I met a business leader recently who was telling me about the challenges he was having with getting people in his organization to step up and take responsibility. He felt like he was ready to turn more of his operation over to others in the company so he could stop working 70 or 80 hours a week. He went on to say that the problem was, no one in his company shared his passion and commitment to the success of the business and he didn’t yet trust them to run it the way he would.
One of the most difficult transitions I’ve watched leaders make is the transition from operation to oversight. In many cases the leader has not built the foundation necessary to make the transition even though they believe they are ready. In other cases they have created such a narrow view of what success looks like that no one other than them can accomplish it. In essence, they have come to define success as “doing it my way”.
The Foundation
Let’s take a look at the foundation needed to make this kind of transition. This particular business owner felt like no one would care as much about his business as he did. He’s absolutely correct. They have to feel, at least to some degree, that it’s their business before they will have the same level of commitment to it. That doesn’t mean they need to own part of the business, although that goes a long way. But it does mean that they have to feel empowered to make decisions, make changes, take risks and try new things without the owner swooping in and changing everything back to the way he or she wants it.
Ownership is about much more than a financial stake; it’s also about an emotional stake. In many cases leaders tell others that they are responsible for the business, or a business function, only to have the leader’s actions tell a completely different story as they continue to ultimately make every decision.
The other key to a strong foundation for this kind of transition is that there is a progression toward it, not an abrupt shift. Leaders can’t treat someone as worker, with their only responsibility being execution of the leader’s decisions, for years and then one day tell them that they need to step up and be a leader. Everyone in the organization has to be consistently developed to accomplish more and to become capable of more.
When people in your business have been identified as having the potential to lead it, they need to be given more responsibility over time, not have it heaped on them all at once because the owner is tired of doing it. It takes time to build that emotional stake in the business and it only happens when a person feels that they have had a hand in creating what exists.
That means that no matter the size of the business you have to have a talent game plan. I’m consistently surprised at the notion that talent management is only for really big companies. It’s actually even more important for smaller businesses because they have a smaller talent pool to work with and less margin for error as they choose future leaders.
The View of Success
When it comes to making the transition, the second component that is essential for success is for the owner or current leader to expand their view of success. There are many paths to the same destination. As long as everyone agrees on the destination, the owner has to allow others to choose their own path without taking up the role of back seat driver.
That doesn’t mean that the new leader wont make some mistakes and wrong turns, they will. But the owner has to allow that to happen. The owner has to help the new leader learn from the poor decisions and only step in when help is requested or they see the new leader headed for a cliff rather than a ditch. In some ways it’s like having a teenager who’s learning to drive, at some point, you have to get out of the car. I’ve seen leaders who were able to let go be amazed by the abilities, the creativity, and the success of a new leader who they have truly empowered.
If you want to help others step up and run your business get them ready, and then get out of the way. When they feel like it’s their business too, and they have the power to change it, then, and only then, will they find their path to success.
Comments:
Comments (7)
John Page:
Apr 28, 2010 at 10:16 PM
Great thoughts. . . . in learning to be a CEO one must learn to become (and be comfortable with becoming) "operationally irrelevant". I know a number of Vistage members who have that as a growth goal. Its tougher than one might imagine, but as you point out, critical to success!!
Gini Dietrich:
Apr 29, 2010 at 10:06 PM
Okay. Fair. But what happens when you DO empower people and you DO let them take risks and you DO let them make mistakes, but they still don't act as though the business is their own? For instance, it's become a running joke in my office that no one should bring an idea to me because I'll listen, I'll ask a few questions, and then I'll say, "Do it!" So now no one comes up with great ideas. Or, if they do, they pull straws to see who brings it to me. What say you, oh wise one?
Randy Hall:
Apr 30, 2010 at 07:39 AM
Gini, I love that you asked that here! By now, you know that the first thing I'm gonna do after you ask me a question is.. respond with one. The reason is, and you already know this too, that it doesn't matter what I think the answer is. It's your business, your people and your future. and my job is to help you make it look exactly like you want it to. So my question is.. Why do you think they draw straws to see who will bring you the idea? Think about it in this context too..What are the first three things you do when you have a great idea that you want to implement? How does that differ from the first three things they do when they have a great idea they want to implement? Why do you think there's a difference? Lets start there, oh energizer bunny-like one
Gini Dietrich:
May 03, 2010 at 06:44 AM
This caused some conversation on Friday afternoon, yet I still don't have an answer. You asked, "why do I think they draw straws to see who bring me the idea?" My answer is because they want to see something implemented but may feel they have too much on their plate already or don't want to take on the extra work. There are one or two people who always take on extra work, and come up with new ideas. I see those two people occasionally spreading the wealth...if only to be good team players. As for what I do vs. what they do when a great idea happens...I think the major difference is I just do it. My sense is there is a lot of conversation behind the scenes about their ideas before they ever get to me. Don't get me wrong. There are a lot of ideas that come out of teamwork and their willingness to try new things. I just don't understand why the running joke is that they don't want to come up with new ideas because I WILL let them implement them. Rock, meet hard place.
Randy Hall:
May 03, 2010 at 08:20 AM
Gini, I'm always impressed with how you think through things and the genuine passion you bring to making things better for everyone in your business. it's a huge part of your success in my opinion. The place I would look if you are trying to address this issue - and granted it's a tough one - is at the whole "what's on their plate" concept. They may feel that by bringing ideas to you, they have the ability to add things to their plate, but no ability to take anything off of their plate because it may have been put there by you or someone other than them. If I only have the ability to change one side of the work equation, I still really don't feel like I have control, just the ability to add more work to myself. Ultimately the question they are wrestling with is one of value. What's the value to me that this new idea will bring, and what's the impact on me if I have to implement it. In many cases they won't feel like a particular idea results in a positive, and so they won't bring it. In some ways this is good because they are doing the math ahead of time and ensuring that the ideas that make it to you are only the ones that will bring significant value to the business, and therefore worth the extra work. The downside, and the one you have to be careful of, is the reduction in engagement if the perception becomes "new ideas just mean more work for me and it's not worth it" To address that they have to feel that they have the power to trade some of their current responsibilities in for ones that offer more or higher value to the business. It might be worth asking a new question when a new idea comes to you - "What do you plan to stop doing so that you have time to fully and effectively implement this new idea." It's something a lot of people miss when they are excited about something new, until the novelty wears off and they are stuck doing more work than before and maybe even doing it less effectively with the increased workload. Just some thoughts based on our very brief conversation here. I hope they are helpful. Had this not been on the blog you know I would have asked you like 10 more questions to cause you to think around all different sides of the problem. Thanks for being here, Randy
Randy Hall:
May 03, 2010 at 08:26 AM
John, Thanks for stopping by! You are so right about the level of difficulty here. I work with many leaders who struggle with this transition because of that very discomfort. In some ways they feel less valuable to the business until they shift their perspective about the value they bring by focusing on other things. When you've been adding value a certain way for a while it becomes your primary measurement for your own value and its a tough shift to make. Randy
Gini Dietrich:
May 03, 2010 at 08:55 AM
Yeah...I would guess that's the case. We're almost at 2007 revenues again, but down from 28 employees, which is what we had at that time. We're using freelancers to get the work done and I'm trying to instill a level of "outsource" this in their brains so they can manage the work, but not actually have to do it. Baby steps, I guess.