I'd like to take a look a management dilemma posed by Jack Welsh, former CEO of GE. It's posed as a classic 2x2 matrix (or Gartner Magic Quadrant chart). On one axis is the notion that a manager lives by the values of the organization, and on the other axis is whether the manager delivers results (the numbers). This gives us four outcomes. Welsh states that in three of the outcomes the management decision is easy:

• makes the numbers, shares the values - no brainer - this manager is excellent and a keeper
• doesn't make the numbers, doesn't share the values - no brainer - fire them
• doesn't make the numbers, shares the values - a good manager, well intentioned, needs investment in coaching in order to improve the numbers

However, it's the fourth type that causes the problem. What do you do with someone who makes their numbers but does so in a way that is out of alignment with the values of the organization? In the short term, eliminating someone like that may mean that the numbers are not achieved and the higher level manager takes a blow to his/her own numbers. How do you explain a J-curve effect period undertaken to fix the values of the organization, in a world where values are about managing for the long term, while the markets expect us to manage for the next quarter?

In software projects, I see these managers as those who deliberately, consciously death march their people to achieve a project date, or deliberately, consciously sacrifice quality in order to make a project date or manage in some other fashion that might deliver results but leaves a sour taste - for example, a manager who suffers 50% staff turnover, rules with an iron fist and has instilled the fear of death in to the 50% who do hang around long enough to get anything done.

It's all too easy to see managers revert to methods that are not in alignment with agile values, particularly when there is a specific extrinsic incentive for them (and usually not for the workforce.) The war of attrition attitude - deliver the numbers, let me make my bonus, and don't worry about the casualties! It's a style that shows that the manger is being narrowly managed and doesn't have to pay the costs of attrition - that comes from a different budget. In a similar vain, large industries get to pollute our environment and aren't always taxed accordingly.

My view on this is very simply - knowledge workers are human. You cannot deny their humanity. To invoke De Luca's First Law, "[It's] 80% psychology, only 20% technology!" Knowledge workers productivity is directly related to their motivation and engagement in their work. All the process and methods and organization in the World will not fix a demotivated workforce. And hence, I come to the conclusion that living by the values is paramount. You cannot sacrifice the values to hit the numbers in the short term. So for me the Welsh dilemma isn't a dilemma at all. Managers who don't live by the values should be removed. Period!

Question: Does your organization have published values? Do your workers understand the values you use to lead your organization? Technorati tag: Agile, Software+Engineering, Management, Jack+Welsh