The last Recruiter's Diary was about Sam, a 63-year-old entrepreneur who needed help to energize his company. Sam is dynamic, charismatic and absolutely committed to the success of his company. He does not have a good hiring track record and has not been successful delegating authority.

If you recall, I reported that Sam had three ways to make change and asked readers which option they would select. Today, I will report on how this project developed, the choices Sam made, and whether I agree with Sam's decisions. His options were:

1. Sell his company.

2. Hire a strong executive with the skills to help him build the value of the company.

3. Hire someone with the skills to take tasks off his desk and make it possible for him to do a better job running the company.

Those who responded last time all selected the "sell" option. The reasoning was that the business was worth more in the hands of a skilled, committed person who could get more from resources. They, and most of you, know how difficult it is for a self-made and independent owner to step back and give up significant authority in a business they started, nurtured and grew.

However, Sam had no desire to sell his company. He couldn't envision a future outside of the business, so that option was never on the table. I agreed with Sam that the business was viable and well positioned and didn't think Sam was creating peril for himself in continuing to operate his business. The issue was where he could spend less time in the business while it gained momentum and grew.

These are the pitfalls with the "keep the company" options:

• If someone with the independence and skill to grow a business is hired, part of the package is that they will be driven to change things and make the organization their own! Sam, or any owner who chooses to hire such a person, must be willing to allow an examination and analysis of every decision and practice made in the past. They also must be willing to delegate, and give up control. This is not an easy thing for anyone.

  If an owner can't delegate or isn't up to this process, hiring someone who is driven to make change will be a waste of time and money and worse will lead to conflict with the potential of setting the owner and company back. (This was my concern for Sam.)

• Hiring someone who is not a change agent also has pitfalls. What if change is necessary for the company to remain viable? Without proper leadership the business could lose ground or fail. (I didn't think Sam's business was in danger. The issue was whether it could grow.)

TOP OF PAGE

Sam and I discussed the options. Sam said he understood the evidence I gave him about his delegation practices, but countered that the reason was that he did not have executives reporting to him to whom he felt comfortable delegating. He also understood that it would be difficult for him to change. He believed that if I recruited the right person they would figure out a way to work together.

Sam wanted me to search for a sales executive who could eventually take on a larger role: someone who was skilled, aggressive and committed to growth. He said he would deal with the need to delegate after the person was in place. I believed Sam meant what he said and agreed to do the search. The search was completed a few weeks ago. Joe, the person hired, has a résumé of achievement in companies recognized as being among the top performers in the country. He also has successful experience in privately held companies. His references are excellent. He has worked with entrepreneurs before and believes he can be successful. There is every reason to give good odds of success, and I am very positive about the results of this project.

The timing was also fortuitous. The week after Joe started, the strongest executive already in the company resigned because her husband was relocating. Sam would have been under more pressure if Joe hadn't started when he did.

Will this be a success or failure for Sam AND Joe?

Both Sam and Joe are committed to making this work; yet these are complex and sensitive transitions. I hope that Sam and Joe take advantage of my counsel and the opportunity of having a third party/facilitator who knows both and can help them sort through the inevitable problems and reach common ground.

Company histories are processes without end. Some of you say that these Recruiter's Diaries are like soap operas. I see the point. I suspect that I will report on Joe and Sam again.