Manager Meltdowns

82% of managers don’t actually make very good managers. 82%.

Think about that. Now think about building your team as you scale. Last week I talked about how important the right team is to reaching that next level, to sustainable revenue growth. This stat should give you pause or heartburn.

As you scale, you are in fact adding management layers so it seems like this problem may very well scale with you.

Reality Check

Here is where the sh$t hits the fan. One study suggests that 1 in 2 leaders cannot engage employees. In fact, managers account for 70% of the variance you see in employee engagement. Engaged teams outperform. That is backed up by countless studies.

Gallup (also responsible for the 82% factoid) found, with the right managers in place and double the rate of engaged employees, companies achieve, on average, 147% higher earnings per share than the competition.

Gallup concluded from its research that great managers have 5 talents and only 1 in 10 people actually have all of them. Yikes. Yet, if you get it right and put this 10% in management roles, it results in about 48% higher profit to the company than the average manager. It’s not all doom and gloom, 2 in 10 have some of the basics and can rise to great with some training and coaching.

Why do the “Duds” Get Hired?

In large part, I would blame the halo effect. Someone is good at one task/job (aka their job) so without any proof or rationale basis, you assume that person will be good at another job.

Take the star performer. The biggest individual contributor. It makes sense you might gravitate towards that person as deserving of a promotion (leaving aside the whole debate of whether to promote within or bring in external managers).

You also have those individuals (may or may not be great execution people) that are just super savvy with the politics of it all and find their way into the circle of power. They take every opportunity to shine the spotlight on their “successes”, whether they earned them or not.

Or, companies promote based on tenure. Often as startups scale, they keep moving the ones that have been there the longest up the chain. Reward for their loyalty maybe.

Now, I am not discounting any of these individuals but how do you know if they are the 1 in 10?

Start by asking them if they actually want to be in a managerial role? Sounds basic. Yet, I have heard many stories of employees thrust into these roles when they don’t want those responsibilities and/or are seeking career development and advancement in other ways.

I would also argue they can’t answer that question until they appreciate what it takes? Not just the perceived power and social validation with promotions mean you are a success.

What about the fact that being a manager also means resolving conflict, hiring, firing, delivering tough feedback, mentoring, coaching, figuring out how not to micromanage or be too hands-off, or that you are left holding the bag when the team doesn’t meet expectations. Think about it, you go from top performer to trying to explain away falling short.  

If after all of that they in fact want the job, then you have to assess if they have what it takes.

Masterful Managers

At the top of my list, is knowing and understanding how your individual team member’s tick. What they need to do their best work. What matters to them. The best way to communicate with them, etc.

Why? Because your job is to motivate them and engage them around a compelling mission. You have to be able to tie that mission to what matters to them. You have to make sure each member gets the objectives, the priorities and desired outcomes, not 17 different interpretations of that objective but one clear, focused understanding and drive.

You have to be able to build relationships of trust, transparency and openness. Inviting members to share opinions, ideas, and pushback. To make them feel heard and take those views into account when making decisions and help them understand why certain decisions are made.

You have to create a culture of accountability. You are responsible for the ultimate outcomes and teamwork depends on each member doing his or her job well and on time.

You have to give feedback – positive and sometimes negative, or let’s call it constructive. To give meaningful feedback is a skill and, again, you also have to know how to talk to that person.

You have to be decisive. Enough said on that one I think.

 As part of my work helping founders transition to CEOs, I know that managing is tough and not innate for most people. Nor, do some want to step into that role.