maandag 10 november 2014

Best flow chart ever: management styles and KPIs

"When the top level guys look down they only see shitheads. When bottom level guys look up they only see assholes"

Good chance you have seen the cartoon before. The bird on the top looking satisfied, while the birds on the lower levels look more and more miserable. Does it feel familiar? Hopefully not, but chance is that you do recognize the gist of it.

The cartoon triggered me to try to find the relation between certain types of managers and their usage of KPIs. This raised the question of what different types of managers are distinguished in literature.
Problem however with that question is that one could probably fill a large library with all the books written about the topic. And to make things worse, I personally have a problem with management books that talk about personality traits. They suggest that personality or behavior can be described by just a few labels. Of course that is not the case. All research combined on human behavior (e.g. Neurology, Biology, Psychology, Sociology) did not yet find definite, unique, separate and unambiguous personality types. But being skeptical has its practical limits so in the end I settled with this short presentation that summarizes the different management styles most encountered.
  1. Autocratic style
  2. Bureaucratic style
  3. Democratic style
  4. Laissez fair style
Just to make clear. When I use these four styles, I'm not saying that these are the only four or that managers cannot apply a mix of these. The rest of this blog is (just) a personal view on the usage of KPIs and their link in to management styles in a general sense (it is as unscientific as most other stuff available, but at least I'm honest about it ;-)

Autocratic
For these type of managers KPIs give them a sense of control over the situation and their people. They probably don't have many KPIs, but they make sure that the ones they have are known by all employees involved. The threshold is set strict and not to much flexibility is allowed. They will make sure that what got them here, will get them there (again). "Green" traffic lights are expected and an "Amber" status  is already being frowned upon (an explanation is expected to say the least). Their adagium is very simple: KPIs are being met. Always.

Bureaucratic

Last weeks blog was about the United Nations and their KPI usages for the millennium goals. To many, to long of a horizon, vague goals and diffuse responsibility. KPIs are uses because "everybody uses them". KPIs are not the result of a creative process where all stakeholders were involved. They are merely copies of the ones that were used in the past. People don't really believe in the KPI concept as everybody can point to each other once things go wrong. In other words; KPIs are just another thing you are supposed to have as manager.

Democratic
Everybody is involved in the creation of the KPI-set in a democratic organization. And with everybody I mean really everybody. All input is gathered and taken into account when the KPI is created. The creation process is more important than the end-result. KPIs are not very specific (because everybody has to recognize their own input in the outcome). Thresholds are being set, but so high making it difficult to reach the "Amber" or "Red" status. The KPIs are not fixed and changes are made frequently. Everybody is allowed to put the current KPIs to debate.

Laissez-fair
Why measuring stuff if you can rely on the intrinsic motivation of your employees? Make sure that you emphasize the responsibility of the individual and the sum will be greater than the individual parts. No KPIs are needed, and if they are there it's more for the outside world than to use them internally. Progress is being measured just by looking at the results and it is expected of employees to give a signal when things go wrong.

Next time: Crisis in the world of Science

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