The iceberg sank the unsinkable ship; it’s the villain of Titanic and it’s Grumpy Cat’s favourite character. But was the iceberg really to blame for this momentous event? Was it the iceberg that caused the Titanic to sink, or could it perhaps have been the lookout in the crow’s nest that didn’t have binoculars, or was too cold to focus on what he was doing?
In South Africa today we hear people voicing their opinions daily about corruption, inflation, the petrol price and toll roads. Companies are complaining more and more about lower productivity, increasing costs of motivating employees and higher levels of dishonesty. Could these be modern moral dilemmas or simply the manifestation of age-old behavioural biases that we are only now beginning to understand?
Avoid reactionary decisions
Economists claim that the world is predictable, but this’s not true. If this was correct then no one would drive expensive cars, because the point of a vehicle is to get from A to B, and therefore the smallest, cheapest car would suffice. Economics don’t frame people’s choices; people’s behaviour and their reactions frame choices.
What people often fail to realise is that decisions are made according to the limited information they have at hand. All they see is the tip of the iceberg. This means that decisions are made in a reactionary manner, without being fully aware of all of the facts.
An example of this is a study that was done by Coca Cola to see whether people preferred Coke or Pepsi. In a one sip taste test, people preferred Pepsi. Coke panicked and changed its formula, which no one liked and eventually Coke reverted to Coca Cola Classic. The point was that people liked one sip of Pepsi more because it was sweet, but if they had to drink a whole can it would be too sweet, which made Coke the preferred soft drink all along.
Another example of this is a mine that we consulted for. The employees were leaving early and this was costing the mine a lot of money. Managers would dock their pay and threaten them, but this didn’t work.
Eventually we discovered that the reason for these employees leaving early was not because they were being lazy, but because the geysers at the compounds were too small, so they were trying to be the first back in order to be able to shower in hot water. The geysers were replaced and the staff stopped leaving early, upping productivity and saving the mine a lot of money.
Be informed, then act
How then do managers guide their staff in a manner that is fair, non-reactive and that allows them to take in the whole picture? There are five steps which managers should follow to assist in changing employee behaviour.
Firstly, it’s very important that managers frame their requirements in such a manner that the employees understand what is expected of them. Secondly, it should be ensured that what is required of them is available or possible to do.
Managers should also consider the crowd effect and whether requests can be complied with without breaching social norm rules that govern our behaviour. People must be given choices of what to do, but not too many, and, lastly, factors used to make decisions should be channelled in a manner that will make the decision process as easy as possible.
The biggest question we should ask ourselves when considering people’s behaviour is; what is it that people really want? The answer to this, in simplified form, is that people want to feel like they are in control, they want to feel that they are progressing towards something, they want to feel connected and they want their decisions to lead them towards the accomplishment of some form of vision or meaning.
The full chain of events
If people’s perceptions, usually based on only the tip of the iceberg, are the propulsion behind their decision making processes, then understanding some perceptions could aid in understanding people’s choices.
Five perceptions regarding sales, for example, include that there is no real sense of value for money, that emotions trump rationality every time, that the decision process needs to be simplified, that people dislike losing more than they like winning and that people learn from others.
Why don’t we understand? Because we don’t grasp the full chain of events that led people to a particular decision. There are innumerable factors which play a role. When people begin to dig deeper and look below the water at what the rest of the iceberg is made of, a whole new world of possibility and understanding is opened up.
Why Small Teams Get It Done Better, Faster And Under Budget
How is a project delivered four months ahead of schedule and R2 million under budget? Because small teams deliver work within significantly shorter time frames and with smaller budgets. Here’s how.
We will focus on teams that are given tasks that must be completed within a specific time frame, for instance a set number of items by close of business or objectives to be reached by a specific date, and we will also investigate the difference in performance between larger and smaller teams. Our case studies are based on client interventions by a management consulting company that co-author Anton Burger worked for. During these client interventions he worked with and managed teams ranging from two to 110 people across various industries.
An interesting truth was revealed during two such client interventions several years apart when two teams, one large and one small, had to deliver the same type of solution. The smaller team delivered the work within a significantly shorter time frame and with a smaller budget.
Over the 19-year period that our co-author Anton Burger worked with and managed teams, the question was often asked, why are smaller teams able to achieve so much more? Let’s look at the following example.
A big life insurance company wanted to computerise their business processes to improve operational efficiencies. This would not only bring down operational cost but also improve customer experience.
The management team of the organisation approached Victor Pereira (pseudonym), a management consultant, to assist with the selection of suitable software to computerise the business and to put a team together to implement the system. A system was soon selected and a seven-member team was established.
The team consisted of a team leader, a two-man development team, an IT expert and a three-man business analysis (to determine the needs of the business) and testing team. The members of the team were all specialists in their fields and had much experience.
Besides the normal challenges that go with a project of this nature, there was one additional challenge — the version of the software in question had never before been implemented anywhere in the world. The client would be the first.
Adding to this challenge was the fact that, should any software code issues come up, they could only be resolved by the software provider based in the United States. This meant the team needed to be flexible and had to work after hours in South Africa to coincide with the working hours of the software provider.
However, the project team took ownership of the challenges and was determined to solve the issues and implement the system. The relatively small size of the team made communication and decision-making easier.
Large teams heighten complexity
Each team member was adaptable, committed to the project goals, and took ownership. This insured effective and high-quality deliverables. A combination of factors, such as the size of the team, the right people with the right skills and their commitment to the goals, ensured that the project was delivered four months ahead of schedule and R2 million under budget.
After the successful completion of the project, Victor was approached by the life insurance company to salvage a project to replace their outdated and disparate transactional systems (that had already been computerised) with a single modern system. The company had already spent some time and money trying to implement a new transactional system but little progress had been made. As project director, Victor was confronted with the challenge to restart the project and complete it within the original time frame with a smaller budget.
Given the time pressure, the company believed throwing a big team at the problem would help solve it. Up until this point in his career, Victor had predominantly worked with smaller teams and had never experienced the challenges surrounding teamwork in a team of this size.
A mixture of existing and new teams was assigned to the project. This overall team, totalling 110, was made up of multiple sub-teams ranging between four and 12, each with their own team leader. Multiple vendors supplied software components, which had to be integrated with each other and existing interfaces.
The multiple teams and vendors, combined with a highly regulated financial services environment, created an extremely complex project. The size of the greater team posed a significant challenge in terms of communication and co-ordination. Teams started planning their respective deliverables, sometimes without consulting or planning with other teams that were involved. Some team leaders excluded team members from the planning process, which meant that team members could not commit to time frames. This led to a lack of commitment with team members not taking ownership.
Consequently, the project struggled to gain momentum. A project of this scale requires careful planning and coordination between the different teams involved. Teams depended on deliverables from other teams to meet deadlines. For example, the development team could not start development unless the business analysis team had completed their business needs specifications.
The problems were exacerbated by the fact that team leaders did not have the right authority levels to make decisions on the spot and this also hampered progress. One of the key teams started missing critical deliverables, which had a negative impact on all the other teams.
The moment non-delivery becomes a reality, pressure mounts for all parties involved. At times like these the level of trust among team members is the glue that holds things together. However, in this case there was a breakdown in trust among some members of the overall leadership team.
At this point Victor realised that at the current rate of progress the team would not reach the project goals. An intervention was needed. He red-flagged it with the managing director of the company and it was decided that a different approach to coordination was urgently needed.
The project was stopped and the approach reevaluated. The entire project was re-planned but this time with all the team leaders and team members involved. Victor was astounded by the complete about-turn in the team morale. This resulted in more realistic timelines and commitment from all team members, which fostered a sense of ownership.
The project made good progress but sadly, due to the significant delays, the original launch dates could not be achieved and the project was over budget. Surprisingly (or not), the small team that was incorporated into the bigger team made excellent progress and delivered on their scope of work, on time.
Small teams achieve better teamwork
The value of teamwork, the importance of managing teams well and even the effectiveness of smaller teams have been well documented and developed over the past 70 years. In the 1950s a more scientific approach was introduced to the concept of teamwork when two American engineers, Joseph M. Juran and W. Edwards Deming, took their philosophy on quality to Japan. They were invited by the Japanese Union of Scientists and Engineers to do something about the perceived poor quality of Japanese products.
Their thinking gave birth to the concept of Quality Circles — a system in which small teams of employees voluntarily come together to define and solve a quality or performance-related problem. Secondly, it led to Total Quality Management — a system of managerial, statistical and technological concepts and techniques aimed at achieving quality objectives throughout an organisation.
This system expanded into teams with the relevant authority (at low levels) to make decisions. During the late 1980s and early 1990s organisations across the globe were dominated by self-managing teams, relatively small and highly autonomous work teams that take responsibility for a product, project or service, and self-directed teams, small groups of employees who have day-to-day responsibility for managing themselves and their work.
Another type of team that is often used to improve organisational performance is a mission-directed work team. The aim of mission-directed work teams is to provide leaders and their teams with the skills to:
- Achieve high and continually improving levels of quality, speed and cost effectiveness
- Establish goal alignment and business focus
- Benchmark themselves against best leadership and workplace practices to identify and address high leverage areas for improvement in a systematic manner
- Create a visual workplace (the use of pictures, graphics and other images to convey information and meaning quickly and simply) to simplify the management
- of objectives
- Achieve teamwork, participation and continuous learning.
- Work teams have gained worldwide acceptance in organisations. However, while teamwork is essential to organisational performance, effective teamwork is often elusive.
A decline in effectiveness is often caused by teams that are too big, teams that do not have a clear purpose or a structured plan or are made up of the wrong members. Teams that are not trusted with great responsibility and are not allowed much freedom to make their own decisions may also fail. Conflict, mistrust and poor leadership are often the leading causes of poor performance by a team.
Professors Martin Hoegl, head of the Institute of Leadership and Organisation at Ludwig-Maximilians University in Munich, Hans Georg Gemuenden, of BI Norwegian Business School, Oslo and K. Praveen Parboteeah of University of Wisconsin–Whitewater investigated the effects of team size on teamwork quality among 58 software development projects. They found that the top five teams, in terms of teamwork quality, ranged in size from three to six members and the bottom five from seven to nine members. More significantly, on average, teams of three members achieved 63% of the teamwork quality of the best team, which is in stark contrast to teams of nine members which only achieved 28%.
7 Simple Steps To Strategise For 2019’s Success
To make that happen you will need to start strategising soon. So let’s talk about how all of us can create effective team strategies for 2019.
With the buzz and hoopla in full swing this holiday season, as managers and business owners it’s good to remember that the new year is right around the corner. We all want next year to be better than this one, and you probably have a few improvements in mind that you want to see come to fruition.
To make that happen you will need to start strategising soon. So let’s talk about how all of us can create effective team strategies for 2019.
1. First, clarify your goals
To know what the new year should look like, start by understanding what this year was like. Pull reports now while data is fresh, and look at this year’s performance. Identify the changes you’d like to see in the upcoming year.
Then you can clearly see what you want your team to achieve in the new year:
- What specific metrics need work?
- Do you want to see an increase in overall revenues by a certain percentage?
- How about improving productivity and cutting costs?
2. Time to plan
Once you have an idea of what needs changing you can work out the details of how you will achieve it.
Consider the SMART acronym when putting your plan together. Is your plan:
- Specific (simple, sensible, significant).
- Measurable (meaningful, motivating).
- Achievable (agreed, attainable).
- Relevant (reasonable, realistic and resourced, results-based).
- Time bound (time-based, time limited, time/cost limited, timely, time-sensitive)
As leaders we need to lead with clarity and decisiveness, but we will do well to gain the input and ideas of those we lead.
Once you have your plan in place, you can bring in your team.
3. Book a break-away meeting
Plan your meeting after the holiday season has passed. The start of the year is a good time, as everything has calmed down, minds are fresh, and people are ready for vision. So, early in January, bring your key management team together and let them know you would like to discuss the goals for the upcoming year.
Plan a meeting away from the office so that the usual distractions are eliminated, and you can all focus on the key objectives. Sometimes we need help arranging these things, like finding a great venue, arranging food, including ice-breakers, creative starters and games to get the juices flowing, and so on. This is not your core skill set, so consider hiring an event planner and an MC to keep the day on track, so that you can focus on the main thing – getting the team focused and energised for success in 2019.
4. Setup the meeting agenda
Start the meeting by bringing everyone up to speed by reviewing last year’s stats. Show the results that you reviewed and allow them to see where the areas of success were, as well as the areas that need attention. If you haven’t already, recognise the team members who stood out in various important aspects of the business. This is tremendously motivating and encouraging.
Get a conversation going either in small teams, or around the table where ideas are brainstormed for how to solve the areas that need improvement. Find out from the team why they think the business struggled in these areas, and how they think improvements can be made.
Your agenda could cover these conversation starters:
- What are the three most important objectives for this year. Think “big picture” here, things that touch on profit and future achievement.
- Who is responsible for each of these?
- What will you do?
- How will you do it?
- By when will you do it?
- Break the year up into monthly metrics and put quarterly goal-planning reviews on your calendar. This commits you to pause and measure every 90 days, while keeping a close eye on profits, clients, projects, revenue in 30-day intervals.
- Link up. Remember, lone wolves starve to death. Think about who can you partner with in 2019 to reach your goals – who are your advocates, allies, referral sources, and potential joint venture partners who can help you leapfrog over obstacles and who complement your own products and services. Get contact details and build your relationship with them so you can collaborate more closely – starting right now.
Remember to take breaks that are fun and creative in order to unhook from this intense deep dive into strategy. You don’t want to burn out your team right at the start of the year. Keep snacks, water, and activities going so that they have fuel to keep on but start the year motivated and positive.
5. Draw up the final plan
Once done, it is time to go through all of the input you have received to supplement your strategies, and draw up the final plan. When your final plan is ready, bring the remainder of your team together and lay out the plan for 2019. This can be done via a video recording, Skype, an email, a meeting, or one-on-one conversations, depending on the size and locations of your team. Be clear about what they need to bring to the table in 2019 and how it will be measured. Then ask for a commitment from each team member to work toward the improvement in the coming year.
6. Tracking and Measuring
Once the team is committed and bought into the 2019 strategy, you’ve only just begun. Set policies and procedures in place to track progress, provide updates, and hold people accountable to their commitments. Some managers might opt to check the metrics daily and send out weekly updates, while others may check weekly and send out monthly updates. Whatever you decide, consistency is key to ensure you stay on track to achieve your goals in 2019.
7. Invest in resources for success in 2019
As this year winds down, commit yourself to leading, motivating, and inspiring your team to work together towards your common goal. Plan how you can come alongside your managers to ensure their success by offering mentoring, support, training, and whatever resources they need to achieve these goals.Their success is ultimately your success.
Similarly it might be a good time to invest more into your own growth – consider a mentor for the year ahead who can help take you past your own limitations and rutted thinking. Read books on leadership and other’s business successes; plan three mini-holidays in the year to keep you sharp and focused. Remember you can only give to others what you yourself have.
This simple yet effective strategy can be applied to whatever type of business you are in, and can help you gain the buy-in of your vision by your team and make 2019 a year of achievable success.
The Value Of Employee Growth
When you’re running a fresh and shiny new business, how do you ensure your employees feel like they have a place to go?
Investing into the future of an employee is a complex task at the best of times. Well-established organisations battle to manage employee expectations and growth trajectories so what options does a startup have when it is still finding its feet? While having an agile and energetic young company is often enough of a drawcard for talent, you still need to create pathways that are unique to your business and that allow for employees to grow, both personally and professionally.
Step 01: Embrace difference
Recognise that your business is made up of a variety of different roles and that each one offers different employee pathways. You need to find the pathways and roles that suit an employee’s personality and their idea of where they want to grow.
It’s in seeing these differences and embracing them that you are already providing your employees with a voice and showing them that they are heard.
Step 02: Be inventive
Find a way of creating growth opportunities even with the few roles you have in your business. For example, you could create a methodology that has tiered levels within a specific role. Then a person has opportunity to expand their skills and responsibilities in that role. This would work for roles that are fixed, like an office admin, or for roles that are flexible.
Step 03: Finance and responsibility
Outline how a person can grow financially and show them the additional objectives and responsibilities their role offers. Some people aren’t just about the money, they want more to do and they don’t want to be bored.
Step 04: Key Performance Indicators (KPIs)
It is essential that you measure people so that you can create opportunity for them. Tell them their KPIs so that they have benchmarks and everyone has expectations. This allows you to let people know when they are or are not doing well.
They can assess their performance properly and there is no risk of people having differing expectations that impact on ability or role. You must openly and honestly review employees and yourself.
Step 05: Encourage mentorship
It’s really worth encouraging people to guide or mentor one another. Some people may stay in your business for years, some only for a few months, but you want to see them all grow. By creating an environment that inspires people to mentor and guide one another, you’re ensuring that every person in your business is given a chance to teach and to learn.
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