In these uncertain times, I am increasingly being asked to look at companies that have been successful and have had meteoric growth, and all of a sudden, the growth stagnates, and no matter how hard they try, the owner can’t seem to figure things out.
One I recently visited had built on the world of social media and the guy who started it had really worked hard for 3 years to build a pretty substantial company employing 50 people and serving 100’s of customers.
Two or three people had recommended the owner to me as someone who could possibly shed some light on what was going on.
I have to admit that when we first met I wondered if we would be able to work together as he was very defensive and wondered from the start if he really needed any intervention.
We talked for a while and agreed that I should monitor things for a while and then report back to him.
I spoke to key members of staff and even spoke to a few customers, they all seemed very happy and all the staff were extremely competent.
I was then invited to a meeting attended by some key customers and some administrative staff. The reunion was a very casual affair and people started reminiscing about the last 3 years laughing and joking about how things were when they started and all the obstacles and headaches that were resolved by creatively rearranging things in those formative years.
After about 2 weeks, I set up a meeting with the owner and told him that I had found the reason why the company had stalled and was in fact starting to go backwards. He said, “Thank God for that.” I said, “It may not be what you want to hear.” He then replied, “Just tell me what the problem is.” And I said, “It’s you.” better to leave it unwritten, but you can imagine it.
When he calmed down, I explained that during the formative years when he was building the company he had made quick decisions and was in a position to see potential problems before they appeared and also became the engine of the company by being at the forefront of every decision. and always putting in the extra effort when needed. Now the company had grown to such an extent that he still wanted to be involved in everything, but other tasks had consumed so much of his time that he now had to make decisions about finances, HR issues, personnel issues, etc. very quiet but non-productive time consuming.
I suggested that he get someone qualified to steer the ship and handle all the parts of the business that had become his default responsibility. I also told him my famous line, that if he chose the right person, he would bring his salary with him.
He agreed and now, 3 months later, the landscape is totally different, the company is growing again, the new CEO has put systems in place that have streamlined the entire operation and the owner now has the title of Chief Creative Officer (CCO). He has put on his creative hat. he can turn back on and can view the business from a distance, allowing him to do what he did in the beginning and see potential roadblocks and problems before they happen.
This is a very common problem with entrepreneurs who become part of the company and have too much workload and cannot see what is happening because they are bogged down doing things that they should have missed along the way.
As a business person, if you’re under the hood working 24/7 to keep things afloat, how can you possibly steer the ship? Once you get out from under the hood, you see things much clearer and start making the decisions that benefit the company, not the ones that momentarily lighten your workload, but are not good decisions for the big picture.
Take a reality check and see if you are really the problem of your business running smoothly and stagnating.
By moving to the side, he often injects a new energy into the business and gets his life back on track.
