Can you leave your business for a month, sit on the beach and leave your phone in the beach bag? If so, you have attained what few business owners do – a business that can run without you! Aside from sound cash flow, the creation of a management team is the most significant driver of business value. When the time comes for you to leave for good, a buyer wants your team, not you! If you can’t yet take that month, here are a few simple thoughts:
What is a management team? This will vary dependent on business size – but it is simply a key group of leaders who can run the day-to-day operations without your oversight. While they may seek your INPUT, they can sell, and deliver service on their own. They hold your values, pursue excellence and treat the company as if they owned it!
The need to delegate. This is the tough part – you must give responsibility to others. Every business has four basic functional roles – Executive, Sales, Finance/Admin, and Operations. Often owners fill each of these roles and thus are critical to everything. If you can successfully delegate these roles (except perhaps the executive function) to others, you will create a team.
Who do you add to the team? Chik-Fil-A has succeeded by carefully choosing leaders who possess three “C’s” - character, competency, and chemistry.
Character – this is the most crucial. The manager must hold their values and live them out in their daily work.
Competency - this is less about specific skills and more about the ability and desire to learn. Environments change and learners adapt. This trait should also have a dash of “fire in the belly” – the drive to build something.
Chemistry – do they play well with others? Team members must be team players – readily partnering with others to build a company, and able to lead.
Look for employees who possess these traits, empower them, and test them. Slowly give them responsibility and look for the ones that you can’t hold back. Help them succeed, give routine feedback and get out of their way.
How do I build a team? The first ingredient is time – don’t rush – build slowly and intentionally. It is an ongoing, iterative process. Here’s where to start:
Step 1 – make a list of roles you fill / what you do.
Step 2 – identify what ONLY YOU can do and what you are best at – these may be different. Identify what you can most easily delegate or are not good at; transfer these responsibilities first.
Step 3 – find the right people/teammates – this can include current employees, new hires or reliable vendors.
Step 4 – prioritize and make a plan to transfer the responsibilities over time. Seek to remove yourself from all but the Executive function.
Step 5 –develop a potential successor – this final step is not for everyone – however it can enable you to sell the business to an insider, or remain as a passive owner.
Step 6 – invest in the team, measure progress and adjust course as needed.
Giving up control is difficult but a necessary part of business maturity. Even if you never get to the “month on the beach”, taking these steps over time will increase value of the company, provide motivation for your staff and give you more options in the future. It’ll enable you to work ON your business and not just IN your business.
So, make a plan, start the transition and contact your travel agent!
