Management + Motivation = Money in the Bank

A few short stories about management and motivation

I  wrote the following stories not to bite the management hand that feeds me, but in response to all those who seek a magic bullet to train and motivate their staff (while they are off playing golf).  They say that the problem is their new hires; they are lazy, stupid, poorly educated and lack any skills

There are certain skills like carving that require many years of practice ,but most factory tasks can be broken down so you don't need artists who can do every­thing, but just good people who can concentrate on a given process. I challenge you to find more than one or two operations at your factory that are more complex than driving a car. There are many uneducated people who became superb drivers in a short time. The reasons are simple: MOTIVATION, TRAINING and CLEAR INSTRUCTIONS

All of these require LEADERSHIP and in many case its simply not there. Let me share with you a few stories about management. Nothing ties them together and there is no concluding moral. I just want you to think about how you can do better at your company:

Larry the Liquidator  - An old movie: Other Peoples’ Money

Although a number of companies fail because they're victims of the economy, others self destruct. The actions of their managers, or their inaction, result in non­competitive companies that fall by the wayside. In the film, the well intentioned, caring managers fought a losing battle. Although this wasn't the greatest movie, its worth renting for Larry the Liquidator’s (Danny De Vito)  speech to the employees and stockholders may give you a jolt. He turned around the "politically correct" sermon on a company's responsibility to its managers, employees and community to point out their responsibility to the compa­ny and its shareholders. It is not quite as stirring as JFK’s  “Ask not what your country can do for you but what you can do for your country” but it brings home the point that employees must be educated to understand that they also have a responsibility to the company. Of course, this is valid only in mature companies not those run on paternalism or as plantations.  Rent the movie! Even if you don't like Larry's message, it rings true.

Larry ended up turning around the company. The first thing a Larry always does is in a turn-around is re­place complacent management with people who understand the importance of being aggressive; in meeting the shareholder's needs and in dealing with the employees and community. Aggressive doesn't mean threatening. (Fear doesn't work, nor does the opposite approach of having smiling "android" managers walk around, just saying "hello" to all employees.) Both styles are manipulation not management. Remember, successful leaders don't just manage, they inspire!

Hard and Soft Engineering

Henry Ford was rightfully proud of himself. He was watching the first cars come off the assembly line which proved that his concept of dividing work into small elements among many workers was feasible. Every six minutes a new Ford rolled off the line.

  Later that day his pleasure faded when the line repeatedly stopped because some of the new cars couldn't be started at the end of the line and some of the manufacturing supplies were defective. He must have then realized that Manufacturing Engineering 101 wasn't enough. His first task for tomorrow was to learn how to handle rejects and fluctuations in supplies.

  Henry Ford learned all these lessons well except how to deal with factory people. He motivated them solely with money and created a paternalistic empire.  At the same time, Frederick Taylor was experimenting at Western Electric with changing the light levels on the production line to maximize productivity. He found that the key to productivity was really management's interaction with workers. Not just caring and stroking, but clear communications on what to do and when to do it as well as feedback on production and employee performance. Mr. Ford found out the hard way that a production line is not the same as a slave galley where all management had to do was beat the drum. Mr. Taylor found that humans are very complex and changing light levels only controls the productivity of chickens laying eggs.

  Manufacturing engineering has come a long way since those days. Successful companies don't develop new projects and concepts in a vacuum. They learn to avoid the extremes of doing it themselves without outside expertise or to depend on turnkey projects which lack pride of ownership. They blend "hard engineering" - plant layout and methods - with "soft engineering"- information systems, human factors, and quality control - and add a dash of experience.

When Lunatics Run the Asylum

You've just put a new manager in charge of your branch factory and he is doing a fantastic job. Indirect labor and material consumption are down and output is way up. Are you sure? Maybe something crazy is happening?

Costs go down at the asylum when the doctors are fired, patients aren't given medicine, records aren't kept, and fuel isn't reordered.

  Sure your costs go down, if you arbitrarily cut your labor force, stop maintaining equip­ment, have no meaningful systems, and lose control of inventory. If you want to survive, face reality - management requires managers. Real professionals, not just surfboard riders who make a glorious ride on the first high wave. Time for a reality check?

An old book: Father, Son & Company

Tom Watson's autobiography is about his relationship with his father and how he conducted business. It's strange to think of IBM as a family-run business but even stranger was his father's habit of hiring and promoting people solely on their

looks. This philosophy had a cancerous flaw which took too long to come to light. Hiring "clones" and having their superiors train them by example never exposes management to fresh ideas. In-breeding of company loyalty, whether by family or hiring practices, results in "inertia decisions" and too strong a belief in existing processes and product line. Outsiders, like consultants, open up the windows that bring in a breath of fresh air.

Regardless of the long-term management consequences, Watson’s hiring practice worked well at the sales and factory floor levels. The reason was policies which motivated and trained people through a one-on-one mentor relationship which not only trans­ferred detailed information but assurance that there was someone who cared. It reinforces my belief that management support is the difference in factories with world class rather than no class workers.

A few final words: Computers will never replace managers. All they offer is quick calculations and "artificial intelligence". Remember intelligence is often artificial but stupidity is too often real.