There are also metrics that have both a quantitative and qualitative component. Quantitative metrics are essential but not sufficient. Quinn and colleagues conducted research of managers from 117 organizations, concluding with a list of twenty-one operational problem categories faced by managers. The input came from working managers who are expected to meet certain specified objectives every day. Resolving this list of problem categories in the context of the organization’s purposes and expectations is the starting point for developing the needed information for evaluating performance. Not every issue involves every organization but selecting those that do apply and developing a performance scale will provide a metric. I have added four additional problem categories that significantly affect performance.
This list of twenty-one-plus-four problem categories, can be considered from both a qualitative and quantitative perspective, but the quantitative requirements may not be rigidly applied. Each problem category is followed by several questions that allow you to focus the issue more closely on your department. You may choose to add or refine these problem categories to meet the needs of your department and then develop some scale of measurement, such as 0 to 10; important or not important; did not meet expectations, met expectations, exceeded expectations; or whatever fits the requirements of the department. A response to these categories by the department or a group of managers will raise many questions, but until there is some agreement on the importance and status of each it will be difficult to gain a clear picture of where the department and the organization are heading. I’m using the Quinn et al. list because it’s based on research and provides a view from real-life managers. The results are shown in decreasing level of importance, but your priorities could be quite different.
Competitive External Pressures. All organizations compete for resources, for talent, for position, for market share, for reputation, for recognition, for its service to the community, and more. Knowing or preferably anticipating the level of competition allows the manager to take the lead and plan for the future.
Questions: Is competition a factor in your department’s area of responsibility? Who are your competitors? Are you leading or playing catch-up? Do you really know and understand their strategy and operations? What are their advantages? What can you do to take the lead? Are you competing within your own organization or accepting the status quo?
Lack of Strategic Direction. Every organization needs to know what it wants to be, where it wants to go, and how it plans to achieve its purposes and objectives so it needs a well-defined strategy that points all departments in the right direction.
Questions: Does your department have the appropriate strategy to accomplish its goals and objectives? Does the strategy provide for taking into account the dynamic changes related to economic conditions, introduction of new technologies, and developing markets? Are those strategies documented and communicated? Note: Beware of strategic planning sessions that yield binders of wishes rather than actions required to take advantage of new opportunities.
Multiple Accountabilities. The theory or practice of eliminating multiple reporting relationships may be an unreal expectation in a global economy, so we may need to develop the skills to be accountable to different entities. Never in my career have I been accountable to less than two people, and I never encountered any serious difficulties. As a manager you need to be sensitive to the fact that some people cannot function effectively when reporting to more than one person.
Questions: If multiple accountabilities are an issue, have you identified the people who can and cannot function in this mode? Do you understand why they cannot be accountable to more than one person? What do you do to eliminate any problems because of multiple accountabilities? Are you as a manager comfortable with multiple reporting relationships?
Chaotic Job Rotations. Removing people from a job assignment at an inopportune time can create chaos either in your department or a related department. There will be times when a rotation may be absolutely essential but managers should recognize the consequences of their decision. Emergencies should not become the operational standard. Avoiding inopportune rotations requires anticipating the future.
Questions: Is there a backup plan, either inside or outside the department, in the event a key person is recruited for a new assignment? How would you respond if upper management insisted on a transfer of a key person?
Unmanaged Growth. Managing growth creates a major challenge not only for the organization but also for the department. Yes, there can be unmanaged growth within a department. Managers like to increase headcount, thinking that such actions somehow enhance their position.
Questions: Do you have a plan for developing the right mix of talent, which might include adding, transferring, or terminating? Do you understand the amount of effort required to bring new people into the group? When adding staff do you consider eliminating the programs that no longer provide a benefit?
Poor Financial Performance. When the money spigot is turned off problems increase at record levels, hours of valuable time are wasted talking about the problems, the issues are seldom laid out on the table for total examination, and piecemeal programs are put together to resolve the problem instead of providing the major surgery that may be required. This applies to all departments and organizations.
Questions: As a manager, how will you respond to a decrease in your department’s budget/forecast? Do you really need that full budget/forecast to meet your results? Does the budget/forecast specify specific projects? Do you have a backup plan for contingencies that may arise?
Process Problems. All organizational processes play a major role in determining the organization’s sustainability. Processes guide an organization in meeting its objectives, they provide a level of consistency in performing certain functions, they allow those schedules assigned to the goals to be met with a minimum of confusion, and they prevent reinventing the wheel many times a day.
Questions: How familiar are you with your department’s processes (from product genesis, distribution, and administration) and the organization’s processes that affect your department? Are your department’s processes documented and do they reflect current conditions? How do you resolve complex process problems?
Dissatisfaction with Quality. Every organization cannot help but focus attention on quality; the quality of its products and services (every organization has these), the quality with which it treats its customers and clients, the quality with which it recognizes its employees, the quality of its management, and the quality of the many interrelations that allow an organization to meet its goals.
Questions: Does your department have quality programs that include all disciplines and functions? Does your department fully understand the impact of not meeting quality requirements? Is there a method for measuring performance quality? Does your department fully understand the cost implications of not meeting appropriate quality standards?
Inadequate Resources. Resources will always be limited, but using available resources effectively and efficiently can alleviate much of the shortfall and can provide opportunities for innovation. New knowledge and new technologies such as simulations and modeling can be used to provide the information that might lead to substitutions. The adage that necessity is the mother of invention continues to have relevance. But also keep in mind that resources do not only include people and money: resources also include intellectual property, technology, time, the distribution channels, customers, suppliers, and all external resources.
Questions : Are you and your staff knowledgeable about the available resources provided by the organization as well as those available externally? How much effort is invested at the not-invented-here (NIH) approach? Please note that NIH is not just related to the technical side of the organization; it begins at the top and flows throughout the whole organization.
Disappointing Sales Performance. Every organization sells something. Industry sells products and services; academia sells educational programs and programs to expand facilities; government sells programs to the citizenry; the not-for-profits sell the benefits of their activities through fund raising programs; professionals sell their ideas to their managers; and managers sell ideas up the organizational ladder. Everybody sells in some way. Selling is not a dirty word.
Questions: How would you rate yourself, your staff, and your organization on selling ideas and concepts to others independently of where they fit on your organizational pyramid? What do you do to teach your staff to do a better job of selling their ideas and the needs and directions of the organization? As a manager do you insist that your staff practice their selling skills in the operations of the department?
Difficulties in Partnering. Partnerships whether internal or external succeed or fail depending on the people involved. Partnerships by their very nature require a give and take in the decision processes; equal distribution of workload; the ability to resolve conflicts rapidly; less reliability on the letter of the law; and a special relationship between the partners that allows for flexibility and agility. Keep in mind that people working on a project are partners.
Questions: Does your staff develop both internal and external partnerships to the benefit of your department and also the organization? Do your project people work as partners and develop a sense of collegiality? Do you manage the department as a partnership?
Overworked People. Overwork appears to be a common complaint but the question must be asked whether people are overworked or never learned how to work. Do we mean overworked by the number of hours worked or the perception of being overworked due to other factors?
Questions: Are effectiveness, efficiency, and economic use of resources in all activities stressed in your department? How much benefit are you receiving from the introduction of new information technologies? Do you introduce new technologies and continue to use the same old tired processes? What have you done to decrease the amount of data overload? Do you know the number of hours spent because requirements were not adequately defined?
Conflict and Intimidation. Conflicts are bound to arise in any situation where different disciplines are brought together to resolve an issue. Lack of a common language among disciplines is only a minor part of the problem. Of course conflicts can involve any number of minor or serious issues. There is only one way to resolve conflict and that involves putting all the issues out in the open to be discussed without excessive amounts of emotion; I say without excessive emotion because emotion will inevitably be involved to some extent. In situations where two immovable objects are involved, someone must come in and make the decision.
Questions: Do you generally "kill the messenger" who brings bad news? Have you and your people faced conflict openly or paid the price because of lack of candor? How often does serious conflict arise and regarding what types of issues? How would you rate yourself and your staff in regards to managing conflict?
Corrosive Political Climate. We need to be cautious in using the phrase "corrosive political climate." Wherever there are two or more people politics will play a role but it need not be corrosive. When politics reaches the point where lack of trust, self-serving behavior, and lack of cohesiveness dominate any situation, then the manager has few alternatives. We will find occasions where regardless of the amount of effort dedicated to resolving a situation among a group of people no one makes a move to help. This may be a time for coaching or a time for practicing command and control. If command and control is required the only option may be termination or transfer of the immovable objects.
Questions: Are you sensitive to the political issues in your department and when necessary can you make the difficult decisions? Do you know how to avoid the impact of destructive politics? It can take years to develop trust and cohesiveness in a department and seconds to destroy it. Are you sensitive to the issues and actions that may be leading to developing a corrosive environment?
Underemployed Human Resources. The underemployed and noncontributors not only generate added costs from their inaction but also from the time they waste for their colleagues. The underemployed soon begin to lose their motivation and eventually become the noncontributors at both real and emotional cost to the department and the organization. People need to be given stretch targets in order to keep them employable. This is especially true of people whose work is routine and requires little thought.
Questions: Can you quantify the number of actual underemployed and noncontributor hours in your department and hold them to some acceptable and appropriate level? Do you have a means for identifying the lost hours? If you have underemployed and nonperformers in your department, how did they get that way? Can you provide any guidance that would make them productive employees? Do they remain because you lack the courage to act?
Cultural Misunderstanding. Culture, as noted in Managing Individual and Team Relationships, plays a role in a department’s performance. Working across national cultures requires added sensitivity to the needs of those cultures. That does not mean subjugation to every wish of the cultures. There are no mysteries in working with different cultures. It only requires some effort to know and understand something about the culture. From personal experience I have found that a mix of people from other cultures will eventually develop a culture of its own that some-how blends the cultures into a new one that satisfies the requirements. Unless people and organizations learn to communicate effectively, misunderstandings will occur.
Questions: If involved in cross-national activities, do you have an interest in learning about the culture and at least some rudiments of the language? How would you coach your people if they were involved in cross-national activities? Have you had instances where crossing national boundaries was essential and, if so, what did you learn to do and what not to do in the future? Cultures within an organization can be quite different; can you accept those differences and still maintain good working relations?
Unresponsive Headquarters. In recent years most headquarters are beginning to realize that they are not the infinite source of all knowledge and wisdom. Those people across both oceans do have something to contribute beyond being told what and how to do something. At the same time headquarters, what I like to call the motherhouse, will dominate in the final decision. That’s reality.
Questions: What is the attitude of your organization and your department when dealing with headquarters? If you’re in a position that requires working with the motherhouse, do you give up on the first try at selling a concept or do you try, try, and try again and again until you get the required attention from headquarters? Do you have a plan that might include someone at headquarters to assist you?
Lack of Innovation. Innovation is one of the most difficult issues facing organizations. The stakes are usually high, there are significant risks and uncertainties, and it takes an exceedingly astute management to listen to the constructive mavericks and allow them the personal freedom it takes to innovate. Innovation is not about generating ideas; it’s about doing, or taking an idea and bringing it to fruition. Innovation is about conceiving an idea, building it into a saleable concept, and implementing it. No implementation, no innovation. As a manager, innovation will be expected from you and your staff. If it’s not expected it might be advisable to update your resume.
Questions: What would your innovation index be? If there is no innovation within the department, how will you go about promoting it? As a manager do you treat everyone equally or do you make allowances for the most productive contributors? Do you and your staff understand the implication of being innovative? Do you have those productive mavericks that will determine the future of your department? As the manager will you provide the freedom and resources to sponsor innovation? For a full discussion of innovation, see Innovation by Design.
Overemphasis on Analysis. Analysis is essential but synthesis of that analytical work cannot be avoided. But just how much analysis do managers need? Follow the 80/20 rule. Eighty percent of the required information can usually be acquired in twenty percent of the time. The issue is getting the right eighty percent. Only measure what you need and then use your judgment. No computer will provide the answer. You cannot avoid making judgments on many different issues, that’s why you’re a manager. If the computer could make the judgment you wouldn’t be needed.
Questions: How do you approach analytical studies? Do people who do the analysis have any knowledge about what they’re analyzing? Are the analyses in any way being compromised because of certain known preferences by upper management? Do the analyses take into account the system or do they deal with single issues?
Inaccessible Information. The organization owns the information, so why isn’t it available to those who need it? Human nature somehow manages to interject itself and information is held closely and not available for distribution. Withholding information when needed only adds cost. I remember a case in which a division vice president refused to give an upper-level manager the opportunity to review a strategic plan for information that was needed.
Questions: Following the approach of need to know, do you and your staff limit distribution of information or any intellectual property? Do you have a policy on free flow of information? What has lack of accessible information cost your department and the organization? Is information available though some formal and standardized database or is it difficult to find when needed?
Resisting Globalization. Most organizations have little choice but to go global. The mother country is no longer the source of all knowledge and it is no longer the source of all expanding markets. But going global creates a great deal of uncertainty for the organization; it needs to learn how all those other countries do business. The requirements are different. A very successful product in one country may require modification to be sold in another country. Governmental regulations vary from country to country and require compliance. While many difficulties can arise and need to be resolved the alternative to resisting global involvement is stagnation and eventual dissolution.
Questions: Has lack of global involvement by your organization had a negative effect on performance? Is your organization currently involved in any global activities and if not, should there be an effort to become involved at some time in the future? Is there a general interest on the part of the employees in your department to become involved globally? As a manager you know that going global involves an investment of resources, will you invest those resources if justified?
The ranking of these twenty-one issues will vary depending on the type of organization. You may disagree with the rankings for your own organization but this is what the managers reported. It is also difficult to go through this list and find any one issue that does not apply to all organizations and departments at some level. The order of importance may be different but the issues exist in every organization. Now I’d like to add some issues that I have uncovered in my years of experience.