Wednesday, June 9, 2010

What Next in Oriental?

I just learned from Town Dock that an investigation is finally underway into the possible criminal acts alleged in a letter from Oriental's town attorney to the District Attorney earlier this year.

I just hope it isn't too late. Computers should have been impounded long ago for evidence.

One of my main concerns has been possible violation of the integrity of the town's books. I warned of that last January here and here and here and here. It was only later that I learned of allegations about clandestine audio recordings. I also spoke to at least three commissioners last January suggesting the Town should cause a forensic accountant to look at the Town's accounting system files.

My main interest isn't sending people to jail, but finding out for sure what happened. The public has a right to know the truth. The trail is growing cold. More like "Cold Case" than "CSI."

Whatever investigators find, the important question is: "Where does the Town go from here?"

The best approach to a bad experience is to learn from it. Here are candidate "lessons learned:"

1. Audits. If one or more audits list no control deficiencies, be suspicious. The point of an audit is to uncover problems. If none are uncovered and brought to the Board's attention, better check to see if something is being swept under the rug;

2. Hiring. It may be a bad idea for the town to hire a former commissioner for clerical tasks. Sorting out the proper relationships may be confusing to all parties;

3. Hiring and Management. If the Town hires someone for a management position, be sure that person is given the responsibility and also the authority to do the job. Lines of responsibility must be clear. No micro managing or interference in daily operations by elected officials. There is a difference between oversight and interference. The former holds the manager accountable. The latter destroys accountability. To the manager: "manage!" Sink or swim;

4. Avoid a protracted turnover period with the previous manager. Stretching this process out just confuses everyone about who is really in charge;

5. Commissioners must protect the integrity of sensitive personal and financial information of which the town manager is the custodian.

I have some thoughts about management style.

Every leader or manager has his or her own style of leadership. In more than fifty years managing various size organization, both military and civilian, I have come to some conclusions as to what works best:

1. Positive reinforcement works better than negative reinforcement;
2. Leaders get better results when they seek cooperation and ideas rather than demanding compliance by ordering it, except in extreme cases;
3. Leaders can delegate authority but never responsibility - when a ship runs aground, the Captain is responsible even if he is asleep in his cabin;
4. Effective leaders delegate as many tasks as possible, exercising oversight by intervening only to keep things from going wrong - that's known as "control by negation";
5. Subordinates also need to understand that they are not and cannot be responsible to the degree that the "boss" is.

No comments: