Delegating responsibility and decision making are some of the most difficult actions for many entrepreneurs. Having started the business, from an idea on paper to its current status as a growing company, the owner has a real emotional involvement in the organization.
As a result of this attachment, letting go of all decision making involves more than simply passing some paper to another employee. The emotional aspect of management must be considered as well. All too often, the personal feelings of the entrepreneur prevent taking the proper course of action.
As a company grows, the number of responsibilities grow right along with it. Not only do the number of departments expand, but their size and scope increases as well. Taken together, managing all departments and staff within the organization becomes too much for any one person. No one possesses the time or skills required for each and every job in the business. Delegation of responsibility is essential. It is here that problems can arise that can hurt the company's performance.
The entrepreneur has built the company from the beginning and treats it almost as a family member. Choices made for growth, purchases, expansion, and marketing are not always based on economic conditions or enhancing return on investment. There will very often be snap decisions made on the spot, with or without full understanding of the circumstances or complete data. Some of these crucial decisions must be handed to other managers within the company. The lone wolf business owner is often very reluctant to do so.
Having built the company from the ground up can inflate an ego. The sense of being the only expert becomes the owner's creed. This mistaken idea is often accompanied by the nagging back of the mind fear of loss of control. Emotional reactions to needed delegation are common. This ownership fear must be mastered if the company is to move forward into the future. Instead of acting emotionally, the owner must attempt a rational and practical approach.
A good way to start in the delegation process is to talk with the affected managers as a group and as individuals. Defining the company's goals, and asking for input into achieving them creates new ideas and develops trust and two way communication. Armed with the organizational goals, the manager can assess the departmental situation and apply an appropriate course of action. The owner can delegate the decision making activity confident that the overall company goals are being kept in sight.
As successful decisions appear, one after another, the entrepreneur will develop confidence in the managerial level choices. The managers will enjoy the confidence of the owner, and their own self esteem will rise with their successes. Overall, the company bottom line is enhanced.
Mistakes will happen as well. It is at these crucial moments that the owner must place confidence in the process. The error was not made from the act of delegation, but from the choice made by the manager. Mistakes are part of the learning process. The business owner must recognize that no real growth is possible without some missteps along the way. Use the error as a teaching tool, and even better and more profitable decisions will follow.
Pulling back the authority is often the emotional response, and is also a mistake. Employees will hunker down and avoid any mistakes. They will also be much less productive, and that will damage the company seriously. Removing decision making authority, like the initial failure to delegate, is also a mistake. This is where building mutual trust is so important to success. Trust allows for mistakes and for alternative ideas and creative thinking.
Delegation of authority involves letting go of fears. Once those fears and sense of loss of power are eliminated, the company and its people are ready to move to even greater heights.
Everyone wins when decision making is shared among the staff.
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