Entrepreneurs are notorious for trying to stay in control of the running of their business by doing everything themselves. The problem is that as the business grows, this becomes increasingly difficult, and stressful, which ultimately takes its toll on their own efficiency and that of their business operations.
One of the most valuable lessons a small business owner can learn is how to delegate and let others in the team take some responsibility. This can also be the key to business success.
Virgin founder Richard Branson recently described learning to delegate as one of the most important lessons of his entire career. One of the smartest things a leader can do, he said, is to hire people who excel in areas they are weaker in. And while he acknowledged that delegating and handing over control can be tough, these challenges become easier with the right people on board.
It may go against the grain to even contemplate farming out key areas of the mini empire you have created to others, but the business case for doing so is quite compelling.
The value of efficient time management for small firms was highlighted in a recent report by business software provider Exact and the Centre for Enterprise and Economic Development Research (CEEDR).
It revealed that a fifth of small business owners that manage their time well are more likely to achieve higher growth margins than those that don’t. They also tend to be considerably more successful in terms of achieving sales growth.
Stephen Stott is the owner of London-based executive search firm Stott and May, which he launched in 2009, and has first-hand experience of delegation and how it can impact on business growth.
He says: “Two years ago, when the business was growing fast, I knew that I had to take a step back to identify where the weaknesses were in my team. That was when I realised that someone other than me might be better at handling day-to-day business operations.
“It can be hard to let go, but I’ve learned that if you want your company to succeed, learning to trust others is the first step toward running a bigger and better business.”
He also realised that if delegation was to be effective he had to hire people who were better skilled than he was at doing the job they were being recruited for. For the business leader, that means understanding and acknowledging their own weaknesses.
“Managing the day-to-day operations of the business is not where my strengths lie, so I hired someone who is great at that,” says Stott. “With the right people in place I can focus on growing the business.”
He credits much of the success of his business to efficient delegation and a strong team, and enjoys staff retention levels of more than 80%, almost unprecedented in his industry.
Nevertheless, for many small business owners, the prospect of finding the right people to hand over specific tasks and responsibilities to can be daunting.
Trait and behavioural profiling can help to identify individuals who may be good in a particular role. However, in many of today’s high growth firms, traditional models of job titles are no longer relevant. Things are much more flexible, with each member of the team having a wider role to play around perceived official titles.
Tim Taylor, managing director of leadership consultancy Making Great Leaders, says: “Formal titles are giving way to terms such as creative, pilot, team lead, which suggest the value they bring rather than the department they look after.”
Business leaders also need to understand that delegating is not abdicating, which, according to business coach Marielena Sabatier, CEO of Inspiring Potential, is one of their most common pitfalls.
She says: “Too often, they hand over the work without any clear direction. They need to explain what is needed, why it is needed, what are the standards and outcomes expected and the deadlines. Delegation isn’t about micro-managing, but it is essential to set up some checkpoints in the process, as the ultimate responsibility lies with the boss.”
Being able to pass on problems, bestow responsibility for projects, and place trust in members of the team to meet the challenge, not only improves the efficiency for the business owner, but it can also be valuable in revealing future leadership talent within the organisation.
Darren Fell, managing director of Crunch Accounting, believes that effective delegation is the only way to run an efficient and successful business.
He says: “By seeing how each member of the team deals with different tasks, I can identify strengths in certain areas and give employees opportunities within these areas to really flourish. We often create roles for people and put a heavy focus on internal promotion, which in turn inspires people to use their initiative.”
Content on this page is paid for and produced to a brief agreed with E.ON, sponsor of the Efficiency hub.
