Posts Tagged ‘allocating resources’

3 Decisions Every Business Owner Has To Own

Tuesday, October 22nd, 2013

I saw an article last week which argued that there are 3 decisions that CEOs of corporations cannot delegate.3 difficult business decisions that must be controlled by CEOs

They are decisions about goals, allocating resources, and people.

That got me thinking.

My first reaction was that business owners are less likely than corporate CEOs to delegate these decisions in the traditional sense.

In other words, owners won’t allow their management teams to make decisions about these 3 areas without their direct involvement.

But then I realized I was wrong. There is one set of circumstances in which some entrepreneurs do exactly that.

When they first begin to work with a management team, some business owners believe they have to take a completely “hands off” approach, allowing their management team to make decisions about all aspects of the company.

That’s not delegation, that’s abdication.

And most of those owners take control again when actual results don’t match their expectations.

Coming back to my original train of thought, however, I do believe that entrepreneurs “delegate” decisions about goals, allocating resources, and people by omission.

They become immersed in day-to-day operations to such an extent that they don’t:

•  Regularly allocate time to set goals, review progress against them and make adjustments when necessary.
•  Allocate the financial and other resources to the initiatives, activities, projects that are going to have the greatest impact on the company’s future.
•  Deal quickly with situations in which they have the wrong person in a key position. That may be because they can’t admit they made a mistake putting the person there in the first place, they have misplaced loyalty to a long-term employee, or because they’re a relative.

It’s hard to have the discipline to regularly step back from the crises of the day to objectively review performance and plan for the future.

It’s also hard to find a technique or process that produces plans which can be turned into actions, which yield the results the owner wants.

And it’s really hard to look someone in the eye and tell them that they’re not doing what is required of their position.

But because something is hard to do is not a good reason for not doing it.

The article that got me thinking can be found here.

 

If you enjoyed this post you’ll also enjoy 8 Things That Hinder Growth.

Click here and automatically receive our latest blog posts.

Share

Post History