How an Owner Can Step Out of Operations, Separate Strategy from Tactics, and Multiply the Margin

How for an owner to step out of operations, separate strategy from tactics, and multiply the margin

I have often observed how an owner's attempt to act as a director leads to chaos in processes, burnout, and a slowdown in the pace of development. This is a common trap that many fall into. While in the initial stages of business development, especially when the business is small, the owner often combines many functions, as the company grows and tasks become more complex, there is a need for a clear separation of roles.

As an owner, you may be strong in strategic vision or product development, but operational management requires a different set of competencies. Therefore, when these roles are mixed, the cost of error is measured not only by financial losses but also by significant expenditures of energy and resources.

The effective solution to this problem is the appointment of a professional director, a clear delineation of functions, and a precise definition of the rules of interaction between the owner and the director. This allows everyone to focus on their area of responsibility: the owner — on strategic development and global vision, and the director — on operational management and achieving set goals.

The owner's area of responsibility

My area of responsibility as an owner always remains unchanged, and I control:

• Goal and strategy. I set the long-term goal and fix the strategic priorities. 
• Financial model. I determine the target margin, the share of reserves, and limits for payroll and marketing funds. Rules, not emotions, should manage money. 
• Product. I personally keep product development in focus. The market, customer expectations, and technologies are changing rapidly. I set the vector, and the director translates this into specific deadlines and tasks. This is how we stay relevant. 
• Key people. Strong leaders are attracted by meaning, mission, and the opportunity for growth. Attracting such people is always the owner's task. The director then builds the team and is responsible for the result. The director's role

An effective director works in a simple and clear cycle, having on hand an annual plan with clear goals, quarterly priorities, and weekly plans for each manager. Coordination is held once a week for 30–45 minutes with a constant agenda: plan, risks, decisions, resources, responsible parties, and deadlines. Daily communication is short, and reports are clear. Any deviations are immediately fixed, and adjustments are based on facts, not assumptions. The team is managed through clear agreements. Employees come with problems already having suggestions for their solution, which increases responsibility and saves time. The director inspects processes, monitors the execution of rules, sees people's workload, and removes everything unnecessary. He trains the team and keeps the system toned. 

How to separate roles in practice

• "Owner's Agreement." Create a short document that outlines strategic goals, service standards, key indicators, limits of authority, and coordination format. The main rule is non-interference. 
• Transfer of power. When appointing a director, give him real authority and do not give instructions to his subordinates. Resolve all issues directly with him. 
• Weekly coordination. Once a week, cross-check priorities, discuss risks and bottlenecks, reallocate resources, and fix decisions. This rhythm creates stability and increases the speed of work. 
• Financial discipline. Pre-established limits and rules for cash flow management eliminate "bargaining" and disputes. Decisions should be made based on figures. 

Today we are implementing this approach in the Business Booster accelerator, and it works in companies of any scale—from small businesses to network structures with hundreds of employees. My time orientation is strict. Up to 70% of my calendar is dedicated to strategy, product, and key relationships. The rest is for developing the management team and control through figures. No "firefighting." If I am drawn back into operations, it means the people, structure, or rules are broken. I fix the system, not "run with a bucket." 

What to do if roles are already mixed?

A clear restart is necessary. 

1. Describe functions. Separate the owner's tasks (goal, strategy, standards, product, financial model) and the director's tasks (plan, goals, coordination, team training). 
2. Approve the "owner's agreement" and coordination regulations. 
3. Hold a meeting with top managers and announce the rule of non-interference. Give the director real power and one month for stabilization. 
4. During this time, strictly adhere to discipline and work only through him. 
5. Evaluate progress by numbers after a month, adjust goals, train, or, if necessary, replace the person. 

This approach works in both small and large businesses. At Amazon, the "disagree and commit" principle maintains the speed of decision-making. At Apple, Steve Jobs set the product vision, and the operational machine ensured flawless execution. As a result of this approach, separated roles ensure predictability and a high pace. 

Critical owner mistakes

• Giving instructions to the director's employees. This destroys his authority. 
• Changing rules on the fly. Because of this, people stop believing in agreements. 
• Hiring insufficiently competent specialists for key roles. Strong leaders are the owner's area of responsibility. 
• Lack of a weekly rhythm. Without regular coordination, the company lives in emergency mode. 
• Financial management without rules. Because of it, money dissolves into desires, the margin falls, and there are no reserves. 

What do you get when roles are separated?

Rhythm and predictability appear. Margin grows, dependence on one person decreases. The director manages operational activities, and the owner looks to the future, develops the product, concludes key partnerships, and builds a strong team. The business stops stalling on trivialities and accelerates in the main. My advice is simple. Open your calendar for the last two weeks and count how many hours you spent on operations and how many on strategy. If tactics prevail, you need to start a restart.

If you don't know where to start, my master class for top managers and business owners is what you need. In it, you will learn how to strengthen the team, reinforce the foundation, and move to a new level. I will share my experience in building a growing business from scratch and provide tools for building a system within it. Link for registration: https://go.bbooster.online/oz7e