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Management Ideas For Privately Held Companies

The goal of The Wigder Report is to provide challenging ideas that will be useful for privately held and family businesses.

Styles and Leadership

by Harvey Wigder

Great organizations have positive direction and good management. Why are there more mediocre than great organizations? This case shows one example of how completely the top person can undermine his own organization.

John recently hired Ed as GM to take charge of day-to-day operations. John was tired after 30 years, and hoped that someone with fresh energy would do a better job and revive the company. After five months, John called me to express fear that Ed will be like the others who worked for him; mediocre people whom did not show creativity and initiative.

Is the problem Ed or John? To answer the question, John must be willing to step back and consider the possibility that he, himself, is the problem.

To begin dialogue, I asked John to fill out a self-assessment instrument called Personal Profile System. This is commonly used to help people understand their own and others style. It help gain self-insight and insight for the improvement of communications. The Personal Profile is divides the styles of normal healthy people into four types.

People with two of the four styles are driven to take charge. These use either a task focused or a people focused means of influencing and controlling their environment.

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People with the other two styles are more laid back. Rather than attempting to influence charge, they like to work within current ground rules. These laid back people can also be separated into task and people oriented styles

John has a style that combines "D" and "C." Ed, the GM, has a style that combines "D," "I," and "S." He is not as analytical, but his approach has other strengths and sensitivities. People with the D style NEED to take charge of events. They are oriented toward getting tasks accomplished. People with a D style, who also have a concurrent C style are in a more complicated motivational situation. People with a "C" style NEED to analyze, and often do it better than others. Therefore "Cs" tend to believe that others don't think things out as well as they do. A person with this combination might want to delegate but will often analyze and think things out before doing so. Doing their own analysis, leads the to the "right answer!" As a result, others can only agree or be wrong. What happens over time? The people who work for such a person stop thinking and wait for the boss to tell them what to do.

John has managed this way for 25 years. Although he has good natural analytic skills, it appears that he hasn't questioned his premises about the business for many years. Of course he is tired. Managing the way he does means that he most resolve all of the issues the company faces. Can John turn around this situation by allowing Ed the freedom to take charge?

I don't know if he can. I do know that if he doesn't try, Ed will fail, and John will be forced to continue to do it alone.

Can an owner hire someone to run the business and can such a person be successful. Over the last several months I have talked to 16 owners who did just that. The results of that survey appear next month.

Permission to reprint this article is granted, provided you let me know where it is being printed, the copyright is not removed, and the following text accompanies each article:

Harvey Wigder is the principal of Fulcrum Resource Group. He works with the owners of private companies to develop and implement recruiting, compensation and retention strategies. Contact him at 617-964-1855 with you comments and suggestions on small business management issues.

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