Stop. Think. Before you scrap your managers

By TEC Member Anne Moore, CEO at PlanDo

A radical change to business structures is leaking out of Silicon Valley and spreading through Australia and beyond. It even has a name: holacracy. Atlassian has scrapped its managers and so have Canva.

The tenets of holacracy are simple: authority and decision-making rests with the team that is actually doing the work, not with the boss. Employees, the theory goes, spend their work hours getting work done instead of seeking management approval for every small change in direction.

But before you scrap your managers, consider the following instead:

1. Find a career management platform that works for both the individual and the business
The traditional performance review process is broken. Most organisations in Australia have invested in expensive outdated ‘talent management’ systems that reflect what the organisation wants from its employees, to ‘manage’ them. Today, this approach simply doesn’t work. ‘Talent’ can’t be managed. The role an individual was hired to do six months ago, isn’t necessarily the role that person is doing today. With a younger generation of workers coming through, they want to take control of their own career and not have an organisation dictate to them the path they need to take to progress. Cloud based platforms such as PlanDo enable both the individual and organisation to have an ‘adult to adult’ conversation about career development, giving more control to the individual while still providing the ‘manager’ or ‘leader’ with greater visibility of the individual’s career goals and how they’re progressing.

2. Drop the ‘manager’ tag and replace with ‘leader’
Rather than scrapping managers altogether, replace them with ‘leaders’. Today, we don’t want or need to be ‘managed’. Research has proved that giving people accountability for their actions, increases engagement and loyalty towards organisations. By giving authority to individuals to be able to make decisions, not only empowers them but increases efficiency for the organisation, reducing the chance of bottlenecks.

3. Give more feedback more often
Instead of having to make team members wait for 12 months for their review, over a 3 hour meeting, organisations need to provide more feedback more often. This feedback shouldn’t just come from ‘managers’ or ‘leaders’ as they should be known, it should be from more than one person –  peers, mentors whomever the individual chooses. That way, a more complete picture can be built of the individual’s progress and a different perspective can be provided.

4. Set goals and objectives between individuals and leaders
It’s important for you to set goals and objectives together with your team members. Ask them how they can contribute to achieve the goals your organisation has set. Again, it comes down to ownership and if the individual has suggested a goal or objective, they’re much more likely to achieve it, than if they’re given one.

5. Let the individual take responsibility for his/her career development
Finally, helping your team members with their career progression is not all down to you, the employer. Competition is fierce in many industries in Australia to attract the best talent and then once you have those individuals, it’s a common misconception that it’s down to you to nurture them and outline a path for progression. Wrong. Today, this is a shared responsibility. The individual is responsible for their own career, ensuring their experience and skills are documented and taken with them to their next employer.

So before you scrap your managers altogether, adopt ‘leaders’ instead and give individuals more responsibility to self-direct their own careers. Equipping your people with tools and technology that facilitate regular conversation works well from both sides.  For leaders, it’s timely information about where your people are going and how they’re tracking.  For individuals, they’ll value the opportunity to gain regular feedback and take more control over their career. Do that well, and engagement and work satisfaction will soar.

How to get specific and strategic about goal setting

Goal settingAs a business leader do you have a clear vision of what you want to achieve in 2016?

You may have general ideas, however once you return to the daily operations of the business it’s likely your ideas gets buried deep in the demands of the day-to-day.

Many leaders feel as though they work hard both in and on the business and yet they do not achieve the results or the work life balance they need. Often, for a business leader the key reason is they haven’t dedicated the time to think clearly and strategically without interruption on what exactly it is that they want to achieve.

An important step in defining your business and personal goals is to have a clear vision of what your top priorities are, then outlining the results you want to achieve within a certain amount of time.

Goal-setting paybacks

In New York Times bestseller What They Don‘t Teach You at Harvard Business School, Mark McCormack shares an interesting study that was conducted in 1979 on Harvard MBA students revealing the real impact of goal setting. He asked students whether they had clear, written goals for their future and if they made plans to accomplish them; 84% of students admitted they had no goals at all, while 13% had goals that were not written down. In fact, only 3% had specific goals in writing.

When interviewed 10 years later, the 13% of students who had goals were earning on average twice as much as those who had never established clear goals. However, the 3% with written goals for success had salaries that were a staggering 10 times more than the other students put together.

Ultimately, identifying effective goals and setting a strategy to achieve them helps leaders organise resources, streamline knowledge acquisition and raise motivation, particularly on long-term projects and objectives. Whether you‘re a business leader, a top athlete or a high achiever in any other field, establishing goals provides the focus needed in order to outperform.

Putting goal setting in place to move the business forward

An example of using goal setting to move the business forward is in a recent case study with TEC member Annie Flannagan, the CEO and Founder of Better Business Basics (BBB), which offers accounting and financial services to a range of organisations  throughout Australia.

Working in such a competitive market, Annie learnt early on that the company would need to invest heavily in internal processes in order to succeed. To do this, the company approached the goal-setting process as a set of scales, divided between the front-end user experience and the back-end processes within the organisation.

“We see it like an old-fashioned set of scales – those two must be in balance,” said Annie.

‘Whenever we look at setting goals at the front-end, we create a reciprocal set of goals for the back-end.’

‘All businesses have that, but for use they have to be in balance, because if they are not, we end up with either clients that aren’t being fulfilled or employees that aren’t being fulfilled.’

This has also required a unique leadership approach from Annie, especially around the formulation of company goals and strategy. By putting these processes in place, the company has been able to stay flexible and respond to organisational challenges.

‘If you look at strategy, crafting the strategy is one thing, the delivery of the strategy is the bit which needs to be in balance,’ said Annie.

‘It’s about having the right combination of allowing creative thinking, working out what is not necessary, writing your goals down and then focusing to get them executed.’

For a fast-growing organisation, having multiple perspectives on the development and implementation of company processes around goal setting has been invaluable for developing future strategy.