“HOW TO SPOT AND STOP DYSFUNCTIONAL

MANAGERIAL BEHAVIOR” Presented By:

Steve Danley

Director of Human Resources and

Performance Audit for Orange County

(Former)

Peter Hughes

Assistant Auditor-Controller Los Angeles County

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PEDIGREE OF PRESENTERS:

Steve Danley:

• High School Basketball referee for 25 years • MBA, UC Irvine • 35 Years in Orange County • Held an executive position in 6 County departments • Former Director of Performance Audit and of Human

Resources • Awarded Harvard University’s Kennedy School “2012

Bright Idea” for innovation in Performance Auditing

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PEDIGREE OF PRESENTERS: (continued)

Peter Hughes:

• Proud financial backer of three college graduates • CPA, MBA, UC Riverside, Ph.D., Oregon State

35 Years in executive positions for federal, State, County, and Corporate entities, including, NASA Jet Propulsion Lab, Caltech, Oregon University System, Orange County, Los Angeles County, and CBS Inc.

• 2010 Outstanding CPA in Local Government - American Institute of Certified Public Accountants • 2009 Article of the Year, entitled “Ethics Pays in So Many Ways” by Association of Certified Fraud Examiners • Developed and led the Control Self-Assessment and Process

Improvement program for Orange County

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“HOW TO SPOT & STOP DYSFUNCTIONAL MANAGERIAL BEHAVIOR”

A Short Refresher Course on Good and Poor Management

DELIVERABLES: • ABILITY TO SPOT COMMON SYMPTOMS OF

MANAGERIAL DYSFUNCTION

• ABILITY TO “STOP” IT WITH THE RIGHT “ANTIDOTE” AND DOSAGE

• ABILITY TO “GAGE” THE OVERALL MANAGERIAL HEALTH OF AN ORGANIZATION

TABLE OF CONTENTS:

A. Why you are at this presentation?

B. Importance of Good Management

C. Most Common Symptoms or Effects of Dysfunctional Management

D. Common Cures and Antidotes

E. Diagnostic and Prescriptive Tool

F. Organizational/Managerial Health Examination

G. Deliverables / Take Away

H. Sources: Popular Books on Management

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A. Why you are at this presentation?

1. I want to know the most common symptoms/signs of dysfunctional managerial behavior; 2. I want to know the most effective ways to correct/fix/antidote/remedy/cure such behavior; and 3. I want to know how to quickly gage the organizational health of a Unit, Section, Division or organization.

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B. Importance of Good Management

Why care so much? (It’s the biggest theft to the bottom-line and viability of an organization):

• Poor management leads directly to lower productivity, increased costs and diminished quality which can threaten the health and

very existence of an organization.

• US companies spend $25 billions a year just on management and leadership training which is twice the amount of annual tuition for all the accredited MBA programs in the USA

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B. Importance of Good Management (continued)

• Hundreds of new books on management released each year

• Books sell in the millions

• Successful authors achieve “Guru” status

• If it was easy everyone would “just do it” and not need any help.

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B. Importance of Good Management (continued)

• “Everyone wants it, few have it” – Peter Drucker The top best selling books on Management:

1. “One Minute Manager”; sold 13 millions since 1982 by Ken Blanchard

2. “In Search of Excellence”; sold six millions since 1982 by Tom Peters

The overall best seller first published in 1936 has a 70-year advantage with 15 millions sold. Its title is “How to Win Friends and Influence People” by Dale Carnegie

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C. Most Common Symptoms or Effects of Dysfunctional Management

(Which came first, the chicken or the egg?)

Macro Signs: High turnover

Confusion resulting in disjointed, poorly coordinated and failed results

Stress resulting in heightened office tension, friction, and conflicts instead of cooperation

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C. Most Common Symptoms or Effects of Dysfunctional Management (continued)

Micro Signs: Missed deadlines Overrun budget Failure on deliverables

(unhappy people)

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C. Most Common Symptoms or Effects of Dysfunctional Management (continued)

Flawed actions by Managers:

“Doing” instead of “Delegating”

“Criticizing” instead of “Coaching”

“Rebuking” or “Dismissing” concerns and new ideas instead of thoughtfully “Responding” to them

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C. Most Common Symptoms or Effects of Dysfunctional Management (continued)

Know the difference between “Poor” management and a “Bad” manager:

Easier to change “attributes” than “attitude”

Research reveals only 10% of managers are “toxic”, the rest can be developed

There are antidotes and even cures for the “worst” managers

Most problems are due to a manager’s flawed approach to decision making and supervision which can be fixed!

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D. Common Cures and Antidotes

Common theme to “good” or “effective” management theories, include connecting with employees by facilitating a two-way communication, frequent coordination, ready cooperation, passion, and unstingy praise supported by:

• Matching responsibilities with authority

• Establishing and enforce priorities

• Planning with an outcome in mind

• Monitoring measurable performance criteria (if can’t measure, can’t monitor)

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D. Common Cures and Antidotes (continued) “Tone At the Top”

• Define, communicate and model good behavior

• Do not ignore “bad” managerial behavior even if it “appears” to get results

• Reward “right” managerial behavior even if it “appears” to fall short of getting all desired results

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D. Common Cures and Antidotes (continued)

Borrowing from the adage:

“If two heads are better than one, then five heads are better than two: but only if well managed”

• Most issues are too complex to rely on a “Top Down” driven decision model

• Need a managerial approach that “Percolates” a two way flow of ideas and participation

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D. Common Cures and Antidotes (continued)

• Jointly set clear goals, benchmarks, milestones and ownership

• Touch base prior to reaching “a point of no return”

• Mentor while managing

• Coach while critiquing

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D. Common Cures and Antidotes (continued)

• Ensure that subject matter experts “meaningfully” participate at all critical junctures

• Invite the “devils’ advocate” position to “stress test” the approach, plan or decision

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E. Diagnostic and Prescriptive Tool (Did the MDs steal this tool from the Auditors or vice versa?)

Definition of Condition: • Projects are stalled out

Symptoms: • Deadlines are missed • Budgets exceeded • Projects are delayed • Upset “customers” • Repeated revisions to budget and deadline

Adverse Consequents: • Frustrated “customers” and talented employees will leave/transfer • Critical projects will be left incomplete • Late results will be of little usefulness • Remaining staff will become demoralized • Productivity will decrease

Cause: Poor Project Management • Unrealistic timelines • Inadequate staffing • Flawed priorities • Ineffective budgeting • Ineffective monitoring • Vague or ambiguous goals and objectives

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E. Diagnostic and Prescriptive Tool (continued)

Prognoses: • If Management is not immediately replaced or better coached, talented employees will

leave and customers will seek alternatives. Additionally, if tolerated and not corrected, this bottlenecks will deny the customer of needed service which can hinder that division from achieving its goals and potentially negatively effect the entire organization. (Think payroll calculations and processing!)

Treatment or Cure: Immediate Cure – Shot in the arm

• Assignment of a proven manager to take charge either as the replacement or as the lead project manager

• Assignment of additional staff and budget as warranted

Long-term Cure - Rehabilitation • Assessment of cause and effect and identification of solutions/remedies

• Implementation of solution such as project management training, provision of closer supervision, and additional or different staffing

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F. Managerial Health Examination

• Think of organizations as living organism made up of its employees.

• Recognize people are negatively impacted by dysfunctional managerial behavior and so too will be the organization.

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F. Managerial Health Examination (continued)

• “Tone at the Top” tangibly promotes or undetermined the health of the employees and consequently the organization.

• Dysfunctional managerial behaviors act like viruses that vary in their impact from triggering a 24-hour cold to a life threatening illness.

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F. Managerial Health Examination (continued)

• You can assess the managerial “health” i.e., functionality of any manager, unit, section or organization by assigning a score regarding 10 simple questions.

• Scoring/assessing health criteria: Any score at 0 or 1 suggests a Near-Death condition

Any score between 1 and 2 equates to a very sickly condition

Any score between 2 and 3 equates to an anemic and weaken condition

Any score above 3 up to a 4 indicates a very health condition

Scores between a 4 and 5 are reflective of a robust and Olympian athlete level of health

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F. Managerial Health Examination (continued)

Ten Examination Questions: (1-5) Insert Score in the little square boxes

1. The degree that management brings to the team insights instead of hollow sound-bites?

2. The degree of a Critical Analysis and a Advocacy approach occurs and is encouraged instead of Group Think?

3. The degree that effective and supportive teamwork is rewarded instead of a self-centered or self-serving approach?

4. The degree organizational goals are measurable and managed instead of being abstract notions that are ignored?

5. The degree meetings are well organized, attended by subject matter experts and end with clear ownership and deliverables instead of serving to only confuse and frustration meaningful activity?

6. The degree key decisions stem from a transparent process that ensures appropriate criteria is established, adequate vetting occurs with those most affected, are based upon careful analysis, involve relevant subject matter experts, and is supported by a consensus of management instead of back room decisions made in private according to unknown criteria?

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F. Managerial Health Examination (continued)

Ten Examination Questions: (6-10) Insert Score in the little square boxes 7. The degree that the opportunities for promotions and raises are transparent, open and based upon established criteria and merit instead of indefinable “intangibles”?

8. The degree that duties and responsibilities are clearly defined and are measurable and all individuals are rewarded for their performance?

9. The degree that information that is needed to manage one’s operations is readily accessible, shared and accurate instead of being hard to get and treated as top secret and unreliable?

10. The degree and readiness of colleagues to help their peers and support their development and successes in contrast to undermining them?

Total Score - Add the scores from Questions 1-10. A score of 3 for an individual question or 30 in total for all 10 questions indicates healthy “managerial” conditions and most likely a thriving organization.

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G. Deliverables / Take Away

1. I now know how to spot the common symptoms of managerial dysfunction. (high turnover, disjointed efforts, office conflicts, missed deadlines, budget overruns, failed projects, low enthusiasm)

2. I now know ways to antidote dysfunctional managerial behavior. (lead by example, establish clear roles and ownership, match responsibility with authority, mentor while managing, coach while critiquing, praise when succeeding)

3. I now can quickly “GAGE” the overall managerial health of an organization or individual. (take the self-scoring ten questions examination)

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H. Sources: Popular Books on Management

Sources Included:

1. The 7 Habits of Highly Effective People: Stephen R. Covey

2. In Search of Excellence: Thomas J. Peters

3. The Toxic Workplace: Mitchell Kusy & Elizabeth Holloway

4. Strengths Finder 2.0: Tom Rath

5. The One Minute Manager: Kenneth Blanchard

6. Management: Tasks, Responsibilities, Practices: Peter F. Drucker

7. Leadership and Self-Deception: The Arbinger Institute

8. The Effective Executive: Peter F. Drucker

9. Six Thinking Hats: Edward De Borro

10. Overcoming The Five Dysfunctions of a Team: Patrick Lencioni

11. Out of The Crisis: W. Edwards Deming

12. Leadership BS: Jeffrey Pfeffer

13. The Type B Manager: Leading Successfully in a Type A World: Victor Lipman 27