Closed-loop Teams


For years, banks have taken several days, and even weeks and sometimes months to get a decision to a personal loan applicant. The application would be passed around the various departments, traveling at its own pace. A series of supervisors, clerks, and internal mailpeople handled it. Today, aggressive banks take the application directly into a focused, coordinated group—a credit analyst, a collateral appraiser, and a senior personal banker—who decide and respond to the customer sometimes in thirty minutes and always inside a day. This is a small closed-loop team.

 

A closed-loop team includes everyone who is necessary to make the deliverable flow. The team includes all the needed functional people and decision-makers and is self-scheduling. Everyone the team is working for the same objective—to provide the deliverable on time. The team is empowered to make decisions and to act. It has all functions inside it with short lines of communication. Its leader is responsible for its overall performance and for seeing that it gets all the capability, both technicall and human, it needs. All of these are essential to flexibility.

 

The old bank loan approval process was open loop. There was no continuity in the process, no visible standard, little learning between the principles, only occasional feedback on the process, and no one responsible for making it better.

 

In order for the loop to close on a process it must be tightly organized around the deliverable; the same core group must be involved in the process every day; and there must be a working leader on the team.

 

Small teams work better than large ones because large groups create communication problems of their own. It’s best to include only essential functions and to exclude people whose job is peripheral to the deliverable. For example, the bank loan team excludes accounting and records people. Teams have to be self-managing and empowered to act because referring decisions back up the line wastes time and often leads to poor decisions. So the team ioncludes a bank officer because if the officer were not on the team, he or she would be prone to second-guess the group’s decisions. Its better if all the questions are asked and answers are exchanged just once.

 

Closd-loop teams handle variety better than open-loop teams because they can create new information and flexibility.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Characteristics of Managerial Creativity


The creative manager must be a creative human and an effective manager. He/she tends to be characterized by following group of traits:

1) Hunger for knowing curiosity, constant questioning; strong interest in stimulating ideas, theories, and philosophies, always wanting to know the ‘how’ and ‘why of things; strong interest in trying to understand people’s motives and behavior.

2) Sensitivity responsiveness to literature, arts and other fine and delicate things; interest in meeting interesting and sensitive persons; empathy for the suffering; responsiveness to beauty and elegance.

3) Complexity intuitively finding correct solutions; being a visionary; having odd, even conflicting ideas; moodiness.

4) Venturing calculated risk-taking; preference for starting own ventures; aiming big; striking out in one’s own.

5) Independence and courage questions the status quo or established order; sticking to core convictions; listens to experts but makes up own mind; clear and forceful assertion of feelings and viewpoints.

6) Reality contact initiative taking in finding out operating constraints; confidence in managing crisis; quick adjustment to new challenges and information; grip on reality despite fantasying.

7) Self-sufficiency absorbed in challenging tasks; confident in operating in alien situations; tendency to take on tough tasks; persistence in getting ventures accomplished.

The creative manager operates in a fairly tightly regulated system in which creativity failures may be penalized; creativity needs to be directed towards organizational requirements; almost all creative initiatives require approval from superiors and acceptance by colleagues and subordinates to succeed; the cynical need to be won over; opposition of vested interests to these initiatives needs to be neutralized; dedicated teams need to be developed to execute creative initiatives; creative initiatives need to confirm to evaluate and control mechanisms of the organization; changes and creative initiatives need to be synergized for maximum impact—so on and on.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight