|
When performance in small to midsize businesses needs to be improved, start by exploring the source of leadership in that business.
In most cases where a business is underperforming the owner's expectations, the leadership direction and the vision for the company are not understood by the employees.
Just because a person is the business owner does not mean he or she is providing effective leadership for that company. Often times, the owners of small businesses think that because of their company's size, "everyone knows what's going on," or they lead by dictating to employees.
Leadership is about painting a picture of the future in the form of a vision and a "roadmap."
A common characteristic of great leaders is the ability to create that vision and then to share that vision both within the company and publicly.
Leadership is a powerful creative tool and, when embraced by a business owner as a priority, can have a big impact on the success of that business.
Without a clear vision for the future and a road map for how to get there, many businesses have failed.
How are you going to drive your business in the future? Even after early successes in a company's history, continued development for the small- to medium-size business owner can be a challenge.
Among the things making it more complicated are the rapid changes occurring in every marketplace and the availability of almost unlimited real-time information and communications through the Internet.
Low employee morale, absenteeism and resignations are key signs that the business owner has not communicated a vision for the company's future.
One book that addresses entrepreneurial leadership is "The E-Myth Revisited, Why Most Small Businesses Don't Work and What to Do About It," by Michael E. Gerber. This book looks at why 80 percent of all business startups fail in the first five years, and it draws the vital distinction between business owners working on their businesses and being the leadership drivers rather than working in their businesses as a day-to-day "technician."
People start businesses because they believe they "have a great product or service" and they have the passion and enthusiasm to bring their products or services to market.
But as the owner's business grows, rather than being its greatest asset, knowing the technical work as the "technician" frequently becomes the greatest single liability.
Company structure and management, marketing, financial issues and management skills quickly become the critical drivers for longer-term success.
In most cases, the change brought on by growth takes owners out of their comfort zone and leaves them with two options: Become educated in business-growth management skills and become managers to work on the business rather than staying as technicians working in their business, or employ skilled managers to lead employees.
Reprinted from Capital Region Business Journal, Madison, Wisconsin May 2005 issue.
|
