Whether you’re growing a business to sell, or to leave a legacy for the next generation, the quality of the management team is key to success.
Your management team are an extension of you and exemplify the culture and values of the business. They should make time to work ‘on’ as well as ‘in’ the business, and support you in developing the long-term strategy.
An effective team make a valuable contribution to the decision making process, challenging the status quo and exposing new ideas and opportunities. They also ensure the company is not dependent on one individual, thereby improving the sustainability and the value of the company in the long term.
Ultimately, the aim of any ambitious business owner is to surround themselves with capable and competent experts, who give confidence to stakeholders inside and outside the business. If this does not apply to your management team, it’s time to consider why.
Invest or Exit
Ask yourself, do you have the right people in your management team? It’s not uncommon for businesses to outgrow people as the demands of the company change.
Sometimes training and development are all that is required to ensure future competency. Sometimes you need to accept that an individual will never be able to keep up. Make those difficult decisions as soon as you can, to avoid damage to the business and the individual.
In times of rapid growth, businesses can spend a lot of time focusing on day-to-day operations, but it is crucial to continue to monitor long-term key performance indicators against defined business plans.
These meetings provide a valuable opportunity to focus and develop the strategies necessary, and offer a chance to communicate with your team to prepare for the challenges ahead.
A clear agenda, and well-prepared management information, ensure your meetings stay focused, and offer the opportunity to make well-informed decisions that will keep every individual unified on your priorities.
Delegate (and Don’t Dabble)
The biggest barrier to developing an effective management team is often a business owner who can’t let go. If you have the right people in the right positions, trust them to deliver. If you don’t trust them, you probably haven’t got the right people.
Delegate effectively and provide clear parameters of what needs to done. This will free up more of your time, make the business less dependent on a single individual, and motivate the entire team to do their very best.
Make Sure They’re ‘Onboard’
As the management team become more important, it is vital that the individuals involved are tied in for the long term. Effective succession planning increases the value of the company and improves sustainability. Spend time considering how to ensure your best people are kept engaged and motivated in the long term.
Talk to BHP to find out how we can work with you to ensure your management team delivers the greatest opportunity for the success of your business. Or click here to learn more about BHP Consulting’s Management Academy, specifically designed to increase the impact of management teams to support business growth. Designed and run by business leaders who have been there and done it.