Micromanaging — Preventing YOUR Business From Growing
Micromanaging may be killing your business, let alone be preventing it from increasing in value. If your business is one of the more than 90% of mid-sized to small businesses in the US that hasn’t increased in value during the past ten years, then micromanaging may be the reason why!
With the exception of newly hired employees at fast-food restaurants and selective military situations, micromanaging negatively impacts a business at every level! What is micromanaging? It’s controlling with excessive attention to minor details. “Micromanaging by senior managers is particularly harmful,” says Rob Slee, (www.midasnation.com), author of Private Capital Markets, Midas Managers, Midas Marketing and soon to be released Midas Metrics. Slee has determined through research conducted at Pepperdine University; that more than 90% of all middle-market and small businesses in the US have not grown in value during the past ten years. Slee believes the single biggest cause of this dismal statistic is the way businesses are managed. Slee contends that when excessive attention is paid to minor details, like getting involved in personal issues between employees, gate-keeping office supplies or monitoring the office temperature to save money… it’s impossible for a business to increase in value. “For a business to increase in value, senior management must create and oversee strategies that add value. For example, identifying and attracting “market makers” for their business’ products and services. This requires managers to operate consistent with $500/hour strategic thinkers rather than $30/hour clerks. Operating strategically takes both time and intellectual capital,” Slee says.
The reality is that many senior managers prefer to remain in their comfort zones, operating in crisis management mode — putting out the same fires, over and over again. Some do this to justify their existence; others because they don’t know better. Many owners say they don’t want their business to increase in value because they fear it would create addtional work of them. The irony is that when senior leadership use strategic thinking, avoiding micro managing with focus on providing outstanding customer experiences; there is actuall less work for managment, rather than more. Operating stratigically and building value requires that low level managers who can’t, won’t or don’t know how to manage effectively, be replaced. As Jim Collins, author of the bestselling book Good To Great says, “gread people don’t need to be micromanaged.” Recruiters and HR professionals can help by attracting and hiring people with talent and skills, rather than skill-sets, alone.
Unfortunately, I am not optimistic about US middle-market and small businesses growing or increasing their value in the near future.