Improving Systems, Not Blaming Individuals: A Guide to Effective Management

One of the greatest lessons in management comes from Brian Joiner’s book, 4th Generation Management. He highlights three options when problems arise: distort the system, distort the data, or improve the system. This powerful insight shifts the focus from blaming individuals to addressing underlying issues within the system.

Managers often fall into the habit of blaming employees for missed targets or poor performance. If one salesperson hits their goals while another falls short, it’s easy to assume the problem lies with the underperformer. However, this approach overlooks the many variables that affect performance—territory differences, training levels, and product issues, to name a few.

Stop Ranking Employees and Start Managing Systems

When management ranks employees based on performance, it creates a destructive atmosphere. Rankings ignore the complexities that impact each individual's success and undermine teamwork. Stacking employees against each other only leads to demotivation and anxiety. If your company still ranks employees, it’s time to stop. Focus on managing the system, not the people.

For example, if a salesperson is struggling, the problem often lies within the system they’re working in. Whether it’s their territory, inadequate training, or outdated tools, these factors can hinder even the most skilled employee. Instead of asking, "Why aren’t you performing?" ask, "What is getting in the way of your success?"

System Thinking: Shifting the Managerial Mindset

Effective management means taking responsibility for the system your employees operate within. If there’s a performance issue, it’s not an individual failure—it’s a sign that the system needs improvement. Managers must focus on understanding the variables that affect success, from competition in the market to resource availability.

When employees see their managers addressing systemic issues, they feel supported. They know that their leader isn’t just looking for someone to blame but is committed to making real improvements that benefit the entire team. This builds trust and encourages open, honest communication.

Employee Accountability: Owning What You Can Control

While it’s crucial for managers to improve systems, employees also have responsibilities. If you’re an employee struggling within a flawed system, focus on what you can control. Understand the issues with the system, propose solutions, and advocate for change. If the system can’t be fixed and success feels unattainable, it’s important to assess your options and make decisions that benefit your career.

There’s no value in distorting the data or manipulating the system to give the appearance of success. Cheating the system or lying about progress will only lead to bigger problems down the line. Real success comes from clear communication, integrity, and working with your manager to address obstacles.

Real-Life Scenario: Navigating Pipeline Meetings

Take the example of a sales company that holds regular pipeline meetings to discuss prospects and progress. Imagine an account manager overseeing three accounts, all of which have faced service issues in the past year. They’ve spent months managing client expectations and keeping contracts intact.

In each pipeline meeting, the manager is asked for updates on new opportunities, despite the ongoing service issues. The account manager has three choices:

1. Distort the system: Push the client to buy something they aren’t ready for, just to show growth.
2. Distort the data: Lie about the opportunities and make it seem like progress is happening when it’s not.
3. Improve the system: Work with the client, service team, and manager to find new ways to create value and address the service issues.

While option 3 is the best choice, the structure of the meeting often pushes employees toward options 1 or 2. If bonuses are tied to growth, employees feel pressure to sell prematurely. If they’re berated for a lack of progress, they may lie to avoid criticism. The system, in this case, pushes employees toward undesirable behavior, and the blame lies with how the management system is designed.

Creating a Culture That Encourages System Improvement

As a manager, your job is to create an environment that encourages employees to improve the system, not distort it. This means understanding the big picture, considering all the variables at play, and building a culture of trust and accountability. When someone is underperforming, ask what obstacles are in their way instead of assuming personal failure.

Leaders who manage systems, not just individuals, will build stronger, more cohesive teams. While employees need to take responsibility for their actions, the onus is on management to create a structure that supports their success.

The Employee Perspective: Own What You Control

As an employee, the system you operate in may not always be perfect. But it’s your responsibility to manage what you can. Sell with integrity, communicate clearly, and work with your manager to address any systemic issues.

It’s also important to manage up—paint a clear picture of what’s happening and what needs to change. If your manager isn’t aware of the barriers you’re facing, they can’t help you solve them. Open, honest communication is the key to driving real improvements.

Building a Culture of Accountability Without Blame

The greatest management minds understand that success is a result of systems, not just individuals. If the system is flawed, even the best employees will struggle. As a manager, your role is to improve the system, foster open communication, and avoid blaming individuals for failures.

For employees, the key to success lies in managing what you can control, working with your manager to improve the system, and maintaining integrity in the face of challenges. Together, managers and employees can create a work environment that thrives on accountability, trust, and continuous improvement.