Managerial Leverage
Why Introduce Managerial Leverage?
To achieve high output.
The output of a manager = the output of their team + the output of adjacent teams influenced by them.
This means that if a manager is not just a "supervisor" but also a ==knowledge consultant==, they can significantly increase their influence.
Thus, the concept of a manager is broadened; any individual contributor (IC) who gathers information, communicates it, and knows what to do is, in fact, also a manager.
Where to Apply Leverage? In Management Activities
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==Gathering Information== is the premise of all management activities.
- Verbal information sources are the most valuable.
- Progress reports are more of a constraint; the writing process is important, while the reading process is not.
- Go to certain locations to gather intelligence.
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Providing Information
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Decision-Making, which includes two aspects:
- Looking to the future.
- Responding to urgent situations.
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Nudging encourages subordinates to act in preferred directions, but be careful not to create unwavering, clear commands. Otherwise, it becomes micromanagement.
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==Leading by example is the most effective leadership method. Good leaders are all performing artists.==
Generally speaking, almost all of the above activities are achieved through meetings. However, it is important to note that holding meetings is not a management activity; it is merely a medium or location for the aforementioned activities to occur.
How to Increase Leverage Ratio?
Managerial output = organizational output = Leverage 1 x Activity 1 + Leverage 2 x Activity 2 + …
To maximize output…
- Accelerate.
- Increase leverage ratios.
- Do fewer low-leverage activities and more high-leverage activities.
To increase leverage ratios…
- Influence more people.
- Influence people's long-term behavior.
- Provide unique information.
For example:
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Positive Leverage
- Make advance plans for large organizations.
- Timely persuasion for departing subordinates.
- Introduce new knowledge, skills, and values to the organization.
- Engage in activities that take little time but can have a profound impact on a person, such as performance evaluations.
- Create memos.
- Provide unique skills and values.
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Negative Leverage
- I am a key participant in the meeting but attended without preparation.
- Spread feelings of despair.
- Indecisiveness.
- Micromanagement, or what is called managerial meddling. If a manager gives a series of detailed instructions to a responsible person, that is interference.
Delegation (do fewer low-leverage activities and more high-leverage activities)
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The delegator and the delegate must have a consensus on how the tasks should generally be done.
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Consciously control which tasks to delegate and which not to.
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==Delegating without monitoring is relinquishing responsibility==. How to monitor? QA (Quality Assurance)
- When to do it? At the stage where minimal added value is achieved.
- What frequency? Based on the delegate's experience level and sampling inspection results.
- How much to monitor? Not 100%, but random sampling.
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How to monitor the decisions made by delegated subordinates?
- Monitor the decision-making process, such as holding review meetings, then asking questions to see if convincing answers can be obtained.
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How many direct subordinates should a manager have?
- Generally speaking, 6-8, because
- A manager should spend half a day each week on one subordinate.
- Even if a manager has no subordinates, providing consulting services to other internal employees can also be a full-time job.
- Therefore, if there are not enough first-line managers among the direct subordinates of second-line managers, IC subordinates should be increased.
- Generally speaking, 6-8, because
Accelerate
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Improve time management skills.
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For example:
- A document should only be handled once.
- Hold stand-up meetings.
- Arrange workstations to face away from the entrance.
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Guiding Principles:
- Clarify fixed times; identify which tasks must be done at specific times, and all other flexible arrangements should revolve around these.
- Batch process similar issues.
- Use calendars as a medium for forecasting and planning.
- Actively fill in the gaps between fixed times.
- ==Say no to tasks that exceed your capacity. Be aware that saying yes to one task means saying no to another.==
- Allow slack - do not over-schedule.
- Maintain a "project inventory"; otherwise, when a manager has extra time, they may interfere (meddling) in subordinates' work. This time should be allocated for future planning.
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Reduce interruptions. Interruptions are a chronic issue in management work. What to do? Standardize processes to smooth out workloads.
- Controllable methods:
- Batch processing activities, such as having everyone meet at the same time or not meet at the same time.
- Uncontrollable methods:
- Hiding is not a good method, as it will accumulate real problems.
- Prepare FAQs and documentation.
- Batch processing.
- Provide alternatives to interrupters.
- "I am currently working; please do not disturb me until 2:00."
- Set dedicated office hours to answer questions.
- Controllable methods: