If you want something done correctly, you’ve got to do it yourself, right?
That’s a wonderful philosophy if you want to create a lot of work for yourself. But if you want to create a business that works for you, you can’t do it alone.
You’ve got to enable other people to do at least some of that work. And you’ve got to teach them how to do their work the way it needs to be done – just as if you’d done it yourself.
Many business owners feel that they can delegate the more basic technical work while they try to manage everything. Here too, they set themselves up for serious trouble.
Such was the case for a client of mine who had just finished his first nine months in the E-Myth Mastery Program. Sam runs a small construction and remodeling company on the East Coast. When he came to E-Myth, he was nearly at the end of his rope.
He thought he had a good strategy for running his business; he had hired three employees to help him with labor at the job sites, while he acted as their manager and took care of everything else.
Simple enough, right?
Well, actually, no.
His strategy was so simple it turned out to not be strategic at all.
It turned out that managing his employees and the rest of his business was a lot harder than he imagined it would be. One of the first things we worked on together in our coaching sessions was a clear picture of all the work of his business, and how it could be performed and managed more effectively.
An effective management strategy begins by knowing where to start. I explained to Sam that there are three basic elements that need to be considered:
Sam needs to be absolutely clear about his business vision, and stay connected to that all the time. He needs to make sure that every decision he makes on a day-to-day basis is in alignment with that vision, and he needs to make sure that everyone else understands and is inspired by that vision. He needs to make his vision theirs.
Sam has to have a clear picture of how all the work of the business should be performed and managed effectively. He needs to understand what positions need to exist and where accountabilities are held in order to make the business work seamlessly without anything slipping through the cracks.
His people should not just be told what do to, they also need to understand why it is to be done, shown how to do it, and be supported in achieving the desired results.
It became clear to Sam that none of these three elements were firmly established in his business. But, for Sam, the most important element was his Business Structure. He didn’t really have any structure at all!
His three employees reported to him, he was in charge of everything, and he was going crazy trying to direct and control their activities effectively.
The lack of structure in his business was making it hard for him to refine and communicate his vision to his employees, and they didn’t really ‘get it.’
The lack of structure was also making it impossible for him to train and support his employees enough so that they could achieve the results that were needed.
Originally, he thought his business was so small that he did not need to create a formal structure or management system for it to work, but every business – even the small ones with few or no employees – needs a formal structure under which to operate.
One of the first things he did was to create an Organizational Chart. This allowed him to identify the need for several management roles within his business. For example, he needed a Field Operations Manager to oversee all of the field work, an Internal Operations Manager to oversee all of the administrative and central office work, a Sales Manager to bring in new business, and a Finance Manager to oversee the financial management aspects of the business.
Seeing these positions on paper actually made it easier for him to realize that he had been trying to fill these roles all by himself by default, which was too much for him.
Armed with this new “schematic” of his business organization, Sam proceeded to:
Sam had visualized how the work of the business could be managed and performed more effectively, and delegated some of the tactical and managerial work that was needed. He had created a management team with which he could work closely to help pull everything together.
It didn’t happen overnight, and there were a lot of challenges that came up along the way, but eventually he created the structure that was needed in his business. It required that he let go of his belief that he had to do it all and, in the process, was invigorated with a new level of belief in himself and his people.
Thanks Jamison - this post was a great reminder to revisit the 3 most important things even in a small business. Vision - Structure - Tools and Training. We have gone through the 12 months E-myth coaching and it was amazing how many holes we still had in our systems after already working for years on the business. I also feel as we get new employees, new assignments and grow bigger many of our systems and tools need to be revisited as they keep either falling through the cracks or need to be changed to accomodate new positions.
We also write about systems creation as this is what we help our clients with - if anyone is interested in more info - here is a link.
Franka W.
Submitted Jun 20, 2012 10:18 AM
Most business consultants, including Franka W., approach a client problem-solving engagement by citing the need to address "syste, solutions"
This is the second, not the first step in our view.
First, the consultant has to get to deeply know and understand the CEO and his/her mission, interests, talents and other key factors before any business solutions can be developed. What parts of the business should they be involved in and which should they not be involved in.
This brings us to the management team. Does the CEO have the right team? does everyone thoroughly know and respect one another and are they committed to a common business mission.
Only once this "people assessment phase" has been accomplished can truly productive and thoughtful solutions be created and executed.
Submitted Jun 20, 2012 3:30 PM
This is great information and I encourage E-myth to continue giving us this nuggets from time to time because the really are eye openers. I have learned so much and as an upcoming business woman and manager....I see thing much clearly now.
I have one question, at what point do I start to make this structures? Sometimes the business may not be big and busy in the beginning....at what time should I stop being all hands on??
Submitted Jun 21, 2012 4:46 AM
Quality information presented in this article. Delagating responsibility and defining the business structure are hard areas to see, define, and implement. My business is a one-man operation and a part-time business while I search for a (what I call) "bill-paying job" (which means that any employment I am pursuing is to keep my bills paid). I am STILL working on my business plan for my entertainment publishing company, and I am currently working on the section of Demographics (which the research consumes so much time to find).
I know that I am going to need a business mentor eventually, but right now I need to establish a concrete vision and structure. The journey continues!
Submitted Jun 23, 2012 11:17 AM
leadership
management
system
people
business
this are the Ingredient of the business , Few know how these work together
Submitted Jul 11, 2012 5:52 PM