Management

Managing Your Consultants

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By Andrew Leach, MBA

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During the last ten years, I have done contract work for hundreds of organizations across Canada and the United States. During this time, I’ve come across a lot of consultants: a few good ones, most decent, and some terrible ones. This article offers three tips to manage your consultants and get value for the money you spend on them.

Get ‘em In, Get ‘em Out

First, determine if you really need a consultant. Generally, organizations need to hire a consultant for one of three reasons:

  1. She has the expertise you need
  2. He has the time and you don’t
  3. She is independent and can objectively evaluate a sensitive, internal issue

If you think you need a consultant, getting one is fairly easy. Getting someone out can be a bit trickier. One way is to establish expected deliverables with all of your consultants in a signed contract.

And beware of the consultant who becomes a “jack of all trades” for your organization. He’s the planner, organizer, proposal writer, management guru, and trainer. These consultants end up becoming too dependent upon you and vice versa, which is not an effective way to run business.

So remember GIGO: “Get ’em In, Get ’em Out.”

Establish Clear Policies

The main reason for establishing policies is to provide consistency for routine activities like hiring consultants. Two things can go wrong with written policies:

  1. Your policies are not adhered to
  2. Your policies have loopholes

Problem #1: If your present policies are not being adhered to, political will is required to correct this situation. Without the political will to enforce policies, your policies are worthless.

The biggest problem occurs when a high-ranking leader disregards the contracting out policy. For example, a senior manager hires her preferred consultant for a large contract without putting the work out to tender, an act that may breach the organization’s tendering policy. This is a delicate situation that requires tact and perseverance. In a nutshell, you need everyone to agree to the same set of rules.

Problem #2: If your policies are vague and filled with loopholes, you need to update them. Look at your history with consultants when updating the contracting policy. Ask yourself, “What have we done in past with consultants that hasn’t worked well for us?” Create new policies to address these specific issues.

In short, have good policies and make sure you stick to them.

Be Proactive with Fees

Finally, make sure you monitor your consultant’s fees. Be clear about price (including expenses) before you commit to anything.

Also, don’t be shy to question prices. “How did you come up with that figure?” “What can we do to get this proposal within our budget?” In short, keep consultants focused on deliverables, so they provide solid, short-term support.

Finally, without a signed contract, the consultant potentially has carte blanche on what he will bill you. So make sure you develop a contract system for all of your consultants. Contract templates are easy to develop and go a long way to keeping consulting fees in line.

Summary

Most consultants can provide needed support, if you manage them properly. If you don’t, expect problems to arise. Indeed, good consulting work is often the result of both the consultant and client doing their jobs. And for you, the client, that means managing your consultant.

Andrew Leach is from the St’at’imc Nation (Lillooet, BC) and has a Master’s degree in Business Administration (MBA). He also operates a successful management consulting business (www.andrewleach.com), and welcomes feedback to his articles. Email or call him at 604.868.4004.

A Brief History of Management

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By Andrew Leach, MBA

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Did you know the study of management has been around for at least 2500 years? In this article, I will briefly discuss the history of management and, as usual, will offer a First Nations perspective on this important topic.

About 2500 years ago, a Chinese general named Sun Tzu, wrote an astounding piece of work “The Art of War.”  In his book, Sun Tzu acknowledged the need for inter-organizational communications, hierarchy and staff planning.

A little later, between 400-360 BC, Socrates and Aristotle, two Greek philosophers, wrote about the principles of management and the nature of executive power.

In the Middle East, around 1300 AD, ibn Taymiyyah outlined an approach to administration using the scientific method in “The Principles of Religious Government.”

In North America, for thousands of years, First Nations and Native Americans used management principles and concepts in many areas, including forestry, fisheries, land use and government. For example, the Potlatch system required a complex set of management tools, including planning, organizing, monitoring, and regulating.

Because First Nations had oral cultures, our management principles were passed down from generation to generation orally and through socialization, using ceremonies, for example.

Later, in 1532, Machiavelli, an Italian, wrote “The Prince,” a bold piece of work that discussed the practical use of power. The term “Machiavellian” is used today to describe a ruthless way to get and keep power.

In the 1700s, the Industrial Revolution started. With the explosion of industry, came a wave of new management writers, mostly from Europe and the United States. The basis for their works is largely rooted in ancient Western thinking. Generally speaking, Western thought assumes we can control the world through reasoning and science. This is known as the “classic” management view.

By the 1900s, people started seeing the limitations of classic management thinking. Management based solely on reasoning and science was missing a critical ingredient: the human factor. Thus, by the 1950s, management concepts like Maslow’s hierarchy of basic human needs were popping up.

By the 1980s, Americans started examining Japan’s approach to management. Japan is a fascinating case study in “how to build an economy.” After being totally devastated by World War II, Japan recovered and quickly grew into a leading industrial power. By the late 1980s, 53 of the top 100 companies in the world were Japanese.

The Americans learned very quickly that Japanese management had a different way of working. Specifically, the Japanese emphasize teamwork and employee development, and give workers an environment to do quality work.

Since the 1980s, many North American companies have tried to incorporate various Japanese management principles. However, one challenge to this approach is that Japanese and Western cultures are, in many respects, fundamentally different. The 1980s movie Gung-Ho dramatized the challenges of blending Eastern and Western cultures into a single company.

In comparing Eastern, Western and Native American thought, it is clear that Eastern concepts are much more compatible with First Nations principles. For example, Eastern principles emphasize the importance of relationships and the interconnectedness of all things.

Interestingly, many of today’s leading Western writers are pushing for a more non-Western approach to management. For example, in his bestseller “The Fifth Discipline,” Peter Senge advocates for a complete change in Western managerial thinking. He calls this new worldview systems thinking, which sounds like a First Nations concept, if you ask me!

There are other signs that Western companies are trying to become more holistic. Hot topics in management today include concepts like 360-degree feedback, servant-leadership, social capital, and spirituality in the workforce. I believe the rising interest in these kinds of topics signifies that the West wants a more meaningful approach to work and management.

Fitting many Western management concepts into First Nations organizations is like “trying to fit a square peg into a round hole.” In examining the history of management, three things are apparent:

  1. All cultures have developed their own management principles based on their own worldview.
  2. The First Nations worldview is fundamentally different than the Western worldview.
  3. First Nations today need to develop their own explicit management principles, consistent with their own worldview.

Andrew Leach is from the St’at’imc Nation (Lillooet, BC) and has a Master’s degree in Business Administration (MBA). He also operates a successful management consulting business (www.andrewleach.com), and welcomes feedback to his articles. Email or call him at 604.868.4004.

Developing Your Human Resources Capacity

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by Andrew Leach, MBA

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Does your organization lack qualified personnel? Here are three practical tips to develop human resources (HR) capacity.

Tip #1: Get Good Managers

Having good managers makes everyone’s job easier. Not having them will lead to lots of problems. So, first and foremost, hire good managers.

Finding good managers is easier said than done. It involves many steps: recruiting, screening, interviewing, selecting and hiring. And each step has potential pitfalls. For example, recruiting from too shallow a pool and developing poor interview questions are two common mistakes employers make.

Are you in a situation where you feel stuck with a few weak managers or employees? If so, keep reading the next two steps below.

Tip #2: Combine Training and Work

One common mistake is to throw lots of money into training and expect to solve all of your HR problems. Remember training is the start, not the finish. In reality, most people develop skills best though a combination of training and practical experience. And the best place to develop practical experience is on the job.

For example, consider the employee who just completed introductory supervisor training. Here are some possible on-the-job projects that could complement her training:

  • Review and make recommendations on updating your personnel policy
  • Develop and participate in an employee evaluation
  • Participate in recruiting, hiring and orienting a new employee

Maybe you don’t have any new projects for staff to work on. Not a problem. Create a project! The project should be challenging, doable and add value to your organization. For example, don’t create a project that only involves inputting data for three weeks straight. Rather, develop on-the-job projects that will develop a variety of skills.

Tip #3: Evaluate, Evaluate, Evaluate!

Evaluating human resources is often extremely challenging, especially for Aboriginal organizations. This is because Aboriginals often have close personal relations with their coworkers. For example, in many Band offices it is not uncommon to have a close relative as your boss or subordinate. Can you imagine trying to evaluate or discipline your spouse, and then going home together? Good luck!

My experience is that many Band managers dread conducting employee evaluations. However, by not conducting evaluations, supervisors miss an excellent opportunity to develop HR capacity.

There are a variety of employee evaluation tools for supervisors. Some may be useful; others are not. Remember, any evaluation system is only as good as the people who execute it. So make sure your supervisors have the capacity to evaluate.

In summary, developing human resource capacity is probably the most important job facing Aboriginal leaders and managers. To be successful, you need to have both good HR systems and good people.

Andrew Leach is from the St’at’imc Nation (Lillooet, BC) and has a Master’s degree in Business Administration (MBA). He also operates a successful management consulting business (www.andrewleach.com), and welcomes feedback to his articles. Email or call him at 604.868.4004.

Core Skills of Managing

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By Andrew Leach, MBA

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Today’s First Nations manager must wear many hats: part-time planner, part-time accountant, part-time coach … you name it! This article examines the three core skills of strong managers: technical, people and conceptual expertise.

Technical Skills

Technical skills require a specialized and widely accepted body of knowledge. For example, engineers, mechanics, and computer programmers each possess a special kind of technical skill. Here are three specific technical skills to look for in a manager:

  • For starters, a skilled manager needs financial skills, including the ability to budget, manage cash flow, and understand financial statements. Having strong financial skills will greatly enhance a manager’s ability to “run a tight ship.” Not having these skills can lead to lots of trouble!
  • Another important technical skill is writing, especially report and proposal writing. Managers should be able to write both well and quickly. For example, it shouldn’t take a manager very long to compose a memo or short report.
  • Finally, having computer skills is an absolute must for today’s senior managers. While they don’t need to be computer wizards, they should at least be comfortable with word processing, spreadsheets, and using the Internet.

Does your manager have solid technical skills? In answering this question, look at his concrete skill sets. Can she interpret financial statements? Can he write proposals and reports? Is she fairly comfortable using computer programs?

People Skills

People skills are called “soft skills” because they can be difficult to evaluate and measure. Good people skills include the ability to communicate clearly, be assertive (not passive or aggressive), and be able to gain the respect and support of key staff.

Studies show that managers with good people skills are emotionally mature and relate well with others. They have a good sense of boundaries and are open to self-improvement.

At one time, Ivy League business schools didn’t emphasize teaching people skills. However, industry leaders started complaining, saying these schools were creating managers who could crunch numbers but couldn’t work with others. In response, many prestigious schools redesigned their programs to include team building and interpersonal communications. Today, most business and management schools offer a portion of soft skills training.

Does your manager have good people skills? To answer this, look at his history with handling interpersonal conflict. Does she have the respect of her peers? His subordinates? Her bosses?

Conceptual Skills

While technical and people skills are required at all organizational levels, senior managers especially need well-honed conceptual skills, which include the ability to plan and strategize.

In essence, this means having the ability to see how your organization fits within the community’s social, political and economic structures. Having good conceptual skills means you can see the big picture and still pay attention to important details. Like a skilled chess player, conceptualizers can forecast several moves ahead and still make the right moves now.

Does your senior manager have well-rounded conceptual skills? To help answer this, consider his ability to plan and strategize. Can she create and communicate a vision? Does he have focus? Above all else, is she able to execute?

If you can find a manager with an abundance of these skills, count your blessings! More likely, however, he may be lacking a little in one of these areas. That’s okay and to be expected. Technical skills can be developed with a combination of formal training and on-the job experience. People and conceptual skills, however, will probably take more time and resources to develop.  Regardless of your situation, make sure you hire and retain senior managers who have the capacity to develop these three essential skills.

Andrew Leach is from the St’at’imc Nation (Lillooet, BC) and has a Master’s degree in Business Administration (MBA). He also operates a successful management consulting business (www.andrewleach.com), and welcomes feedback to his articles. Email or call him at 604.868.4004.

Dealing with Office Politics

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By Andrew Leach, MBA

A recent study found non-Aboriginal executives spend as much as 20% of their time dealing with office politics. For executives in First Nations organizations, I suspect the percentage is much higher. In this article, I will examine office politics, particularly as the issue relates to First Nations.

Office politics are about power. One definition of power is “the ability to influence others.” Indeed, office politics have a great deal to do with influencing others.

Here are three tips on how to make office politics work for you rather than against you.

Be an Excellent Worker

To combat office politics, the best approach is to execute your job better than anyone else. As the saying goes, “Let your work speak for itself.”

Sometimes it’s not about working harder, it’s about working smarter. For example, valuable employees have a knack for doing the right thing at the right time.

Unfortunately, many employees are so busy with their jobs they forget about professional development. If you aren’t getting relevant job training, your performance will inevitably suffer. What knowledge or skills do you need right now to be a better worker? Further, what steps are you taking to acquire those knowledge or skills? Whatever it takes, make sure you are a high performing employee: the harder it is to replace you, the more power you will have.

Communicate Effectively

Some experts observe that most people don’t communicate, they take turns talking. The truth is if you are a poor communicator, you probably won’t be able to influence many people.

To become an effective communicator, you must learn to actively listen. In a nutshell, active listening is about connecting with others so they feel understood. If you are not an active listener, pursue training and then continuously practice your active listening skills. You can never be too good at listening.

Besides active listening, office workers must be able to express their ideas in a clear, constructive manner. Too often people use inappropriate words or phrases that can lead to misunderstandings and conflicts. To be more effective at expressing yourself, first try putting yourself in the other person’s shoes.

Avoid personalizing situations at all costs. Personal attacks are probably the most stressful, demoralizing part of First Nations office politics. And remember, when you sling mud, you usually end up getting dirty yourself. No job is worth losing your dignity and self-respect.

Understand Power Structures

Sometimes people make the mistake of thinking all the power in an organization rests with one person. Indeed, the Chief or administrator is frequently seen as holding this power. But, in reality, power is often a shared commodity. In particular, people in power usually have to share power with others, especially if they want to stay in power. Thus, a coalition of people shares the power base in most organizations. Further, several coalitions likely exist within your organization, each vying for its fair share of power.

Knowing organizational power is often made up of coalitions can be very useful. For starters, this means more than one person needs to be influenced. Indeed, impressing a minor player in a powerful coalition can sometimes be just as important as impressing the main player. For example, if you want the Chief’s support on an important decision, first try getting his spouse or mother’s support. This example shows that some power rests with those who do not have formal lines of authority.

In conclusion, office politics are a complex social phenomenon, especially for First Nations who live, work and socialize with the same group of people. So, rather than fighting office politics, employees should aim to build constructive relationships within this complicated dynamic.

Andrew Leach is from the St’at’imc Nation (Lillooet, BC) and has a Master’s degree in Business Administration (MBA). He also operates a successful management consulting business (www.andrewleach.com), and welcomes feedback to his articles. Email or call him at 604.868.4004.

The Difference Between Leading and Managing

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By Andrew Leach, MBA

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Some people may think managing and leading are the same things. They are not! This article will explore the main difference between leadership and management, and discuss relevant implications for First Nations organizations.

The primary difference between a leader and a manager is that one is expected to create change while the other is expected to maintain the status quo.

In particular, a leader’s role is essentially about initiating change. Furthermore, people can lead in many ways. For example, there are autocratic leaders, who want a firm hand in how things will change. Then there are democratic leaders, who like to get everyone involved in the change process.

Research shows that effective leaders rely upon more than one leadership style, depending on the circumstances. For example, they’ll be autocratic in one situation and democratic in another. Extraordinary leaders have an almost instinctive knack for selecting the right leadership style with the right circumstance.

Are you a good leader? To answer this question, ask yourself this: Do you lead largely with one leadership style? Or are you skilled at using different styles for different people and different situations?

The primary role of a manager is to carry out organizational plans, while adhering to company policies and procedures. Good managers understand and appreciate planning concepts. They can also develop and execute company policies and procedures.

Ideally, a manager has a combination of both hard and soft skills. Hard skills include being able to crunch numbers and quickly gather, process and interpret lots of information. Soft skills include communication and social skills.

Are you a good manager? To answer this question, ask yourself this: Are you skilled at gathering and processing both the financial and non-financial information within your organization? Are you able to communicate your thoughts, orally and in writing, to a wide range of people, including superiors, subordinates, customers and suppliers?

Given these definitions, it’s clear organizations need both good leaders and managers to reach their goals. Your leaders will help define where you are heading, and your managers will make sure you get there.

It is important for First Nations organizations to know the fundamental difference between leading and managing. Indeed, there are many stories illustrating the struggles that arise when people fail to differentiate between these two roles. For example, many newly elected leaders struggle with the Band-management part of their duties. Also, many good First Nations administrators have had difficulty creating change within their organizations.

In an ideal world, your leaders can manage and your managers can lead. If that is not your situation, you need to do several things. First, never assume your leaders can perform the hard skills of management, such as financial statement analysis. Conversely, don’t assume your most senior manager is the most capable of creating change within your organization or community.

Second, consider cross-training your managers and/or leaders. Specifically, train your managers to lead and your leaders to manage. As a side note, also recognize there are limitations to training; it won’t solve issues overnight. Often, a combination of training and practical experience is the best approach to developing either leadership or management skills.

Finally, we need to acknowledge that some people have a knack for one skill, but are fundamentally weak in the other. If this is the case in your community, put people where they are most capable. Above all, don’t give an important leadership or management task to someone who is incapable of completing it.

In summary, managing and leading are very different tasks. Ideally your community will have a healthy pool of both skills to draw from. If not, make sure your managers and leaders develop the skills needed to do their jobs. In the meantime, don’t make the mistake of giving the wrong task to the wrong person, simply because of a person’s position or title.

Andrew Leach is from the St’at’imc Nation (Lillooet, BC) and has a Master’s degree in Business Administration (MBA). He also operates a successful management consulting business (www.andrewleach.com), and welcomes feedback to his articles. Email or call him at 604.868.4004.

How Bad People Rip Off First Nations

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By Andrew Leach, MBA

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Some First Nations are still getting ripped off by bad people. They may be bad business partners, bad lawyers, bad consultants―sometimes even our own leaders.

Having worked for over 150 First Nations, I recognize a pattern in the way some Bands get ripped off. In this article, I will describe three common mistakes Bands make, and offer suggestions for avoiding them.

Mistake #1: Negotiating Bad Deals 

Some First Nations are still selling their resources for beads and trinkets. The classic example is a resource company coming to your traditional territory and offering a few short-term, entry-level jobs. In exchange, they get access to millions.

The worst deal is when the Band puts up all the risk (i.e. capital) and hires an outside “managing partner” to handle its day-to-day operations. Whether your business succeeds or fails, the managing partner still gets his fees. Where is his incentive to cut costs, work extra hours, etc. to make your business succeed?

Structure your business deals so your partners have a real, vested interest in the success of your venture. And in writing up these deals, be assertive to add/frame the appropriate agreement terms. Often, companies have their own self-serving template agreements ready for you to sign. Don’t let them drive the terms by controlling the drafting of agreements.

In summary, remember the adage, “You don’t get what you deserve, you get what you negotiate.”

Mistake #2: Not Managing Your Contractors

Lawyers, consultants, engineers―make sure you effectively manage these “big three” contractors. If you don’t, you may get ripped off.

Some Bands spend a disproportionate amount of scarce resources on legal bills. No doubt some legal bills are unavoidable. For example, if you have a tough labour case in the office, get a good labour lawyer. If you are starting a new company, get a good corporate lawyer.

Some lawyers come in for one reason and seem to find a hundred other reasons to stick around. At $250/hour, make sure you really need them!

As well, many Bands seem to have a pack of consultants prowling around. A few are good. I especially like those who are too busy to stay very long. They complete what needs doing and then they’re off. However, many consultants have a vested interest in making more work for themselves. They turn over rocks and say, “Oh here’s another problem … I can help you with that.” Don’t wait for your consultant to say, “I think it’s time for me to go.” You will probably wait an eternity.

Finally, engineers are indispensable in certain cases, especially those who are skilled with stick handling AANDC funding processes. However, some engineers evolve into policy writers, business advisors and, before you know it, are doing much more than getting your water lines and roads built.

To manage your contractors effectively, first and foremost, control the information flow. As a rule, anything contractors produce on your dime is your product. So get it, store it and organize it. The more you control your own information, the less likely contactors will be wagging the dog.

Finally, don’t be scared to question estimates or invoices. Some contractors test their limits and if you don’t question them, it will lead to higher costs.

Mistake #3: Not Keeping Your Leaders Accountable

Most First Nation leaders have limited power and authority within their communities. More often than not, our members keep our leaders in check with seemingly endless criticism. Being a First Nation leader often means having to wear a bull’s eye target 24/7!

How can it be, then, that a few communities end up with highly centralized leadership which, by the way, can be just a short hop away from corruption? In reality, bad community leadership doesn’t happen overnight. Rather, it occurs when community members forego their responsibility to set up effective checks and balances.

Show me a corrupt community leader and I will show you a community with weak financial and accounting systems, limited management capacity, and a poor ability to resolve community conflicts. Deal with these issues and you will tackle your leadership accountability issue.

 

Andrew Leach is from the St’at’imc Nation (Lillooet, BC) and has a Master’s degree in Business Administration (MBA). He also operates a successful management consulting business (www.andrewleach.com), and welcomes feedback to his articles. Email or call him at 604.868.4004.

Managing Up, Down and Across

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By Andrew Leach, MBA

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Many managers focus on managing subordinates only. But this is not the only way to manage. This article will discuss the concepts of managing from above, managing from below, and managing across, and how these concepts can be applied to First Nations organizations.

Managing from Above

For years, most management textbooks focused on managing as the supervisor bossing the subordinate. This is often referred as managing from above, and is a very direct and explicit way to manage. For example, when you give your subordinate a work-related task, he should clearly understand he is obligated to follow your direction.

Although managing people from above is explicit and direct, often it’s not easy! Indeed, many managers find they spend too much time managing problem employees. Usually, 20% of your employees will give you 80% of your headaches (this is known as the 80-20 rule and can apply to a number of other issues, as well).

The first step in managing the 20% of employees who create headaches is to accept the 80-20 rule. Next, make the 80-20 rule work in your favour by taking proactive steps to manage these difficult employees, including:

  • Focusing on their behaviours rather than their personalities
  • Being respectful even when disciplining, and
  • Finding creative ways to motivate

Managing from Below

As a subordinate, you also have some ability to manage your boss. Really! The basis for this assertion is the boss-subordinate relationship is interactive, with communication flowing both up and down. Managing from below is also expressed in the saying, “You cannot manage without being managed.”

Now before you start telling your boss what to do, know that managing from below is more subtle than managing from above.

The first step is to understand and appreciate what motivates your superior. For example, as a band administrator, you probably have at least one Chief and several councillors who are senior to you. Each elected official has his or her personal motivations for sitting on council. You can learn what motivates them by asking each individual why they accepted a council position. Listen closely to their words and cues to their motivation.

Once you know what drives your superiors, you can start framing your own goals and motives to reflect your supervisor’s goals and motives. For example, if your superior is committed to increasing employment, find a way to show how your proposed project will create jobs.

Some of your needs and goals may not fit with all of your superiors’ interests. That’s okay and to be expected. But if you can capture enough of the right people, you have a better chance of having your needs met. Still, be realistic. You may have to adjust your aims to more closely align with the aspirations of key superiors. However, if you are diligent and creative, you should be able to meet both you and your supervisor’s needs.

Managing Across

Managing across involves managing people in similar-level positions as you. For example, a social director and an education director are often at the same level in a First Nations administration office.

Compared to managing up or down, most managing across situations are indirect. Indeed, similar-level positions often have no formal reporting relationship between them. So why should we try and manage across? Because you often share similar challenges and can join forces to meet both of your needs. For example, regular interfacing with your peers can generate a lot of good ideas and opportunities.

Similar to managing from below, you need to understand what motivates your equals when managing across. With this in mind, it is important to learn as much as possible about your peer’s area of responsibility. Look for similar issues you both face―often these will be the issues that bind you.

Managing across is not always an indirect relationship. Consider Chief and council positions, for example. Each of these positions usually has one vote on council. Thus, every elected position, including the Chief, will often need the support of other councillors to get a “pet project” off the ground. In this situation, the ability for councillors to affect each other’s interests is very direct. It’s key to discuss each other’s concerns before major decisions are considered, allowing you to establish ties and find common ground.

Now some people may think managing down, up and across are manipulative. These skills certainly can be abused and some people do misuse them. Watch out for them! But in reality, you are trying to create win-win situations with colleagues. And, frankly, that is the bottom line with managing people, up, down or across.

 

Andrew Leach is from the St’at’imc Nation (Lillooet, BC) and has a Master’s degree in Business Administration (MBA). He also operates a successful management consulting business (www.andrewleach.com), and welcomes feedback to his articles. Email or call him at 604.868.4004.