Business Growth and Leadership Needs

Transcription

1 Business Growth and Leadership Needs Richard Stup, Ph.D. Agricultural Workforce Specialist Web: agworkforce.cals.cornell.edu

2 A Conversation Among Friends Joe, I think we made a mistake by What makes you say that Tom? Well that sort of goes with the territory. What are you doing to make things better? One thing I learned from our expansion is that I had to change how I managed, not just do more of what I used to do. Why don t you come by our place Thursday, we ll talk some more and I ll show you how we work with people. Joe Tom expanding our dairy. I m spending most of my time fixing people problems but I d rather be working with cows. Not much, just putting out fires. We ve got more debt, more cows, more people, and more problems. Well, I m ready for some ideas because I don t want to do it this way any longer. Thanks Joe, I ll be there.

3 Size and Complexity Business Growth Stages Maturity Small Large Rapid growth Decline or Renewal Survival Existence New Early success Age of Organization Mature

4 Stage 1: Existence Planning for the startup Self-leadership Developing the product or service

5 Stage 2: Survival Leadership focus on understanding the market and finding buyers Cash flow

6 Stage 3: Early Success Leadership focus on building a repeatable and scalable process Beginning of the need for more structure

7 Stage 4: Rapid Growth Without appropriate structure and control systems, chaos will result! Leadership focus on building a team or a whole organization.

8 Stage 5: Maturity The plateau Leadership focus on profits, transition, the next big thing, or perhaps a lack of focus

9 Growth Stages and Leadership Needs Business Stage (# of people) Structure Leadership Needs 1. Existence (1) A founder with a plan. Self leadership and planning. 2. Survival (<10) The founder plus a few hustling to make it. Owner leading sales and relationship building. 3. Early Success (10-20) A small team learning to win, and still very close to the founder. Naturally engaged founder/leader sharing success and vision with a larger team. 4. Rapid Growth (20+) The founder at the top of a quickly growing organization with specialized skills. Development of specialized functions: production, sales, accounting, HR. Delegation of decision-making. 5. Maturity (40+) Multiple hierarchical layers, professional management. Founder may be only a legend. Leadership focused on constantly renewing the vision and keeping others engaged. Reliance on professional managers.

10 Leaders Rarely Transition Smoothly to Meet the Needs of Each Stage The small farm operator who wants to manage the mid-size or large farm in the same way. The successful, hard-driving manager who now must transition authority to the next generation.

11 Stage 1: Self-Leadership (1 person) Leadership is about moving people toward a worthwhile goal, and that must begin with one s self. Understanding your own strengths and weaknesses. Disciplining yourself to achieve needed results. Maintaining a positive attitude, not self-defeating.

12 Stage 2: Sharing the Vision (2-10 people) Communication skills become important as soon as others join the business. Leaders must find a way to communicate their values and expectations to the small team. Formal leadership behaviors not yet as important because of frequent, close, personal contact with a small number of employees. High Performance Standard Operating Procedures

13 Performance Feedback Most important job of a supervisor. Powerful and neglected leadership tool. The more feedback I receive the better I can do. Whether formal or informal, positive or negative it's a motivator. - Pennsylvania Middle Manager

14 I don't like being called into a meeting to look at my performance. If I am doing something wrong I want to know about it right then and there or as soon as possible so it won't continue until a review is done. - New York Front-line Employee

15 There is virtually no feedback - either positive or negative. So you don't know whether you're doing a good job, or a lousy job. When we do get a pat on the back, it's in a meeting of mostly all farm workers and its just a general statement. And I know that a couple workers present don't do their jobs. So I don't know where I stand. I think I do a good job, but maybe they think they do too. - New York Front-line Employee

16 SCORE Feedback 2017 Richard Stup Specific, with details Credible sources of information On-time and frequent Relevant to performance Ends looking ahead

17 Examples Jose, you are getting better at moving cows to the parlor. I watched you today and saw that group 2 was in place just as group 1 was finishing up. You also moved the cows quietly and talked to them. How do you think it went? Tina, you need to be more gentle and patient when moving the cows. I d rather have the group arrive a little late than be all upset because you pushed them so hard to hurry them. Slow down and relax with the cows. You can do this!

18 Stage 3: Building Processes and Growing Teams (10-20 people) Formal communications Performance feedback Hiring, onboarding, training Organizing Delegating tasks Developing teams and team leaders

19 Delegating Increase effectiveness of the supervisor Free time for decision-making, record analysis, and other important tasks Keep employees engaged, interested, and growing Develop skills in more employees on staff, cross-train, spread risk

20 Why leaders don t delegate Greater comfort in operational work. I like to do it myself. Need to be in control Desire to avoid risk Lack of confidence in workers. I have to do it myself. Fear of being shown up by another s good work Desire to appear overworked. It s easier if I just do it myself. Smokey the Bear always likes to be putting out fires. Hero complex.

21 Deciding what to Delegate Complexity One-time Frequency Repetitive Low A B High C D

22 Steps in Delegating 1. Plan Clarify exactly what you want to delegate, to what extent, and how. 2. Explain Clearly communicate with the employee exactly what your plans are, ask for questions. 3. Follow-up Check in and provide feedback, don t just wait for a problem. 4. Evaluate and Communicate Make an appointment to formally discuss the project, then decide how to proceed.

23 Stage 4: Empowering Others (20+ people) Delegating supervisory authority to true middle managers. Delegating decision-making responsibility. Coaching and mentoring other managers. Clarifying expectations and holding accountable.

24 The End Around Owner Middle 1 Middle 2 Middle 3 Front 1 Front 3 Front 4 Front 2 Front 5 Front 6 Front 7

25 Stage 5: Moving on and Renewing (40+ people) Constantly refreshing the vision and keeping others engaged. Providing strategic (not tactical) leadership. Encouraging and supporting professional managers. Transition to new ownership.

26 What are the consequences of not planning for changing leadership needs? Financial collapse Legal troubles Unmet customer expectations Poorly developed employees Disengaged employees Chronic underperformance

27 So, how can the organization plan and adapt for changing leadership needs? The founder seeks training and coaching to change personally. Hire leadership from outside. There s no law saying the founder must be the CEO. Promote leadership talent from within. Outsource leadership or talent, such as accounting or HR.

28 How Managers Learn Skills Source: Enos, M.D., Kehrhahn, M.T., and Bell, A. (2003). Informal learning and the transfer of learning: How managers develop proficiency. Human Resource Development Quarterly, 14,

29 Leadership Training

30 Executive Coaching

31 Promote From Within Owner Middle 1 Middle 2 Middle 3 Front 1 Front 3 Front 4 Front 2 Front 5 Front 6 Front 7

32 Hire Outside Talent There s no law saying the owner has to be the CEO. Leadership skills aren t necessarily passed through genes.

33 The Solution Get input from trusted advisors. Develop formal expectations and competencies for leadership positions. Use a combination of development and outside resources to meet the growing and changing needs of the business.

34 Conclusions Leadership needs change with business growth. Failing to plan for and adapt leadership can seriously limit success or derail a business. Owners/founders don t have to personally provide all leadership, promote from within or hire talent as needed.