders use the planning process to audit their information and insure its reliability and accuracy.

Pitfalls to Effective Plan Development

The first major planning pitfall that definitely affects positive end results lies in leaders choosing to create new strategies by simply duplicating previous annual plans with one or two selective changes. Most often changes include simply altering numbers to reflect current conditions. The completed plan is then submitted to senior management. These plans have little value in terms of results-oriented direction or particular action steps to follow.

A second major pitfall is found in writing plans from a “backward perspective.” This is where plans are made according to where leaders want to go, rather than on where they should be going. Strategies are developed without regard to the specific facts, data, timelines and information needed to ensure they are accurate and realistic.

All pertinent information and related data supporting various desired outcomes must be included when generating plans, with all other information that tends to conflict with the desired outcomes omitted.

Both pitfalls are attempts to short-circuit the planning process or avoid it, and greatly reduce the chances of obtaining the results leaders need to generate. When this happens, leaders fail to meet their responsibilities to themselves, employees, associates, senior management and stockholders.

Impossible Plan Timetables, Allotments and Factors

How plans are scheduled can have a major impact on whether or not results are obtained. Many leaders often assume they can achieve more than is realistically possible to attain. They tend to insert and carry over expectations of impossible timelines and deadlines for employees to follow and meet.

Performance plans should stretch each organizational unit and members’ capabilities. Time allotments to move processes and actions along toward achieving goals and objectives must be realistic. Additional time must be factored in for unanticipated events that will inevitably occur during the year.

It is essential for leaders not to under-plan, where employees are not pushed to perform. Equally as important they should not over-plan, where employees are constantly placed under stress to meet deadlines. To get better results, leaders must consider the need to balance their plan’s time requirements, workload criteria and expectations.

Failing to View Performance Plans as Positive Management Tools

Often leaders will produce required plans and forget about them until the next ones are due. It is a serious mistake to view planning as an impediment to their work and daily responsibilities.

Results-oriented leaders appreciate how and why performance plans are powerful management tools. Plans guide and direct their actions throughout the year toward the accomplishment of their goals and objectives, which always move them to securing higher levels of workplace results.

Results-oriented leaders focus on taking their plans and breaking them down into smaller monthly plans, which can be easily monitored and altered. Leaders also make certain to generate smaller step-by-step plans for every individual employee. This process tends to link both time and individual performance toward the accomplishment of common goals and objectives.

Planning is a continuous, ongoing process. Performance plans need to be continually revisited, modified and adapted to reflect actual conditions. Situations change and performance plans should allow leaders to readily anticipate and adapt to fluctuations, speedups and slowdowns, as well as unforeseen occurrences.

Related:

Looking into the Crystal Ball

The Need to Test Opinions Against the Facts

The Mastery of Details is an Integral Part of Leadership

Focusing Your Employees on Future Performance

Excerpt: Becoming a Leader of Your Own Making (Majorium Business Press, Stevens Point, WI 2011) $ 16.95 USD

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

“Success is the Sum of Details”

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Bill Gates, former CEO of Microsoft Photo by Win McNamee/Getty Images)

Bill Gates, former CEO of Microsoft
Photo by Win McNamee/Getty Images)

Harvey Firestone (Firestone Tire) stated, “success is the sum of details.” The great leaders uniformly paid extraordinary close attention to details.

It is an important attribute or aspect of their thinking. It influenced virtually every aspect of their lives, which ranged from ruthless efficiency to product quality, to how they treated their employees. As architects of growth, their attention to detail allowed them to formulate comprehensive plans and blueprints, which supported the building and growth of their companies.

Many leaders like James J. Hill (Great Northern Railway), Sam Walton (Wal-Mart) and Robert Wood (Sears) all devoured as much data and information as they could get their hands on, to generate detailed plans and blueprints for their business, as did William Boeing (Boeing) and John Jacob Astor. Bill Gates (Microsoft) “also has incredible focus and knowledge of his industry. As Ross Perot once noted, ‘Gates is a guy who knows his product.’ ”

In addition to paying close attention to details, the great leaders developed unparalleled competence and expertise through years of experience. They all emerged from long and dark valleys of frustration, disappointment, adversity and often failure, which tested their mettle, polished their skills and competencies and generated deep levels of perseverance and resilience.

None of the great leaders surveyed ever appeared to succeed without first enduring what I call a long and frustrating “crucible period.” These experiences and the lessons gained within this “crucible period” allowed them to possess the necessary skills, experience and expertise to take advantage of opportunities presented to them. They were able to recognize them for what they were, and knew how to plan and profit from them.

A notable example is Theodore Vail (AT&T). He “left the post office service to establish the telephone business. He had been in authority over thirty-five hundred postal employees, and was the developer of a system that covered every inhabited portion of the country.

Consequently, he had a quality of experience that was immensely valuable in straightening out the tangled affairs of the telephone. Line by line, he mapped out a method, a policy, a system. He introduced a larger view of the telephone business… He persuaded half a dozen of his post office friends to buy stock, so that in less than two months the first ‘Bell Telephone Company’ was organized, with $450,000 capital and a service of twelve thousand telephones.” [1]

In 1902, one hundred years after it was founded, E.I. du Pont de Nemours and Company, commonly known as DuPont, was sold by the surviving partners to three of the great-grandsons of the original founder, led by Pierre du Pont. He had grown up in the family business and had developed the necessary expertise to assume control over it. He understood the associated problems, issues and weaknesses that needed to be rectified, and drafted and executed the necessary plans to transform the company.

“As chief of financial operations, Pierre du Pont oversaw the restructuring of the company along modern corporate lines. He created a centralized hierarchical management structure, developed sophisticated accounting and market forecasting techniques, and pushed for diversification and increasing emphasis on research and development.

He also introduced the principle of return on investment, a key modern management technique. From 1902 to 1914, Pierre kept a firm rein on the company’s growth, but with the onset of World War I he guided DuPont through a period of breakneck expansion financed by advance payments on Allied munitions contracts.” [2]

As a primary supplier of paints and lacquers required for automotive production, DuPont became a major investor in General Motors. Pierre DuPont replaced William Durant, the company’s founder, as CEO. DuPont made a key decision in promoting Alfred Sloan to the office of president. Sloan developed a detailed blueprint that transformed GM into the largest industrial company the world had ever known at that time.

He “created structure so people could be more creative with their time and have it be well spent. He also came up with the idea that senior executives should exercise some central control but should not interfere too much with the decision making in each operation.

It is difficult to describe many of Sloan’s ideas because most of them would seem like common concepts of a business, yet they were new and innovative at the time. Largely due to his invention, GM became the pioneer in market research, public relations and advertising. Before Sloan, people had totally different conceptions of these common parts of the American corporation.” [3]

Due to Sloan’s success, his corporate model highly influenced the development of the modern American corporation. His theories were actively practiced for over 50 years and remained unchallenged until Jack Welch’s (General Electric) influence permeated the mid-1980s.

Related:

  1. Do You Have the Talent to Execute Get Things Done?
  2. Linking Structure to Action
  3. The Value of Personal Experience and Expertise

References:

  1. Casson Herbert N., The History of the Telephone. Chapter II (February 1, 1997)
  2. Pierre S. du Pont: 1915 (www2.dupont.com)
  3. Alfred P. Sloan, Inventor of the Modern Corporation (Invent Help Invention Newsletter, August 2004)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011) Read a Free Chapter

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Six Key Benefits of Performance Management

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Managers are inundated with a high volume of information and required to make multiple decisions daily. It is often difficult to be fair and consistent in decisions when the manager is operating on a reactive rather than proactive basis.

Performance management gives managers a specific set of parameters to make decisions and act in an active rather than passive mode. This allows them to take the initiative by making quick and effective decisions that positively impact their unit’s efficiency, profitability and overall performance.

Managers who utilize an effective performance management process and program will find that rather than complicate their lives, their jobs are made much easier. Decision-making is greatly simplified by performance management, as it provides a specific set of established parameters with which to make consistent and focused decisions that move the unit forward to the achievement of its goals. These parameters include:

Alignment of Goals and Objectives

The overall purpose of performance management is the alignment of unit/department goals and activities with the overall goals and objectives of the company.

The role of the manager is to ensure that all goals and activities of his or her individual employees directly contribute to the overall success of the unit. In this capacity, the manager establishes the individual goals and targets to assure that the overall objectives are obtained. Once this has been accomplished, any decisions to be made regarding the performance of individual employees must be made with each of their goals in mind. Managers are able to make decisions to ensure that every action and activity an employee makes advances him or her toward the accomplishment of their unit’s goals.

This decision-making parameter prevents individual employees from becoming “loose cannons,” ignoring their unit and company goals and performing in a way they view as expedient. It keeps the employees in line and focused. It also allows managers to fairly and consistently manage and evaluate individual performance against overall team goals.

Focus on the Target Market

Most corporate goals and objectives are designed to move a company forward, while maximizing the utilization of human and physical resources to enhance productivity, efficiency and profitability. In this pursuit, companies are increasingly gearing specific products and services to profitable niche markets where they can gain a competitive advantage.

The use of performance management techniques allows managers to redefine or refine the target market so that it is aligned with the objectives established by senior management. As a decision-making parameter, managers can guide and direct employees through plans to better focus their efforts on these intended niche markets.

As markets are increasingly more competitive, rapid changes and shifts in marketing strategies are often required. The use of performance management criteria allows managers to shift their people’s focus and ensure all decisions they make are consistent with this impetus.

Guidance

The company’s mission statement, goals and objectives provide guidance to the manager and the basis for their performance management program. Additionally, these provide managers with specific parameters with which to guide and direct their own actions and those of their employees, while also giving them the guidance they need when making decisions. There will be times when senior management may need to clarify issues and concerns, but the progression of goals and objectives should flow smoothly from senior management to the individual employee.

Benchmarks for Performance

One of the keystones of performance management is the ability to benchmark the individual work of each employee. These provide managers with the tools to monitor and evaluate performance as well as the basis for any decisions and actions that must be made.

The specific performance of an employee influences all decisions a manager makes concerning that individual. An employee performing at a high level will be given more leeway in the decisions made about him or her since results are being produced. A poorly performing individual will have more stringent decisions made about him or her.

Pinpointing Performance Problems

The use of specific metrics in a performance management program allows managers to make decisions regarding performance breakdowns. Initially, it allows the manager to pinpoint problems and take the proper corrective actions to immediately rectify them before they become a major issue.

Providing Focused Feedback

Performance management allows managers to make decisions and focus their feedback on issues directly related to the achievement of the individual employees goals and objectives. Any other issues distracting the employee that don’t contribute to the unit or department’s performance can be quickly and effectively handled and eliminated.

Excerpt: Performance Management: Pinpoint Management Skill Development Training Series (Majorium Business Press, 2011)

If you would like to learn more about how to use performance management techniques to increase results, refer to Performance Management: Pinpoint Management Skill Development Training Series. This training skill-pack features eight key interrelated concepts, each with their own discussion points and training activity. It is ideal as an informal training tool for coaching or personal development. It can also be used as a handbook and guide for group training discussions. Click here to learn more.

_______________________________________________________________________________

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It
Linkedin | Facebook | Twitter | Web | Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Success is the Sum of Details

with 2 comments

Harvey Firestone - Firestone Tire

Harvey Firestone (Firestone Tire) stated, “success is the sum of details.” The great leaders uniformly paid extraordinary close attention to details. Throughout this book it is frequently referenced, since it is an important attribute or aspect of their thinking. It influenced virtually every aspect of their lives, which ranged from ruthless efficiency to product quality, to how they treated their employees. As architects of growth, their attention to detail allowed them to formulate comprehensive plans and blueprints, which supported the building and growth of their companies.

Many leaders like James J. Hill (Great Northern Railway), Sam Walton (Wal-Mart) and Robert Wood (Sears) all devoured as much data and information as they could get their hands on, to generate detailed plans and blueprints for their business, as did William Boeing (Boeing) and John Jacob Astor. Bill Gates (Microsoft) “also has incredible focus and knowledge of his industry. As Ross Perot once noted, ‘Gates is a guy who knows his product.’ ”

In addition to paying close attention to details, the great leaders developed unparalleled competence and expertise through years of experience. They all emerged from long and dark valleys of frustration, disappointment, adversity and often failure, which tested their mettle, polished their skills and competencies and generated deep levels of perseverance and resilience. None of the great leaders surveyed ever appeared to succeed without first enduring what I call a long and frustrating “crucible period.” These experiences and the lessons gained within this “crucible period” allowed them to possess the necessary skills, experience and expertise to take advantage of opportunities presented to them. They were able to recognize them for what they were, and knew how to plan and profit from them. A notable example is Theodore Vail (AT&T). He “left the post office service to establish the telephone business. He had been in authority over thirty-five hundred postal employees, and was the developer of a system that covered every inhabited portion of the country. Consequently, he had a quality of experience that was immensely valuable in straightening out the tangled affairs of the telephone. Line by line, he mapped out a method, a policy, a system. He introduced a larger view of the telephone business… He persuaded half a dozen of his post office friends to buy stock, so that in less than two months the first ‘Bell Telephone Company’ was organized, with $450,000 capital and a service of twelve thousand telephones.”

In 1902, one hundred years after it was founded, E.I. du Pont de Nemours and Company, commonly known as DuPont, was sold by the surviving partners to three of the great-grandsons of the original founder, led by Pierre du Pont. He had grown up in the family business and had developed the necessary expertise to assume control over it. He understood the associated problems, issues and weaknesses that needed to be rectified, and drafted and executed the necessary plans to transform the company. “As chief of financial operations, Pierre du Pont oversaw the restructuring of the company along modern corporate lines. He created a centralized hierarchical management structure, developed sophisticated accounting and market forecasting techniques, and pushed for diversification and increasing emphasis on research and development. He also introduced the principle of return on investment, a key modern management technique. From 1902 to 1914, Pierre kept a firm rein on the company’s growth, but with the onset of World War I he guided DuPont through a period of breakneck expansion financed by advance payments on Allied munitions contracts.”

As a primary supplier of paints and lacquers required for automotive production, DuPont became a major investor in General Motors. Pierre DuPont replaced William Durant, the company’s founder, as CEO. DuPont made a key decision in promoting Alfred Sloan to the office of president. Sloan developed a detailed blueprint that transformed GM into the largest industrial company the world had ever known at that time. He “created structure so people could be more creative with their time and have it be well spent. He also came up with the idea that senior executives should exercise some central control but should not interfere too much with the decision making in each operation. It is difficult to describe many of Sloan’s ideas because most of them would seem like common concepts of a business, yet they were new and innovative at the time. Largely due to his invention, GM became the pioneer in market research, public relations and advertising. Before Sloan, people had totally different conceptions of these common parts of the American corporation.” Due to Sloan’s success, his corporate model highly influenced the development of the modern American corporation. His theories were actively practiced for over 50 years and remained unchallenged until Jack Welch’s (General Electric) influence permeated the mid-1980s.

[1]  Maury Klein, The Change Makers (Henry Holt and Company, LLC, New York, NY 2003) p. 106-107

[2]  Casson Herbert N., The History of the Telephone. Chapter II (February 1, 1997)

[3]  Pierre S. du Pont: 1915 (www2.dupont.com)

[4]  Alfred P. Sloan, Inventor of the Modern Corporation (Invent Help Invention Newsletter, August 2004)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, 2011)

If you would like to learn more about how the great American leaders attention to details to build plans and blueprints and formulate strategies for their business, refer to Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It. It illustrates how great leaders built great companies, and how you can apply the strategies, concepts and techniques that they pioneered to improve your own leadership skills.Click here to learn more.

Copyright © 2011 Timothy F. Bednarz, All Rights Reserved

Four Attitudes That Hinder an Empowered Environment

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The forces requiring companies to continually change, transform and improve are becoming progressively more compelling in today’s business environment. This is the result of a globalized economy, the shifting sands of deregulation and regulation, accelerated technological advances, and the competitive challenges posed by emerging companies.

Dealing with these forces can precipitate a crisis atmosphere in many companies as they attempt to retain market share in the midst of breakneck industry changes and political shifts. As these challenges have a definite effect on organizations and their ability to remain flexible and competitive, leaders can easily stumble into any number of pitfalls when striving to meet them. Empowerment is needed for an organization as a whole to surmount problems, issues and events that surface without warning, and to achieve the necessary growth these new pressures demand.

It is important for an organization and its top leaders to understand that power needs to flow to lower-level leaders and employees whose tasks, projects and assignments are needed to deal effectively with critical problems. The capacity of a company to strengthen itself comes from the empowerment of its members, which has its origin in the degree to which the organization is willing to share power with its leaders and employees.

In today’s climate, “power” is not found in controlling events and circumstances within the organization or outside its boundaries. Power is not focused on the personal gain, recognition or advancement of its individual leaders. It is a collective synergy found among all organizational members, a dynamis, or tireless energy that permeates the atmosphere. This is the inevitable result of delegating and including all leaders and employees in all processes that move the organization forward.

Pitfalls emerge when organizations fall short in actually sharing power where and when called for. This is most often the reason why the concept of empowerment fails to take root in an organization and become a concrete, beneficial driving force.

Many organizations often hold beliefs and views that run counter to empowerment. They are often shortsighted and ignore the fact that collectively, their members are the most critical resource they have to move forward. When organizations take a myopic view they fail to realize the actual potential strength they have at their disposal, and do not utilize their leaders and employees to their best advantage. They often claim leadership and empowerment as primary goals, but fall short in actual attempts to develop a climate conducive to supporting them. This is generally the result of falling into common pitfalls.

Maintaining that Power Is a Fixed Sum

Traditional organizational thinking promotes the idea that power is a fixed sum; i.e., if one person has more, others have less. Organizations and individuals within it who share this belief are also reluctant to share power. They hold on tightly to it. However, this philosophy seriously retards the accomplishment of extraordinary things through mutual, collective efforts. This is the real barrier to empowerment: when managers and even employees hoard whatever power they have.

This generates powerlessness in others. In turn it generates organizational systems where political skills become “business as usual.” These are actively used to “cover oneself” and “pass the buck.” They become the preferred styles for handling interdepartmental differences and lagging productivity and results. At the same time these actions and their motives create disharmony and hindering roadblocks to cooperative and creative efforts for necessary innovation. An organization will find its products, quality, and services suffer when these wanting political skills are consistently applied, and where eliminating them is overlooked or ignored.

Failing to Provide Organizational Discretion and Autonomy

Applying discretion and autonomy within an organization comes from actively supporting its members and trusting in their ability to take decisive action whenever and wherever necessary. It includes the right to exercise independent judgment, and to make decisions that affect how one does his or her job without having to check in with upper levels every time issues and concerns surface. Without embracing and promoting elements of discretion and autonomy, an organization’s total support network is diminished and ultimately destroyed.

The opportunity to be flexible, creative and adaptive is what enables an organization to make most productive use of its resources in moving ahead and overcoming challenges. If organizations allow for individual discretion, leaders and employees will have greater opportunity to apply their creativity and collective intelligence. They will have more choices about how to successfully accomplish given goals and objectives.

In addition, when an organization practices flexible discretion, it generates higher levels of responsibility and a greater sense of obligation among all members, as all individually feel more powerful and in control of events and circumstances that would otherwise overwhelm them.

Falling Short in Identifying the Real Sources of an Organization’s Power

Within an organization, traditional power is generally thought of as having and maintaining control over its resources. However, the real power of an organization is found in its individual leaders and through their employee groups. This is where the organization’s crucial problems can be solved to ensure its long-term success and viability. An organization can emphasize its willingness to acknowledge the power of its leaders and employees by:

  • Involving all members in its planning and directives.
  • Allowing delegation to be an active part of its culture with full trust and confidence that goals and objectives will be met.
  • Creating and implementing an empowered spirit and team attitude throughout the organization.
  • Finding unique ways to reward leaders and all other members for accomplishments large and small.

Being Reluctant to Give Power Away to Strengthen Others

Upper management must embrace the idea that the only potential market power and strength they have is maintained by the mutual efforts of their subordinate leaders and employees. It is dependent upon a positive interconnection and interaction among all three parties. Organizations must recognize the necessity of giving power away to others. Upper management must actively practice four principles that strategically strengthen the organization and the members within it. They include:

  • Giving leaders the power to use their own personal judgment in the delegation of critical assignments and decision making. This includes them then empowering their employees to modify methods and processes to increase quality, productivity and innovation.
  • Allowing leaders and other members greater discretion and autonomy over resources, projects, direction and outcomes.
  • Developing an atmosphere that builds relationships, connecting leaders and employees with other powerful people within the organization that can mentor, sponsor and coach them.
  • Promoting visibility and strengthening people within the organization by sharing information and increasing flexibility in work-related activities. Top management must be able to actively enable others to act with the organization’s best interests at heart, with realistic levels of accountability and without the risk of potential negative consequences.

Excerpt: Empowerment: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, 2011) $ 19.95 USD

If you would like to learn more about effective empowerment strategies and techniques, refer to Empowerment: Pinpoint Leadership Skill Development Training Series. This training skill-pack features eight key interrelated concepts, each with their own discussion points and training activity. It is ideal as an informal training tool for coaching or personal development. It can also be used as a handbook and guide for group training discussions. Click here to learn more.

Copyright © 2011 Timothy F. Bednarz, All Rights Reserved

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