Productivity – seven things managers must do

A great deal of very impressive research links specific “Management Practices” with higher productivity. Practices such as…
·       Structured methods for fixing problems; ensuring they don’t recur.
·       Measuring and monitoring performance rigorously.
·       Rewarding and promoting star performers.

However, there is no helpful, concise and widely-accepted description of the Management Practices. The two principal research efforts, MOPS1 and WMS2, use different sets of Practices (although there are some similarities). Additionally, other researchers, such as the ONSand CMI4, have adapted others’ frameworks for their purposes.

A diversity of Practices frameworks is a good thing - it facilitates different perspectives, ideas and innovation. However, complexity is unhelpful when developing practical, engaging interventions for organisations. (As I am.) So, I set about integrating and distilling the WMS, ONS and MOPS Practices into something simple and helpful. But, still supported by the research.

I trawled through the fine details survey and interview questions, classifying and analysing the contents. Eventually that content analysis identified seven “Core” Practices that summarized much of the WMS, ONS and MOPS frameworks. (Please see the Appendix for an insight into the content analysis.)

The Core Practices overlook many of the details important to researchers and others. I appreciate that. However, the Core Practices are, in a number of ways, far better suited to practical interventions, such as workshops. (Interestingly, the CMI’s training intervention seems to use a simple framework of just nine Practices.)

In no particular order, the seven Core Practices are…

Invest in the process


This Core Practice isn’t about technological investment, but giving time and energy to improved ways of working. And, in particular, to fixing problems.

One of the ONS survey questions expresses it really well - “we fixed it and took action to make sure that it did not happen again, and had a continuous improvement process to anticipate problems like these in advance”.

I suspect organisations that do not invest in the process say they fix problems as soon as they can, but don’t have the time/resources to do much more.

Set tough targets


This seems to me to be all about stretch and ambition. And a key aspect of that seems to be setting a number of challenges, not just one or two. (It’s absolutely nothing to do with SMART objectives.)

Organisations who set tough targets may say something similar to “We strive to outperform the competitors by providing ambitious stretch targets with clear performance related accountability and rewards” (WMS scoring scheme). They definitely don’t say “almost everyone will achieve their targets, and it won’t matter too much if they don’t”!

Embed targets


On their own, targets achieve nothing. There has to be frequent conversations that build understanding and acceptance of the targets. Misunderstandings must be addressed PDQ. The aim is to have everyone 100% clear about their targets, why the targets matter, their current personal performance, and their team’s performance.

I’ve known organisations where people knew their targets, but didn’t think about them much, and they were not really concerned about missing their targets.


Publicise performance


This is more than measuring performance; measurement is nowhere near enough. We have to make today’s performance prominent, upfront, graphic. A couple of high-scoring items from the WMS scoring scheme are illustrative…
·       “Performance is continuously tracked and communicated, both formally and informally, to all staff using a range of visual management tools.”
·       “Performance measures are well defined, strongly communicated and reinforced at all reviews; performance and rankings are made public to induce competition.”

Reward successes


This is a straightforward Practice - it is repaying successes promptly and generously through bonus, promotion and/or status. Importantly, it’s not about rewarding anything other than success (such as loyalty, tenure, experience, training…)

Tackle poor-performance


Moving “poor performers out of the company or to less critical roles as soon as a weakness is identified” scores highly on the WMS scoring scheme. And it’s a key aspect of the MOPS and ONS surveys too, as is training for poor-performers.

I suspect this Core Practice might make a few people uncomfortable. I’ve known organisations in which poor-performers, including senior managers, continued in their roles, and efforts to tackle their underperformance were, at best, half-hearted.

Promote stars


Organisations score highly on the WMS survey if they “…actively identify, develop and promote [their] top performers”. No surprises there! However, I suspect many organisation struggle to move abled individuals to where they are needed, and where they will be stretched. In your organisation is there consensus on who the stars are, what might be done with them, and how they will be retained?

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Peter
© Copyright Peter Goodge, 2020 

Notes

1 Management and Organizational Practices Survey (MOPS)
2 World Management Survey (WMS)
3 Office for National Statistics (ONS)
4 Chartered Management Institute (CMI)


Appendix


The following table demonstrate how the seven Core Practices were identified. It shows some of the similarities between the QMS, ONS and MOPS frameworks, and how I’ve described the common themes as Core Practices.

Core Practice
WMS Question
ONS Question
MOPS Question
Invest in the process
How do problems typically get exposed and fixed?
What generally best describes what happened ... when a production problem arose?

What best describes what happened ... when a problem in the production process arose?
Set tough targets
What kind of indicators would you use for performance tracking?
How easy or difficult was it for this business to achieve its production targets?

How many performance indicators were monitored...?
Embed targets
If your staff were asked about individual targets, what would they say?

Who was aware of the production targets...?

Publicise performance
How do you review these performance indicators?
How frequently were the key performance indicators reviewed...?

How frequently were the key performance indicators reviewed...?

Reward successes
How does your appraisal/reward system work?
What were managers' performance bonuses usually based on...?

Tackle poor-performance
If you had a worker who could or would not do his/her job what would the company do?
When was an under-performing employee moved from their current role?

When was an under-performing manager reassigned or dismissed...?

Promote stars
How do senior managers show that attracting and developing talent is a top priority in your company?
How were employees usually promoted...?
What was the primary way managers were promoted...?