Presentation on theme: "Riverside Manufacturing I n 1989, George Carson began making cabinets for friends in his basement. There was no overhead. H is costs were low. So were."— Presentation transcript:
I n 1989, George Carson began making cabinets for friends in his basement. There was no overhead. H is costs were low. So were his prices. There was no overhead. W ord spread. Business flooded in. G eorge dropped his day job to make Riverside Manufacturing a real business. H e hired a helper and moved to rented space. G eorge had a micro business! Riverside Manufacturing
G eorge was a hands on owner. He: Made every hiring decision. Managed all employees. Made every important decision. Knew the intricate details of the business. Didnt need metrics, reports or documented processes. B ut, with all the work, George was stretched thin. Riverside Manufacturing
T he employees: Produced & installed the cabinets Made sales calls Resolved customer issues Shipped product Handled administrative tasks O verhead remained low O verhead remained low – there were no managers. W e have good people. We just get it done. -George Carson B efore George knew it, Riverside Manufacturing grew to 40 employees! Riverside Manufacturing
V acations were scarce and time off was at a premium. G eorge worked 75 hours per week and didnt see much of his family. W orse, business began to stagnate: Sales growth stopped Profits evaporated The shop and inventory became unorganized Work was always behind The lack of processes led to constant fire drills There were never enough hours in the day or days in the week! Riverside Manufacturing
G eorge was at a loss. What happened to his growing business? Riverside Manufacturing
R iverside was growing. P rofits were good. T hen… T hings began to go wrong. G eorge wouldnt let go. H e was drowning. H e couldnt keep up with the work. T he business was suffering. W ithout knowing it, George was the constraint to growth! What Happened?
W hat challenges do principals face as their businesses grow? W here are the transition points? D oes classifying a business based on sales and number of employees work? We need a new way to classify businesses! Questions…
Do the work Manage the workers Manage the managers A New Way to Classify Businesses Midsize Small Micro
The Principals Role Midsize Small Micro Do the work Manage the workers Manage the managers
Micro Make tactical decisions Do the work Develop strategy The Principals Role
Micro Make tactical decisions Develop strategy Small The Principals Role Get the right workers in the right jobs Manage the workers
The Principals Role Midsize Small Develop strategy Midsize Delegate authority & hold accountable Document process Develop robust metrics Hire the right managers
Doing the primary work of the business Making tactical decisions Hiring and managing workers Let Go To Grow Principals must Let Go To Grow What We Learned…
Doing the primary work of the business Managing those who do the work Managing the managers, overseeing the enterprise Let Go To Grow Principals must Let Go To Grow The principals skill set must change dramatically as the business grows: What We Learned…
What Does This Mean for Me? In what stage is your business? In what stage should it be? Micro Small Midsize
Are you successfully doing the primary work of the business? Are you making good tactical decisions? Do you have a good strategy for your business? If You Run a Micro Business…
Have you let go of doing the primary work of the business? Are you hiring the right people? Do your people deliver the results you want? If You Run a Small Business…
If You Run a Midsize Business… Have you delegated: Tactical decision making? Hiring of the workers? Management of the workers? Do you have effective managers? Do you have documented processes? Do you have the right metrics?
Weve told you what you need to do. We havent said a word about how to do it. Thats a problem with a lot of business books! Good to Great: Get the right people on the bus. How do you get the right people on the bus? How do you do the things we have been discussing today? What Now?
The insights documented in Let Go to Grow are valuable lessons for anyone looking to increase his or her management effectiveness. -Douglas P. Gernert, CEO, Totes Isotoner Corporation -Douglas P. Gernert, CEO, Totes Isotoner Corporation Doug and Polly White have written an extremely well researched and helpful guide for CEOs who want their small companies to grow into larger ones. -Kim A. Lopdrup, President, Red Lobster -Kim A. Lopdrup, President, Red Lobster Let Go to Grow is the road map for entrepreneurs who seek to achieve that elusive next level in their business. -Gerardo I. Lopez, President and CEO, AMC Entertainment What are People Saying About Let Go To Grow?
Doug & Polly White Whitestone Partners, Inc. (804) 379-7929 WhitestonePartnersInc.com Helping principals manage the transitions from Micro to Midsize.