There is a common issue hindering growth for many small and medium sized businesses that I’ve found In my conversations with hundreds of business owners and CEOs. I find that this one issue is extremely common across all types and levels of businesses. If this one thing could be improved it would be the game changer that would unlock enormous potential and truly allow companies to achieve their most ambitious goals. The one change that could make all the difference is: Delegation.
Business owners and CEOs are tasked with overseeing the overall direction and success of their organizations, but it is impossible for them to handle every aspect of the business by themselves. Trying to do too much manifests in the time issue that is heard over and over. “I don’t have the time.” “I have too much on my plate.” “I might have time when I’m done with this project.” Etcetera, etcetera.
Effective delegation is essential for CEOs to manage their workload and ensure that important tasks are completed efficiently and effectively. However, many CEOs struggle with delegation and end up not having enough time to focus on critical aspects of their job.
According to Michael Gerber, the author of “The E-Myth Revisited,” the failure to delegate is one of the most common mistakes made by business owners and CEOs. In his book, Gerber argues that many small business owners fall into the trap of thinking that they must do everything themselves, from managing finances to marketing and sales. As a result, they become overburdened and overwhelmed, leading to burnout and poor decision-making.
Similarly, Marshall Goldsmith, a renowned executive coach and author of “What Got You Here Won’t Get You There,” emphasizes the importance of delegation for CEOs. In his book, Goldsmith identifies the habit of not delegating as one of the twenty common leadership mistakes that can derail a CEO’s career. He argues that failing to delegate is not only detrimental to the CEO’s own performance but also to the performance of the entire organization.
So why do some CEOs struggle with delegation? One reason is that they have a difficult time letting go of control. As Gerber notes, many CEOs feel that they are the only ones capable of making critical decisions or that their employees are not qualified or experienced enough to handle important tasks. However, this mindset limits the growth and development of both the CEO and their employees.
The first question any potential buyer would ask of a business owner is, “Can your business run without you for 30 days?” If the answer is anything but a resounding “Yes,” the CEO has failed in a fundamental task and greatly weakened the value of the business entity. Not nurturing a competent staff throughout effective delegation, is harmful for the business and a clear indicator the company is not healthy. The lack of competent, empowered staff creates confusion, friction and stress which ultimately manifests in poor retention, client loss (or stagnation) and a blaming and untrusting mindset.
To be clear, we are not talking about the early stage start-up or a life-style mom & pop business with just a handful of employees. In that case where the business owner is filling many of the roles of the business, then of course the owner is expected to do tactical work to generate income. However once the company grows and matures to the extent that the company generates revenue to support a growing staff with several managers, that is the inflection point where the CEO must start evolving away from mostly tactical work toward mostly strategic work.
Goldsmith adds that some CEOs may also fear the consequences of delegation, such as the possibility of mistakes being made or a loss of control over the business. However, these fears are unfounded, as effective delegation involves trusting and empowering team members to take ownership of their work and providing them with the necessary support and guidance to succeed.
To overcome the challenges of delegation, CEOs should take a proactive approach to managing their workload. As Gerber advises, CEOs should start by identifying the tasks that are critical to their role and those that can be delegated to others. They should then assess their team members’ skills and strengths and match them to the appropriate tasks.
The business owner is always the most expensive option for any task. The competent CEO, clearly understands their role of architect, coaching, trainer and mentor is superior to any tactical task that they can perform. In fact, contrary to their own perception, the CEO, because they are stretched so thin are often not the most competent person to perform a tactical task. The CEOs value in a strategic task, however, because of the breath and depth of their business knowledge is critical and irreplaceable. Many CEOs don’t understand or prioritize their time toward strategic tasks. As Stephen Covey, advises us, strategic tasks are Quadrant II tasks—those that are important but not urgent. They are essential, but don’t grab our attention like the crisis du jour.
Goldsmith adds that CEOs should also communicate clearly with their team members about their expectations and provide them with the necessary support and resources to complete their tasks successfully. This includes setting clear goals and deadlines, providing feedback and guidance, and establishing accountability measures to ensure that tasks are completed on time and to a high standard. This involves setting up systems and enacting guardrails so executives allow their reports the space and freedom to achieve the defined goals.
Furthermore, Goldsmith emphasizes the importance of trust in effective delegation. CEOs must trust their team members and allow them to make mistakes. By providing their team members with the freedom to experiment and take risks, CEOs can foster a culture of innovation and creativity within the organization.
In conclusion, effective delegation is essential for CEOs to manage their workload and ensure the success of their organizations. However, delegation requires a shift in mindset and a willingness to trust and empower team members. As Gerber and Goldsmith both note, CEOs must identify critical tasks, assess their team members’ skills, communicate expectations clearly, and provide support and resources to promote effective delegation. By doing so, CEOs can free up time to focus on critical aspects of their job and promote the growth and development of their organizations.