Management

Many businesses lose their personal touch as they grow. This is the classic struggle between “corporate bean counters”—profitable and impersonal, and “mom and pop”–small and happy but poor and hard working.

We know that growth and profitability spring from good systems and procedures. The things you used to make up as you go along, you must now do by the book. Everything you do must make the numbers. Alas, the personal touch that customers love seems threatened.

So how can you retain your personal touch while improving efficiency, productivity—and profitability?

It requires a shift in attitude.

The owner of a retail store said to me, “My employees—and me also—used to resist all these systems and procedures. We wanted to serve each customer in our individual way. But we found that systematizing the routine things allowed us to be more creative and personal with customers. And customers loved the consistency and predictability in our operations.”

Another owner said, “My business is an expression of my soul. So if I wasn’t there all the time, the business suffered. So I was chained to the business. To launch a second location, I had to find a way to ‘bottle my soul’ and train others to run things by my values and standards. And they still have to make their numbers!”

You must turn your viewpoint around, and view systems and procedures as a way to maintain your personal touch rather than overwhelming it.

This is a major theme in my “Top 3 Barriers to Small Business Growth—and how to overcome them” program.

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Everybody comes to you, so you can’t get other things done. This is another management habit that can keep you from focusing on the things necessary for growth.

I often hear two related complaints that pull in opposite directions. Here are two examples:

1. “My customers—and my employees—always ask to talk to me, because I have the answers.”
But you also complain, “My managers do not handle as much responsibility as they should.”

2. “I need to watch the numbers. I just have to shut myself away in my office more.”
But you also say, “I need to keep in touch on the floor, both to know what is happening and to motivate my people.”

What I see about this. You are operating at two levels—manager and floor supervisor. While it is important for you to keep in touch with what is happening, the question is, how much? You are clearly invading the turf of your floor managers who should have the primary responsibility for keeping in touch and motivating the troops. Since you are doing part of their job, your managers feel frustrated and take less initiative.

My recommendation. Examine your own motivation. Is it possible you are holding on to the floor work—at which you feel more comfortable—to avoid facing bigger challenges, such as tracking the profitability of each thing you sell? Or developing new strategic alliances?

As your business grows, you must promote yourself from worker to supervisor to manager to CEO. Many owners get stuck at supervisor or manager, so their company in effect has no top executive. This is guaranteed to keep you small.

Do the work you enjoy, but find a way to do it that doesn’t conflict with the responsibilities you have given your managers. Maybe you should take one shift on the floor a week, just to keep in touch.

This is a major theme in my “Top 3 Barriers to Small Business Growth—and how to overcome them” program.

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