Skip to main content

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

  1. ==Gathering Information== is the premise of all management activities.

    1. Verbal information sources are the most valuable.
    2. Progress reports are more of a constraint; the writing process is important, while the reading process is not.
    3. Go to certain locations to gather intelligence.
  2. Providing Information

  3. Decision-Making, which includes two aspects:

    1. Looking to the future.
    2. Responding to urgent situations.
  4. Nudging encourages subordinates to act in preferred directions, but be careful not to create unwavering, clear commands. Otherwise, it becomes micromanagement.

  5. ==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…

  1. Accelerate.
  2. Increase leverage ratios.
  3. Do fewer low-leverage activities and more high-leverage activities.

To increase leverage ratios…

  1. Influence more people.
  2. Influence people's long-term behavior.
  3. Provide unique information.

For example:

  1. Positive Leverage

    1. Make advance plans for large organizations.
    2. Timely persuasion for departing subordinates.
    3. Introduce new knowledge, skills, and values to the organization.
    4. Engage in activities that take little time but can have a profound impact on a person, such as performance evaluations.
    5. Create memos.
    6. Provide unique skills and values.
  2. Negative Leverage

    1. I am a key participant in the meeting but attended without preparation.
    2. Spread feelings of despair.
    3. Indecisiveness.
    4. 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)

  • The delegator and the delegate must have a consensus on how the tasks should generally be done.

  • Consciously control which tasks to delegate and which not to.

  • ==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.
  • 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.
  • How many direct subordinates should a manager have?

    1. Generally speaking, 6-8, because
      1. A manager should spend half a day each week on one subordinate.
      2. Even if a manager has no subordinates, providing consulting services to other internal employees can also be a full-time job.
    2. Therefore, if there are not enough first-line managers among the direct subordinates of second-line managers, IC subordinates should be increased.

Accelerate

  1. Improve time management skills.

    1. For example:

      1. A document should only be handled once.
      2. Hold stand-up meetings.
      3. Arrange workstations to face away from the entrance.
    2. Guiding Principles:

      1. Clarify fixed times; identify which tasks must be done at specific times, and all other flexible arrangements should revolve around these.
      2. Batch process similar issues.
      3. Use calendars as a medium for forecasting and planning.
        1. Actively fill in the gaps between fixed times.
        2. ==Say no to tasks that exceed your capacity. Be aware that saying yes to one task means saying no to another.==
      4. Allow slack - do not over-schedule.
      5. 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.
  2. Reduce interruptions. Interruptions are a chronic issue in management work. What to do? Standardize processes to smooth out workloads.

    1. Controllable methods:
      1. Batch processing activities, such as having everyone meet at the same time or not meet at the same time.
    2. Uncontrollable methods:
      1. Hiding is not a good method, as it will accumulate real problems.
      2. Prepare FAQs and documentation.
      3. Batch processing.
      4. Provide alternatives to interrupters.
        1. "I am currently working; please do not disturb me until 2:00."
        2. Set dedicated office hours to answer questions.
References: