Leadership and Management: Are You Doing Your Part as a Owner?
I have been noticing a common theme in my work with small business owners over the past couple of years that I think is important to discuss: They all want it ALL, everything, right NOW. For example, they’ll hire a new salesperson or operations manager and they expect to see dramatic growth in the business in a month. All too often, they address all problems by adding bodies rather than looking at systems, processes and other areas that drive efficiency gains in the business. Unfortunately, this is where that approach fails and, all too often, business owners will find themselves frustrated and disappointed. They make the decision that they want to grow and then bring in several key people, with a lot of talent, at great cost to achieve that. They honestly believe that is all it takes and that just by hiring new blood they will get the return they expect. However, new talent is just one piece of the puzzle and it’s rarely the total solution. IF an owner makes strong hiring decisions, new hires should help bring to light many of the problems that couldn’t be seen before, which is really why new talent was brought on board in the first place.It is vital that you understand clearly not only what your goal is relative to growth but also what the investment looks like to get you there. It isn’t as simple as just plugging in a new a body into the system. Most of the time growing your business will also require investing in better systems and processes, and that takes TIME. Time and money have to be factored into the total cost equation. Now, this may come as a shock to you some of you who know how passionate and optimistic I am in general but I cannot advise say this strongly enough: when it comes to estimating how much time you should invest in reviewing and revamping systems and processes, be pessimistic. If you think it will take three months and/or an investment of $30k, double those numbers. If you can’t stomach that, then go back and mercilessly question your true growth goals. Hiring the best people is only part of the solution here. Furthermore, if you do not give your new talent enough time along with the right tools and systems to do their job, you are setting them up to fail and you’re ultimately wasting a lot of time and money. Setting clear expectations (for both yourself and your new hires) and providing everybody what they need to do their job is key to any leadership and or management position. Next Steps:
- Re-examine your growth goals.
- Consider what key hire will help you get there.
- Calculate the expense of implementing new systems or process changes (I have never seen anyone that didn’t have to make additional investments at this point.)
- Decide how much time you can cope with zero return as you take on the growth phase.
Growing requires investing and investing requires deep understanding. These are key areas that GCE Strategic Consulting can help you with. Reach out to us today and let’s talk about how you get to the next level.