Strategic management Archives - TAB Corporate

4 Ways to Overcome Your Fear of Delegating

Job Allocation Concept

One of the biggest obstacles to growth in a small business arises when the owner is unwilling to delegate.  At a certain point, a successful business becomes too large and too complex for one person to manage, regardless of how smart, industrious and passionate that individual is. And while on an intellectual level business owners know when the time has come to loosen their grip, they still have a hard time putting that idea into action. Here are four things to consider that will make delegating an easier pill to swallow:

1. Mistakes Won’t Kill You

Attention to detail is a good quality in any business, but when it turns into perfectionism, an intolerance or fear of any error whatsoever, this good quality becomes an enormous handicap.

Owners are sometimes reluctant to delegate because they fear others are more likely to make mistakes. They don’t know the business as well. They don’t care as much. They aren’t as smart. But even if this is true, the only way to gain experience and smarts and passion is to have responsibility.

Very few mistakes are fatal to a business. Very few are irreversible. In fact, many mistakes can be turned into opportunities and every one of them can be a teaching moment. This is the mindset an owner must have in order to delegate comfortably – along with doing a few other things that we will touch on now.

2. Put a System of Checks in Place 

Delegation is not an all-or-nothing proposition. For instance, an owner should not completely disengage from the purchasing function simply because he or she has appointed a purchasing manager. This approach has gotten a lot of potentially successful businesses in a great deal of trouble. Instead, the owner should put in place an organized system of regular reviews and spot checks to ensure that work is being executed properly and diligently.

For a manager to get into perfect alignment with an owner—to understand how he or she thinks and what is expected in terms of creativity, initiative and results—can take months or even years. Without regular interactions with the owner over time, any manager is being set up for failure, and by the time the failure is recognized, it may be too late for the manager and the business.

The art of being the owner of a midsized business involves transitioning from managing all of the details to directing all of the details by managing only a few of them. When an owner has this skill there are no limits to how large the business can grow or how successful it becomes.

4 Ways to Overcome Your Fear of Delegating

3. Invest in Training

The smartest of the smart owners surround themselves with people who are even smarter. Moreover, such owners are continuously seeking ways to make their management teams even smarter, with outside training programs, internal mentoring programs, cross-training and scores of other approaches.

If a newly appointed manager is working at “C” efficiency on day one, this is a minor concern. However, if the manager is working at “C” efficiency six months into the job, then this is a serious problem and one that may have been solved—and may still be solved—through training.

4. Delegate to the Right People

Training is not always the answer, because lack of training is not always the problem. Many owners are comfortable delegating only to people they trust which, in and of itself, is not a bad thing. Many times, though, the person to whom they entrust an important part of the business lacks the background, skills and raw talent to fill the role adequately.

Trust is certainly a big part of the delegation equation, but business qualifications must also be given a great deal of weight. To prevent putting square pegs into round holes, establish a clear set of qualifications for the position before considering any candidate, no matter how loyal.

The Real Fear

Reflecting on these ideas, it may be apparent that what is to be feared is not delegation but, rather, delegation without tolerance for error, without review, without training and without a sensible hiring/internal promotion strategy. This latter situation is indeed something to be feared — but is entirely avoidable for owners who recognize the pitfalls of a poorly organized approach to building a management team.

Rather than dwell on the (avoidable) downsides of delegation, owners can happily consider its many upsides. When a strong management team is in place, owners gain more time to interact with customers and suppliers, think about the big picture, develop new ideas to make the business thrive, and even take some well-deserved vacation time. All of these activities—even the vacation— serve to make a business prosper year in and year out.


Brad Shorr is the B2B Marketing Director of straightnorth.com, a digital marketing agency near Chicago. With agency and freelance experience, he writes frequently about business and marketing strategy.

 

91% of Business Owners Could See Higher Revenue Using a Strategic Plan

bigstock--122498030

The Alternative Board (TAB), the world’s largest franchise provider of peer advisory boards and business coaching services, released the results of its quarterly, third-party Small Business Pulse Survey today – and the results are surprising. Although 76% of respondents say they believe having a written strategic plan increases overall business performance, 91% don’t have what they consider to be an “excellent” plan. In fact, 22% have no written strategic plan at all. While the majority of business owners are expecting the economy to improve, they admit they’re not in the best position to capitalize on it.

“There are many business owners who do not have a good strategic plan. They’re missing opportunities – and they know it.” says David Scarola, Vice President of The Alternative Board. “The time investment required to write and regularly review strategic plans pays off big in the form of increased sales revenues, higher profits and more opportunities.”

When asked what they feel the most significant benefit of strategic planning is, 66% of business owners say it helps them identify and seize new opportunities (as illustrated by this infographic). Moreover, respondents agree that continually reevaluated business plans are most likely to improve revenue growth, profit and marketing effectiveness. Despite the fact that business owners know the benefits of having written strategic plans, only 40% rate their own plans as “good” or better. The primary reason CEOs aren’t writing or reviewing their business plans? Lack of time.

“The complaint that your company ‘does not have time’ is proof that you need to invest time for this,” says Allen E. Fishman, TAB’s founder and best-selling author of The Alignment Factor. “The reality is that strategic business plans have been proven to save an enormous amount of time in every industry. And time, as we all know, is money.”

To get a clearer picture of who was surveyed: 65% are family-owned business owners. About half of those surveyed are members of TAB – this segment of the study group overwhelmingly review and adjust their strategic plan quarterly. By comparison, the non-TAB members felt an annual adjustment was sufficient. Those looking for a measurable result of the benefits provided by TAB’s strategic planning template might point to the fact that 56% of the entrepreneurs who belong to TAB plan to add to their full-time sales staff this year, compared to just 34% of non-TAB members.

“The most recent survey results validate our long-held belief, based on over two decades of working with thousands of small- and medium-sized business owners, that having a strategic plan to guide their business is critical to achieving success,” says Scarola. “It’s in the business owners’ best interest to have a good plan that is reviewed regularly.” However, only 16% of business owners currently review and update their plan on a monthly basis.

The TAB survey also asked questions regarding how small business owners feel about the economy, which led to some interesting answers. While the economy may be stronger overall than it was a year ago, this sentiment varies widely by country. An impressive 73% of U.S. small business owners indicate that the economy is better than it was last year, while only 48% of British and 45% of Canadian CEOs feel the same way. Optimism is high among all survey respondents, though, with 66% anticipating an improvement in their local economy over the coming year. Even more telling, 77% polled expect higher sales revenue and 75% predict an increase in profits.