Delegate or Stagnate

By John A. Haas
Management Strategies Group

Over the years a number of client business owner-managers have said or strongly inferred “I hate my job!” What’s going on?

Clearly, all have led their organizations to a certain size and financial success. They lead by example—personifying high standards of customer service, quality, a work ethic, absolute integrity, etc. They serve as chief cheerleader, business developer, marketer, planner, fund-raiser and decision maker.

They feel forced into playing all these roles, even recognizing their shortcomings and/or lack of interest. Why haven’t they delegated?

You Set the Tone

Some clients tell me their managers don’t seem to care enough about the company or achieving results. Others note that, without close monitoring, key managers will go off to pursue what they see as promising and interesting directions.

The entrepreneur should reflect on how his/her behavior and management style encourage these dysfunctional management efforts. In the former scenario, the CEO’s style may suggest that he/she will make virtually all decisions, thereby encouraging managers to “delegate” decisions upward rather than risk being reprimanded or undermined. In the case of the far-flung efforts, I wonder whether the CEO has articulated the vision and goals, and gotten management buy-in.

Aligning Interests and Effort

Some ideas to help owner-managers delegate with confidence:

  • Involve key staff in identifying compelling long- and short-term goals, including financial ones.
  • Ask each manager to propose specific performance targets in his/her responsibility area for the coming time period.
  • Discuss and finalize individual and team goals.
  • Ask each manager to develop and present a detailed project plan for achieving each performance goal, including steps, timetable, resource requirements and milestone events.
  • Tie specific monetary rewards to goal achievement.

The discipline required to develop performance-based incentives leads to clearly defined goals and integrated individual and team efforts, and make it “matter” whether goals are accomplished. Having incentives in place allow the owner-manager to step back and focus on what they’re best at, most interested in and where they’re most needed, with confidence that key staff are pursuing the right goals.

Spring 2006 -Volume 16, Number 2

 

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