Category: Management

Managing Programmers

Programmers are intelligent, problem solvers. If you can’t believe this then please move on, this is not a post for you. If you are managing a group of programmers then here are the things that you should concentrate on:  Remove Obstacles By obstacles, I mean real ones. Things like Hardware, A.C not working, improper lighting, noise, printer out of paper, furniture, wending machine, pending feedbacks occupies very expensive portion of a programmer’s brain. You need to free this up so that they con concentrate on job. If you land up in a job which involves managing a group of programmers then the first thing you should do is make sure that the environment is appropriate for working and all barriers to productivity has been taken care of or at the very least, the programmer don’t have to bother about them.  Maintain flow of work A large part of your effort should be spent on maintaining the flow of work for the programmer. By this I don’t mean signing more contracts! You need to make sure that when the programmer comes in to office every morning they know what needs to be accomplished today. The programmer needs to know the work queue that has been lined up so he can go full throttle and get things done.  Get them the information they need It’s not that programmers don’t have business acumen, it’s just that they are closed to any problems that cannot be solved by writing codes. If that doesn’t makes sense to you, then think about why certain things don’t appeal to you. Thus, save them from this anguish and get them the information they need to know about the application. Don’t send a business case and expect them to deliver a working product.  They are more interested in knowing what the application needs to do.   Don’t talk technical This is only for the non-techies who need to manage programmers. Talking to them about technical aspects is the surest way to loose your respect. In case you can’t resist then try being suggestive rather than authoritative. I don’t think that managers respect better managers with the same intensity as a programmer respects a better programmer. Thus if your suggestions are shallow then you will loose respect forever and moreover, if they have to implement your solution then they will end up hating you. Stay away from this and rather focus your energy on getting the first three points.  Feel free to add to the list – the world really needs one!

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Structure Is Strategy

I was recently going through a very interesting White Paper about Organizational Structure written by Richard Kibble & Neal H. Kissel of Marakon Associates, which presents a very different notion about the parameters based on which a business should form its Organizational Structure. As per Kibble and Kissel, an enterprises’ structure defines its strategy rather than the other way round. Flexible organizational structures leads to flexible strategies and better Global/Local Structures Produce Better Global/Local Strategies. Thus, better organizational structures lead to better strategies being formed and implemented successfully. This is because organizational structures greatly affects a manager’s management style. Structure critically affects managers’ decisions and, in turn, influences their emergent strategies. Managers with unique talents emerge when the organizational structure allows them to refine and perfect their craft. Better structures provide the an ideal platform for grooming young talent; allowing them to interact with various organizational demands and scenarios, in turn, creating better managers. If you want to develop more managers who can manage for value, create a lot of opportunities for them to manage for value. Managers with unique talents for discovering and developing new customer groups – or creating and executing new strategies – don’t emerge by chance. They emerge because there’s an organizational structure in place that allows them – and challenges them – to refine and perfect their craft. In short, organizational structure greatly influences the way managers function and make decisions. Hence it should be always be designed to exploit the uniqueness of the business with regards to its markets, products and more importantly, its people. To sum it all, if you want to have a distinctive strategy to outperform the competition, you need have a distinctive structure!

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Brazen truths about Incentives

Every executive and his dog have thought about incentive schemes that will give the company a performance boost. Incentives schemes are bribes that is given to people for doing things they were already supposed to do. The problem with incentives is that it works only too well. Here is what you need to think about:  Is the incentive system simple enough? Complicated incentive systems look fishy. If you want people to trust the system then you have to make it simple enough so that everyone can understand it. If the people won’t understand what they need to do, it won’t get done anyways. I once interviewed someone for the post of business development manager and her incentive scheme was nothing less than an MLM program.  How much is it going to cost to have an incentive program? Incentive program requires collection and analysis of data which requires resources like people and time. The more complicated the program is, the more difficult and resource consuming the job becomes. We once implemented a program called “the point system” in which every employee earned 1 point for every $25 worth of production.  Every employee had a target set of points that they were supposed to accumulate in a given month. This target was set based on the average costs of his business unit. The idea was simple, we wanted to focus on revenue per person (PPR) and it seemed logical to provide incentives to person whose PPR is higher than the target. The most important point was that it gave us quantitative data for performance analysis.  This program seemed brilliant at the moment, but later the cost of administering the program was so high and it was so counter-productive that we closed it within 4 months of its implementation. It produced 20 pages for each team every month and some 300 sheets in total that had to be verified, analyzed and tracked.  Is the goal achievable? It makes sense to set the goal slightly higher than the normal but, setting it too high is an obvious way to kill all motivation. If I know that the defect-rate is 10%, then it makes sense to provide incentive for reducing it to 5%-7% but giving an incentive for 0% defect-rate will only have your employees laughing at your back!  Will increased effort lead to increased performance? Wait for moment to let that question sink in first.  If your employees are ineffective because of your company’s systems and processes then no amount of incentives is going to make them more effective.  Incentives, especially in the form of financial reward can be a great motivator and it can get people working really very hard. However, people still got on work with the processes and structures within the organization and if that’s not efficient then raw hard work will not lead to superior performance.  People will slog endlessly, only to find at the end that the target has not been achieved. Thus, they will be de-motivated because they have done all they can to achieve a reasonable goal but still the money has eluded them. Running on ice will slow down the best sprinters!  What behavior am I encouraging? Behavior is a result of consequences. There six elements of project i.e. Scope, Cost, Quality, Risk, Time and Customer Satisfaction. This forms a perfect hexagon in which every element has impact on all others. Pull one and other 5 gets drawn too. The problem is that incentives focuses the attention of employees like a laser beam, all periphery vision is lost. Thus, giving incentive for “on-time” delivery will mean that people will forget about other five things because to them, it means that “on-time” delivery must be most important to management.  People are smart and they will soon figure out a way to meet the objectives may be at the cost of quality or customer satisfaction.  Incentives is not just about throwing in money to get things done, for all you know it may be changing the way your organizations expectations, thought process and behavior forever. Employees will begin to judge the importance of the job by checking whether it has an incentive scheme tied to it or not.  Things that don’t have incentives will not be considered important. IMHO paying decent salaries, treating people well and maintaining the right culture is far more important and useful then crazy incentive schemes. 

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Salary Appraisal – The Illogical Logic

The Rule: You will always feel you are underpaid. Want to know why? Read on. The following gets answered or at least thought about when the management wants to decide about salary appraisals: 1. Change in costs and revenue over the next year. For the uninitiated, the difference between two is called “Profit”. No company can survive without it. 2. Mitigating the change in the cost by choosing from multiple alternatives i.e. change in pricing or cost averaging.  Price sensitivity of its customers is an important factor here because the way Deccan Airlines (or Southwest Airlines) will conduct appraisals will be different from Kingfisher airlines (or United Air). 3. Compensation data with respect to the local geography amongst companies of same size. For us it means considering the disparity among salary structure for similar skills and experience across multiple locations. 4. Consideration for budgets for different departments. The appraisal budget will be different for different departments. 5. Performance Rating patterns emerged in bell curve (for your division, your unit and then deciding where you fall) 6. General outlook of the company towards future It’s a tall order. While the management is figuring this out, here is a question for an average Joe whose salary is due to be appraised. Choose an alternative from below: 1. Making a salary of 40000, when I say that others are making 30000 2. Making a salary of 50000, when I say that others are making 60000 Having a hard time answer? Do you see the point? While the management has a ton of factor to consider, our average Joe is just bothered about how much his cousin Nick or friend Peter or colleague Tom is making. Our average Joe will never be happy with his salary review because: 1. His expectation has got nothing to do with his own situation 2. Even if he gets what he wants, companies cannot control how the salary of others around him will change. As for the management, this is a thankless job that someone got to do!

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Barriers to Learning

Answer this: You are sitting in your cubicle when you overhear two of your colleagues discussing a design issue. You do not like one of the guys in that conversation as you think he is a bit stubborn know-it-all type.  You then realize that they are talking about implementing a fancy new component. You have infact tried to implement this same component in one of your previous projects and found out that it makes the whole system unstable. Your last project nearly got cancelled becuase of the delays due to instability of that component but you managed at last to find a work-around for that problem. Will you still getup from your cubicle to share what you know ? Now answer this: You consider yourself to be a great programmer. Presently you are assigned to a project and you came across a fancy new component that could cut the development time by 10%. You are boasting about your great find to one of your colleagues, when he tells you that a guy in the next cubicle has worked on this earlier and there were some issues. What would you do – will you ask for help? There are extremely high chances that you have found it to be difficult to say “yes” to both these scenarios. As easy as the answers may seem, learning is often jeopardized by “Ego” and “Why-should-I?” syndrome. There are two important conditions for learning: Be a Teacher - Help others even when you are not asked for it  By teaching, I mean voluntary sharing of knowledge. No body knows everything about anything. If you share knowledge with others, then other will share knowledge with you. Thus, both of you will be more knowledgeable in the end and learn much more than what you would have learned individually. Don’t consider yourself to be a gift to mankind and make people come begging for your attention. Be a student – Be willing to seek out and accept help Sounds silly as it is but people love to reinvent the wheel and sometimes, they end up making square wheels on right when a perfectly rounded wheel is already there in the left. You have to learn to ask for help and have the humility and modesty to accept it. The student attitude is precondition if you really are interested in learning anything.

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Doing it for the money

Read the 3 conversation below: Conversation 1 Interviewer: “Why are you looking for a change?” Respondent: “for better career growth!” Interviewer: “What do you mean by that?” Responded: “umm… better salary” Conversation 2 Colleague 1: “I want to switch to Java?” Colleague 2: “Why do you want to do that?” Colleague 1: “The market is better for Java!” Colleague 2: “What market?” Colleague 1: “I mean salaries are higher” Conversation 3 Manager: “Why are you leaving ‘Change the World?’ to join ‘Make another Widget’ “? Employee: “They are paying me 3000 more” Did you find anything wrong with the above three conversations? In case you didn’t then please read the next case below: Conversation 4 You: “Why do you want to become a doctor?” Doctor 1: “Because there is lot of money in being a doctor” Doctor 2: “Because am interested in the subject and want to make lives better for people” Which one of the two doctors will you hire? Will your answers change if you are running a hospital viz. if you are a patient? I bet that in both the cases you will hire or visit the 2nd doctor. It’s strange to see that people are willing to make career decisions for money but they want to entrust their lives on people who are in their profession for something beyond money. Call it the height of double standards. As an organization we feel it is critical not to focus on money alone, because of the simple reason: If money bought them in, money will take them out. Sometimes a difference of only 2000 or 3000 is all that is takes. It is important to hire people who have the right attitude and who are willing to contribute. Too many times, I meet friends, MBA school grads, ex-employees, colleagues who seem to recklessly chasing the money regardless of what they are doing or like to do. They want to take up finance or switch to SAP because of the money is good. Once smart people, who could debate all day on various subjects, now know nothing beyond their narrow job profiles or worse, the dumb terminals which gawk and feed all day long. If a job is not allowing to you explore your potential but still it is paying you more than fair market salary then soon it you will loose the critical skills that landed you in that job in the first place. Sitting there all day and doing what you don’t like will create a big void in your life which will keep getting bigger and bigger until every ounce of self-worth has been squeezed out and you become completely risk averse. Money is important, I don’t question that, but your own sense of self worth is not derived from what you own but from what you are! Money as the primary content of job profile is not good. Customers will rely on the work that you do and if the job does not interests you then you will always do a lousy job. Remember what someone said: “Do you what you like to do and you don’t have to work for a single day”

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Do you need a business plan?

I have often seen people struggling with their business plan. I have a bit unconventional take on the subject. May be, because it has worked well for me till now. So here is what I sugget: A business plan does help. However a business plan should be proportionate with the size of investment you are making or seeking. So, if you are starting small and testing the waters, I will suggest you to have a “paper napkin business plan”. A plan which reminds you of – Your target audience,  Your product range and  Highlight the reasons why someone will buy the product / service from you. And, how will you achieve this? I feel that this can be a mini-strategy document which will help you and these three things must be “thought upon” before venturing into anything. You shall also put down in that paper – Your cash-flow statement (Expected revenues & expenses – both pessimistically an optimistically). You can use this to verify if you are on the right path or not? Your sales pitch! This is very important. If you are not convinced from your own sales pitch, no-one will be! Try to verify your sales pitch with friends you trust and take their feedback. Risks to your business and how you will mitigate them. Possible sources of acquiring business and how you want to prioritize and execute them. Possible sources of funds, if you really need them at one point of time. Some time bound goals! That’s it!   I think one can kick start a business from this “paper napkin business plan”. You can comfortably make it while you chew upon your favorite sandwich in the coffee shop. Best of luck with your venture!  

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What all managers should know about developer overtime

Perhaps the first company on the planet to think about the effects on employee turnover was the Ford Motor Company. Early 1900s were a turbulent time and employee turnover was killing the company. At around $2.25 a day, each worker was expected to work for around 9 hours. The attrition rate was nearly 300% and they had to hire 52000 employees to maintain a steady workforce of 14000 on the assembly line. It was then Henry Ford, took the unprecedented step of doubling the wage from $2.25 to $5 a day. The wage rate increase was not just about giving more money but it was a sort of first ever profit sharing plan. Working overtime is dangerous, I feel work related stress may be the #1 reason of attrition is software companies and meaningless overtime is the #1 cause of stress. However, still it’s not very hard to find instances of scheduled overtime when the project plan deliberately requires the team members to slog more-than-required hours each day on the project. Here is what you should know about overtime: 1. Programming is a mental work. The more time you spend doing it, the more tired you become. The more fatigued you are, the lesser you will be to concentrate. As the concentration down, the more bugs the system will contain. The more bugs the system contain, more money will be spent fixing it. So, the project will end up costing more. 2. People have a life outside work too. They talk to friends, pay their bills, eat out, do their laundry, sleep and do host of other things when they are not working. The more time they spend in office, the more overlap you will notice between their work life and social life. Now, you surely want people to keep out their social lives when they come for work, but at the same time you want them to work longer. That’s an amazing contradiction. 3. It’s not unheard of that top executives or entrepreneurs spend 80 hours work week. However, there is an important difference between motivations of executives and programmers. As expectancy theory states, there should be a positive correlation between effort (hours spent) and performance (output) and moreover, improved performance should lead to desirable reward.  So, although long hours of work will not stress the executive because they can link effort with rewards, but if the people in production workforce cannot find that link, overwork will simply stress them more. So, if you want to encourage voluntary overtime, then the employees must feel that it will reward them in desirable ways.  4. Finally, overtime reduces employment. If 4 people are doing 2 hours of overtime every day, it means they are doing one extra person’s job. Given the point is made about more defects and social life, there is no point in saving that cost of one more person because you are not saving it anyway.

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Hit-and-Run Management

Its rather a practice that you will find in most of the organizations. This is a form of management in which you just hit a developer with a command and then run away without looking back at what the consequences of the decision has been. Normally senior managers are too busy to micro-manage every employee and that’s good. It’s hard to know or remember the details of every project or what every employee is doing specially in scenarios where you have hundreds of developers doing lot of different projects of varying sizes. Then, all of a sudden something changes and you stop by at the developer’s cubicle and start a discussion about whatever work they are doing. You get into micro level detail of a project which you were completely unaware of approximately 10 minutes earlier. 3 minutes into the discussion, you find yourself completing sentences for the developer. Fascinatingly, within 5 minutes (sometimes 2), you presume that you know all about that given task or project and then give your verdict of what needs to be done and by when. The developer simply have to follow that without questioning. Why is this so bad? 1. The manager ventured into the project for reasons that are important to him rather than project itself. So, any decision taken will be biased towards their own interest. 2. Are you a trained Programmer ? Designer ? Database architect ? Project manager ? If not, you need to recognize your limitations and be aware of the fact that your decision will cause unwanted consequences. You might even don’t understand what’s involved in getting that piece of work done. 3. You are telling the developers that they are not smart enough, which in the long term will have negative effects. Pygmalion effect kicks in and the motivation goes down. 4. The developer gets a false perception from that point onwards, that you are controlling or watching the project. They will avoid taking decisions (because they feel that you will change it later!) while you are too busy with your actual job to follow-up with that project. The project will tail-spin and you will end up blaming the developer. So what do to? The fact from the other side of the table is that you definitely have been tipped-off  or something has caught your attention or fancy, for which you are deciding to take the matters in your own hands. You don’t want to do this but it seems you have no other choice. Here is what you can do: 1. Try to empathize with the employee and understand the conditions under which they are working. 2. Try adopting a consultative approach rather than a dictatorial approach. Help the employee arrive at the decision rather than making it for them. 3. Make sure you communicate the parameters you are considering while making the decision. This will set the right context when the person faces the same situation next time. 4. Communicate the degree of your involvement. Make sure that you tell the employee exactly what you are expecting and when will you monitor the progress again. 5. Follow-up your decisions, to see if it worked. If it has, give the employee the credit for making the right decision. 6. Avoid on-the-spot decisions when you are not sure, involve people who can give you broader perspective on what’s involved.

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Ideas are useless. Execution is what matters!

How many times have you heard? He is successful because he has the first mover advantage. I have a bright idea. I will seek venture funding and make it BIG! There are so many simmilar businesses around? There will be a lot of competition for my new business. I bet, you must have come across a variant of one of these statements. They all signify the general perception that a unique idea (or a first mover advantage, or an invention) is the core of a business. Actually this is not true. Ideas are important. In fact, a business to keep its edge in the industry need to keep re-inventing itself and come up with new ideas, variance, reasons-to-do-business-with and disruptive trends to gain a leading position or maintain his leadership. Ideas are the fundamental inputs for running a business. They are nothing special. If you cannot think out of the box, or come up with something unique on an ongoing basis, forget about succeeding in this cut-throat competitive economy. It is not for the light hearted ones. But hold on. The process is execution! There cannot be an output without the process. The output will remain equal to the input if there is no process! It is a pity to see so many people burn midnight oil and hundreds of hours in defining, refining and protecting their idea, but they hardly take the first step forward to execute the same. History is full of examples where visionary companies have emerged from innovation and smart execution of ideas which were conceived by someone else or invented by someone else. Microsoft didnt invented operating systems Apple didnt invented GUI Google was not the first search engine Dell was not the first desktop manufacturer Infosys was not the first outsourcing company Dhirubhai Ambani didnt set up the first polyster manufacturing unit in the world The list is endless.. What these guys did and what is important is: See the Gap! Nothing is perfect. Things happen in a given way which is good, may be better, but never the best. You can always better the effort by finding the gap what makes it imperfect. For a moment think of an “ideal scenario” and how it differs from what you are seeing today in a given context. Are you happy with everything? You cannot be. Its a utopian scenario. If you see with a consumers’ point of view, you will be able to see a gap almost everywhere, everytime and with everything! So if you want to really make the next big search engine – find the gap – find the pain – find the imperfection. And hey – you have an idea! It’s so easy. Now whats next! Validate your idea. See if it offers value to its stakeholders and create win-win synergy? Plan for the execution of the idea, but keep yourself flexible about its implementation and nitty-grittys. Plan for the risks. Risks can never be avoided. They can be managed. Set achievable targets and take youir first step. All this really means – Take action! So, when you can create idea at random (like an idea factory), you can always differenciate. And when you can differenciate and make things better – go ahead and do it. Take action. Take baby steps. But try to walk. And soon you will be able to run. Microsoft was a visionary company. It saw the potential in the business of operating systems. It harnessed its power and made it available for masses in form of DOS. They marketed it well and went on from becoming an innovator (mind you – not an inventor) to a world class company. Google found that people are not getting the right results and they feel frustrated while searching for what they want on internet. They deviced algorithm which solved the problem. I bet when they started off, it was not a code as complex as you will have in spaceships! But they kept innovating, removing gaps as they saw them. Social networking concept was initially mastered by a site called Friendster. However there are many more websites who have followed the same fundamental principle and improvised on that to achieve more fame and hiher valuation. I am like a friend to most of my clients. When I speak to them, I always have this advice at the back of my mind. I advise them to do things differently to make it better in small increments based on those small ideas that you can generate at your will. To start taking the first steps towards a better web-application or a better business model. I am a strong advocate of compunding of small improvements done over a period of time to result in a considerable net effect. So, its all about seeing the gap. Building small bridges and walking over them to leave your competition behind. I look forward to see you all at the top at the game – ahead of the guys who invented the same. Best of luck!  

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