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
professional manager, the facilitator, the person whose value lay in his
ability to help 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 management skills are needed as the business grows, just as innovation
and technical skills must improve. At the earlier stages of growth
technical managers do quite well managing everything, 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 then
becomes to provide a mission and a strategy for the organization as a whole
as well as all of the operations within the enterprise, and to facilitate
the functioning of each of the organization's 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 help other people do their jobs. 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
in the outcome of the whole as well as his segment. He must be willing
to not only accept change, but to introduce it if the results would better
meet 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 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.
1. 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.
2. 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.
3. In a
growth environment or in a large organization the management role can increasingly
involve planning organization wide issues; coordinating many different
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.
4. 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.
5. A good
manager will maintain the vision of the organization as a whole and he
will acknowledge that his individual success is dependent on the success
of the organization. So how do we avoid the problems associated with a
bunch of managers creating their own independent environments? One
way is to limit their roles and another is to facilitate the managers activities,
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 the possibility of the failure of the whole
organization will be increased.
7. Change and
growth are normal and healthy for all organizations. Managers should
encourage change and growth, facilitate the activities of the organizations
mission, and they should have as a goal working themselves out of their
jobs.