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Eliminating Crisis Management

Changing your leadership style

If we were to walk into your shop today, we would probably find you very busy at work. The question is whether you were doing the things that you had planned to do, or if you were busy putting out the "fires" that often occur with being a retailer.

A contemporary definition of management by crisis is "making decisions according to the problems at hand, many of which did not exist when you go to work each morning."

As a unit of measure, if you are spending 15% to 20% or more, of your day handling today's problems, then you are performing crisis management. And, if you are in that position, you are often unable to perform your other duties. As managers and owners, you are the individuals with the responsibility of planning for the short and long term future of your business. One of the currently popular management books says that a manager that is constantly putting out fires in his business, is probably the one that is carrying the matches to start the fires.

If you are the owner or manager, there are three responsibilities that are a part of your written, or unwritten job description; You are a worker, a manager, and a planner.

As a worker, you will find yourself performing many of the same duties that even the newest employee is performing. And in your shop, this could include such duties as cleaning a window, stocking the shelves with parts, assembling equipment, or even waiting on the customers. Most owners and managers would agree that it is very hard to have your workday exclude these types of jobs, and that it is also important from a morale perspective that you be seen performing these duties.

But if the owner or manager is spending a large percentage of the day doing the same tasks as the employees, then the second responsibility, management, is being neglected. You may own a shop that utilizes a manager. Most owners would agree that if they utilize a manager, it is a job that the owner is also well qualified to perform. And as the owner, you do have to 'manage the manager'.

Which ever is your situation, you have the option of managing in primary style, secondary style, or a combination of the two. Primary management can be demonstrated by the type of manager that has the employee perform a task, return to the manager for approval of the task, and then wait to be assigned a second task. Sometimes this type of management is referred to as 'gopher management', which is a paraphrasing of the instruction, "Go for this. Return to me and then I will send you to go for something else."

This type of management has a tendency of becoming very exhausting to the manager. The secondary style of management requires education and information being given to the employee. This style is apt to be developed as a result of a manager or owner sitting with the employees in a staff meeting, and outlining the goals - immediate, midrange and long term - to his staff.

Goals are created and assigned, as compared to tasks being assigned, because you have the confidence in the employee to determine the detailed tasks that need to be accomplished so that the goals are achieved. Deadlines are established with intermediate goal posts being provided so that the progress can be checked along the way.

As you can see the advantages, and disadvantages, to each of these management styles, you will also see the need to blend the two. For, as the situations and individuals involved will vary, so will the technique that you will utilize.

Leadership is the hardest task for any owner or manager to perform. Perhaps the difficulty comes in attempting to define the need for leadership. Dr. Steven Covey provides this explanation: a worker does 'it', the manager sees that 'it' gets done, and the leader defines what 'it' is. Being the leader shouldn't involve a lot of your time. You may even go days or weeks without performing leadership tasks. If you have been a good leader, you will find that you are able to spend more of your time in a management mode because of the goals you have established.

It is impossible to determine for you, the quantitative amount of your time that should be spent with each of these three levels. Depending on the size of your shop, and the number of employees, you will find the majority of your time in one of the first two. And if you are spending too much time in crisis management, then it is time to reread this article and examine how duties are divided among you and your employees.

Resolving crisis management in your shop can generally fall into one of three categories: situations of which you are the individual that can resolve them, situations that you can delegate to others, and situations in which you will need outside assistance.

The first two of these categories will be resolved much in line with the information that we have already discussed. It is the third area in which you want to make sure that you have the necessary assistance ready. If you are an owner, the most likely candidates for outside assistance would be an attorney, banker, accountant, and an individual within the retail trade. It is with these people that you will want to share information such as personal and business financial's, long term goals, concerns, and any other information that could possibly influence the way that they would advise you on matters.

Walt Disney used to say that his company would work for five years, plan for ten years, and dream forever. That may be too long range for your business, but the idea is right.

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This article is copyrighted by Tom Shay and Profits Plus Solutions, who can be reached at: PO Box 128, Dardanelle, AR. 72834. Phone 727-823-7205. It may be printed for an individual to read, but not duplicated or distributed without expressed written consent of the copyright owner.

 

NOVEMBER 2024
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If you find yourself trapped between stagnating sales, staff turnover, and unhappy customers, what do you fix first? Every issue seems urgent - but there is no way to address all of them at once. The results? A business that continues to go in endless circles putting out urgent fires and prioritizing the wrong things.

BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

Perhaps you have investments outside of your small business; gold, stocks, bonds or money market funds. With each you likely know what the rate of return is.

 

What about your busines? Do you know what the rate of return is for your business? You should. After all, you do not want to be the person who has just bought themselves a job.

Small Business

News

 

Top Story

We see a lot of social media with what we think is a "sympathy plea" do do business with local small businesses.

 

It is not going to work. People select where they do business based on positive reasons. We discuss what we are seeing.


Article of the Month

A timely article for the holiday season. With any business that has inventory, are you looking at sales per square foot? Are you looking to see which is the most valuable space in your business? You can increase sales by knowing which items to place where.


Book of the Month

Fix This Next by Mike Michalowicz. We love this description of the book; The biggest problem entrepreneurs have is that they do not know what their biggest problem is.

 

If you find yourself trapped between stagnating sales, staff turnover, and unhappy customers, what do you fix first? Every issue seems urgent - but there is no way to address all of them at once. The results? A business that continues to go in endless circles putting out urgent fires and prioritizing the wrong things.