Why do some enterprises become large and their products and names are well-known to everyone, while others continue to fight for survival and for many years of existence have been balancing on the edge of the abyss? Why do some create products that become landmark for modern civilization, while others play by the rules imposed by society and cannot break out of the “matrix” of these rules? - with these questions begins the first chapter of my book “The business owner defined” . About 10 years ago, I realized that almost all business owners who are ready to take their business to a new level ask themselves such questions. Therefore, I propose today to analyze the main functions of the owner of the company on the shelves.
It can be assumed that the basis for the success of world-famous companies is only an incredible product that “hit the market” and in itself is so attractive that it ensures the success of the company. Of course, the product is important, but there seems to be something else. Because the world is full of successful restaurants with delicious food and good service, as well as excellent computer programs that you have never heard of.
Behind every truly successful enterprise is a personality, a purposeful person, devoted to his own ideals and ready to go to the end. When such a person is also a skilled leader, the company achieves incredible results. This person is the founder of the company.
Like every employee, a business owner also has his own valuable end product (CCP). I wrote about this in detail in my article . And for the implementation of the CCP, it is necessary to understand the set of functions, which in the most efficient way will ensure its implementation.
The goal and mission should at least be formulated, described in the form of an official policy, to ensure that each employee understands them. At each general meeting of staff and meetings with managers, it is necessary to remind them, at first - in person, and over time to transfer this to senior managers and, of course, to ensure that they do everything without distortion. Periodically make adjustments to these formulations, gradually honing them. At one of the first sessions of the School of Business Owners, the owners form the company's goal and learn to communicate it to their employees, as it turns out, in most cases, earlier the goal was outlined only in the head and they they didn’t share it with anyone.
It is necessary to attend exhibitions, read specialized magazines, and collect data on the activities of competitors. Visotsky Consulting even has a well-developed strategy to increase fame in each country. It is also good practice to study similar markets in more developed countries, as this provides a good idea of the future of the industry. It is necessary to monitor changes in legislation and international relations. For example, the agreements on duties that the government signed upon accession to the WTO are gradually coming into effect, and the processes of European integration are also having their impact. For some types of domestic business, these changes have had or will have a serious impact. It is necessary to create, approve and control plans for the development of a company's product.
It is necessary to constantly monitor the activities of the company, to find significant deviations, to create and approve a policy developed by managers, to ensure that employees know and comply with it. It usually takes several hours weekly. A section in the book “The business owner defined” is devoted to how to create a policy correctly .
You need to find people who can describe the technology of the company in the form of regulatory documents. To study existing successful technologies, reading books, attending seminars, looking for talented specialists, attracting them to cooperation. One of my friends is looking for talented specialists with valuable knowledge throughout the country and invites them to work for a year in the company. He concludes an agreement with a specialist on what should be the result, provides him with housing and salary, and upon reaching the result he pays a good bonus. This may seem like an expensive tool, but think about what it really cost your company to learn how to produce your product. And how much money would you not lose if you learned not to do it in five years, but in a year?
This feature requires weekly work. In addition to the fact that it takes time to start the strategy in work, you need to monitor the progress of the tasks once a week, hold a meeting with senior managers to coordinate their actions and focus on the result. From the moment I myself began to manage the company from the position of owner, having put the director, this function took me several hours a week. And of course, once every six months correction of plans and development of new ones is required. For participants in the School of Business Owners, I personally help develop a strategy on a Business Tour in New York . They come to me for a week after passing the 11th session of the project and completely devote this time to the development of strategic plans.
It takes a lot of time at the very beginning when you need to organize everything. After the leaders of the company according to the established methodology, described in detail in the book “Financial Planning. The art of creating income ” , they began to carry out financial planning, I need about an hour a week to check the reports and, if necessary, adjust something.
It consists in, firstly, finding the right person, because this will not be able to do the personnel department. Secondly, it will take a lot of time to describe on paper and transfer to this person all his successful actions as a director, then carry him through apprenticeship in this position. And of course, it is necessary to work with him on a weekly basis - check his plans and, if necessary, adjust, monitor the implementation of plans related both directly to production results and development plans. Even after you have successfully appointed a director, this function takes at least three hours a week.
If you evaluate all these functions even simply in terms of time, it turns out that for the full implementation of these duties, almost a full day is needed. It's like a helm with which you can easily manage your business
Please note that I did not mention a single function of the director - only the owner, so the idea that I sometimes have to deal with in the work that the owner does not have to do anything is utopian. Yes, he should not be engaged in operational management, but he will have to work. A schedule as tight as a director’s is not necessary for him, but he will have to spend time to produce his product professionally. Read carefully the book “The business owner defined” and once and for all deal with your functionality.
The question may arise, how do outstanding companies develop and prosper, even if their creators do not fully fulfill the functions of an owner? Indeed, they do not. The business world is not so tough, it forgives a lot of mistakes. To thrive, it’s enough not to commit the rudest of them.
Today, companies can grow very quickly, this is facilitated by modern means of communication, training, as well as automation. 40 years ago, it took weeks to familiarize employees working in neighboring cities with some instructions, and today only a few hours. Previously, it took months to introduce a new product, but now it can be done in a few days using video recordings and the Internet. The modern business environment offers unprecedented opportunities for fast and high-quality growth; only skilled owners can take advantage of this. It was for such owners that I developed the School of Business Owners , where the best consultants help to understand and organize the work of management tools. Are you one of these owners? See you on the project!
