Avoiding The perverted Pyramid

If you read from the works of virtually any recognized management guru, you will come across the notion of inverting the organization's hierarchy. The theory goes that by putting more decision-making into the hands of those closest to the "action", organizations will become faster, more adaptive and more effective. Inverting the organizational pyramid brings with it the notion of empowerment, in the service of better organizations.

in reference to:

"If you read from the works of virtually any recognized management guru, you will come across the notion of inverting the organization's hierarchy. The theory goes that by putting more decision-making into the hands of those closest to the "action", organizations will become faster, more adaptive and more effective. Inverting the organizational pyramid brings with it the notion of empowerment, in the service of better organizations."
- Service Excellence (view on Google Sidewiki)

Avoiding The Perverted Inverted Pyramid

If you read from the works of virtually any recognized management guru, you will come across the notion of inverting the organization's hierarchy. The theory goes that by putting more decision-making into the hands of those closest to the "action", organizations will become faster, more adaptive and more effective. Inverting the organizational pyramid brings with it the notion of empowerment, in the service of better organizations.   

Well, that's the theory anyway. If you are a regular reader of our publications, you will be aware that we are firm supporters of inverting the pyramid, empowering staff, and moving responsibility and decision-making down to the people that are in contact with the recipients of government services. But, we do need to put these efforts into the context of real life, and to be aware of the pitfalls that are in our paths.   

The truth is that many organizations begin the inverted pyramid journey, but few actually succeed in reaping the benefits of the effort. It seems that far too many organizations are developing flat tires, or simply running out of gas, far from the envisioned destination. We are going to look at ways that organizations and managers end up perverting the inverted pyramid, so that if you are on the journey, you will be less likely to fail in your efforts.  

Structural Incompatibility  

There is no question that government is arranged in a hierarchical structure, with decision-making, accountability and responsibility vested first in senior executive, and then distributed down the line to other executives or managers. One only has to look at the chain of events that occurs when a public complaint is lodged. Often it will be sent to the Minister, who, with involvement of executive assistants, will pass the concern on to the Deputy Minister, who will, in turn, move the "investigation" to lower levels in the organization. The process is indeed hierarchical and traditional, moving from top to bottom. The bottom line is that, structurally, the Minister, and senior executives are ultimately responsible for what occurs in their bailiwicks. In a sense, since senior officials are held responsible, it is in their own self-interest to be involved in decision-making that may ultimately come back to haunt them, and to use their organizational power to satisfy their own needs and those of people at the top of the traditional pyramid.   

So, we run into a basic incompatibility. We have governments structured in traditional hierarchical ways, with power and responsibility at the top. On the other hand we know that customer service decisions are often best made by those at the bottom of the organization. Experience tells us that in almost all cases, where there is a conflict between the notion of empowerment, and the needs and wishes of senior executive, the needs and wishes of executive will prevail. This doesn't necessarily occur as a result of the actual people involved, but simply is a result of working in organizations that are traditionally hierarchical. This traditional structuring places limits on efforts to move power downward. The inverted pyramid can be perverted. The new way of doing things is quickly perceived as window-dressing.  

Management Limitations  

While structural incompatibilities make inverting the pyramid difficult, there are other powerful and important factors that pervert the process. Many of these, unfortunately, fall into the area of limitations, or short-comings on the part of individual managers and executives.   

We know enough about empowerment, team development and leadership to state that empowerment and pyramid inversion require some special qualities on the part of leaders and managers. When these qualities are not sufficiently developed, the process of inverting the pyramid can become stalled. We can identify a number of such competencies or attitudes:  

• perseverance in the face of frustration
• consistency in terms of decision-making processes
• trust in the abilities of the staff
• genuine desire to share power
• coaching abilities to help develop core skills on the part of the staff
  

Lack of Development Resources 

lnverting the pyramid requires new skill sets on the part of staff that are going to be empowered. The more hierarchical and autocratic an organization is before attempting to invert the pyramid, the more likely necessary skill components will be lacking. It isn't surprising. Some people think that empowering staff will be immediately welcomed by staff, and that given an opportunity, staff will take the opportunity like a duck takes to water. Experience tells us otherwise. Staff will show some degree of cynicism and even resistance. And they will founder at the start, particularly if they are not used to using effective decision-making, problem-solving and consensus building techniques.   

Further, staff in the inverted pyramid need different kinds of information, compared to those in traditional organizations. They need to know the "bigger picture" -- the goals of the organization, its purpose, and how they fit in to them. This enables their decision-making to be consistent with what the organization is trying to accomplish.   

When development resources are not allocated to build skills, or where staff are not given the information they require to make empowered decisions, flipping the pyramid will result in poor decisions. Poor decisions tend to force managers and executives to revert back to a top-down way of doing things. 

The Most Common Failure Pattern  

Generally, when pyramid inversions fail, they don't do so randomly but share a common pattern Generally, there are multiple causes for the failure, usually including many or all of the above factors.   

Usually, pyramid inversion adventures are initiated by a well meaning manager. The manager introduces the concept to staff, and may also suggest mechanisms to empower staff (eg. team structure, meetings, etc). While the manager may be enthused about the possibilities, often he or she has not thought out the implications for him/herself. Employee reactions tend to be mixed -- some will be enthusiastic, some neutral, and some cynical or resistant.   

Within the new structure, insufficient information will be provided, and as with most changes, some frustration and confusion will result. But what separates the successful inversions from the unsuccessful ones is the ability of the players to resolve the frustration and confusion early on. Failed attempts tend to create more and more frustration, the longer the process continues.   

Given insufficient information, and lack of core skills, employees have difficulty making decisions that are acceptable to the manager. What happens is that in most organizations, the fundamental structural incompatibilities regarding responsibility and accountability push the manager into reviewing and/or altering decisions made by staff, or rejecting many suggestions. Staff read this as being inconsistent, and lose faith in the empowerment process.   

The final stage of collapse occurs as the manager becomes more frustrated. Initially the manager felt that empowering staff would require less involvement in everyday decisions, since these would be taken on by staff. What really happens is that everything slows down. Decisions are reviewed and re-reviewed. Workload for everyone appears to increase, rather than decrease. At this point many managers eject from the plane.  

They begin to "take back" decision-making power, on the assumption that staff are simply incapable of making effective decisions. Sometimes this "taking-back" is subtle, and the empowerment strategy is slowly eroded until it disappears. Or, the manager simply announces that the experiment has ended. We might note that such defeats often leave the organization worse off than if they hadn't tried at all.  

Avoiding Perverting The Inverted Pyramid 

Such failures are often avoidable with proper preparation, and well thought out implementation strategies. We look at a few suggestions for engineering success.  

1. Recognize that you still work within a hierarchical structure. Lobby your executive for support and changes in the ways they interact with you. Further, when introducing your initiative to staff, indicate that there will be limits on what can be accomplished. In other words, don't create expectations that can't be fulfilled.  

2. Provide empowered staff with the tools they need to take on their new responsibilities. Be prepared, at least initially, to coach and support, or to bring in help from outside. Do not assume that staff will "figure it out".  

3. Persevere. These changes take time, and if you expect changes to occur too quickly, you may give up too early.  

4. Be as consistent as possible. The more often you take over the reins of a decision, the less likely staff will perceive you as being sincere. When you absolutely must make decisions without involving staff, explain why it was necessary.  

5. Make sure that frequent "checks" are made to see how the process is going. Don't just leave it. Encourage staff to assess and evaluate how the changes are going, and to make suggestions about how to improve it. Make it clear you don't expect everything to be perfect, but the goal is to improve continuously.  

6. Realistically assess your management style and interpersonal skills. Even your non-verbal behavior can derail a pyramid inversion. Be aware of subtle messages you may be sending.  

7. Listen! In the inverted pyramid, the managers listen more than they talk. if nobody wants to talk to you, then search out the causes and fix them.  

A Full Service future

Customer service and satisfaction will continue to be the crux of a restaurant’s success in the new decade. Most Americans express satisfaction with the level of service they receive at restaurants. As many as eight out of 10 consumers feel that they receive friendly and timely service at tableservice restaurants. But young people, who are today’s limited-service customers and tomorrow’s fullservice guests, are tougher to please. Eighty percent of consumers in the 18-to-34 age group reported that they had complaints, compared with just more than half of consumers aged 65 and older. As we head into the second decade of the 21st century, where today’s younger audiences will predominate, their needs will carry more weight.

in reference to:

"Customer service and satisfaction will continue to be the crux of a restaurant’s success in the new decade. Most Americans express satisfaction with the level of service they receive at restaurants. As many as eight out of 10 consumers feel that they receive friendly and timely service at tableservice restaurants. But young people, who are today’s limited-service customers and tomorrow’s fullservice guests, are tougher to please. Eighty percent of consumers in the 18-to-34 age group reported that they had complaints, compared with just more than half of consumers aged 65 and older. As we head into the second decade of the 21st century, where today’s younger audiences will predominate, their needs will carry more weight."
- Service Excellence: A Full Service Future (view on Google Sidewiki)

A Full Service Future

Customer service and satisfaction will continue to be the crux of a restaurant’s success in the new decade. Most Americans express satisfaction with the level of service they receive at restaurants. As many as eight out of 10 consumers feel that they receive friendly and timely service at tableservice restaurants. But young people, who are today’s limited-service customers and tomorrow’s fullservice guests, are tougher to please. Eighty percent of consumers in the 18-to-34 age group reported that they had complaints, compared with just more than half of consumers aged 65 and older. As we head into the second decade of the 21st century, where today’s younger audiences will predominate, their needs will carry more weight.

Speed — that seemingly addictive quality that permeates all aspects of today’s society, as ever-faster computers, 24-hour information, and the Internet turn the world a little more quickly each day — will be at a premium.

The market segment that because of economics, dines out only on fast food will be interested in speed, and the service will need to be clean, friendly and fast—with no surprises. Other segments, such as folks who because of time, use fast food for certain meals, will be looking for the same things. When they want something more experiential, though, they’re going to be very discriminating about where they go, what they eat, and the kind of service they receive.

To complicate matters, Americans want their restaurants to deliver what they want, when they want it and provide a good value too. Given the economics of the restaurant business, with its relatively low profit margins coupled with a full-employment economy, recruiting and retaining the staff to deliver those expectations will make all the difference in this, next, or any, decade.

The crystal ball

Forecasts about the future of foodservice are as easy to come by as predictions at a psychics convention. I see a growing trend in more women serving in fine-dining establishments. It used to be almost a requirement to hire men. I don’t see that anymore.

Eyster foresees the hiring of an increased number of part-time employees as an essential way of keeping service costs down and quality up. “If the economy stays strong, I think restaurant operators are going to have a much harder time finding qualified full-time employees,” he says. “We must try to attract good part-time employees, develop their skills and pay them well.”

And they’ll be younger. In the old days, we hired a crew. We could expect the crew to be there for several years. Those days are gone. My prediction is that we’re going to see a younger work force and more part-time employees. And to keep them, we need to provide more attractive packages to personnel and maintain systems of recognition and reward.

Many analysts expect service to continue to be less formal. Casual fine-dining is really big right now, and it’s going to continue. Many restaurants have opened in Florida recently that are focused on the user-friendly aspect of fine dining. It’s more comfortable, and people are more excited about dining out than they have ever been before.

Servers will also need to be more knowledgeable. You’ve got cooking channels, you’ve got Emeril [Lagasse] and celebrity chefs raising the awareness level about food. Healthy options have come full circle now the public is more knowledgeable, their expectation level for service is going to get much higher. As a result, they’re going to demand more details, initiative and overall knowledge on the part of the server.

Mother nurture

Fortunately, restaurateurs are an ingenious lot, and problems are more often than not opportunities for solutions. It’s a tough business, there are lots of pressures, but that’s life. You have to look at it realistically and come up with solutions. Like the Wheeler Law, which contends that if you pay attention to a problem, it will go away. He explains by relating the story of the law’s namesake, Wheeler Manufacturing Company. 

It seems that production was on a downward spiral, prompting one executive to suggest that the problem was low lighting. They installed brighter bulbs, and sure enough, production went up. Taking advantage of a good thing, they installed even brighter bulbs. Production went up again. Then, one executive, who had a hunch that they were missing the real meaning of this phenomenon, suggested they only act as though they were installing brighter bulbs. Production went up again.

They discovered that the production increases had nothing to do with the level of light. They were due to the fact that the employees felt that the company was doing something for them. In restaurants, I believe making the workplace more comfortable, keeping kitchens cooler, placing mats on the floor for tired feet, and having incentive-reward programs, training, and perks will improve the spirit and in turn, productivity.

I suggest to take that thesis a step further. I’d encourage operators to make the work environment more like a home away from home and treat their employees as though they were their parents in order to improve retention.

When managers act like mothers or fathers toward their associates, they will respond. For instance, a friend of mine is general manager of a golf course. He told me his groundskeeper and pro were fighting like kids, and he didn’t know how to handle it. I asked him how often he was there, and he answered about two hours a day, three days a week. That means the general manager is only physically present six hours a week. That’s not enough. I told him these guys need a dad around. If he wants to solve their problems, he needs to show up more, give them some attention, and take them to lunch, individually or together.

In a word, both employees and customers need to be nurtured. That’s why restaurateurs, from Poinciana rural Florida to chic cafes in South Miami Beach that are looking forward to the challenges of the second decade of the 21^st century and beyond, are creating a place where not only everybody knows your name, but that also feels like home sweet home.

On the hiring line

It’s all well and good to say that the ideal staff needs to act like Ward and June Cleaver, but how do you find the people you will need to carry your operation further into the 21^st century ? Look for character. It is very feasible to hire the unexperienced. We need to hire them for their personality and teach them the skills. I’d like to encourage my clients to hire for personality and the desire to learn.

Personality is important. You can teach product knowledge and other skills, as long as you have the core traits to work with.

After many years in the food service industry, I’ve learned that when you show respect to your employees, they will recruit their friends to work for you. If people are happy somewhere, you won’t hurt for staff, because they will bring in people they know.

training on track

Recent studies have shown that training also goes a long way toward making workers more contented and reducing turnover. I am an advocate of expressing clear expectations and offering direct feedback, developing informative menu descriptions and wine seminars, and having open communication.

I recommend extensive staff training before opening a restaurant and ongoing training in wine tasting, service-manual review, and updates on menu and wine descriptions. I also suggest frequently discussing the importance of working in tandem with the kitchen staff—a crucial and often overlooked component to a successful restaurant—with your front-of-the-house employees.

Even making a good cup of coffee requires training. Chris Gimbl, spokesman for Seattle-based Starbucks Coffee Company, says that baristas in all of the chain’s 3,200 coffeehouses worldwide go through 24 hours of customer-service training before they start working in the stores. “That gives them a great basis before they actually get on the floor and undergo the pressure of the line heading out the door or that crazy morning rush,” says Gimbl. He believes that Starbucks lower 60-percent annual turnover rate is due to training, atmosphere and benefits. “It’s a tight market. We feel that we have an advantage because we offer a very competitive benefits package available to anyone who works over 20 hours a week, including medical, dental, 401(k) and stock options.”

Loyalty lessons

The goal of excellent service is loyalty — of the employees and the customers. Satisfaction is not enough — it’s loyalty that keeps them coming back and spreading the word. That’s what has been going on at the Frost Diner for 44 years, and no mere turn of the decade and this crisis will budge its customers’ loyalty. And why should it, when they’re doing everything right in the first place? “Everybody seems to be well contented,” Andrade admits. “Most everything is home-cooked, and we’re a nice, friendly restaurant. I’m sure everything is not exactly perfect, but we try. And if we have complaints, we try to settle them. The customers all seem to think that we do a good job. We’re like their home away from home.”

 

Management Missteps: Common Mistakes That can trip Up new Management

Managing employees has never been easy, but these days it seems that new restaurant managers face even more potential pitfalls. Seemingly inconsequential actions can send managers tumbling down into a dark morass of complaints, conflicts and possibly even lawsuits.

in reference to: Service Excellence: Management Missteps: Common Mistakes That Can Trip Up New Management (view on Google Sidewiki)

Management Missteps: Common Mistakes That Can Trip Up New Management

Managing employees has never been easy, but these days it seems that new restaurant managers face even more potential pitfalls. Seemingly inconsequential actions can send managers tumbling down into a dark morass of complaints, conflicts and possibly even lawsuits.

Here is a roundup of the most common management missteps and some common-sense suggestions restaurant owners can use themselves or share with their management teams to keep management-related problems at bay.

  Manager does not communicate effectively with employees: A well-informed group of employees is one of the most important ingredients in a healthy, upbeat workplace. Managers who communicate just the big-picture issues and skip the "little stuff" — such as a broken coffeepot, slight schedule changes or a new format for payroll checks — may unintentionally pass over things that are important to employees. By talking about seemingly little issues, managers can prevent resentment and foster a sense of ownership among employees.

Also, if the manager offers only infrequent performance feedback, or none at all, employees will not know when management is dissatisfied. If the manager does not discuss performance problems with employees until performance-review time, employees can be shocked and defensive, and much of the potential for improving their work performance will be lost. Managers should act on problems as they occur.

  Manager does not delegate responsibilities to staff members: This is a common problem among inexperienced managers. By delegating certain tasks, a manager is able to keep his or her own desk clear and to give employees the opportunity to develop problem-solving skills that will improve their own career potential.

  Manager takes work-related issues personally: Naturally, a manager might be angry when an employee is late for three days in a row, or when an important task isn't completed on time. But managers must be careful not to turn work-related issues into personal ones that could spark animosity between them and the staff. The management team must maintain professional objectivity and decorum — no matter what issue arises.

  Manager does not set parameters: Every management style establishes a certain set of employee expectations. So a manager needs to alert staff members if he or she wants to know the instant an inventory problem occurs in order to handle it personally. Or, if the manager prefers to have employees suggest their solutions when reporting a problem and then have the employee handle the situation, the manager needs to communicate that policy. Be sure employees understand what management expects of them.

 Manager never shows appreciation to employees: Running a restaurant is an extremely demanding job, so it's understandable that managers may not always remember to say "thank you" to employees. But expressing appreciation to employees for a job well done should be the rule and not the exception for the restaurant's management team. Regular words of praise for top-notch work performance, or even just for commonplace dependability, will affirm your employees' value to the operation. Managers should remember that most employees need positive reinforcement to perform at their peak.

 Manager fails to motivate workers: It may be easy to assume that the weekly paycheck alone will motivate employees, but experienced managers know that isn't true. Other motivators, such as benefits packages, opportunities for personal and professional growth, friendships made on the job, and the chance for additional training to enhance skills, can all be vital to employees. A wise manager discovers what is important to each employee and then responds accordingly to motivate that particular worker.

 Manager treats all employees the same: That might seem like a smart move — but no two employees are the same; they don't possess the same skills, temperaments or experiences. Therefore, no two employees require the same kind of supervision. Some employees need a fixed routine with a lot of direct supervision; others prefer to work independently. Managers should figure out what management style works best with each employee.  

 Manager does not obtain necessary information: Inadequate information leads managers to make poor decisions. Valuable information comes not only through formal channels but also from casual conversations with workers, staff conferences, informal networking and regular tours through the restaurant. Managers should keep three or four information channels open to minimize unpleasant surprises.

  Manager does not demonstrate loyalty to employees: Managers usually expect employees to show loyalty to them, but they may forget that loyalty is a two-way street. The management team can demonstrate loyalty to the restaurant's workers by making positive comments to staff members, by acknowledging their special occasions, by paying attention to their personal needs and by using workers' mistakes as an opportunity for mutual learning.

The worst mistake?

There is one management misstep — lack of planning — that is possibly worse than all the others. Lack of planning can lead to mismatched priorities, poor scheduling and improper allocation of the manager's and employees' time. In fact, many of the 10 most common mistakes have their roots in poor planning.

Establishing clear goals and objectives — together with the use of other effective management techniques — will keep the restaurant management team in step with employees.
 
 

Happy New year 2010

Happy new year to all of you, it is my wish that each one of you have a very prosperous nad productive 2010, and may it bring lots of happiness and a well balance life.

Are You a Builder or a Climber?

Over the years, many types of leaders have been identified. We have charismatic leaders, coach leaders, bureaucratic leaders, Machiavellian leaders, democratic leaders, authoritarian leaders, yadda, yadda, yadda. Like I said, dozens. Who can remember all that?

in reference to:

"Over the years, many types of leaders have been identified. We have charismatic leaders, coach leaders, bureaucratic leaders, Machiavellian leaders, democratic leaders, authoritarian leaders, yadda, yadda, yadda. Like I said, dozens. Who can remember all that?"
- Service Excellence: Are You a Builder or a Climber? (view on Google Sidewiki)

Are You a Builder or a Climber?

Over the years, many types of leaders have been identified. We have charismatic leaders, coach leaders, bureaucratic leaders, Machiavellian leaders, democratic leaders, authoritarian leaders, yadda, yadda, yadda. Like I said, dozens. Who can remember all that?

As one who believes simpler is better, I've boiled down all those styles to two basic types: Builders and Climbers.

Builders do just what their name says: They work to build a solid organization. They invest in their people. They want others to improve their skills. The keep the blueprints in mind and stick to them (parallel: company Vision/Mission statements) so no extraneous projects take over the schedule. Also, they keep an eye on quality because they know whatever they leave behind them will be a direct reflection on them.

Climbers are different. Like Builders, they want to achieve, but they're concerned about padding their own resume, not anyone else's. They seek the limelight, often at their coworkers' expense. In fact, they think nothing of standing on the backs of coworkers if they can get away with it. Climbers are often talented, but they use their talent to further their own career, not to build up the organization or others around them.

Climbers may look at the blueprints, but only to plan their next move. They're daring and aggressive. Their focus is on how they look, not on how the team performs. Also, they don't care what happens to an organization after they leave. It's "not their problem."

Frankly, I think it's safe to say that Climbers are selfish.

But here's an unfortunate problem: Many who are Climbers perceive themselves to be Builders. Even more unfortunate, this misstep in self-awareness is especially common at the senior levels of an organization. Ask people at the C-level if they're Builders or Climbers, and chances are good you'll hear "Builders."

Ask the next level of managers that same question, and they'll tell you they, too, are Builders. But ask that second level of management about the C-level and you'll hear something like "Oh my! Are they ever Climbers!"

The same phenomenon occurs as you inquire down through the management chain. Each level sees themselves as Builders, but those higher on the org chart are usually described as Climbers.

Since the only person we really have control over is our self, might I suggest that each of us stop and look within?

Warning to Climbers: This can be a difficult self-assessment, because Climbers easily rationalize how their efforts help the team. Accordingly, they see themselves as Builders.

Perhaps a few questions can help cut through any fog. Here are ten self-confrontation questions that can give you a clearer view of reality.

These are simple yes or no questions, but be ruthlessly honest with yourself. Your answer to a question might be "yes" 40 percent of the time, but that means you answer it "no" 60 percent of the time:

1. Do you encourage and even help other people work toward the same professional growth activities that you choose for yourself?

2. Do you sacrifice your time in the spotlight to train others to be better at what they do?

3. Do you ask for help on projects – and share the credit when accolades come?

4. Do you truly enjoy giving a boost to someone else's self-esteem?

5. Do you prioritize looking for ways to solve problems over looking for someone to blame?

6. When someone comes to you with a problem, do you listen more than talk?

7. Do you share new knowledge and information with those around you?

8. Do you look for ways to help others be better at what they do?

9. When things go wrong, do you take responsibility as quickly and to the same degree as you take credit when things go right?

10. When you do something for others, is it done without expectation of something in return?

If you can answer "yes" to these questions, chances are you are a natural Builder.

If you can answer yes to most but not all, that's a good sign, but there are still areas for improvement.

But if you answer "no" to most or all of these questions, chances are you're a Climber and you are unaware of the negative impact you have on your company. It's been my experience that some Climbers sincerely want to become Builders and genuinely contribute to a cause bigger then themselves.

If that's you, then revisiting the ten questions listed above is as good a place to start as any.