In the preceding chapter we have been busily engaged in taking things to pieces. Now we've got to put them together again. Our house of blocks has been resolved into its component parts, not by aiming a swift kick at its midriff, but by starting at the top and working backwards. Now to REBUILD. Our first care, at this stage of the game, is to remember that ANALYSIS IS NEVER AN END but simply the MEANS TO AN END. The immediate end, this time, is to rearrange the pieces so that the job to be done can be done in the most effective way—the way that saves the most effort, the most time, the most money—the way Again it should be emphasized that NET PROFIT, in any job of managing, is the ultimate goal. Our danger, then, is that we may find ourselves down on the floor surrounded by our blocks—and with never a trace of a PLAN for rebuilding the house, and rebuilding it in the simplest, most economical way. In short, we must be sure we are taking things to pieces, not for the sake of taking them to pieces, but purely and simply to find out what has to be done. Like the golfer who played golf so much in order to keep fit for golf, we have here a good old-fashioned beneficent circle. ANALYSIS without a PLAN isn't worth a whoop in Hades. It's time kissed goodbye. Wasted effort. And, in like manner, a PLAN without an ANALYSIS isn't worth the paper it's typed on. Psmith in your office is a great "planner". He always has something on the fire. But somehow or other he never quite puts things over. His plans don't get across. Why not? Oh, just because he doesn't bother to analyze his problem—because he sets out to do what has to be done even before he knows what has to be done. He doesn't base his plan upon an actual need. Pbrown, on the other hand, is a keen analytical thinker. A student. He's a shark at taking things to pieces and finding out what has to be done. But when he's done that, he's all done. He lacks the initiative that starts things moving. He hasn't that divine spark of something or other that gets things done. A stick of dynamite wouldn't do a bit of good. He simply hasn't the knack of building a plan. He knows what has to be done. He doesn't know how to do it. Psmith and Pbrown—or Pbrown and Psmith—would make a fast team. But Psmith without Pbrown's analytical ability, A manufacturer friend tells an amusing yarn about a Pbrown he hired as sales manager. "He went around analyzing everything from soup to nuts—the gadgets in our line, our markets, our competition, our salesmen. "He was an analyzer de luxe. And all I ever got out of all his analyses was a distinct feeling that something was wrong with every gadget we made, that our markets were saturated, that our competitors had us backed off the map, and that our salesmen were a bunch of ribbon clerks. "So," he continues, "I did a little analyzing all my own. And analyzed him out of his job. Today he's managing a filling station where they drive in for the most part and take it away from him. But in his place I got a man who found out what was wrong with gadgets, markets, salesmen Thus the futility of ANALYSIS without PLANNING. There's the danger, too, of getting away from the SIMPLICITY OF TRUE ANALYSIS. A job undertaken by an advertising agency for a rubber manufacturer supplies a case in point. Stripped of all the details, the task was to find out whether or not the manufacturer might profitably engage in the making of hard rubber tires for industrial trucks and trailers. If names are changed and products substituted, think nothing of it. The principle's the thing. The agency began by analyzing the business to a fare-you-well. Everyone and everything got cross-examined. It took three months. And when the analysis was done it told the manufacturer everything from where the rubber grew to where the money went to and came from. The trouble was, he knew all that before It wasn't SIMPLE. And because it wasn't SIMPLE, it was a far, far cry from TRUE ANALYSIS. Well, well, the rubber manufacturer went out in the byways and got him a young man who was told to find out, if he could, whether or not there was any market for hard rubber tires on gas and electric industrial trucks, tractors and trailers, and allied equipment. He found, for example, that there were 40,000 trucks and tractors in service; that annual sales were about 3,200 units. He discovered that, of trailers and hand lift trucks, 125,000 each were in service; annual sales were 12,000 and 10,000 units respectively. But when he came to floor Next he found out, as accurately as possible, how many hard rubber tires were sold as original equipment. The 3,200 trucks and tractors had 12,300 wheels. But 95 per cent of them were equipped with rubber tires at the factory. On the other hand, only 7 per cent of the floor and hand trucks were thus equipped! Outside of the truck and tractor people, he found the equipment makers opposed to hard rubber tires. Let's not go into the reasons. Yet representative manufacturers in a dozen different lines stated, when he asked them: "All future equipment purchased by us will be equipped with rubber tires." The whole report wasn't twelve pages long. And three tables, carefully compiled from available facts and figures, told the manufacturer everything he wanted to know. In short, upon this SIMPLE ANALYSIS, he was able to build a plan for manufacturing and merchandising solid rubber tires. Much good, though, it would have done him had he done his planning first and then found out there weren't enough wheels to wear the tires after he had made them! So much for our "beneficent circle." Let us look into this thing called PLANNING and find out if there isn't some way of developing a knack of planning which will help us over the second major hurdle in our road to managing. There is, we shall find, a single problem with which the planner, the constructive manager, deals. Again, it doesn't make a particle of difference whether it's Mr. Schwab and Bethlehem Steel or Tonio and his peanut stand. No business is so "different" that the principles of management fail to apply. All right, then. The problem of every planner is first to determine what is the PRIMARY MOVING FORCE—the "initiative"—behind his job, and then to find the EASIEST PLACE TO APPLY THAT FORCE in order to set up the required MOTION or ACTIVITY with the LEAST AMOUNT OF EFFORT THAT WILL GET THE BEST RESULTS. A long sentence. Go over it again and you will find it is divided into four distinct parts: 1. Deciding on the PRIMARY MOVING FORCE with which to set the wheels in motion. 2. Applying this FORCE at the PROPER PLACE TO GET EASIEST ACTION. 3. Directing this action along lines which either offer LEAST RESISTANCE or assure GREATEST ACCOMPLISHMENT. 4. Bringing the activities to a focus at The PRIMARY MOVING FORCE may be the selection of media in an advertising plan; it may be the pushing of a button in the White House which opens a dam in Arizona, a Century of Progress in Chicago, or the Annual Convention of Whammit Manufacturers at Atlantic City; or it may be the memo from the big boss which gives the research department carte blanche on a development project. To apply this initiative to a place where it will get QUICK ACTION may be to suggest an idea in the headline of an advertisement that will set the reader to thinking of salmon fishing at Mooselookmeguntic, or of the time the ice cubes gave out just when they shouldn't. Or it may be to classify the output of a factory before shipping so that freight cars can be packed to best advantage or so that lowest freight rates may be secured. Or it may be a simple Directing this ACTIVITY along the lines that ASSURE GREATEST ACCOMPLISHMENT may be—in the advertisement—the presentation of facts or advantages which will persuade the reader that the fishing tackle you manufacture is desirable. Again, it may be the dovetailing of a thousand elements in a huge project like the Russian Five-Year Plan so that an adequate supply of ore will be available when the blast furnaces roar into operation; so that the steel will be on hand when production in the Cheliabinsk tractor works is stepped up to meet the requirements of the new agricultural regime. Or it may involve the simple sweeping of a floor in a manner which raises a minimum of dust. And bringing the activities to a SUCCESSFUL CONCLUSION may mean working up the arguments of the advertise FOUR ELEMENTS, then, in any job which is to be PLANNED. Every plan, if practicable, will follow them. There is, by way of further illustration, the story of the factory manager of a food manufacturing plant who laid out a PLAN for an operation no more intricate than the And for two good reasons. First, because it was a practical plan which, even on such a lowly operation, saved quite a bit of money. Second, because in its construction the plan is, from the point of view of our four elements, what has sometimes been called a "natural." One night, it seems, the manager and his wife went to the movies. The town didn't have daylight time, so it was quite dark. They passed the plant, a large six-story building. "Why, Ed!" exclaimed the wife, "you didn't tell me the factory was working nights." Ed, like most husbands, was in the habit of telling friend wife 'most everything. For once he was at a loss. Sure enough, the lights were going full tilt on all floors. Hitting on all six, you might say. Then he laughed. It all came to him—"It's just the scrubwomen at work." One feature picture, one newsreel and one animated cartoon later, they walked past the plant again. "Look, the factory's still lit up," remarked the wife who turned off the living room lights religiously when she went out to get supper ready. This time Ed didn't laugh. In days like these one doesn't. Not, at any rate, at the thought of mounting electricity bills. The very next evening he was on the job. Time somebody found out what was what. In came the cleaners. They switched on the office lights—all of them—and two of the crew went to work. A couple of others went up to the second floor, switched on all the lights and pitched in with a vim. And so ad infinitum—or at least to the sixth story. And all the while the electric meter went round and round! Twenty-four hours later the janitor had a new plan of work. First the manager thought he'd start the whole crew at the top and work down. On second thought, a better plan was born—like the goddess of wisdom who sprang full grown from her papa's forehead. If I must go at this cleaning job, he thought, I might just as well make a first-class job of it and save not only on light, but on cleaners, too. We shall pass lightly over that part of his plan which had to do with releasing scrubwomen for other productive work, for in days like these—or in any other day—we just can't figure out that sort of thing. But goodness gracious, sometimes it's necessary. The emphasis, then, shall be on the electric current saved. The plan called for the entire crew's working together on one floor at a time—on the well-founded theory, of course, that teamwork would accomplish more in less time. Besides, since it was necessary to turn on all the lights on the floor, why not get the full benefit from them by having the entire gang at work? So far, so good. The surprise comes when you learn that he didn't have them start at the top and work down. He started them at the bottom and worked them up. "And I'll tell you why," explained the manager, "they have to climb six floors anyway, so they might as well work up as walk up. Besides, by leaving the stairs till the last, they can work their way down as well as up." In other words, they went to work right where they came in. And when they had finished, they were right back where they started—back where they went out on their way home. Simple, isn't it? An immediate reduction in lighting bills was noticeable. Even the amateur mathematician among you can figure that with one floor out of six lighted at a time, five-sixths of the light was saved. Besides, the work was done in less time—it wasn't long before two cleaners were reading the want ads. But why go into that? We aren't, for that matter, interested so much in the savings made, because it is exceedingly doubtful if many of us pass our factories or our offices on the way to the movies. We may never have an opportunity to put this particular plan to work. What we are interested in, though, is the fact that this cleaning plan utilizes the four basic elements which we've said must be present in every job of PLANNING. Look at the chart. It shows the movement of energy in the manager's plan for handling his crew. Starting the scrubbers on the ground floor—they had to begin there anyway, no matter when they began to scrub—was nothing but applying the primary force at the best point to get the easiest action. Working them up floor by floor was simply directing the activity along both the lines of least resistance and greatest accomplishment. And doing the stairs on the way down was just focusing the activity at the right point for making a successful Turn back now to the FOUR ELEMENTS OF SUCCESSFUL PLANNING as we set them down on page 54. Try them out on any successful plan and assure yourself that not a point has been stretched. By using them we shall learn the constructive, creative KNACK OF PLANNING. Stripped of the "clothes" which every plan wears—it's only in the clothing that plans differ—this KNACK OF PLANNING may be quite simply visualized by some such chart as the one shown on the opposite page. There you see the PRIMARY FORCE—the INITIATIVE that sets the PLAN in action. Second, the POINT OF APPLICATION—where you must hit if you're going to win. Third, the various activities which bring about the SUCCESSFUL CONCLUSION. And fourth, all these It's just like the sailor off the whaler who picks up the wooden mallet, hits the plunger a resounding crack, sends the weight hurtling up the pole, rings the bell—and gets a good 5-cent cigar. Or like the golfer who, putter in hand, strokes the ball firmly "in the direction of least resistance and greatest accomplishment," sees it hit the back of the cup and drop in for a par four. Watch these four essentials. Knowing them and using them continually will en Remember the production manager in the shoe factory? Rather sketchy was the story of the ANALYSIS he made. Let's go a bit more into the details of the PLAN which was based on the ANALYSIS. And, at the same time, examine it to see if it checks with our FOUR ELEMENTS. You remember he was hired to find out why the so-and-so shoes didn't move out the door on time. And you'll remember that instead of clanking up and down from one department to another, he was seen one day picking out lasts from a bin in the assembly room. He had crept up quietly Here (in the lasting room) was his POINT OF APPLICATION. The biggest factor in slowing up shoes, he found, was failure to have lasts ready the instant the uppers came down cut and stitched from the fitting room. The shoes were entered into work with almost entire disregard of this vital point. Oh, yes, they knew they once bought so many pairs of lasts on this style or that in such and such sizes. And in a vague sort of way they tried to regulate the number of pairs sent to the cutting room with the number of lasts which they thought should be available the day the shoes reached the assembly department where uppers, insoles, bottoms and lasts met together—or should have. A single missing size could hold up a 36 Today it's all so different. A running inventory is kept of every active last. Each day the lasts which are released as shoes leave the finishing room are added to the supply on hand; at the same time, the lasts which are to be used that day in lasting incoming lots are subtracted. A job? No, a good girl of moderate intelligence simply added it to a dozen other office chores which she finds time to do daily. The running inventory, you see, is one of the various activities which, aimed at the focusing point—the moving of shoes out the door—are necessary to bring about a successful conclusion—the successful conclusion, in this particular instance, probably being the saving of the young man's scalp—for the boss was certainly out to get it the day he saw the young production manager pawing over the chunks of maple in the lasting room. Other activities might be mentioned. Plenty of them. An automatic conveyor which brought back empty racks to the point where they were needed. Semi-automatic elevators which made possible the rapid moving of shoes from floor to floor. Twelve-pair lots which simplified the handling problem, made the job of picking out lasts an easier one—and all in all did much to take the weight off management's shoulders. All these and more are the activities which were needed to bring about a successful conclusion. They were all part of the PLAN. Today, in that shoe factory, the production manager sits down for an hour in the forenoon and an hour in the afternoon and schedules the next half-day's work which will go to the cutting room. Two girls have been moderately busy getting him the information he needs. Sales have been brought up to date within half a day. He knows how many kid shoes he can cut, how With his two girls, the young production manager does all the work of scheduling. Actually, there isn't much work. Management, you see, has done an awfully nice job of PLANNING. Picture now the manufacturer of small electrical appliances who sought to lay out new avenues of growth. His was pretty much a seasonal business. Electric fans constituted most of his bread-and-butter production. Early in the year and well on into the spring his plant ran full blast getting out merchandise for sale during the And then along in the summer and fall his production curves went into a serious decline. To level them out would have meant carrying a load of finished inventory which he could ill afford. Other appliances, such as hair curlers and driers which might conceivably find a ready sale during the holiday season, helped considerably—but not enough. The rough places were by no means made plane. Why not, thought he, a line of toys which would enable him to utilize his present production set-up profitably during the slack summer and fall? Why not, indeed? So he set out to chart a plan of action beginning, as you will see from the figure, with the furnishing of amusement as the PRIMARY FORCE. His POINT OF ATTACK was through the 15,000,000 American boys who love to build something. On he went to the various ways of Only the bare headings on the plan are shown in the chart. Nevertheless it shows clearly the same knack of using the FOUR ELEMENTS which we have been at such pains to discuss. The chart proved helpful, not only in guiding the management in its efforts to enlarge the scope of manufacturing activities, but also in giving the office and the sales force a true picture of the business. So helpful, indeed, did it prove that it was blueprinted. And today every salesman has one pasted in his selling portfolio. It's the first thing the dealer sees. And it has gone far in arousing the latter's interest and confidence. If you were a dealer, would you buy There, if you please, lies the answer. It is not within the purpose of this chapter, incidentally, to play any favorites. Time must be taken out at this point, therefore, to return to the messenger boy who, when we left him, had just finished analyzing his job. Let's see now how his plan of action is based upon what the analysis taught him. Let's examine this elementary job of managing, not because it may make better messengers of us, but because the examination will show how universal this thing called management is—because it will afford one more proof of our general axiom that the principles of management are ever the same, no matter what particular parapher Did, then, the messenger boy work out his plan in accordance with our FOUR BASIC ELEMENTS? He did, if he was really managing his job—and from the careful analysis he made, we may assume he was. If his trip meant riding a street car, then going to the cashier for carfare is his primary force. If he can walk, then the primary force is simply getting under way. Hastening as directly as possible to the car line is applying the force at the easiest place to get results. Perhaps he might have to choose between a slow street car which would carry him right to his destination for seven cents, and a fast elevated which, for a dime, would make better time but leave several blocks to walk at the other end. Deciding between the two is directing the activities along lines of greatest accomplishment. And getting his transfer, leaving the car, and going straight to You see? The Colonel's lady in her Parisian peignoir and Judy O'Grady in her sleazy slip were sisters under the skin. So, if we may stretch a physiological point, are our messenger boy and the man who made the toys. The plans of both were built on the same foundation. Or take the plan by which the new general manager of a tap and die concern rehabilitated his company's business. "Why," he said, reaching for a pad of paper and roughly sketching something that looked like a funnel and must have been because he said it was, "our manufacturing plan looked about like this. Up here at the top we poured in a lot of orders and hoped to high heaven some of them would finally trickle through at the bottom. "Some of them did drop through. Others dropped because we poked sticks up the "It was bedlam around the shop. It took three months on an average to complete an order. "I found much of the delay was due to certain Victorian notions about set-up time. The prevailing idea was to give an operator a good big job to minimize that item of expense. "Sometimes the job was so big it took 60 days to run it through a single operation. "Oh, me! oh, my! the inventories of finished goods that piled up. The tote boxes full of work in process that cluttered up the scenery. "And the complaints from customers who were waiting for orders! "Funny thing about our business, you can't get a customer to accept a couple of ¼-in. taps in place of the ½-in. one he's ordered. "So I had to revamp the whole shooting "You should have seen the pile of tote boxes we stuck under the boilers. "Well, the next job was to figure out the most economical lots to send through the works. That figure was arrived at simply by choosing such a size that no single operation could possibly take more than a day. In a word, I made sure that every single lot would move every single day. "Do you get the picture? A steady flow of manufacturing. No funnel. No poking around with sticks. Today there aren't any stock chasers. None is needed. Work reaches the stockroom on time. Orders are filled complete the same day they come in. No, he needn't. For already he has shown us how the motive force was applied at the right point to get results. Take this plan apart—or any other plan that really works—and you will see that it is built upon the FOUR ELEMENTS OF PLANNING. They make the PLANNING wheels go round. Now it's time to take your own job of planning to pieces and see if it, too, does not meet the test. Here, again, as when the ANALYSIS was made, it helps to set things down on paper. In charting, you will find that by painstaking application of our four principles along the lines diagrammed in the figure on page 65, you can LAY OUT A WORKING PLAN depending for its approach to perfection only upon the amount of thought The chart you make may be only a guide to the complete plan. Some plans require details which utterly preclude any form of expression so simple as a chart. Other plans can be laid out on the actual chart shown. In any event, the very attempt to put your plan into diagrammatic form will develop PRACTICABILITY AND ACCURACY OF ARRANGEMENT. The very necessity of having to indicate and to select the primary force back of your job or business; having to trace that force through the various activities necessary to completed work; and then having visibly and physically to concentrate all these activities at one point—those very acts which making a chart compels you to perform, enforce a mastery of the essential details of your business and a grasp of their relations which every manager should have. Perhaps the plan you have isn't as hot as you think it is. An office manager friend of ours was pretty proud of his system until one day he charted it. His company was famous for the quality of work turned out. But the service it gave was wretched. Special instructions were often ignored. Delivery dates were overlooked. All that sort of thing. The system looked good enough. The office manager said the mistakes were due to carelessness. And it looked as if he were right. So when something went wrong, the nearest employee got a handsome bawling out. At last the sales force jumped on him with both feet. Too many promises had been broken. So the office manager was forced to do something about it. And, quite by accident, made a chart of the ACTUAL PLAN OF WORK. Hello, what was this? Half a dozen For example, if a customer on the West Coast ordered a bill of goods, and then, while the order was in work, decided he wanted half the goods shipped by boat through the canal and the other half by fast freight, maybe he'd get his shipments that way and maybe he wouldn't. Under the prevailing "plan" that particular sort of job didn't fall inside any one man's bailiwick. No one man was responsible for seeing that such orders were executed. No "machinery" had therefore been provided for taking care of them. That's only a sample of some of the duties which landed—in his diagrammatic representation of the actual plan of work—somewhere off the map. For all the action they got, they might as well have been painted ships upon a painted ocean. Methods in general, you see, were pretty Nothing is surer to expose such a condition than actually to chart a plan. In this instance, it was simple to recognize "following customers' instructions"—no matter when, why, or how they came—as the logical primary force. Then the whole trouble was taken care of by centering the responsibility upon the chief of the order department. From then on, all instructions regarding any order cleared through him. Thus it will be seen that the idea back of charting a plan is not to get something you can work to as an ideal in carrying on a job, but rather to get a PRACTICAL FRAMEWORK on which the work can actually be done. Then it is at once evident whether the "clothes" of the business are hanging on the right limb or whether Too often the plan turns out to be a "sketch." The builder waits until the architect's first sketch has become a plan. In business it's like that, too. When finally you know, from ANALYSIS, what you want to accomplish, it is not difficult to plan the procedure if you start right and forget nothing. You start right if you take time to figure out the primary initiative. You forget nothing if you take the trouble to set things down in black and white. And finding the motive force and figuring out where to hit with it, is nothing more nor less than charting the moves of the game until you find a succession of activities moving along without back-tracking, without duplication, without wasted effort or supervision. Thus cultivating the KNACK OF Both men seemed to be in a hurry. The first hustled over to one of the wash basins, scrubbed his face and hands, dried them on a towel. Then he began to shave. That finished, he washed the lather from his face, dried himself again on another towel, and put away his razor. Next came his teeth. He brushed them, washed away the traces of tooth paste, and dried himself on a third towel. All this time the other fellow was going through the same motions—but in a much different order. He began with his teeth. After he had brushed them, he lathered his face. After he had shaved, a single wash was enough and a single towel did the drying job. He had finished his canteloupe and was well He started where each operation would lead directly and naturally into the next, performing each at the proper time. After all, isn't that precisely what you do in planning any part of your business? |