Can we overcome our micromanaging personalities?

In the previous blog we discussed why some managers are sometimes overly controlling because of fears and insecurities that they carry. In this blog we will try and discuss how we can overcome any desire we may have to micromanage.

I have always been a fan of the book, "Getting to Yes" by Fisher and Ury, the definitive book on the subject of negotiation. However, I became excited by its concepts for a different reason than just negotiating contracts or outcomes. When watching couples having difficulty in their relationship, I was amazed to see how often there was a case where one member of the couple was trying to control the other member. As we discussed earlier, this desire to control appears to come out of a lack of trust, that the other partner might not take care of their feelings and their interests. The attempt to control the other person was a safety mechanism of self-protection.

As I looked for applications in the business world, I began to equate the controlling partner and the controlling micromanager with the hard negotiator who was more concerned with maintaining their stance and was hard on all parties concerned. What I enjoyed seeing in therapy sessions was that when we worked together to get the couple to focus on finding solutions to the problems rather than focussing on the people, the fears and lack of trust subsided. The most vital part of this process was in generating options or finding a plurality of possible solutions to resolve problems. I wanted to explore this further. Why was the mere generation of potential solutions and prioritizing those options so powerful in disarming a controller?

The following is my theory on this:
1. When people see things in terms of black and white, or in terms of a singular solution then a great deal is riding on its success. It is either success or failure.
2. When people think in this rigid fashion then they tend to personalize the result. It is not the problem that has not been solved but that "I am at fault if this does not succeed."
3. This significant pressure to succeed in this singular solution engenders genuine fear that failure is a real possibility.
4. Once options are generated and alternative solutions are possible as back ups to the most prioritized solution there is a reduction in the pressure (i.e. if the first method or solution chosen does not work then there is a plan B, C and D that is possible to pursue.)
5. If all parties are involved in generating these possible solutions then the pressure is off the single manager. Everyone concerned has buy-in and all parties are focussed on advancing solutions rather than on the personalities involved.
6. Being hard on the problem and soft on the people involved once again takes the pressure off the relationships themselves and allows all concerned to concentrate on succeeding with the task.

And so my underpinning theory is that micromanagers are often very rigid thinkers who are focussing on themselves and their power and are hard on people and not the problem. When they give into fear they are focussing on their own needs and not on a future outcome. They have difficulty in generating options. This latter is a skill that does not come naturally to some people but can be taught. There is a catch to getting a micromanager to think in these terms.

There is a really revealing story that illustrates the problem. In the dead of night, a man falls over a cliff and as he falls he prays to God to save him. He is relieved when his fall is broken by a branch that he clings to very tightly. A voice then comes from God to the man, "Do you want to be saved?" The man replies in the affirmative. The voice then adds, "Then let go the branch!" Terrified, the man carries on clinging to the branch for his life. The following morning, the man is found dead, still clinging to the branch. In the light of day it becomes clear that the ground is a mere few feet below and had he let go of the branch then he would have been saved.

While this is obviously a mere story it illustrates the mentality that is often found with the micromanager. They cling furiously to what is familiar, to what they already have in hand. Change is something very difficult for the micromanager because change includes the possibility of losing control and the fear of the unknown result. If you as the micromanager can analyze each situation "in the light of day" or with real data and clear information, you will more likely allow yourself to see the range of options that are possible.  "Letting go" is a key characteristic of a good manager.

To Control or be Controlled-that is the question

It is a truism that it is difficult to insulate the work environment from the home environment. Many organizations are recognizing the importance of caring for the overall emotional needs of their employees to guard against stresses at home affecting their productivity at work.

I would like to take this concept one step further. Is there a correlation between the way that we handle our relationships at home and they way in which we handle our employees or colleagues at work? To explore this further, let's use the example of the person who is the classic controller in the home. This person is the one who wants to know exactly what any person in the family is doing at any point in time, sets very tight and strict boundaries on family members' free time and gets very upset when they are not consulted about the very smallest of decisions. They need for the family members to revolve their lives around them.

From the initial perusal of this description it would appear that there is an ego issue going on and a certain level of arrogance whereby the controlling family member feels a sense of power and entitlement. However, while working as a therapist, I was constantly struck with the direct relationship between a client's need to control and their sense of fear or insecurity. Controlling personalities were not those who had the most power but in fact were often those feeling powerless, impotent. Their desire to control was a means by which they were attempting to minimise being hurt and trying to reduce the feeling that they were being controlled by others. It is the classic, "attack is the best form of defence" argument. This observation was true in both the parenting and in the couple relationship. The "controller" attacked from a place of insecurity and fear and knew no other way to exert their personal power other than by force, whether emotional or physical.

The theory that I am proposing is that these same underlying insecurities are at play for those who use an overly controlling management style in the workplace. We have all met the manager who micro-manages every single move of their staff, who will not let their staff make any decisions without running it past them first and who are highly critical of the efforts of their employees. Studies have shown that such management styles tends to have a number of undesirable effects:

• Employees tend to withhold their opinions or their input for fear of being criticized
• Passive aggressive behaviors increase in the workplace in reaction to the controlling behavior e.g. slow down in work pace
• There are increasing work absences due to illness 
• At worst, there is a higher staff turnover as employees reach saturation point and are unwilling to stay in such a controlling environment.

The paradox is the same in both the home environment as well as in the work place. A person who fears losing control, who feels insecure about the relationships around them and whose fears drive them to control others ends up getting exactly what they feared. They become impotent, relationships are no longer effective and eventually break down.

So what is the answer? I would like to present a second paradox that is necessary in order to resolve this. The more that someone lets go of their self-perceived power over others and acknowledges that those around them are capable and worthy of trust the more likely they are to have significant, meaningful relationships. Brené Brown expressed a similar concept as a result of her research that vulnerability is an essential element in developing true intimacy. (http://www.youtube.com/watch?v=iCvmsMzlF7o) Vulnerability is not about becoming a piece of carpet to be walked all over but it is about two things from what I have observed:

1. Stepping in and having faith in your own personal power. 

This means to accept that you are a powerful person without having to exercise that power over someone else. This is true inner power that can demonstrate a sense of self-confidence and trust in your feelings, beliefs, principles and decisions. There is a humility in this personal power that says that we don't have all the answers and that we are still capable of learning.

2. Leaving space for those around us to contribute and make decisions 

This implies that we have trust in those around us and allow ourselves some level of vulnerability in our relationship. True personal power and confidence says that we have no right or capacity to exercise what I would call unrighteous dominion over any other person, man, woman or child. Vulnerability means accepting that other people have something of value to add, that they are capable in their own right and best yet, that I may learn something and be enhanced because of their contribution.

So this sounds idealistic. What happens if the other person does not fulfill those expectations? That will be a subject for the next blog. This is but one example about viewing our lives as one great whole rather than compartmentalizing our lives. So the idea is to examine the way you are at home and how you behave at work. Is there a correlation?

So my financial systems are up to scratch to handle an IRS audit-right??

In the past couple of months we have heard a great deal about the IRS and it brought to my mind memories of when I was the one doing the auditing of organizations in New Zealand, including their financial books. Once I got to audit number 100 I guess I began to see a pattern for what needed to be in place to give the big audit tick. 

Being on the receiving end of an audit is daunting because of the sheer volume of work required to prepare but, as the saying goes, prevention is better than cure. There are many ways that we can build sound financial systems so that audits are not so much of a trial. There is little difference, from what I have seen between New Zealand, Europe or the USA on what constitutes a good set of books and what is required by the respective tax departments.

A good set of financial accounts are not only important to keep the tax people in your country happy. Accurate financial accounts are also vital because:

• They give you information on the status of your cashflow
• They provide information necessary to make investment or future decisions on your business
• They tell the story of the financial health of the organization
• They reduce the risk of internal fraud
• They provide marketing information e.g. is there a particular time of year when the revenue flow is better or tighter? Is there a time of year when expenditure is particularly high and so risks cashflow?
• They can be a good tool to attract investors if needed, for credit applications or donors in the case of non-profits.

Here are some tips to generally keeping your financial records in order.  

1. Prepare a detailed forecast budget

No matter what the size of your organization, prepare a forecast budget for at least one year ahead. Detailed budgets are the means to forecast not only the overall financial comings and goings but they are also useful for forecasting potential issues for cash flow, will provide a reminder when particular expenses need to be paid and will provide a measuring tool for how well things are going. Forecast budgets need to be done at the right time (i.e. before you spend the money!), should be regularly reviewed (at least monthly) and should be flexible enough to take into account shifts in the business. Where there are a number of departments in an organization with different staff having access to a budget, a detailed forecast budget will clearly outline expectations for maintaining expenditure within certain limits. In such an organization it is a sound idea to have all key management staff have some input at the planning and review stages to gain buy in and to ensure that the figures are realistic.

2. Get your financial records organized.

Money flows in and money flows out. Simple concept but with oh so many more potential complications. I have often witnessed receipts that have been misplaced, receipts impossible to find because of an illogical filing system or no filing system at all or organizations that have not seen the need to even keep receipts. We will save ourselves a lot of time down the road,  particularly at tax time when we need to tally our expenses and income, if we develop a system for organizing our receipts. I have noted that many businesses organize their receipts according to the month that they were gathered (i.e. all January receipts, all February receipts etc). Given that our annual tax returns ask us to categorize receipts into the types of expenditure this means double handling at the end of the tax year. Think about organizing your receipts according to the tax categories that apply to your business right from the outset. Keep the process simple, whatever works, but organize them in such a way that if the IRS auditor asks to see your travel receipts or your telephone receipts for the year 2012 that you are able to go directly to them.

Having some physical evidence of all your income is also very important. I know that it is easy for cash to burn a hole in your pocket and to fritter it away before you know it.  If you want to go the "no risk" way then have a system for banking all cash and keep receipts of every deposit. The bank statements will show all revenue deposited but it can't hurt to get into a habit of keeping receipts as well. Your bank statement will not have any explanations of which client the deposits came from and it will be difficult to remember all the details two to three years down the track. Put a little extra detail on your deposit slips for future reference.

Find somewhere to store your receipts safely. Some receipts fade very quickly to the point of being unreadable so getting them into some form of storage as soon as possible will save confusion later. At the top of each receipt label them with at least the category that applies and the date so that if the receipt fades that the auditor has something to go on and may be able to see additional evidence from bank or credit card statements.

2. Where possible, use a credit card or bank card for  your purchases

It is true that cash is king but using cash to make purchases for your business also presents greater risk. Keep using cash where you can make significant savings doing so but make it a point to use a debit or credit card for your transactions in the main. This means that you have supporting evidence for your expenditure, you reduce the risk of internal misappropriation of funds and you will have an easier time in reconciling your overall accounts because you have at least two sets of information that corroborate each other. If the absolute worst happens and all your receipts are lost in something catastrophic like a fire or flood then the bank and credit card statements will also be a saving grace. (I live in New Jersey post Hurricane Sandy where people lost everything to the water so not so unheard of a scenario!)

3. Find a financial recording system that works for you

So your receipts are in place and stored safely away. You need to find a good software tool to record all of your transactions. I am not here to endorse any one particular accounting software package but here are some hints to tell if it is a good one for you. There are many who have done a great analysis of the software that is ideal so I am going to post a link to one such analysis here : http://www.comparebusinessproducts.com/briefs/10-essential-accounting-software-features

4. Build in sound financial controls

If you are a sole trader this may not be necessary but the minute that you have more staff who have access to the accounts then your business or organization needs to have inbuilt financial controls. Financial controls may include having more than one signature on checks, a process whereby no-one is able to authorize their own expense reimbursement, regular review of credit card expenditures or regularly checking expenditure against budgets. Financial controls should take into account relatively smooth access to funding and the ability to pay bills. In today's financial systems where so much is being done online, including bank statements and bank reconciliations, it can become more of a challenge to find controls that work. It places more emphasis on having some independent eyes to regularly review expenditure and to be prepared to ask questions where necessary.

5. Review or Reconcile your accounts regularly

You will get full use of your financial information if you review/reconcile your accounts regularly, at least once a month. Expenditure can get out of hand very quickly and you can avoid getting into serious debt by anaylzing your accounts frequently and making adjustments to your budget if needed. If you are a board member, do not accept anything less than monthly financial reports that not only give the overall state of financial wellbeing but also supply an exceptions report to explain significant variations from the budget. No board member should sign off on a financial report without giving it a good look and asking questions where they are not sure. In choosing boards of directors, having someone with good financial management skills is essential. This may not mean a chartered accountant but at least someone who is skilled in financial analysis.

6. Carry out a long term financial analysis prior to any significant or long term decisions for your business

On one occasion, an organization I was working with had significant reserves in the bank and a very expansive restructuring proposal. They had enough funds to handle the immediate restructure but they made a significant error by not calculating the long term effects of the restructure and associated costs. Very quickly the organization was in serious debt. When making structural or longer term changes then ensure that you have looked beyond just the immediate financial implications. 

7. Continually improve on your personal financial management skills. 

While a good accountant is an important asset, this should not be substituted for business owners and managers having a good understanding of managing their own accounts. Find ways to continually upgrade your financial skills and the skills of your key staff. 

8. Build in your own internal audit process

Whether you are a one-man band or whether you have employees and various divisions, every business or organization would benefit from developing an internal audit system. It may be as simple as having a few minutes every few months going through and identifying receipts, matching them up with bank statements and
against the budget. However, at the end of each financial year is an excellent opportunity to do a thorough look at the accounts, confirming each category of expenditure, doing a random check to see that receipts are easily located aand where you think they are and that proper sign off procedures have been used.

9. My "you walked under a bus" rule

Finally, what do you have in place should something happen to you or to a key member of staff who is responsible for the finances? Do you have some instructions somewhere so that financial information can be accessed, staff where they exist can still be paid, insurances can be claimed etc. Just ask yourself the question, "If I were to go under a bus tomorrow, would someone other than me (or my key staff member) be able to find everything they need to either keep the business afloat or to wind it up without too much difficulty. 

I can just hear many of you saying, "I just don't have the time for all these procedures!" What and how much you put into place is your choice. For a minimum, make sure that you are compliant with your respective tax department requirements for record keeping. The peace of mind that comes with a good set of accounts is priceless.

Five Simple Questions to Ask in order to Identify Your Underlying HR Problem.

"It isn't that they can't see the solution. It is that they can't see the problem." -Gilbert K. Chesterton

At some time in every manager's life they will be faced with an employee or employees who are having difficulty. A staff member who is regularly absent due to illness, an employee constantly making mistakes in their work or a staff member who is constantly in conflict with other employees are significant issues for any business or organization because it takes energy, resources and focus away from the core business. 

Whether it is human nature, whether time pressures require immediate solutions or whether a manager, investor or client is applying pressure to have a solution resolved, it happens all too often that we jump to a solution without understanding the key issues. 

Management capacity to identify the real causes of HR problems within their organization will save time, stabilize staff turnover/absences, reduce risk and will increase overall productivity. Entire consultancy services are built upon the mantra of finding solutions to business problems but to this should be added the mantra of problem identification or "What is really going on here?"

When trying to identify the key issues there are five basic questions that can lead to identifying the actual problem. Sometimes the most simple of questions bring the most profound results.

1. Skills. 

Does the staff member have the right skill match to do the job? 
On paper, an employee may have what appears to be an ideal set of skills for the job. However, there are a number of reasons why 'paper' skills may not be a direct match for your needs. An example may be that they have worked at a similar job for a large company but they cannot adjust their skill set to a smaller company that needs to be flexible and able to handle a greater variety of tasks. Or vice versa. The skill set may have changed with new developments in the industry, leaving an employee behind. In order to be able to determine whether someone has the right match of skills, you as the employer need to have a very clear understanding of what skills are required and it is best if this is in writing. 

2. Training.

Are staff properly trained? 

There are two components to this question. Firstly, have you provided sufficient training that is well defined and detailed. Is the training material or approach sufficiently flexible to take into account changes within your organization or business? Equally important, have you built a process into your training that enables you to determine whether your employee(s) "got it"? How do you know that they have grasped all the important aspects of the training? 

3. Expectations.

Are employees crystal clear about what is expected of them? 

Expectations should include description of tasks, time frames, accountability measures and a process to use should something go wrong. There needs to be a transparent means for them to be able to articulate when they get stuck or need some additional guidance on a task. If they are expected to troubleshoot their own problems then this also needs to be spelt out so that levels of frustration are minimized. As with the training question, do you have the means to determine if the employee has understood the expectations and that they are on the same page as you are? Do your employees actually agree to your expectations or are they engaging in some passive aggressive behavior as a form of avoidance?

4. Physical conditions.

Are there any physical barriers that are impeding the ability of the staff member from doing their work? 
For example, if you want them to travel to meet clients regularly, is there an adequate budget for this to occur? Are all the right equipment and materials in place at the right time to enable the employee to follow through on their task? There are many possible variations on how to approach this question but it is about looking all around the task and the employee to ensure that there are no obvious physical difficulties that would obstruct progress. Physical difficulties may also be present within the employee themselves. For example, an employee has presented with all the necessary skills that match the work to be done but does not have the physical and/or mental capacity to work at great speed or under pressure of time limits. 

5. Motivation

Is the employee sufficiently stimulated or motivated to be able to be productive and happy in their work? 
This is not a static question. A highly motivated employee at the time of starting work may experience a change in their levels of motivation for more reasons than can be treated in a simple blog. However, some examples may include difficulties they are experiencing in their personal lives, changes in relationships at work, ongoing frustration at not being able to succeed in a particular task, burnout and so on. Testing levels of motivation on a regular basis are important roles of a good manager.

These questions may appear simple and yet they are multi-layered in each instance and need careful analysis and often additional questions will follow. Answers to these five questions will clearly determine the solution that will be applied. Asking the right questions is a critical component of problem solving skills. 

If you don't feel capable of the critical identification of the problems, it is worthwhile to call in someone external to carry out an analysis. It will ensure that your energy and resources are truly targeted to finding effective solutions.