Management Transitions: From the Frontline to the Executive Suite - By Julie Carruthers

The first area is about the organizational transitions a company goes through as it grows from a new venture to a professionally managed enterprise. It's important to talk about this first because it is the foundation upon which everything else is built, including how you will develop your managers to that they are ready for the next level.

The second level is about the three critical dimensions of management development that must be considered as your prepare people to transition for new positions.

The third level has to do with the key tools and resources available for transitioning your organization and management in all stages of growth to put them both on the road to success.

Organizational Transitions

Any new company goes through stages of growth. When a new restaurant opens it is incredibly exciting. Staff and managers might say they like to work there because it's casual, that even if they work hard there's not a lot of pressure. It's all about possibilities in the beginning stage.

Once the concept is up and operating successfully, the idea of opening additional locations is the logical next step, more of a good thing. The first few new locations seem easy enough. Everyone works overtime and learns a lot, but they still have the enthusiasm, even if things are not as organized as they might need to be. As more and more units open, managers can begin to see that there are not enough hours in the day. The small group at corporate headquarters are putting out fires and trying to put some reports and systems in place, but managers in the field start coming up with their own procedures, systems and forms. Efforts begin to be duplicated.

Finally, if the problem isn't addressed, people may start to feel as though the company is spinning out of control. What can be done? One of the dangers that exists at this stage in the company's development is that as new waves of people are added with unclear direction and communication, the culture begins to get more and more diluted. The original team spirit and clarity of purpose just doesn't seem the same.

What happens then is that the company founders realize that their casual, informal procedures need to transition to more structured, professionalized systems that will support the growth. This transformation is part of the organizational development process.

Just like we humans, an organization is a living, dynamic organism. The business concept is the foundation of any business development pyramid, it defines the business concept, what the business does. As one goes up the pyramid, the next step of organizational development a company must take is to identify their market niche to determine if there's a captive audience for what they offer. For example, Marriott coming up with Marriot Courtyard Suites for the On-A-Budget business traveler.

The next step is developing the products and services and how they are delivered. These will be developed and adapted after the company is operating and is receiving feedback. Once the company feels secure that there is a market for its products and services, it will need to acquire resources to support that growth. That's the money, equipment, people and space. The company's survival will not be safe without the resources to support its growth.

Once the products and services have been refined and the company has the resources to proceed with its growth plan, it is time to work on the operational systems. This is the policies and procedures, accounting, staffing, information systems, advertising and anything else needed to facilitate day to day operations.

The fifth task in the pyramid, required to build a successful organization is the management systems required for long-term growth. This includes five areas:

1. Long-term planning system
2. Organizational structure
3. Management development system
4. Control or performance management systems
5. Corporate culture

Usually in the entrepreneurial stage, these areas are defined for the small operation that it is. But as the company expands, these original systems become stretched beyond capacity. While it's difficult to keep the entrepreneurial spirit and there is a risk that the organization may become over-systematized and rigid, there is a way to move forward with balance.

By building in checks and balances and keeping the word 'simplicity' top of mind, a company can maintain its original spirit and orientation while at the same time transitioning to a professionally managed firm. Once the company gets through this stage, it will often go through a consolidation stage where the company will focus on simplifying systems further and strengthening its brand and culture.

As times and tastes change, it will need to go through a revitalization stage to stay fresh or it will stale and decline.

Here's a summary of what happens as a company grows:

Stage one: New Venture-create a brand and test viability

Stage two: Expansion-grow and put out fires

Stage three: Professionalization-regain control: create professional systems

Stage four: Consolidation-reduce bureaucracy, strengthen the culture

Stage five: Revitalization-stay fresh or decline

Here's what can happen: Company Growth + Weak Organizational Development = BCD or Brand and Culture Dilution

This is not a good equation for the company's long-term success. What you end up with is a lot of stressed out people on their way to burn-our and a company headed for disaster. Going through the organizational development process is a dynamic process, but you need to catch the systems up.

The healthier equation is: Company Growth + Effective Organizational Development = BCS or Brand and Culture Strength

This translates to a great company to work for because it means people are working smarter, not harder, having fun and being rewarded for their success. So now that we have our organization transitioned and in order, let's talk how to work on the management development systems to help people grow right along with the company.

Management Transitions

When a person is first promoted, she will be aware to some extent that the new role requires different activities, responsibilities, and even new ways of thinking. Unfortunately, few people have a very clear or specific concept of just what those new demands are until after they have been on the job for awhile. So, the first challenge for us as training professionals is to ensure the person who is promoted is successfully making the transition in his or her self-concept. This includes understanding the new expectations and results they are expected to achieve and of how their time must now be utilized to effectively achieve these results.

Let's look at Role Concept and Time Allocation. Here's a list of the hierarchy of staff and what their roles are, and what time they spend doing work versus managing.

• Frontline Staff Member - 100% of the individual's time is devoted to 'doing' work rather than supervising it. A player on the team. Their main role is to get their physical or technical tasks done.

• Frontline Manager- Approximately 60% of time is now spent on communication and planning rather than the physical work; an increasing amount of time is spent on planning, training, motivating, and organizing the work of frontline staff rather than doing it themselves. Need to think like a coach of the team. Start developing participative leadership style.

• Middle Manager: Approximately 70+% of time is spent on communication & planning. Understands that he/she must work through other managers to achieve results rather than jump in and do it themselves. A manager/coach of other managers.

• Senior Manager: Approximately 80+% of time is spent on communication & planning. Manages a functional dept. or division. Knows he/she has the role of corporate leader and member of the corporate management team. Strategic Planner.

• CEO/COO: Approximately 90% or more time is spent on communication. Focuses on managing the organization as a whole, being the ambassador to the external environment as well as supervisor of the senior team.

Although each company has differing styles, we in the restaurant industry (and perhaps to a degree the hotel industry) tend to feel the need to be hands-on 'team-players' and show our staffs that we wouldn't ask them to do anything we wouldn't be willing to do. Often it's because we were promoted from within and it's our comfort zone. Just as often it's our need to be liked by the staff.

While role-modeling and pitching in are fine, a manager who runs around the restaurant like a chicken with his or her head cut-off while the staff is casually chatting in the corner - clearly will lose sight of the big picture And keeping the big picture is part of their new role.

The 'I'll just do it myself' attitude really becomes a problem at the Middle Manager level because now people are not getting the experiences they need to grow so they can transition to the next level. How will the basketball coach ever learn to deal with risk, ambiguity and decision making if the Team Manager keeps jumping in to save the coach from an uncomfortable situation?

I love using a sports analogy of the coach with new managers or RDs - I explain it would be like Kareem Abdul Jabar or Michael Jordan going from player to coach and jumping in during actual games to play the shots anytime they did not like how their players were performing or because they felt sorry for an over-tired player. Even if they could play better, it would be ridiculous! The coach's job is to plan the game and then stand back, assess how things are going, and then strategize what to do to improve the situation- whether to call a time out to give the players some guidance or to switch out for new players. And it's just as ridiculous for a manager to be running around performing staff member jobs.

Yet you hear people who are new to management positions (or those who just haven't learned differently) giving all sorts of excuses as to why they have to 'Do it themselves.'

The next level to address when dealing with management transition is competencies, or clarity on the interpersonal and administrative skills required.

Just as we need to make sure managers at any given level are clear on the expectations of their new roles, they must also be clear on the competencies required at each level. With successful succession planning, everyone is aware of the competencies required for at least one level up, but preferably all the way up the organizational hierarchy.

Here are the competencies needed at each stage of Management Development:

• Frontline Staff Member: technical & interpersonal competencies are directly related to hands-on performance

• Frontline Manager: core and operational management skills: delegation, time management, recruiting, interviewing, training, performance appraisal, financial controls & day-to-day supervision

• Middle Manager: organizational management skills, management development, departmental planning, resource control, organization, time-management, short & interim strategic planning

• Senior Manager: organizational planning & development, strategic planning to long range needs, culture management

• CEO/COO: ability to identify the need and plan for organizational and management transitions. Strategic planning, monitoring results, culture management & development is the primary focus.

Here's some questions you as trainers need to ask yourself:

Are the people in your company spending their time and efforts on activities appropriate to their roles? Or, do they refuse to let go?

The third and last dimension to address in management transition is managerial psychology, defined as 'clarity on the individual's psychological needs and how effective managers think and interact.' This involves changing one's attitude from a task oriented to a managerial oriented attitude.

This means looking at their

1) NEED FOR CONTROL

2) SOURCE OF SELF-ESTEEM

3) NEED TO BE LIKED

This is one of the toughest areas to explore, because many people who are transitioning have not taken the time to dig deep and explore their personality type, temperament and interaction style. Yet, this is one of the most important aspects of Management Development and Transition. It can make or break the person in his new role.

A survey conducted by Daniel Goleman, author of the book Emotional Intelligence, stated that 87% of the reason people leave a company is due to dissatisfaction with their supervisor.

Each level of management has its own psychological needs which can be related to Maslow's hierarchy of needs.

Here's some possible psychological needs at each level of management:

Frontline Staff Member

Self-esteem is derived from individual efforts. Need for control or being liked usually does not interfere with the getting job done.

First Line Manager

Self-esteem is derived from results of frontline staff. Letting go. Developing the ability to cope effectively with conflict & provide honest feedback. Developing awareness of one's own managerial psychology & self management.

Middle Manager

Self-esteem is derived from success of frontline managers. Comfortable delegating/trusting. Ability to cope with conflict in the best interest of the company. Developed managerial psychology and self management.

Middle Manager

Self-esteem is derived from success of frontline managers. Comfortable delegating/trusting. Ability to cope with conflict in the best interest of the company. Developed managerial psychology and self management.

Senior Level Manager

Self-esteem is derived from being both the head of a functional unit or division & a corporate leader. Comfortable working through middle managers to achieve goals. Highly developed managerial psychology and self management.

CEO/COO

Self-esteem is derived from the success of the company as a whole & from the results of the Senior Management team. Can make the tough decisions & deal with conflict and ambiguity inside/outside organization. At the highest development stage of managerial psychology: The Self-Actualization stage.

One of the best ways I have found to address the psychological transition a person must make to go through is by taking the person through a self discovery process. This may include administering personality and interaction instruments, 360° Feedback Mechanisms and professional coaching.

I want to emphasize the coaching aspect because the instruments on their own can be misunderstood or simply dismissed. With both of these tools and through discussion and reflection that a person truly can become more aware of his/her core self and create an action plan to adapt and grow. This developed self can translate into behaviors that are more effective in the context of their new position.

Resources and Tools

So we have reviewed the three key dimensions that must be considered as you transition from the Frontline to the Executive Suite. But now what do you do now?

Let's talk about the tools that are available to create more Effective Organizations and Managers at any given level. On an organizational level, there are many options available for developing the infrastructure and systems.

Here's a comprehensive list of organizational tools that are available to help you develop our infrastructure and systems:

• Conduct an Organizational Audit

• Conduct Culture Audit

• Employee Satisfaction Surveys

• Benchmarking (e.g. The People Report(TM))

• Effective Strategic Planning including Organizational KRAs

• Management Retreats

• Behavioral Interviews

• Assessment & Aptitude Instruments

• Performance Competency Models

• KRAs by Position

• Effective Performance Appraisals

• 360° Feedbacks

• Reading, Classes, E-Learning

• Experiences (New Challenges, Action Learning, Task Forces)

• Industry Conferences, Networking

• Learning Labs (simulations)

• President's Council

• Mentor Programs, Executive Coaching

• Reflection

• Action Planning & Follow-Up

• Accountability & Rewards

• Performance Management Software

Some people elect to develop these in-house. I am a big believer in using external consultants - as they are usually more objective and do not have to deal with as many biases that come from having existing relationships with the group.

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