In 1958 Leonard E Read wrote an essay about making pencils.
He described:
- The growing of trees
- The work of a lumberjack
- The operation of the saw mill
- The making of the saw
- The transportation of the logs
- The mining of the graphite
- The production of the rubber
- The mixing of the paint
- The sourcing of the chemicals
- The manufacture of the pencil
- The development of the machinery
And countless other tasks.
His point was simple, nobody can make a pencil from scratch. No one person has more than the faintest understanding of all the technologies, activities, supply chains and markets involved.
We live in a very complicated and connected world.
So if you manage a pencil factory
And you want to improve the cost, quality and service you give to your customers there are two ways to manage your business…
Option 1: Run it from inside your board room:
Make that complex system bow to you:
- Issue targets and policies
- Hold people accountable for performance
- Listen to presentations from people who are scared to tell the truth
- Manage by the numbers
Option 2: Run it from outside your board room:
Wander around and see what you can discover:
- Understand the system
- Visit your suppliers
- Look at what your staff are working on
- Give them time to work on the projects they think are important
Which option is the best option?
No two pencil businesses are the same, so to work out the best way to run your pencil business try answering this simple question:
What could you learn about making pencils?
- If the answer is “nothing” see option 1
- If the answer is “plenty” use option 2
This is all fascinating but most of us don’t make pencils for a living
No we don’t, so let’s have a conversation about the computer I’m typing this on, in the coffee shop I am visiting, with the power that was generated…
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Read another opinion
Image by @doug8888
Adrian Swinscoe says
James,
I’m an Option 2 advocate but I see too many people buckling under the pressures and requests from Option 1 types and getting stuck to their desks and emails.
More MBWA please for so many reasons!
Adrian
James Lawther says
The funny thing is Adrian, MBWA is so much more fun. Why would you want to sit in an office?
James
Adrian Swinscoe says
Beats me!
Annette Franz says
Wow, James, yet another great story to make a great point (pun intended). ;-) And I’ve never really thought about all that goes into making a pencil. Lots of great lessons here.
I prefer Option 2, as well. Perhaps the difference between 1 and 2 is the difference between management and leadership.
Annette :-)
James Lawther says
You may be right Annette. It is difficult to lead if nobody ever sees you.