One of the most difficult decisions for many entrepreneurs is to let others take control of managing the business. It’s understandable, when year after year companies are defrauded by their own staff.
The age-old saying, “put good people in bad systems, and you will get bad results”, rings true with all businesses
However, a great company needs a great team and building a team around an effective system might just prove to be the key to long-term success.
Much of building your team to manage your business requires a good base to set foot upon.
The age-old saying, “put good people in bad systems, and you will get bad results”, rings true with all businesses, particularly since the team will handle a considerable amount of responsibility.
As a leader, you need to understand what outcome you want to achieve, be it within one week, one month or one year.
You also need to ask yourself: how will you know when you have it? This will give you a clear sense of direction and purpose, allowing you to build a system that allows the team and yourself grow, develop and excel within.
Why a system?
Many people picture a 'system' as an ugly and laborious method big corporations use.
To the contrary, it doesn’t have to be such a scary thought, nor should it be only seen as a 'big company' scheme or method.
A system is a base to build your team upon and can direct the financial and strategic objectives of the company.
Warren Buffet, CEO of Berkshire Hathaway Inc and the World’s second richest man, has perhaps the simplest structure in place.
As cited by Robert Heller, Warren, first of all, treats every unit manager as a CEO in his or her own right. He doesn’t impose targets, but likes each unit manager to tell him what they are going to achieve and how.
Secondly, if they (employees) are happy doing an excellent job, only move them if you both feel they are not living up to their full potential; or you have another, more important post for which they are ideal.
This may sound idealistic for many entrepreneurs and business owners; however it is these very same people that would bend over backwards to achieve the 30% annual return rate Berkshire Hathaway pays back to its investors every year.
They would also indulge in doing triple somersault flips across a busy road for Berkshire’s stock price, which was $US83,190, as at 27 June 2005, 1:31pm, New York time.
That’s right: eighty three thousand, one hundred and ninety US dollars per share. It has had a 52-week high of $US92k and just for the record, in 2003 the company contributed $US3.3bn to the U.S treasury.
