Read Online The Facts of Business Life by Bill McBean - Free Book Online
Authors: Bill McBean
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ownership brings with it. Moreover, these battles erupt frequently and rarely let up, and it takes time before you become comfortable in the knowledge that the business can meet its goals and objectives.
There is, however, one more important aspect of leadership that begins at Level 3 and continues through the end of the business life cycle. Although when you first start a business you cannot delegate leadership, as you become more skilled at it, it is essential that you beginâand continue toâdevelop as many leaders as possible among your employees. Doing so makes the company stronger because the more people you can develop as leaders, the more horsepower your business will have to pull it forward. And more horsepower means you will get to your destination faster and have a healthier business when you arrive there.
Management at Level 3
Because at Level 3 the business is âlive,â that is, itâs become active, and its destination has been defined, it becomes managementâs job to implement the processes created at Level 2 so the company can achieve its objectives and goals for sales and gross profit. In other words, at this level, management is about the day-to-day blocking and tackling of managing sales and profits, keeping on top of expenses, watching for changes in the market, managing the customer base, creating more customers, and improving processes, among many other tasks. However, important as all these functions are, the most important thing to remember is that results matter, and if the company is not achieving the results you intended it to, itâs essential you find out why and fix the problem. Thatâs because in the end results are what itâs all about, so results have to be your main focus from the time you open the doors in the morning until you close them at night.
Planning and People at Level 3
Although Level 3 is where the plan you developed for the business is put into action, the plan itself is not the main focus. As Iâve mentioned before, a lot of people can design a plan, but whatâs more important is how you implement it and how you react to both successes and failures. This is because while the plan you formulated at Level 1 is essentially the road map showing you how your business will get to its destination, it has to be changed and upgraded as new information is accumulated. That is, even though the destination remains the same, time frames may have to change. For example, if your business has been slow in attracting and training people to work for you and youâre bringing in less revenue as a result, it will affect your financial forecast, and your plan will need to be revised to reflect the change. In fact, the key to planning at this stage of the business is recognizing the exceptions to the plan, both what is working better than expected and what isnât, taking advantage of those things that are, and improving those that are not. In other words, developing a workable plan is important, but plans are about results, good and bad, and the skill of the owner and the employees in adapting to the results is where the ârubber meets the roadâ and success is created.
Of course, in order for any plan to work, you need employees, and thatâs not only a challenge, itâs frequently a problem as well. While some employees are likely to surprise you and others to disappoint you, both groups need constant attention. This is because at Level 3 the business goes through constant change as it moves along the survivalâsuccess spectrum, and employees tend to fight change because they donât understand that itâs to their benefit, both in terms of pay and job security. If, however, you have designed processes within which your employees can work, those processes will keep them focused on their jobs rather than running around doing things they think are important or like doing, neither of which may have a great deal to do with the
There is, however, one more important aspect of leadership that begins at Level 3 and continues through the end of the business life cycle. Although when you first start a business you cannot delegate leadership, as you become more skilled at it, it is essential that you beginâand continue toâdevelop as many leaders as possible among your employees. Doing so makes the company stronger because the more people you can develop as leaders, the more horsepower your business will have to pull it forward. And more horsepower means you will get to your destination faster and have a healthier business when you arrive there.
Management at Level 3
Because at Level 3 the business is âlive,â that is, itâs become active, and its destination has been defined, it becomes managementâs job to implement the processes created at Level 2 so the company can achieve its objectives and goals for sales and gross profit. In other words, at this level, management is about the day-to-day blocking and tackling of managing sales and profits, keeping on top of expenses, watching for changes in the market, managing the customer base, creating more customers, and improving processes, among many other tasks. However, important as all these functions are, the most important thing to remember is that results matter, and if the company is not achieving the results you intended it to, itâs essential you find out why and fix the problem. Thatâs because in the end results are what itâs all about, so results have to be your main focus from the time you open the doors in the morning until you close them at night.
Planning and People at Level 3
Although Level 3 is where the plan you developed for the business is put into action, the plan itself is not the main focus. As Iâve mentioned before, a lot of people can design a plan, but whatâs more important is how you implement it and how you react to both successes and failures. This is because while the plan you formulated at Level 1 is essentially the road map showing you how your business will get to its destination, it has to be changed and upgraded as new information is accumulated. That is, even though the destination remains the same, time frames may have to change. For example, if your business has been slow in attracting and training people to work for you and youâre bringing in less revenue as a result, it will affect your financial forecast, and your plan will need to be revised to reflect the change. In fact, the key to planning at this stage of the business is recognizing the exceptions to the plan, both what is working better than expected and what isnât, taking advantage of those things that are, and improving those that are not. In other words, developing a workable plan is important, but plans are about results, good and bad, and the skill of the owner and the employees in adapting to the results is where the ârubber meets the roadâ and success is created.
Of course, in order for any plan to work, you need employees, and thatâs not only a challenge, itâs frequently a problem as well. While some employees are likely to surprise you and others to disappoint you, both groups need constant attention. This is because at Level 3 the business goes through constant change as it moves along the survivalâsuccess spectrum, and employees tend to fight change because they donât understand that itâs to their benefit, both in terms of pay and job security. If, however, you have designed processes within which your employees can work, those processes will keep them focused on their jobs rather than running around doing things they think are important or like doing, neither of which may have a great deal to do with the
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