January 2012
THIS MONTH
Welcome to the New Year where optimism and resolutions reign supreme. Our New Years resolution is to return Managing Safety Performance News to a monthly basis. Many of you have contacted us asking, "where's the news?" Quite frankly, like many of you, we got real busy, not that we're complaining at all.
Paul has a whole bunch of ideas he wants to share with you, so we've got more than a years full of darn good newsletters in the queue.
In this month's Managing Safety Performance News™, Paul shares his thoughts on end of year/brgiinning of the new years chores us managers must endure and how they impact our thinking about who's to blame or credit for the performance we got.
We hope that you ended the old year well and are ready to make a difference in the new year.
~ V. Scott Pignolet
MANAGEMENT'S PERFORMANCE RATING
by Paul Balmert
Principal, Balmert Consulting
"Companies don't compete. Managers compete."
~ Peter Drucker
Welcome to another new year!
So, you’re back from the holidays ready to take on the new set of challenges that come with a new year. Plus all the ones that never end on December 31, like sending everyone home alive and well every day. The challenges you face making that happen are unrelenting. On that account, no matter how good last year was, don’t let up.
Back in the days when I worked on your side of this deal – as a manager, not a consultant – one of the first orders of business in the new year was to evaluate the old year. What did the number say about how well performance measured up to the ambitious goals our leaders set for us? Some years there were successes to be celebrated; other years, we were relieved just to have that year behind us. Most years, our performance was a mixed bag of good and bad.
You know how that goes.
Then we’d turn our attention to the good folks working for us. I’m sure you know exactly what that means: individual performance evaluations, filling out performance appraisals and conducting performance reviews. In my case that meant reviewing the hundreds of performance appraisals written for those who administratively reported to me. In our company, everybody got a performance appraisal every year. We devoted a lot of effort to that process.
You know what the experts have to say on the subject of judging people: it’s one of the most important parts of a leader’s duties. Ask Larry Bossidy: he’ll emphatically tell you the candid conversation about performance is the “live ammo of the people process.” Exactly the metaphor you’d expect him to use. I’ll bet he just loved that people process! “You’re fired” he’d tell some soon to be former General Manager. He should have owned the Yankees.
And you know employee surveys always rate “knowing where you stand” as really important to the people working for you.
Not that I ever answered the question that way.
To be perfectly honest, the performance appraisal process was never the highlight of my business year. Guess I wasn’t that much of a people guy. I was always much happier spending that time figuring out how to change things for the better.
The good news, at least for me, is that the people process is all yours. Thankfully I’m just a consultant.
EVALUATING SAFETY PERFORMANCE
Peter Drucker described leadership as getting common people “to do uncommon things.” One of those uncommon things a leader might get people to do in a big organization – say, one of a couple thousand people – is work safely for an entire year. As I’ve traveled the industrial world, from what I’ve seen that’s pretty darn uncommon. Getting people to work safely is a pure leadership play, the ultimate test of leadership.
The question is, whose leadership?
Picture a large organization that achieves great safety performance. Who rightfully deserves the credit? The leader at the top? The ones in the middle? The leaders at the front line? The peers who stand tall, setting the great example for all their co-workers to see?
Note the operational word in that question: rightfully. I’m not asking who normally gets the credit. We all know the answer to that question.
If you reflect upon that for a moment, the answer is stunningly clear. In a big organization, safety leadership is the ultimate team game. Found in the injury rates is the answer to how good a job all the leaders do getting all the followers to “raise their game” on safety.
Compare that organization’s rate to other similar outfits, you get a clear sense of the how good management’s performance is on something that is as important as sending people home safe.
That’s management’s performance rating. It’s as simple as that. “Companies don’t compete. Managers compete.”
But never confuse simple with easy.
FROM THEORY TO PRACTICE
Calculating the injury rates….simple math. Comparing the outfit’s performance with the competition…..a couple of phone calls..
Doing something meaningful with the results…..priceless!
Here’s the problem.
Suppose you’re a supervisor running a crew of ten. None of your guys got hurt last year. Nobody’s better than you.
Suppose you’re running a department. Last year, your department’s injury rate improved by 40% over the year before. Have you ever done a great job.
Suppose you’re the site leader, managing all ten departments, each with four supervisors. Most of those departments and supervisors did great, including the one department that was bringing up the back of the pack the year before Unfortunately, two departments that had done well for years had lousy performance last year. Add up the numbers, and the total is only slightly better than the year before. In fact, it’s hard to argue that there’s been any statistical improvement over the last five years. So, you really haven’t done such a good job.
Suppose you’re the senior leader at headquarters looking at the numbers for the entire outfit. They might tell a good story about leadership. They might tell a bad story about leadership. In either case, their numbers tell you what kind of job you did as a leader last year.
Assuming, of course, that the numbers actually reflect real safety performance.
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