The rise (and fall) of the 'player-manager'

I am reading a terrific book at the moment by Philip Augar and Joy Palmer called The Rise of the Player Manager. It resonates with me and the work I am doing because of the way the authors describe the dilemma facing talented individuals, especially in professional services firms.

In short, individuals who are good at 'producing' revenue are typically promoted away from the thing they love best (playing) into something most of them like a lot less (managing). However, rather than relieving them of their player duties and letting them just manage, modern businesses require these individuals to (quickly) learn to manage and continue to play.

The reason for this is economic. Modern businesses have phased out the layers of middle management they once had by 'down-sizing' and 're-engineering'. As a result there is no-one left to simply manage. Everyone except those at the very top actually have to do stuff, too.

In other words, the layer of managers who used to focus on vision, strategy, and developing people has gone. In their place are individuals who have to do it all. Needless to say, this presents some problems.

A classic example can been found in the modern investment bank.

Here, the most talented 'player' makes lots of money for the bank and also for herself. As she gets older and more experienced the bank promotes her until, out of the blue, she has the title 'Manager'. All of a sudden her job changes. Now she is expected not only to continue making bucket loads of cash, but she is also expected to manage the performance and the careers of six or seven individuals who look to her for guidance.

If each one of these individuals were as naturally talented as she there would be no problem. But they are not. They have a mix of aptitudes that require different management. Problem is, a) our manager can't take time away from making money to help them otherwise everyone suffers; b) the firm doesn't incentivise the manager to grow and develop her people, although it does penalise her if she doesn't make her 'numbers'; and c) she has never been shown or taught how to manage in the first place.

Speak to any HR professional in a bank and he will tell you the biggest challenge is getting bankers to commit themselves to 'soft-skills' training. Is it any wonder when these are not properly rewarded by the organisation or valued by shareholders?

I don't know what the answer is to this dilemma. All I know is that the most successful banks - Goldman Sachs to be specific - make it an imperative for managers to learn to manage as well as they play.

For all its faults Goldman recognises true talent leverage comes through proper people development. Goldman also recognises this doesn't have to mean days and days of time-hungry training. It teaches its managers how to give critical feedback and coaching on the spot so individuals learn how to do something more effectively in the moment. Any parent will tell you this is the most effective way to teach a young person how to be more successful.

So what do Augar and Palmer recommend. I have not finished the book yet. However, they do set out some of the key 'levers' the player-manger can pull to be more effective:

1) Set out the 'end game'. In other words, get your team together every quarter and tell them what they are trying to achieve within it. It doesn't have to be a flowery vision statment. Just a description of the key numbers is enough to get everyone on the same page.

2) Set out the 'game plan'. In other words, tell people the three or four things you're all going to do to achieve the goal. Are you going to sell more of one product and less of another? Do you want them to look for more cross-selling opportunities? What is your strategy for achieving the goal - and again, review this once a quarter for half and hour with them all.

3) Set out some benchmarks. In other words, what measures will you look at to make sure you are on track. You know, a bit like the cash 'thermometer' a church uses when it is trying to raise money to repair the vestry roof.

4) Enable teamwork. In other words, get them together as a team at least once a month for a drink or a bite to eat. Make people feel they are part of something bigger than just themselves. Remember, "No man is an island, entire of itself. Each is a piece of the continent." (John Donne)

5) Give feedback. The central pillar of performance management - you must, must, must learn how to give critical feedback in the moment if your people are to have any hope of improving.

I would love to know: if you are a struggling 'player-manager', which of these levers would you pull first, and what help would you need to pull them?