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High Output Management Summary

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High Output Management SummaryHigh Output Management is the essential book of late Andy Grove, the former CEO of Intel, focused on managers, directors, and CEOs. If you have a team, a company or if you relate to many people in your day to day and have to balance the interests of your team, this book is mandatory for you.

The focus of High Output Management is to make it clear that the key feature of a good manager is focused on results, output, and thus teach you how you can deliver more results by understanding how a corporation should work.

In a company, your personal result is equivalent to the result of all teams and departments under your supervision or influence.

Your team will only achieve real high performance if each member has an understanding of their required output and clarity of what their role in the company is.

“High Output Management Summary”

UNDERSTANDING THE PRODUCTION LINES:

Efficient production lines operate on three assumptions: Deliver your products on time, with a clear quality standard and within the defined cost. To ensure that these assumptions are met, you must ensure that your production line follows these steps:

  • Manufacturing: the stage in which the elements of your product are grouped;
  • Assembly: when the components are grouped together forming a new item;
  • Tests: the examination of the characteristics of the product. To optimize your production line, you need to be aware of “bottlenecks” (time-consuming, more resources, where more failures occur, etc.) steps to optimize it. Once the most complex step is optimized, move to the second, third, and so on. To monitoring to be ensured, there are the KPI’s or Key Performance Indicators indicators.
    Even a basic indicator is better than having no indicator at all. Good indicators measure the result, the output of a process and the number of activities carried out. Choose an indicator for each goal sought and analyze them individually and comparatively, because almost always one indicator impacts directly on others.
    An example: the number of units produced per day (speed indicator), if increased dramatically, can compromise the number of defective products per day (quality indicator). In addition to follow-up indicators, there are also indicators that can predict outcomes and trends by measuring the results of a process over a period of time.
    An example of the use of this scenario would be to track one indicator as output per employee per month.
    Through it, you get to know, over time, whether you’re getting more or less efficient and even design how many employees you’d need to hire to achieve your goal of increasing the parts production.

DISCOVER YOUR MANAGEMENT LEVERAGE

Leverage is the measure of the result generated by each manager. Andy uses the following formula to describe it:

Manager Output  = output of his direct reports + output of the other teams that benefit from his knowledge.

To ensure maximum performance, you need to be aware of your managerial role, which includes collecting information, multiplying information for the team, making decisions, being an example to the team, and compiling reports frequently.

Management reports are essential for communication but are even more important to the manager’s self-discipline.

Producing them is usually more important than consuming them. To delegate efficiently, it is necessary for a manager to have constantly analyzed information, strategic knowledge about the business, and also communication and leadership skills.

High Output Management
According to Andy, a manager must have between 6-8 subordinates. Less than 6 can cause a slowdown in the company, and more than 8 can lead to confusion in the communication.

Andrew S. Grove

HOW TO HAVE EFFICIENT MEETINGS

Meetings have great leverage when used effectively, but care must also be taken that they do not become a waste of resources. They must be of the following types:

  • 1:1’s – Meetings between manager and subordinate to exchange knowledge and feedbacks. The manager should listen, ask questions and try to use the opportunity to find problems and be an effective coach for the team member. The purpose of this meeting is to increase the mentee’s understanding of her role and to help her produce more and grow. Its frequency depends on the experience of the subordinate in the job, but it is generally recommended that it occur once a week for non-experienced staff, lasting less than an hour. This meeting is highlighted by Andy as one of the most important in all types of companies.
  • Team Meetings – These should be used to discuss topics that affect more than two people. The role of the manager is to facilitate the meeting, to control its pace and to follow up so that the matter is resolved there. Its role is to help the team make decisions. Mediation of conflicting views is a great exercise for the manager to have more understanding of the issues at stake.
  • Operational Reviews – Starts with a presentation and discusses the results of the process. It is also a way to help people who do not necessarily interact on a daily basis to get to know each other and exchange ideas. Having focused and using these practices, it is possible to successfully follow the company’s results and align everyone involved.

HOW TO MAKE BETTER DECISIONS

To make wise decisions, it is important always to involve experts on the subject.

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