Ownership Focus After Adding Company Leadership
If you’re like most people, and especially like most company owners, it’s easy to get comfortable with the things you do for your company every day. Even though you know you “need more time,” or you regularly say, “I need to do that, but I don’t know where I’ll find the time,” once you have additional leadership in place, it’s time to rethink how you spend your time.
Of course, you need to invest the time required to make a proper transition to new leadership and help them get off to the best possible start. Don’t rush that process; it’s critically important for the future of your company.
When the time is right, it’s a great opportunity to ask, “Where should I be spending my time?” This is the perfect moment to take inventory of when you’re working in the business versus on the business.
“Working in the business” looks like approving invoices and timecards, attending update meetings, discussing maintenance procedures, following up on customer shipments, or checking how many calls a salesperson made yesterday.
To be clear, depending on the size of your company, and any unique skills or experience you bring, you may need to stay engaged in some of these areas. There is no single right answer and no good or bad list.
The key is that you’re asking the question and critically exploring whether each item still belongs on your plate. You’ve likely moved everything you can to your new leadership team or COO and will move more over time. Still, some tasks may be better handled by others with a bit of coaching and guidance from you. Be honest with yourself about whether you should be doing each one.
The goal is to maximize your time for the things that only you, as the owner and top leader, can do. If you don’t do them, they don’t get done. Your company may have grown with minimal time spent on these areas, and that’s great, but don’t be fooled. As the company grows, these topics become increasingly critical to the health and success of the business, and to everyone in it.
When I think about the areas an owner must be involved in, a few rise to the top:
Purpose and values. You may know what these are, but how well have you communicated them? Do your key people understand them as clearly as you do? Are they being used to guide hiring, performance conversations, customer decisions, and supplier accountability?
Strategy. Where is the company focused for success? Who is your target market? Just as important, what are you choosing not to do? Is everyone aligned and up to speed?
Finances for growth. At every stage of growth, your strategy has financial implications. They often include new demands on cash. There are many ways to address these challenges, but you must be involved in the decisions.
Organizational alignment. Every area of the company must be aligned with the strategy and working together to achieve it. Your leaders are focused on their individual areas, and they should be. Someone still needs to play conductor and ensure collaboration across the organization, and that role ultimately sits with you, if you haven’t assigned that to someone else.
For some companies, the owner’s exit may be on the horizon. It’s never too early to start thinking about this. Ideally, owners should be planning at least two to three years ahead to achieve the best possible outcome. Certain strategies, such as ESOPs or family transitions, may require even more time.
I’m not suggesting you manage all these topics on your own. Quite the opposite. Involve your key team members and outside experts. The discussions and plans will be better because of it. The big takeaway is that you must lead these efforts, they typically can’t happen without your active participation.
The core idea is simple: when we choose to do something, we implicitly choose not to do something else. Are you spending your time on the most important work? The work only you can own and influence.
Take inventory of your time. Identify what you can stop doing so you can start doing the things that matter most for your company’s future.