One of the first things fast-growing companies do is to start asking their staff to focus on one element of their job and take more work off the Founder so that they aren’t doing all the work.. The Founder still directs the work, but soon realises they can’t do it all or the business will just grind to a halt! As increasing amounts of work don’t get done, customers expectations aren’t met and they stop buying the product or service and go to the competition! Sound familiar?

Usually, growing companies recruit more staff, but after 4 – 6 employees, it’s necessary for the Founder to start delegating some of the actual Management of the business to someone else. Most Founders have a tendency to delegate it to either the oldest person (very 20th Century!) or the most capable staff. So, a member of staff is promoted to be a Manager.

The first thing any promotion like this does is reduce the productivity of the whole company, as promoting the most capable or experienced person away from their current job reduces the output of the whole company and everyone else is then working harder to maintain the existing sales or production. The Founder now has an extra person to help them manage the company but the new manager is no longer on the “Front Line” selling, or making things or servicing customers.More via this link:

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