Entrepreneurial management style changes as a business grows


To maintain strong communications throughout your company and to counteract the impact of this inevitable filtering, I recommend the following five tactics:


1. Be a walk-around executive.

Spend part of each day walking through a different part of the business. Ask questions like, "What things are going well?" and "What areas could we improve?" Be sure you listen carefully to the answers because you will uncover a wealth of information that had been previously filtered. Be sure to let your supervisors know you will be doing this with all areas of the business so they won't see this activity as a threat.

2. When you have new directives or changes to business policy, call a companywide meeting and personally explain the change and the reasons for the change. Then ask your employees to fully support the change, clarifying what it will achieve for the business.

3. Schedule periodic employee lunches.

Select several employees at random from different areas of the business and have a working lunch with them. Ask them "How could management help you do your job better?" Then listen thoughtfully to their suggestions and reasons.

4. When a problem area is identified, don't be content to only address the outward symptom of the problem; this invites the problem to reoccur. Strive to uncover the root cause of the problem, by continuing to ask "Why is this happening?" four or five times, each time peeling back the onion to get to the core of the real issue. Once you have identified the root cause, attack and correct it quickly.

5. Monitor key business financials every month and track them over time.

Also track monthly profit contribution per employee (defined as total monthly profit divided by number of employees). When you see negative tendencies develop over a few months, don't ignore them until they become serious.
Remember that the more levels present in your management chain, the more meaningful information will be filtered out from the material you receive from your first reports. Use the above tactics to minimize the effects of information filtering in your business.


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