Copyright 1998 pwdickson
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Does a sole-proprietor
need management skills? Are they different from the skills
necessary to simply do a job? If not, what sort of organization needs
people with management skills? Will the management requirements be different
at different points in an organization's existence or will they remain
constant throughout its useful life? Is it possible to attribute
success or failure to the quality of management activity? What is
management? What makes it good or bad?
In the simplest
form of business enterprise one person is responsible for all aspects of
the life of the enterprise. Selling lemonade from your front sidewalk
involves all the aspects of business that are found in the largest corporations;
the differences being in the scale of the enterprise and in its complexity.
One person, let's say his name is Peter, decides that there might be a
market for lemonade; he uses his savings to buy the materials, borrows
the equipment, produces the product, markets the product, and, after paying
back any loans or expenses, uses whatever income remains to finance further
operations. The success or failure of his operation is dependent
only on his imagination, skill, and energy; he doesn't have to share the
profits or the glory with anyone else and has no one to blame if it fails.
Peter proceeds
to put his profits back into the expansion of the business. Eventually
his business turns into the largest of it's kind with world wide sales
of lemonade exceeding all others. He no longer mixes the lemonade
himself, or is solely responsible for the promotions, or the real estate,
or the sales, or the financing, or for determining the markets or for any
one part of the operation. In fact the product may bear little resemblance
to his original lemonade, what with government regulations and innovations
that came in part from the many people he had to hire to accomplish the
expansion.
Initially the
help that Peter needed wasn't technical, he was pretty good at all aspects
of his enterprise, he simply needed more people as extensions of his hands
not for any additional expertise. As his enterprise grew the demands
of the operations exceeded his experience and additional technical help
was necessary. More importantly however, he needed help keeping track
of all the schedules, conflicts, appointments, regulations, and technical
help at his disposal. His role became more conceptual and less hands-on
practical, which, he discovered, was where he was actually most valuable
after all.
Part of the people
he had to hire were specialists; lemonade tasters, accountants, salesmen,
and Architects, and part were people whose specialty was simply making
the organization run, irrespective of whether the product was lemonade
or hubcaps. In other words to make the enterprise work efficiently
Peter had to hire a certain number of people whose only mission was to
facilitate the people who were actually accomplishing something measurable.
It's hard to imagine
but Peter's ultimate success actually depended on a whole bunch of people
who didn't know a damn thing about lemonade but were really good at finding
and organizing people who did. Some where between initial success
and ultimate success managers became important. Even more surprising
is the realization that Peter probably didn't know exactly when that happened;
one day he's struggling along with his technicians doing just fine and
the next he needs to have someone to help him manage them.
Peter ended up
with two broad categories of people; those who were involved directly in
the production and sale of the lemonade and those involved in facilitating
the production and sale of the lemonade. Actually it wasn't quite
this simple, there was another category of help; technical managers, specialists
who managed whole groups of specialists. Ah Ha, the birth of the
manager, the professional facilitator, the person whose value lay in his
ability to get other people to do the actual work and to do it efficiently
and effectively enough to almost pay the manager's salary.
It seems clear
that you can't get to be the biggest lemonade maker in the world all by
your self. You have to trust people to help you and reward them for
their efforts. You also have to be willing to delegate at least some
of the authority and responsibility to those whom you trust, and in the
process to give up some of the glory that comes with success as well as
(whew!) some of the responsibility for the possibility of failure.
What are the characteristics
of a manager that make them so important in the scheme of things, and why
would someone want to do something that wasn't directly productive?
One can only deduce
that managers must like success just like the technical people and their
job must require skill because the purely technical people weren't as good
at managing as the managers. The answers, it seems, have to come
from looking at the enterprise from a broader perspective than just one
person and his vision. A vision is simply a vision until someone
facilitates it....that must be the thing that managers do, facilitate!
Good management then would be doing a really good job facilitating things
and bad management would be getting in the way of getting things done.
If you don't get much done you'll probably fail whereas if you get a lot
done you have a pretty good chance at success. At least in part then,
success means good management and failure means bad management.
In many enterprises,
like the lemonade business, growth or change is a part of the business.
Along with the growth or change the demand for management skills also changes;
more is needed as the business grows. At the earlier stages of growth
technical managers do quite well, but as the enterprise gets bigger the
need for professional managers with a broader viewpoint, than one specific
aspect of the business, are needed. The necessary viewpoint is one
that encompasses all of the activities of the enterprise, keeping a balance
between sales, production, and finance as well as all other activities
of the enterprise. The role of the manager becomes to provide a mission
and a strategy for all of the operations within the enterprise, and to
facilitate the functioning of each of the organizations specialties.
To become successful
Peter had to select his help carefully. He chose only those people
who complemented his abilities and extended his reach, allowing him to
better utilize his time; facilitating his productivity. He certainly
would have avoided hiring people whose efforts might have been redundant
and people whose ideas about what lemonade is were different from his.
I think I'm finally
getting close to being able to define what a manager is and determine whether
he's good or not. First and foremost a manager must be a facilitator;
someone who is able to get other people to work towards the ends he chooses.
He must share the goals and aspirations of his employer. He must
be willing to accept only a part of the responsibility for the outcome
and that only indirectly. He must have a general knowledge of all
aspects of the portion of the business with which he is involved and be
interested primarily in the outcome of the whole rather than his segment.
He must be willing to not only accept change, but to introduce it if the
result better meets the mission and strategy of the total enterprise, even
if the change seems to reduce his influence. The environment
of the enterprise should as a matter of course encourage and reward people
to attempt to work themselves out of their jobs.
A good manager
must be willing and able to personally grow and change with the enterprise.
That doesn't mean that he can't know how to make lemonade (so much the
better) but he must be willing to delegate expertise in a particular area
so that his energies can be more productively spent on facilitating the
outcome of the total product. A good manager is one who can
change from being a good lemonade maker to becoming a facilitator of good
lemonade makers.
The higher the
position in the organizational hierarchy the less the necessity for occupational
specific management skills and the more important the general administrative
and human motivational skills of the manager. Technical people with
management skills are better suited to managing technical operations than
administrative managers; a lemonade taster is probably not very well suited
to becoming the CEO of a lemonade company, and the CEO should probably
stay away from lemonade tasting.
In a growth business
there will be an increasing need to delegate; as the size and complexity
of an enterprise increase the amount of effort necessary to maintain the
enterprise also increases. If everyone in the enterprise was a lemonade
taster working one 8 hour shift you probably wouldn't need more than one
manager, but with tasters, mixers, buyers, sellers, and all the other skills
the enterprise needs to be the best you need a lot of managers. The
more complex the enterprise the more managers you need to coordinate the
various activities within the enterprise. You can either make the
organization less complex or pretty much count on needing more managers
to keep the whole operation functioning anywhere near peak efficiency and
effectiveness.
Part of the purpose
of management in high growth organizations is to develop and implement
the systems necessary to deal with the increasing complexity of the organization
and to minimize the perceived necessity by individual managers to create
their own, usually conflicting, sub-environments. An organization's
growth must be carefully programmed to avoid having more managers than
are actually needed; there's something about large organizations that encourages
managers who are left to their own devices to reproduce at an appalling
rate, and too many managers just get in the way.
In a growth environment
or in a large organization the management role can increasingly involve
organization wide issues; coordinating various disciplines, encouraging
and enabling positive (mission consistent) performance, defining roles
with a clarity of purpose, and encouraging and facilitating more appropriate
market responses. The problem is that it's hard to put an absolute
value on planning because planning involves tomorrow and we always feel
like we really need to spend our time feeding the alligators today.
On top of that we might get hit by a truck so why plan at all? Without
being able to plan managers couldn't really be managers, and since we agree
that we need managers, we have to let them plan, I guess that's better
than waiting to get hit by a truck.
Management style
is largely determined by the individual manager's need to shape his environment
to facilitate his own capabilities or objectives. We as human beings
tend to judge our environment by what we feel are our own abilities and
expectations and seek out or create the environment that we as expect to
be the most sympathetic to our own needs. The problem comes when
you have a bunch of managers all creating their own environments.
A good manager
will maintain the vision of the organization as a whole and his end objective
will acknowledge that his success is dependent on the success of the organization.
So how do we avoid problems? One way is to limit the number of managers
to the minimum needed for the work at hand, so they don't have enough time
to create their own environments. Another way is to carefully create
the operating environment for them, (accommodating all the good things
from each of the individual managers), and another; to define roles and
procedures for them in advance so they don't have any justification for
fretting about what they are supposed to be doing. So... to
be sure everything works to the advantage of the Enterprise you have a
manager to manage the managers. His job is to thoroughly describe
the mission, establish the strategies, and write the rule book for the
enterprise as a whole (with help of course), as well as to facilitate.
Enterprises start
with the vision of one (or at least a very few) and are successful to the
degree that they accommodate the growth and metamorphosis of the vision
and are successful utilizing the skills and talents of the less visionary.
The good manager will operate from the basis of extending the vision through
growth and change as well as keeping the sense of the vision alive.
To start to make Fords in the middle of a batch of lemonade seems to be
a bit out of step with what you'd expect the vision of a lemonade maker
to be.
Peter didn't choose
to be a manager although that's what he ultimately turned into. He
started out as a sole proprietor... A Lone Wolf Entrepreneur. That's
what he chose to be simply because it was the only way to get started and
because he preferred his own vision to the visions of others, it wasn't
an accident. He had a vision and he was able to organize his vision
into a viable enterprise. He started out an organizer of things defining
his own goals with concrete outcomes and ended up hiring people to facilitate
his dreams.
Part of the reason
Peter was successful initially was that he knew how to make and market
good lemonade, and he had complete control of the operation with a clear
description of authority and responsibility (himself). It's
interesting to note that his success was almost his undoing. Because
he was used to doing it all himself (and was actually very good at all
of it) he had difficulty learning to delegate. Fortunately, Peter
realized that he could be even more successful if he could learn to use
his help effectively; to manage and to learn to work with managers...to
facilitate.
To summarize the
ideas about managers without being dogmatic or attempting to be all inclusive,
I've come up with the following general observations:
1. As an enterprise
grows the organization itself needs tending to, apart from the product
or service it produces.
2. In the early
stages of growth (when it's small) the enterprise works quite well with
primarily technical people and no managers (specialists in management).
3. At some mid-point
in it's growth an enterprise needs someone to coordinate the whole show
and make everything come out on time and operate smoothly and efficiently
....a facilitator ...a manager.
4. Managers can
be very good for and important to the operations of an enterprise provided
there aren't too many of them and provided that they are bound together
by the common good of the enterprise.
5. Someone has
to describe the mission and strategies of an enterprise and ensure that
the whole enterprise is going in the same direction and that's probably
going to be a manager of some type, conceivably even a manager of the managers.
6. The vision
of an enterprise must be relayed down through all levels of an enterprise
and consistently implemented or a lot of energy may be wasted and the possibility
of failure will be increased.
7. Change and
growth are normal and healthy within an organization and should be facilitated
not discouraged by the managers.