Balancing Strategy, Tactics, and People for Business Success

Wednesday Wisdom August 14 2024

Here are my thoughts on being the Hub of your business.

I discuss the age-old concept of why a business owner should extract themselves from the day-to-day operations and how that increases the value of the business.?

Enjoy.

Are You the Hub or a Spoke in Your Business?

Why is it that we are still trying to convince business owners that it’s a good idea to step back from the day-to-day operations and how doing this increases the value of the business.

I would say fear, ego, and a narrative (even a philosophy) that was ingrained into us by institutional leaders.

Today’s Wisdom - Hub or Spoke. Which is more valuable?

The concept of working on your business not in was first spoken about by Michael Gerber in the E-Myth (Entrepreneurial Myth). It was first published in 1985, nearly 40 years ago, and republished under The??E-Myth Revisited in 1995.

Gerber basically says, if you have a problem, put a process in place,. the problem goes away. He also talks about the need for the Founder to understand their role as the Entrepreneur, Manager and Technician.

And here we are, in 2024, saying the same thing to largely the same audience.

Why is that?

It’s easy to lay blame on a particular constituency. It’s the advisers, it’s the owners, it’s the economy, it’s the Boomer’s parents, yada yada.

And it’s probably a combination of all these, at least in part, but I believe it is primarily ego based.

When I was a young and upcoming executive, you were your job. It’s how you announce yourself in a social situation. Rarely did you say you were a Father or Husband. It was “I’m the National Sales Manager” or “I own a manufacturing company”.

And Women would say “Oh, I’m just a Housewife” and laud their Husband’s achievements.

?Fortunately this is becoming less common in the younger generation, but it’s still common to ‘be the job’.

So no wonder business owners want to be seen as the Hub of their business. It’s their perceived value.

Judgement day is coming, not in a Biblical sense, but in an Exiting sense and it is evident (the Jury’s not out on this) that when a business is centred around the owner, it has a diminishing return on investment.

The answer is Work ON your Business, not IN it. Again from Gerber.

The Hub Dilemma

When you're the hub of your business, always at the centre of every decision, it becomes nearly impossible to step back and see the bigger picture. You might be solving immediate problems, but are you setting your business up for long-term success?

Here's the hard truth: being the hub can actually decrease your business's value. Potential buyers are not looking for a business that revolves around one person. They want a well-oiled machine that can run smoothly with or without the current owner.

Generation X, Y and the Millennials have cottoned on to this notion because they can see what the ‘24/7 work hard’ model has done to their Parents. “No thanks” is their answer.

But it is hard for ANY owner to let go of Control. And here I believe is one of the fundamental principles that have been mis-understood.

As an owner you should never give up Control. At the end of the day you have the most to lose.

You can be less Controlling, or more trusting in the strategy, people, systems and??processes.

Find a balance

Another myth. I do not know anyone (regardless of their generation) who has waved a magic wand and waltzed their way to success.

My definition is "Where you need to be now with intention and communication, and is implemented by being present." provides you Balance.

The intention is to get stuff done. Communicating your intention to the people who matter. Then not to feel guilty about getting stuff done.

It’s ok to be working long hours in the office. Be present and resist FOMO.

It’s ok to be home with your loved ones. Be present by going off the grid.

Where should you focus when you are being the Boss?

Time allocation (not management) is the most difficult activity for an Owner.

Delegation is the greatest leverage you can have for your time.

Saying NO is one of the best tools for you to stay focussed.

But there are still some things that you, as the Owner, need to do.

And this is where the concept of working ON and IN your business seems to be misunderstood.

You still need to work IN your business.

Finding Balance: The 20-65-15 Rule

So, how can you break free from the hub mentality?

Here is a very simple, yet effective way for you to step into a process, that over time, will allow you to wean your employees off their dependence on you.

This gives you the confidence in knowing that they have your back and you trust them to do the work they are paid to do.

1. 20% on Strategy: This is your time to think. Be intentional about being disconnected.

Stillness is a powerful tool. How many times have you had a great idea in the shower, or on a walk. When you are intentionally not thinking about your business you are open to fresh and new ideas.

This is where you have time to investigate the opportunities and make those informed decisions that will shape your company's future.

2. 65% on Tactical Activities: Yes, the day-to-day still matters. But instead of doing everything yourself, focus on guiding and monitoring your team's progress. Get good at delegating!

The most productive I have ever been is when I have been teaching. Education and Delegation leads to Duplication.

3. 15% on People: Invest time in People. Be Interested not Interesting.?

When you take the time to understand your team's challenges, they appreciate you and you start to take deposits into the Trust Bank.

A strong and trustworthy team is the backbone of a valuable business.

The Power of Incremental Change

Now, I know what you are thinking. "I need to make big changes, and fast!" But resist that urge.

Sweeping changes often lead to confusion and frustration. Chaos is the enemy.

Instead, focus on small, thoughtful improvements.

Plan them carefully, communicate them clearly, and watch as they add up to significant transformation over time. It comes from your thoughtful Strategy and these take time.

Your Action Plan

1. Start tracking how you spend your time. Are you stuck in the hub, or are you balancing strategy, tactics, and people?

2. Identify one area where you can step back this week. Can you delegate a task? Can you spend an hour on strategic planning?

3. Communicate with your team. Let them know you are working on empowering them more. Their insights might surprise you.

Remember, transforming from the hub to a spoke in your business wheel does not happen overnight. It's a process, but it's one that can dramatically increase your business's value and set you up for long-term success.

If you're feeling stuck or want to dive deeper into this concept, I'm here to help.

Let's hop on a call and discuss how we can elevate your role from the spinning-hub to strategic leader.

Here's to building a business that is valuable with or without us at the centre.

Steve

P.S. Know another business owner who might be stuck in the hub? Forward this email to them. Sometimes, the best thing we can do is share the wisdom that has helped us grow.