Joe Carter Real Estate Quotes: Why Delegation is Necessary for Effective Growth of Your Business

sábado, 13 de octubre de 2012

Why Delegation is Necessary for Effective Growth of Your Business

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What is the difference between working IN your business and working ON your business? The answer is “more growth”. Let’s say you want to open a restaurant because you are a great cook and really love to cook. If that is your primary reason I would suggest that you get a job as a chef at a restaurant. If you want to open a restaurant you need to manage and understand all elements of that business, but primarily, be able to manage and hold you employees accountable. Delegation is Necessary for Effective Growth

I have a client who had built a very successful home services business. He did the sales and his wife did the bookkeeping. He hired service staff to work with him. He has a successful business but has hit a growth roadblock. How many proposals can he do in one day? How many follow-up calls can he take from his telephone staff?

One day he decided that he needed to grow his sales so he hired more service and office people. Nothing spectacular happened. He did receive more business but he started losing some business.

What was wrong? He had employees but he was still controlling and reviewing everything. He was out on the truck working on problems and following up on proposals. He did not let go. He and his business partner tried to control everything.

When a business owner fails to let go and delegate he or she fails to harness the power of their organization. Let’s consider how this affects not only the owner but the customer.

As an example, a customer calls the company with problem with their product. The person answering the phone has no authority so the representative can only forward the message. The person taking the call dispatches a service person. Now, when the service person arrives he finds that the customer merely had to reset a switch. The customer is extremely upset with this waste of time. So who is to blame, the person taking the call or the service person? Neither is to blame. They were following instructions of the owner.

Business owners resist delegating decision-making authority is because that they think, “No one can make these decisions as well as I can.” To be sure delegating properly does take time. You will have to train and monitor the person to whom you assign the task. When you first delegate, it’s often faster to do it yourself. And before you delegate you need to construct the proper infrastructure. That would include setting up the proper metrics for measuring the operations of the business.

Delegation is Necessary for Effective Growth Now my client has set up his strategic business plan. He has made sure that his team understood the plan and their role. He asks for input and holds them accountable for results. The good news is that he is having his best year ever. But more importantly he feels less stress and enjoying managing his business.