I first met Roland (not his real name) in 1972. He was a high
school student working a summer job in his father's business.
"We're
teaching him the business from the ground up
Jese
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tall good looking kid. We shook hands, exchanged a few words, then Roland jumped
on a fork lift and was off to stage another delivery.
The next time I saw
Roland, he was approaching 40 years of age and had served four years as company
president.
The business was located in a fast-growing metro market, but
under Roland's leadership
Giovani
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market. His father, now retired, suggested that he bring in a consultant to take
a look at the business.
We met at my hotel for breakfast. In many ways,
he had not changed all that much. He was wearing jeans, a red flannel
shirt
Gianluigi
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that of a company president.
Roland got immediately to the point, "What
do you need from me to get this project started?"
"Let me begin by asking
a couple of questions," I answered, "What is your vision for this
business?"
"How do you mean?" Roland asked.
"What are you trying
to make happen here? When December 31st rolls around, what evidence do you look
for to determine if you've had a satisfactory year?" I said
Garissone
Innocent Jersey , trying to clarify my question.
"Well, if
you're talking about strategic planning or budgeting, things like that, I don't
do any of that," he responded bluntly.
"How do you personally spend you
time every day
Edinson
Cavani Jersey ," I asked, trying a different approach.
"It
depends on where I'm needed," he said. "Sometimes I'm doing the buying, but
other times, like when the warehouse foreman doesn't show up
Dani
Alves Jersey , I'm working out back."
"How much time do you
spend in the office?" I probed.
"As little as possible," he fired back
with the hint of a smile.
"Sounds as if you don't like office work," I
asked in a feeble attempt at humor.
"You got that right."
"Your
dad says that sales haven't kept pace with the market. Do you have an
explanation?"
"Yeah, I can't find decent salespeople."
"Who's in
charge of recruiting salespeople?"
"I am!"
Roland didn't have a
clue what role a CEO should play. He had graduated from college, but with a
meaningless degree. When he rejoined the family business
Colin
Dagba Jersey , he received no preparation for taking over the
reins; he had grown up working with his hands and that is still what he enjoyed
most. When he was made president, it was in name only.
I interviewed a
couple of salespeople whom Roland had been unable to hire. They told me that
they didn't want to work for a man like Roland, and referred to his lack of
sophistication and his abrupt communication style. Their image of Roland was not
that of a leader, so they each opted to take jobs with more progressive
businesses in the area.
At the end of my visit, I suggested that Roland
hire a general manager who had the talent to perform the essential business
functions that Roland hated so much. To my surprise
Christopher
Nkunku Jersey , he didn't resist the idea. He was not stupid; he
knew full well that being a company president was not his cup of
tea.
Today, the company is growing and earning more bottom line profit
than ever before. Roland is the happiest he has been in years.
Lesson: If
the owner doesn't have the talent or the willingness to prepare a strategic
marketing plan or hammer out an annual capital expenditure budget and an
operations budget, hire someone who does. There is no rule in business that says
the owner has to be the general manager.
Management acumen is not always
passed down to the next generation.
Bill Lee is a business consultant who
works with owners who want to put more money on the bottom line. He is author of
Gross Margin: 26 Factors Affecting Your Bottom Line. $29.95 + $5 S&H. ;
Blee@
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