Once you determine how much financial information you are willing to share with the potential manager, focus on the management issues of responsibility, authority, and accountability.
You have to give your managers the responsibility to do the job, the authority to do what is necessary to get the job done, and the accountability (rewards or consequences) for the results.
It’s much easier to give the responsibility and accountability than the authority. Learn to watch the process rather than do the work. If you don’t agree with how a manager is doing something because it is not just how you would have done it, you have to learn to review it with the manager not jump in and do it.
Here’s an example:
Assume that you have a new service manager and want him to concentrate on building service agreement sales. This is a safe management task to give a new manager. You know that service agreements are the life blood of the service department and you need as many as you can get. You talk with the service manager about it and get his agreement on a goal of increasing service agreements by X number by Y date. You must give him the authority to do the job as he sees fit. And, he must understand and agree to the consequences if he doesn’t reach the goal.
In your discussion with the service manager you must clearly define the goals to be accomplished and how the accomplishments will be measured. This case is clear cut. The measurement might be a 25 percent increase in sales within a three month period with no increases in overhead. Make it clear that “the monkey is off your back and onto his back.” You are available for questions and help although the decisions are to be his decisions.
If a service technician or the dispatcher comes to you trying to overturn a decision made by the service manager you must tell that person that you stand behind the service manager’s decision. You cannot overturn his decision even if you disagree with it. Talk with the service manager about it and see if he is willing to change the decision. He is the only one who can. If you do it, you undermine his authority with the department employees.
Your job as the business owner is to manage the process. This means that you watch and make suggestions only when asked for them. The only time you should offer help is if you see a blatant error that will harm the company.
If you see a blatant error, speak with the service manager and get him to realize he is making a major mistake. Have him give you suggestions for correcting it and carry out those corrections.
During the process the service manager will realize that the responsibility is the easy part of the job and the authority and accountability for his actions are the hard part. As the business owner you watch the process, lead, encourage, and refuse to take the monkey back.
He also will learn: “I hire, I fire.” Hiring is often easier than firing for new managers. Remind him that if he hires a new team member he has to fire that person if warranted.
This may be one of the most difficult things for you, the business owner to do. You can’t interfere. The service manager may not do things exactly as you might do them, however he’ll get them done. As long as he produces the desired result everyone wins.
By delegating responsibility, authority, and accountability, you’ll teach the new manager management issues. Many will learn by making mistakes. You are there to guide the process and protect the company from catastrophic mistakes. By letting them make mistakes, you’ll create a winning management team and a successful company.
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Ruth King is well known as “The Profitability Master.” She is passionate about helping small business owners become profitable and stay profitable. For over 40 years she has coached, trained, and helped contractors and others achieve the business growth and goals they wanted to achieve.
Contact Ruth by emailing ruthking@hvacchannel.tv.
