Question: We”™re not going to drive this company forward if we don”™t have a management team that understands and can drive performance. My employees look to me for direction and wait for me to make decisions. It can”™t all sit on my shoulders anymore. What do I do to turn this around?
Thoughts of the day: A self-reliant management team is essential for a thriving, growing company. Think about each area of the business and who can step forward. Define skills needed to get to the next level. Make contracts with employees about what they are willing to do to become leaders. Set team goals and meet regularly to practice working as a group to accomplish the company”™s mission.
The company can”™t rest on one or two peoples”™ shoulders and be successful long term. Responsibilities need to be divided up. People need to train their backups who can be ready to step in, in case something happens to the primary person in charge. Imagine the company in units of no more than 6 to 8 people, each unit reporting to a manager, supervisor or team leader.
Go through a checklist of each area of the business: finance, sales, marketing, operations, information technology, human resources. Who is in charge? For areas that are handled by outside firms, who do those firms report to? Who makes plans for each area of the business and considers themselves accountable for the outcomes?
Building teams to share the management load takes a lot of weight off of the owners”™ shoulders. It also tends to result in happier employees who feel more engaged in taking the company forward. It also makes it easier to identify people who may no longer be a fit or who may not be able to keep up.
Don”™t feel that you have to offer more money right off the bat to get people to step up. If funds are tight, offer people a chance to learn more, to grow their influence in the firm, and make an agreement that they”™ll share in the profits when plans come to fruition.
Review each manager candidate”™s strengths and weaknesses. Go through a review discussion, asking each manager to honestly assess his or her ability to play a leadership role, and his or her skill at taking the company forward in his or her area of responsibility.
Ask each manager candidate to step up to the challenge and respect people”™s right to decline. But don”™t stop there. If the person you selected doesn”™t want to step up, find someone else. Look inside the company first, and build a training program to get your candidate up to speed. If necessary, search outside the company. Make a decision as to how you will realign jobs and reduce existing staff to stay within budget as you move people around.
For each person you”™ve selected to join the management team, make a contract. Spell out expectations for increasing job skill and leadership ability. Agree on each person”™s responsibility for attending classes. Monitor individual progress monthly, with specific results that each person agrees to work toward producing. Make sure each person has signed a growth plan that has specific dates of when they will accomplish each part of the plan. Review each person”™s plan at least quarterly.
Work with your management team to brainstorm companywide goals. Lay out non-negotiable parameters, such as 10 to 15 percent growth in revenue, increase in both gross and net profit, or increased reserve funds to match the company”™s increased spending obligations. Ask the group to turn these parameters into goals for the company overall as well as for their specific departments. Meet weekly to give each department an opportunity to talk about what they”™ve accomplished, what”™s next, and to get feedback and help from the group.
It will take practice for you, as owner, to step back and give your people room to lead. Take time off regularly to get out of the way and see how the group does without you. Resist the temptation to mandate. Work on building your listening and coaching skills.
Andi Gray is president of Strategy Leaders Inc., strategyleaders.com, a business-consulting firm that specializes in helping entrepreneurial firms grow. She can be reached by phone at 877-238-3535. Do you have a question for Andi? Send it via email to AskAndi@strategyleaders. Visit AskAndi.com for an entire library of Ask Andi articles.
