All businesses have an owner or owners. That is pretty easy to acknowledge. Who actually runs the business, makes decisions, and has the authority for staffing changes can be a huge grey area. Companies that have clear guidelines on roles, freedoms and responsibilities with a set accountability system in place tend to out perform those grey area operators. Their have been times where I ask the store manager about a direction to take and they refer me to the owner. Then the owner will say go back to ask the store or department manager.
This is a clear lack of understanding in the organization about who has what authority.
When you don’t have a clear chain of command with position freedoms and expectations it slows down progress. One part of the chain thinks the other should do certain tasks while that other side is oblivious to this fact. Our job in leadership is to empower people to thrive in their roles. Coach them on how to make the correct decisions but ultimately let them go for it. If they fail at something, they will learn from it and perform better next ime.
Giving up financial decision power sounds like a big step. Trust me I understand. Try setting caps to make it easier. For example “if the choice is less than say $500 to $1500 than you do not need to ask permission to move forward.” That gives someone a basis to go off of. If also frees you up as an owner or those in higher up leadership roles to devote your time to more important things regarding the business.
In my experience when you have a star player on your team but grey areas in accountability are in place they get a double standard. Your under performers are accepted for what they bring to the table. Your A Players are expected to continue adding the value they add. If the under performer has an issue it is perceived as normal. If they A Player has an issue it is considered a problem.
The result is your A Players end up leaving your organization.
I have seen this happen multiple times. It is highly imperative who ever is in charge takes the lead in team member accountability. Keep the playing field level for all team members. Part of leadership is being able to have those “difficult” conversations. What has helped me during those scenarios is to remember none of those talks are personal. They are all business related and performance based.
If you are going to have managers in place. They need to be able to make the call about staffing changes within their department. When a manger is not able to decide who works with them it greatly limits the effect they can have in their department. It will demotivate them quickly if there is a problem team member. Their team will become aware of this lack of power which will then be exploited, and it will happen.
However, If you have a team member who is not up to par, ask yourself the hard question. Have you done all that you can to enable them to have success within your organization? If not, you need go back to basics and continue coaching them. This is ownership thinking . It shows all team members you are an organization that cares about helping everyone achieve success.
This gets contagious and soon you see team members helping each other grow.
Making sure there is a clear chain of command with authority to make decisions and staffing changes will make a world of difference in your operations. You hire people to help your business operate and grow. Leverage their skills and talents by enabling them to be apart of the decision making process. Praise them when they do good and coach them constructively when they have a hick up.
I hope you found this post helpful. My mission is to make operations easy to understand. It would be a huge blessing to me if you would take a moment to share this post on your social media sites. If you have any questions or comments please don’t hesitate to share them below. I look forward to hearing from you.
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