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Among the issues that consistently perplex organizational leaders is delegation of responsibility and authority. Many have developed leadership teams, yet, day in and day out, task items seem to land on their desk. Items that, at least in theory, should be handled by others. What’s going on here?
There are many factors at work. For entrepreneurial leaders, being in control means knowing what is going on in every facet of the business and making decisions at each level of the enterprise. This approach has served them well as the organization grows and develops. However, there comes a time when that approach is no longer effective. In fact, it can begin to take the business in the wrong direction.
Part of the challenge lies in the fact that there is no clearly defined time or method for formalizing transitions of responsibility. Changes in titles and reporting lines are a starting point. However, without a thorough understanding of and commitment to a transfer of authority and decision making, these changes can seem superficial and hollow.
When planning for the future, taking a structured approach to what to the business will look like (and what it will need) at certain levels of growth is a staple part of the process. Utilizing a technique called "Future Business History" we look five years, three years, and one year out. Setting broad goals for each interval is a start but we don’t stop there. We ask questions like “what will the organization look like at that level of revenue? What will our customer base look like? Which skills, abilities, experience, and attributes will our employees need? How will client acquisition and retention be done and how will it be different from what it is now? And most importantly, what will be required of the leadership team? How will responsibilities be defined, accountability dispersed, and the role of the CEO change?
A highly effective tool for bringing structure to this process is the "Dynamic Performance Management System." A simple three-step approach, it brings clarity and confidence to members of the senior management team while eliminating the “role ambiguity” that bedevils so many organizations, especially at the senior team level.
Planning has never been more essential. For more information and sample worksheets, contact me at joe@ajstrategy.com
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Joseph P. Truncale, Ph.D., CAE, is the Founder and Principal of Alexander Joseph Associates, a privately held consultancy specializing in executive business advisory services with clients throughout the graphic communications industry.
Joe spent 30 years with NAPL, including 11 years as President and CEO. He is an adjunct professor at NYU teaching graduate courses in Executive Leadership; Financial Management and Analysis; Finance for Marketing Decisions; and Leadership: The C Suite Perspective. He may be reached at Joe@ajstrategy.com. Phone or text: (201) 394-8160.