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Are You a Threat to Your Company’s Growth?

From entrepreneur to leader – the power of delegation and development.

Axel Rittershaus

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As an entrepreneur, in order to become truly successful in business, there comes a time when you have to make the switch from a ‘hands on’ entrepreneur to true business leader. One of the steps to making this happen is delegation.

There’s no doubt that as an entrepreneur your business is your ‘baby’. You’ve seen it grow from a spark of an idea into something quite successful. Understandably, this has been down to your hard work and determination.

And this presents a problem… why?

Are you a threat for growth?

Firstly, like many entrepreneurs, you may believe that there’s no one better positioned to carry out key tasks than you. Although understandable, the issue is that as your company grows you have to delegate. If you don’t do this and insist on being ‘hands on’ in every aspect of your business, it will stifle your company and ultimately become a big threat for growth moving forward.

A threat for your employee turnover

Secondly, by not delegating responsibility to key employees, you stand a high chance of losing them. It’s all too easy as an employee to become frustrated when every decision making moment has been taken away from you.

It’s fair to say that not too many people like to be micro-managed and by losing key employees in vital areas of your business, it’s again going to have disastrous consequences.

For these reasons alone, overcoming the delegation barrier is vital if you want to grow your business further.

Let’s assume you run a multi-million dollar motor industry plant producing hundreds of cars every week. Your success has been built on quality and this is something you’re very proud of. However it stands to reason that you wouldn’t personally test the quality of every single car before it left the factory.

Instead you would hire a team of quality controllers to do the job for you. Apart from causing chaos, carrying out the task yourself would slow down a plant’s productivity to the point of melt-down.

In short, delegation and development (or the lack of) can be enough to make or break your business and as such, you have to become a delegation professional. It really is that clear cut!

So what’s the key to delegation?

  • Making clear decisions

As a business owner and employer you need to make a clear decision about what areas of your business would benefit best from delegation, and to whom. Understand that you cannot possibly be involved in everything and more often than not, letting go of a process is often the hardest part.

You may be under the impression that the only person who fully understands the process is you. If you master the art of delegating wisely, this won’t be a problem. With the right employees, they will learn and improve what’s been invented and created by you.

  • Allow them freedom to make mistakes

Delegation also means allowing the employee freedom to explore new ways of carrying out a task. It’s no good giving someone responsibility for a task then adopting a ‘my way or the highway’ approach. Instead employees need to be given the freedom to make mistakes if necessary as this is by far the best way of learning.

If you delegate wisely, this can be done with limited risk. Your employees need to know, that they can make a mistake – but only once! You need to establish a system for the whole company, where mistakes will be shared so others don’t have to repeat them!

  • Giving the right responsibility to the right people

Not everyone is the same and not everyone likes responsibility. For the members of staff that want to take on responsibility, you need to learn to give it to them in a way that they want and are able to cope (and grow) with. Never forget to keep in touch even with the most experienced executives, everyone needs feedback to improve.

  • Delegate in stages

Start by giving out small areas of responsibility and when this has been mastered then give them more. If you become a true delegation professional and you know your staff, then after a period of time you should be able to let go of the reins. Always be sure to monitor and check progress and if necessary, give new instruction or direction.

The task of monitoring and giving feedback never ends for a leader! Because it’s the only way to become better…

  • Your fast-track to become a role-model in delegation

As an executive coach I assist executives and entrepreneurs in improving their skills in delegation. To step back and let others do the work can be a daunting learning process, but with our tailor-made coaching you will enjoy the freedom you gain by delegating wisely and using the time you win to focus on business development and growth.

If you want further information on delegation and development of key staff, then I can recommend ‘The Four Hour Work Week’ by Tim Ferris. In this book he explains how to leverage time in order to really grow your business.

This article is part of the series ‘From entrepreneur to leader’. Here you can find more topics covering other important leadership traits such as staying focused and becoming a top-class sales leader.

Being-Honest-With-Employees-Leading-Business Leadership

Axel Rittershaus is an internationally renowned C-Level / Executive Coach & Author who started as an entrepreneur in the IT industry in 1993. He knows that success is the result of hard work and determination even more than innate talent. A master of maintaining focus and follow-through, Axel supports C-Level leaders globally in achieving goals. Axel is dedicated and passionate to see clients succeed beyond their expectations. Axel is also the president of the International Coach Federation South Africa and a multiple Two Oceans and Comrades finisher. You can follow him on twitter.

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4 Tips To Become A Team Whisperer (And Improve Your Employee Engagement)

Engaged employees are motivated, innovative and willing to take on more responsibility.

Pieter Scholtz

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Your team needs to be nurtured on an ongoing basis if you want to attract and retain the best employees. You can hire people, you can fire people, and you can tell them what to do. But you can’t make them like what they do. Some business leaders are content with having an unhappy team; as long as they do what they are paid to do then the state of their mental health is seen as superfluous.

This line of thinking is not only wrong, but it is entirely counterproductive to the continued survival of a business. Gallup has run some excellent pieces that demonstrate the difference between engaged and disengaged employees. In particular, they list several additional things that engaged employees bring to the table: Motivation, innovation, and a willingness to take on more responsibility within the company. So how can you keep your team engaged?

That level of motivation contrasts greatly with employees who don’t even want to be there. They do their jobs, but they never put in more than the bare minimum of effort. Don’t expect them to ever go beyond what their job description requires, and if there is a chance for them to duck out of work without getting fired, they’ll take it. Obviously, you don’t want to have a team that consists of these people. But without the right knowledge of how to motivate a team, you’ll find yourself unable to inspire your employees to go above and beyond what is required of them.

Related: How You Can Make Leadership Excellence An Effortless Effort

A great company cannot exist without great employees, and there are steps you can take to mould them into the people you want to have working for you. These tips are proven methods of getting your employees to be engaged in what they do, and anybody can learn to apply them.

1. Be a team, not a dictatorship

Every ship needs a strong captain, but that doesn’t mean that you have to spend every second reminding your employees who’s the boss. Your employees look to you for guidance, but they also want to feel as though you are in tune with everything that is going on. Some managers come off as though they are giving mandates from heaven, or worse, they rattle off long lists of orders because they don’t want to do the work themselves.

If you give the directive and then pitch in to reach the goal, you’ll show your employees that they are all part of a team, and they sink or swim together.

2. Give them a chance to shine

It’s true that some people are placidly content with being a cog in the wheel. I’m sure you know of at least one person who is sitting in a job they are relatively indifferent to just so they can collect a pension in twenty years. Those that fit that mould will gravitate towards jobs that give few chances to stand out and plenty of job security. For those who want to achieve more, they will never settle for a job pushing pencils all day.

Related: Effective leadership – Serving Your Team To Serve Your Clients

These restless employees are always looking for a way to prove to you that they are capable of so much more than low-level work. Denying them this opportunity will either push them to greener pastures, or if they can’t/won’t quit, cause them to become disillusioned with what they do.

If you find somebody who wants to prove themselves, let them. An employee who shows the initiative and drive to better themselves is a person who will bring your business an incredible amount of value. Don’t waste this potential.

3. Don’t take them for granted — show your gratitude

This goes beyond a simple “thank you,” although those two words can have quite a bit of power in themselves. If your employees feel like their contributions are not recognised or rewarded, they will feel little incentive to go above and beyond in what they do. How you show this gratitude is as important as the action itself, because a perceived token gesture is even more insulting than a lack of a reward. Put another way, if somebody comes up with a million-dollar idea and you give them a monogrammed lanyard as a gift, don’t expect that person to stick around. Rewarding achievement is the flip side to punishing failure, and a balance between both is necessary to craft the ideal team.

As intuitive as these three traits seem, you probably know from personal experience that a lot of managers don’t quite know how to implement these strategies effectively.

Related: Leadership Hustle: A Modern View On Leadership

4. Share the bigger picture with them

A really important element of keeping your team engaged is to share the bigger picture with them. This involves amongst others:

  • Constantly communicate the Vision and Mission of your business to your team. If your team can buy into why the business was started, where it is headed and why you exist as a business, they will be able to be as passionate as you are.
  • Provide a monthly update on how the business is tracking against its plan and this will empower them to focus on the areas that matter most to the business at that time. This includes sharing financials with the team — here one needs to take into account any legislation that might be applicable — but the more you share, the more you show your team that they are trusted with the information as well as being able to make better decisions that affect the business.
  • Keeping your team engaged, excited and energised is a pre-requisite to developing a high performing team that is able to take the business to the next level. It takes a team of dedicated people to build a successful business. Without this team, your ability to expand at the rate you had planned to will be severely hampered.

IN YOUR TOOLKIT

Become a leader that inspires greatness

multipliers-how-the-best-leaders-make-everyone-smarter-by-liz-wisemanREAD THIS: Multipliers: How the Best Leaders Make Everyone Smarter, By Liz Wiseman.

Multipliers is profound. It’s been lifechanging for me and everyone that works with me. Leadership is not about having the best answers. You need to ask the best questions, and what happens is that you are turning people into productive engines. Micro-managing stops people from thinking for themselves as they wait for answers from you. The principle is that micro-management on that level means you are paying people 100% salary for 50% productivity. The multipliers effect allows you to pay 100% salary for 200% productivity.” — Robin Olivier, co-founder and MD of Digicape, a R240-million business based in Cape Town. Go to multipliersbooks.com for additional tips, tricks and surveys.

 


WATCH THIS

Radical Candor means challenging employees directly and showing you care personally at the same time. It will help you and your team do the best work of your lives.

Developed by Kim Scott — who led AdSense, YouTube, and Doubleclick Online Sales and Operations at Google and then joined Apple to develop and teach a leadership seminar — Radical Candor is all about becoming a leader who is both respected and followed, without being falsely ‘nice’.

There are two great YouTube videos that will give you her tips and lessons in under 20 minutes:

And if you’re interested in really unpacking the lessons behind radical candor, read the book: Radical Candor: Be a Kickass Boss Without Losing Your Humanity.

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5 Signs A Business Is Being Poorly Managed

Are you considering investing in a new company? Evaluate its leadership with these five factors first.

Phil Town

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Ideally, every business’s success would be so simple that anyone could run it – even an untalented person. Unfortunately, though, many businesses cannot withstand the leadership of an unqualified or untalented person, and, if a business is lucky enough to achieve longevity, odds are that someone unqualified or untalented will run it eventually.

But, how can you, as an investor, identify when a business is being run by one of those untalented people? More importantly, how can you spot when a business is being run by an untrustworthy person?

In this video, Entrepreneur Network partner Phil Town breaks down five signs of bad leadership you need to consider before investing in a new company.

Click play to learn more.

Related: How To Help Your Team Shift Their Mindset To Embracing Technology For Business Management

This article was originally posted here on Entrepreneur.com.

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4 Essential Steps To Take To Successfully Sell Your Business

Here are 4 essential steps that will help you avoid potential setbacks and increase the chances of a fair and satisfying transaction while you are selling your business.

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Successfully Sell Your Business

Many startup founders and small businesses dream of receiving an offer to becoming the next billion dollar business. Whether its because they are ready to move onto another project, or they are ready to expand and are looking to leverage the financial power of a bigger partner, selling a business is a big move for any business. For many business owners, getting an offer from a buyer is certainly exciting, but before you jump into anything, remember that are important steps to take before you sign the paperwork that will move a successful transaction forward.

From making sure you have a functioning and potentially lucrative business model, to working with an expert to establish goals and expectations on both ends to ensure everything goes smoothly.

Here are 4 essential steps that will help you avoid potential setbacks and increase the chances of a fair and satisfying transaction while you are selling your business.

1. Preparation is everything

Since you’re already a business owner, you most likely already know the importance of preparation. When it comes to selling your business it’s always wise to conjure up all that you have learned along the way and apply that to the process of making a sale.

Related: The 6 Most Common Questions Business Owners Ask Before Selling Their Business

Some of the key documents that buyers expect to see are:

  • Corporate records
  • Records of any important contracts
  • Information concerning stocks and investments that would affect the relationship with the buyer.

Preparation also entails that you are forward about any setbacks or issues you had in the past that currently affect company operations. Being open about what failed in your business model will help buyers feel confident in their decision working with you, in addition to understanding what to potentially avoid in the future.

2. Setting up the right environment for buyers

Your business may have received endless praise from the press and has made the “most up and coming list” time and time again that doesn’t mean you are ready to sell. Good press will very likely attract buyers, but if you haven’t created the right environment to continue along with a merger and acquisition, those investors and businesses that were one so eager to scoop you up may not stick around that long. To ensure a productive environment for selling your business  it pays to be open to new ideas, while also maintaining a professional setting from which trust can build.

3. Make sure your finances are in order

Financial records are vital when making a sale. Not only to they provide a clear outline of your businesses progress in numbers, they are also key to making sure you get what you want out of the final sale in the end; investments and any and all financial commitments. Ensuring that both parties are satisfied.

4. Hire a merger and acquisitions advisor

Even the most experienced business owners can benefit from the expertise of a mergers and acquisitions advisor. Trained specifically to help owners assess their the value of the business by reviewing it’s strengths and weaknesses on both a macro and micro economic level.

Some of the key ways that an M&A consultant can help you streamline the selling process are as follows:

  • Professional who specialise in mergers and acquisitions are highly skilled at preparing for due diligence, helping you to navigate and organise the necessary documents and information that is needed by all prospective buyers
  • If you are in the unique situation that you have more than one buyer interested in acquiring your business, an M&A consultant can help you assess which one will be the right relationship for you, especially if you will still be activity participating in daily business operations.

Related: How to Position your Business Now So You Can Sell It Later

Again, experienced business owners may know everything there is to know about running a company, but that doesn’t mean they know how to appeal to buyers. Not only do you have to be in tune with your own company’s needs, but it’s essential that you understand what buyers and investors expect from a sale.

At the end of the day, even if you think you’ve found the perfect buyer, taking a few extra steps to ensure that a potential buyout will meet both parties needs and is overall good for the business can be done by being fully prepared and and working alongside an expert that will help to point you in the right direction. Successfully taking your business won’t happen overnight, in fact most transactions take about six to twelve months to complete, so it pays to be prepared every step of the way.

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