As a business owner, it’s easy to get caught up in the day-to-day operations of your company. The thing that keeps you from leaving the office with everyone else.
Putting out fires, making quick decisions, and trying to keep everything running smoothly, feels like it is out of control.
Being so involved in the daily grind can have serious consequences for the long-term success and value of your business.
The Problem: You are the Hub of the Business
When you’re the centre of every decision and action, it’s impossible to step back and see the bigger picture. Set up accountabilities and let your staff deal with the immediate issues and problems. Be there as a spoke in the wheel but not the Hub.
You Risk of Making Tactical Decisions on the Run
When you are so close to a problem there is a tendency to make snap decisions to solve problems quickly rather than relying on the systems and processes. These tactical decisions made on the fly can have unintended consequences that ripple throughout your organisation.
Without careful consideration and planning, you may be creating more problems than you solve.
The Impact of unintended consequences on the Business Value
It’s subtle, but when you neglect your role as the leader over a long time and not spending time on strategy and people development, there is an unintended consequence of limiting the potential value of your business.
You might think it’s a wise investment of time to be tactical, but potential buyers want to see a company that is being led towards a strategic outcome.
If you’re the hub of the business operations it raises red flags and can significantly reduce your company’s worth
The Solution: Balancing Strategy, Tactics, and People
To avoid these pitfalls, it’s essential to allocate your time and energy effectively.
Experts recommend that business owners spend:
– 20% of their time on strategy
– 65% on tactical activities
– 15% on building internal relationships and connecting with staff
By dedicating 20% of your time to strategic thinking and discussions, you can ensure that your business is heading in the right direction. This allows you to assess market trends, identify growth opportunities, and make informed decisions that will benefit your company in the long run.
Tactical activities include things like: monitoring and analysing the progress of new business; engaging with customer complaints; operations; and finance. These should take up the bulk of your time (65%). But not the doing bit, the General Management of these activities. Your job is to keep the guide the people whom you have employed to do a job. Not doing their job.
Finally, investing 15% of your time in your people is crucial. It helps you understand their challenges, fostering a positive company culture, and developing a strong team. These connections not only improve morale and retention but also provide you valuable insights that inform your strategic thinking.
The Importance of Thoughtful Change
In times of uncertainty or stress, it can be tempting to make sweeping changes to your systems and processes. However, this approach often leads to confusion and frustration among your team. While experimentation is valuable, wholesale changes should be avoided.
Instead, focus on incremental improvements that are carefully planned and communicated.
Take Action Now
As a business owner, it’s up to you to prioritise strategy, tactics, and people.
By taking a step back from the daily grind and allocating your time effectively, you can make informed decisions, develop a strong team, and ultimately increase the value of your business.
Don’t wait until it’s too late – start making these changes today and watch your company thrive.
For more information on how you can apply a Strategic Thinking Mindset and increase the value of your business contact Steve Sandor for a complimentary Call.