Direction by exception

MANAGEMENT BY EXCEPTION

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Address by exception is a leadership and management style in which the entrepreneur, leader or manager intervenes only when problems, challenges or deviations in the performance of employees or in the progress of a project are identified. Rather than closely supervising every aspect of the work, the leader focuses on problem areas and provides direction and support only when needed.

This management approach can be effective in organisations and teams where employees are highly competent, experienced and motivated. Management by exception can improve efficiency by allowing leaders to focus on issues of greater importance, while giving employees the freedom to make decisions and solve problems autonomously.

However, steering by exception can also have drawbacks. If poorly implemented or applied in situations where it is not appropriate, it can lead to neglect of certain aspects of the business, lack of support and guidance for employees, and possibly a decrease in team morale and commitment. It is therefore important for leaders to carefully assess their team's needs and working conditions before adopting this management approach.

Advantages of management by exception

Management by exception can offer several advantages in certain organisational contexts and for certain types of teams and employees.

Some of the main advantages include:

  1. Efficiency: By focusing only on specific problems or challenges, leaders can devote their time and energy to addressing issues of greater importance rather than constantly supervising their employees.
  2. Autonomy and empowerment: This management approach enables employees to make decisions and solve problems autonomously, which can increase their motivation, job satisfaction and sense of responsibility.
  3. Skills development: Management by exception can foster the growth and skill development of employees by providing them with the opportunity to face and overcome challenges on their own.
  4. Innovation: By allowing employees to work more independently, this style of leadership can foster an environment in which creativity and innovation can flourish.
  5. Reduction of micromanagement: Management by exception minimises micromanagement, which can improve team morale and the relationship between leaders and employees.
  6. Flexibility: This approach allows leaders to adapt quickly to change and reallocate resources as needed to address emerging issues.

However, it is important to remember that steering by exception is not appropriate in all situations. In environments where employees need more supervision and guidance, or where communication and teamwork are critical to project success, other leadership styles may be more effective.

In addition, Leaders who adopt management by exception should ensure that they keep communication open and provide support where necessary to avoid the perception of neglect or lack of interest in the work of their employees.

How is the need for meetings reduced through management by exception?

Management by exception can help reduce the need for frequent meetings by shifting the focus from constant supervision to attention on specific problems and challenges that require intervention.

HERE ARE SOME WAYS IN WHICH MANAGEMENT BY EXCEPTION CAN CONTRIBUTE TO THE REDUCTION OF MEETINGS:

  1. Autonomy and responsibility: By giving employees greater autonomy and responsibility for decision-making and problem-solving, leaders can reduce the number of meetings required to discuss and approve each decision.
  2. Establishment of clear objectives and metrics: By setting clear objectives and performance metrics, leaders can facilitate communication and progress monitoring without the need for constant meetings.
  3. Efficient reporting systems: Implementing efficient and automated reporting systems can help leaders monitor progress and detect problems without the need for frequent meetings. For example, leaders can set up alerts and notifications when significant deviations in key performance indicators (KPIs) are identified.
  4. Encourage asynchronous communication: Encouraging employees to use asynchronous communication tools, such as email, chat or project management systems, can reduce the need for meetings by allowing them to share information, ask questions and get feedback more efficiently.
  5. Meetings only when necessary: With management by exception, meetings are scheduled only when a specific problem or challenge is identified that requires leader intervention or team discussion. This ensures that meetings are more focused and effective, and are not used to oversee the day-to-day work of employees.
  6. Establish a culture of trust: By building a culture of trust in the team, leaders can foster collaboration and problem solving without the need for constant meetings to ensure that everyone is aligned and committed to their tasks.

It is important to remember that management by exception does not mean eliminating meetings altogether. Meetings remain a valuable tool for discussing important issues, making decisions and fostering team collaboration. The key is to ensure that meetings are used effectively and are held only when necessary.

How is management by exception implemented in a company?

In order to implement management by exception in a company, it is essential to follow a series of steps that allow for a smooth and effective transition to this style of leadership and management.

THE FOLLOWING ARE SOME STEPS TO HELP IMPLEMENT MANAGEMENT BY EXCEPTION:

  1. Assessment of the current situation: Analyse the company's current structure, culture and processes to determine whether management by exception is appropriate. Consider factors such as the level of experience and skills of employees, the degree of autonomy they can handle and whether the business environment is stable enough to adopt this approach.
  2. Communication of the strategy: Communicate the decision to adopt management by exception to employees and explain how this strategy will benefit both the company and the employees. Make sure everyone understands what management by exception is and how it will affect their roles and responsibilities.
  3. Establishment of clear objectives and metrics (+): Define clear and realistic performance objectives and metrics for each employee or team. These objectives and metrics should be specific, measurable, achievable, relevant and time-based (SMART). Make sure everyone understands how their performance will be measured and what the expectations are.
  4. Development of efficient reporting systems: Implement efficient reporting systems that allow leaders to monitor progress and detect problems or challenges quickly and effectively. These systems may include project tracking tools, data analysis software or automated reports.
  5. Training and support: Provide training and support to employees to help them adapt to the new approach and work more autonomously. This may include training programmes, workshops or online resources.
  6. Encourage asynchronous communication: Encourage the use of asynchronous communication tools, such as email, chat or project management systems, to enable more efficient communication and reduce the need for constant meetings.
  7. Monitoring and adjustment: Closely monitor employee performance and management effectiveness by exception. Be willing to adjust strategy as needed and provide additional support to employees who require it.
  8. Review and feedback: Conduct periodic performance reviews and solicit feedback from employees to assess the effectiveness of management by exception and make adjustments as necessary.

Implementing management by exception in a company can be a challenging process, but if approached in a structured way and with adequate support for employees, it can lead to greater efficiency and job satisfaction.

However, It is crucial to bear in mind that this approach is not suitable for all organisations or situations and must be adapted to the specific needs and circumstances of each company.

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CASE STUDY OF A NEW COMPANY SETTING UP MANAGEMENT BY EXCEPTION TO BECOME MORE EFFICIENT

Suppose a new technology company called "Tech Innovators" wants to establish a management-by-exception approach to improve efficiency and foster innovation.

THE FOLLOWING IS A CASE STUDY THAT ILLUSTRATES HOW THE COMPANY CAN IMPLEMENT MANAGEMENT BY EXCEPTION IN ITS OPERATIONS:
  • Assessment of the current situation: Tech Innovators assesses the company's current structure and culture and determines that its employees are highly skilled, experienced and able to work autonomously. Management concludes that management by exception may be appropriate for your company.
  • Communication of the strategy: Tech Innovators' management communicates to employees the intention to adopt leadership by exception and explains how this approach will benefit both the company and the employees. The importance of autonomy and accountability in this new leadership approach is emphasised.
  • Establishment of clear objectives and metrics: Management sets clear and specific performance objectives and metrics for each team and employee, aligned with overall company objectives. Employees understand how their performance will be measured and what the expectations are.
  • Development of efficient reporting systems: Tech Innovators implements efficient reporting systems, such as project tracking software and data analysis tools, which allow leaders to monitor progress and detect problems or challenges quickly.
  • Training and support: The company offers training and support to employees to help them adapt to the new approach and work more autonomously. This includes workshops, online resources and opportunities to ask questions and receive feedback.
  • Encourage asynchronous communication: Tech Innovators promotes the use of asynchronous communication tools, such as email, chat and project management systems, to facilitate efficient communication and reduce the need for constant meetings.
  • Monitoring and adjustment: Tech Innovators' management closely monitors employee performance and management effectiveness by exception, adjusting strategy as necessary and providing additional support to employees who require it.
  • Review and feedback: The company conducts regular performance reviews and solicits feedback from employees to assess the effectiveness of management by exception and make adjustments as necessary.

In this case study, Tech Innovators successfully implements management by exception in their company, leading to greater efficiency and fostering innovation.

Employees feel more empowered and responsible, resulting in higher job satisfaction and better performance. In addition, the company is able to adapt quickly to changes and focus on the most important issues and challenges.

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Picture of Jaime Cavero

Jaime Cavero

Presidente de la Aceleradora mentorDay. Inversor en startups e impulsor de nuevas empresas a través de Dyrecto, DreaperB1 y mentorDay.
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