Owner-managers are often the biggest barrier to the growth and success of their own business. Few businesses achieve a successful transition from owner dependency to management team dependency.

The solution is threefold.

1. Start with the end in mind

• Businesses that are wholly dependent on the activities and performance of their owners are unlikely to attract a significant capital value on a sale.
• Most businesses are owner dependent at the outset. The skill lies in reducing this dependency over time.
• At the point of sale, the business should be able to run without the involvement of the owner, except where the owner is performing a line management role that can be filled through normal recruitment or search.

2. What you should do

• Take charge of the strategy of the business and focus on the big issues. Spend a minimum of 50% of your time thinking about the future of your business, i.e. working “on” not “in” the business.
• Hire the best people you can afford to employ.
• Let go of routine management tasks.
• Give your managers the tools and authority to do the job.
• Motivate and encourage your management team.
• Develop the team’s skills, knowledge and understanding.
• Make independence of management clear to all your stakeholders.
• Maintain a sensible work/life balance.

3. What you shouldn’t do

• Abrogate your responsibility for the management of the business.
• Interfere in the day-to-day activities of your managers.
• Undermine or criticise the activities of managers in the eyes of staff.
• Introduce unnecessary and/or burdensome management systems.
• Take credit for the success of other team members.
• Allocate responsibility without authority.
• Lose sight of your objectives and goals.

For more information please contact us on terry.irwin@tcii.co.uk

Terry Irwin
Director
TCii Strategic and Management Consultants