B102.4 - Management |
Management has a much different connotation for someone involved with big business as opposed to a Sole Practitioner, but the concepts still have immense relevance.
Below is an outline for this page:
- Formal Definitions
- Formal Curriculum
- Important Questions for Understanding
- Discussion -- Management is a Full Time Job
- Discussion -- "Management wasn't why I started this" Syndrome
- Discussion -- "The Silent Partner" Syndrome
- Discussion -- "My Employees Run the Show" Syndrome
- Discussion -- Sources of Insight for Sole Practitioners...
- Discussion -- For those who haven't tried going solo yet...
- Discussion -- For those who have failed going solo...
- Discussion -- The Familial Caveat..
Section 99 at the bottom is the Real World Stuff you need for operations.
1) Formal Definitions
The second definition of Management is going go shock you...
Management (noun)
1) The process of dealing with or controlling things or people
a) the responsibility for and control of a company or similar organization
b) the people in charge of running a company or organization, regarded collectively
c) the treatment or control of a disease, injuries or disorders, or the care of patients who suffer from them
2) Trickery; Deceit (archaic)
Example: If there has been any management in the business, it has been concealed from me"
Isn't it interesting how "Management", a word associated with "negative manipulation" has become a word we don't instantly associate with negative manipulation? How does that kind of inversion happen?
Management (noun)
1) The process of dealing with or controlling things or people
a) the responsibility for and control of a company or similar organization
b) the people in charge of running a company or organization, regarded collectively
c) the treatment or control of a disease, injuries or disorders, or the care of patients who suffer from them
2) Trickery; Deceit (archaic)
Example: If there has been any management in the business, it has been concealed from me"
Isn't it interesting how "Management", a word associated with "negative manipulation" has become a word we don't instantly associate with negative manipulation? How does that kind of inversion happen?
2) Formal Curriculum
The Classes at Sailor.org related to Management Topics include:
The list of topics below was taken from their online course titled "Principles of Management"...
Concepts related to Managing Employees are what we are going to focus on most. However, Leadership is relevant and Employee management concepts roll over into Subcontractor Management, Vendor Management and Customer Management too, all of which are real world requirements which don't get nearly enough formal acknowledgement.
Management of Self is also very relevant, but not a focus of this section.
- Principles of Management
- Organizational Behavior
- Corporate Communication
- Human Resource Management
- Small Business Management
- Management Leadership and others...
The list of topics below was taken from their online course titled "Principles of Management"...
- What is Management
- Historical Development and Globalization
- Organizational Culture, Diversity and Ethics
- Leadership and Teams
- Managing Employees: Motivation, Empowerment and Conflict Resolution
- Human Resource Management
- Planning and Strategy Formulation
- Decision Making
- Organizational Structure, Change and the Future Management
Concepts related to Managing Employees are what we are going to focus on most. However, Leadership is relevant and Employee management concepts roll over into Subcontractor Management, Vendor Management and Customer Management too, all of which are real world requirements which don't get nearly enough formal acknowledgement.
Management of Self is also very relevant, but not a focus of this section.
3) Important Questions for Understanding
Employees and subs
Employees
Subcontractors/1099 Support
Interviewing/Hiring
Information Management and Employees
Vendor Management
Customer Management
Leadership
- Do you need employees and/or subs?
- Do you know what it takes to manage employees or subs effectively?
- Do you have what it takes to manage employees or subs effectively?
- What does effective mean in this context?
- Do you realize there are numerous management styles and do you realize finding employees and subs that are compatible with your style are critical to your success?
- Do you understand economies of scale when it comes to employees?
- Do you understand cross-training employees?
- Do you realize in small businesses with only a few non-cross trained employees involved in technical tasks, your employees are silent partners in your business, like it or not?
Employees
- Do you understand the financial costs of employing others?
- Do you understand the energetic costs for employing others?
- Do you understand the legal risks of employing others?
- Do you understand the business risks of employing others?
- Do you know how to properly manage others and do you realize there are numerous techniques needed based on not only the role of your employees but also based on their own dispositions and personalities?
- Do you know how to properly release and/or fire employees?
- Do you have the ability to release and/or fire employees?
- Do you know how to say no to employees?
- Do you know how to lead employees?
- Do you understand the rhythm method of management as it relates to helping employees operate at their peak potential?
Subcontractors/1099 Support
- Do you understand what legally qualifies as 1099 support versus employee support?
- Do you understand how to evaluate, hire, supervise, critique, and fire subcontractors?
Interviewing/Hiring
- Do you know how to define job requirements?
- Do you know how to screen prospective employees or subs?
Information Management and Employees
- Do you have any clue how much more complicated Businesses with employees has gotten since the inclusion of computers in the work world?
- Can you support any and all computer technology required for your employees?
Vendor Management
- Do you know what Vendor Management is?
- Do you know how to maximize your vendor relationships?
- Do you realize that personal styles are relevant when selecting and working with vendors?
Customer Management
- Do you know what customer Management is?
- Do you know how to maximize your relationships without discomfort for you or your customers?
- Do you realize that personal styles are relevant when agreeing to work with customers?
Leadership
- Do you understand the statement, "There is a time to lead and time to follow"?
- Do you understand the quote "He who can not be a good follower can not be a good leader" -- Aristotle
MUCH OF THE CONTENT BELOW IS AN EXCERPT FROM ONE OF THE CONTRIBUTORS FOR THIS OVERALL CONTENT, WRITTEN IN 1ST PERSON...
4) Discussion -- Management is a Full Time Job...
In the mid 90s I started out with a few solo ventures and a partnership, while also being employed. The businesses included Mail Order, Web Based Services, and Residential Renovation and Construction work. For my day job I was a Sales Engineer for a mechanical components company managing Direct Sales and Sales thru Distributors and Value Added Re-sellers for the Mid-Atlantic Region of the United States.
Construction
On the construction side of things I started out my first project solo in 1998. I had lined up some consulting support and some subs for my first job and less than 2 months in, that all fell apart. I was hopelessly lost and on my own. As divine intervention might have it, I stumbled onto a man who came to work for me as an employee/sub, but who in fact acted as my Teacher. We used my job as a classroom for my own personal growth. As I grew in knowledge and hands on experience we slowly started subbing out work we didn't want to do or couldn't do efficiently after I had an understanding of just how artistic some trades were. Our relationship lasted for several years. We built 6 homes together and we did numerous side jobs before that relationship came to an end.
I took some time away from construction and then a few years later I started over again by myself with one laborer. That was my time to realize how much I knew and how much I didn't know. As I pursued more work, I put together a small construction crew that was more like the Bad News Bears than anything else. The construction and real estate market slowly started heating up and I slowly started swapping out lesser performing employees for better employees and at my peak I had two companies doing custom renovation work with 15 employees.
One company was my own. I had 7 employees and a dozen or so subs. I had about a dozen regular vendors. The other company was owned with a Partner and we had 7-8 employees in the company . It primarily did subcontracting work for my own company along with many others.
Given the level of custom work I was trying to do in 100-150 year old, crooked, logistically challenged row homes, management was an absolute nightmare. Every benefit gained from the additional help was often nullified by the inability to control the quality well enough to avoid rework. When I was willing to just supervise, we did okay, but then I became an overhead item and not a production person, and that was a huge hit to overall production given the speed at which I could work to produce exactly what I wanted. The trade-offs were never ending...
Computers
On the Computer and IT side of things. I had a partnership that started in the 1990s. He had a very personal relationship with most of our subs/vendors. It was a good experience. We split up in the early 2000s. I briefly tried to take on those roles and it was a nightmare for numerous reasons. I eventually found some vendors who I could work with to get the basic services, but I realized that without the very personal relationships we had prior, and the group effort that was performed in that manner, my confidence to pursue larger IT work was diminished. Given the rate at which IT was changing, I actually put much of my larger IT dreams onto the back burner as I could not figure out how to go it alone without a huge sum of money to support the flops when they happened.
In general, what I'm trying to convey is that Management of Employees, Subs, Vendors, Customers and Partners is a full time job and a tough job. I'd say it most mimics being a parent (although I wouldn't know that first hand). For me, there is an inverse relationship between creativity and management. The more you want to be involved in management, the simpler and more repetitive the tasks had better be if you want to maintain quality work and your sanity.
While some things get more complex as a Sole Practitioner, others get immensely simpler when no employees are involved.
5) Discussion -- "Management wasn't why I started this" Syndrome
For many with employees, the entire game of business becomes a juggling act related to employee management.
If you went into the business because you loved the trade, product or service you were involved with, you may become quite dissatisfied as you slip into a management role.
6) Discussion -- "The Silent Partner" Syndrome
In very small business, when your employee count is between 1 and 3, you generally have silent partners, like it or not.
There generally is not enough overlap in work between employees. the absence or termination of an employee pretty dramatically affects your ability to produce or deliver your good or service. .
Thus, as you start to scale up with employees, if you try to operate at 100% of potential, when someone can't make it to work or when a machine breaks, you will fall behind and you will not be able to easily catch up.
When you have multiple employees, you need to start building in daily slack to ebb and flow with employee issues and business volume related issues.
Example: If you own a Chiropractic Clinic and you have one front desk employee. If she stays busy all the time, and if she is heavily involved with the booking of appointments and collection of money, she is a silent partner, like it or not. If she disappears, you are in a pickle. The Silent Partner syndrome is something many experienced Sole Practitioners are familiar with. If you have been sickened by this a few times, you really need to try the Solo route. A similar scenario is in fact what inspired this entire website.
There generally is not enough overlap in work between employees. the absence or termination of an employee pretty dramatically affects your ability to produce or deliver your good or service. .
Thus, as you start to scale up with employees, if you try to operate at 100% of potential, when someone can't make it to work or when a machine breaks, you will fall behind and you will not be able to easily catch up.
When you have multiple employees, you need to start building in daily slack to ebb and flow with employee issues and business volume related issues.
Example: If you own a Chiropractic Clinic and you have one front desk employee. If she stays busy all the time, and if she is heavily involved with the booking of appointments and collection of money, she is a silent partner, like it or not. If she disappears, you are in a pickle. The Silent Partner syndrome is something many experienced Sole Practitioners are familiar with. If you have been sickened by this a few times, you really need to try the Solo route. A similar scenario is in fact what inspired this entire website.
7) Discussion -- "My Employees Run the Show" Syndrome
If you own a business and you love being liked to the extent that you allow the employees to make up their own rules, you will eventually fall victim to the "My Employees Run the Show" Syndrome.
When enough employees get comfortable enough in their position that they start treating the boss like a peer and occasionally a punching bag, total co-dependent dysfunction starts to control most of the dialogue.
The boss can't punch back because 1) often times he doesn't know how and 2) without his employees he can't take on the work.
Ultimately, there is a degree of distance and respect that should be maintained between employers and employees, and that can be a very difficult thing for some folks to manage internally. Likewise, various types of hourly employees often times need to be monitored and managed in ways much differently than salaried folks or contractors and thus, a the Management Hat of a Small Business person is very complex. Only very good Chameleons can pull it off with some measure of success. Often times the Chameleons that are great managers aren't great business owners because they are so good at managing they don't have what it takes to be focused enough on the products or services to be a full on success without the support of Marketing folks.
When enough employees get comfortable enough in their position that they start treating the boss like a peer and occasionally a punching bag, total co-dependent dysfunction starts to control most of the dialogue.
The boss can't punch back because 1) often times he doesn't know how and 2) without his employees he can't take on the work.
Ultimately, there is a degree of distance and respect that should be maintained between employers and employees, and that can be a very difficult thing for some folks to manage internally. Likewise, various types of hourly employees often times need to be monitored and managed in ways much differently than salaried folks or contractors and thus, a the Management Hat of a Small Business person is very complex. Only very good Chameleons can pull it off with some measure of success. Often times the Chameleons that are great managers aren't great business owners because they are so good at managing they don't have what it takes to be focused enough on the products or services to be a full on success without the support of Marketing folks.
8) Discussion -- Sources of Insight for Sole Practitioners...
As someone in business solo, you typically can not watch others who run similar business with employees and glean what you need to glean to be successful as a Sole Practitioner, but often times you can watch Sole Practitioners in other fields and glean voluminous amounts of info with regards to what you need to do for your own success.
9) Discussion - For those who haven't tried going solo yet...
If you are in a business which "could be run" without employees, if you haven't tried it, you likely should...
The level to which an efficient person can operate without employees is mind blowing for many who haven't tried it. You have no idea just how much energy is going towards your employees until you try doing it without any. Sure, you'll end up doing some mundane work you might rather not do, but you also might find the free time and trade-offs to be rather shocking. By "properly" running your own business by yourself first you 1) learn your business and 2) you develop "processes" for your own work flow that enables you to claim you run your business "properly". Once you have your business optimized as a Sole Practitioner, you are in a position to decide if you want to take on all aspects of Management related to the employment of others. Sometimes employing others is the next natural step to being more creative... the caveat is that if you master running your business solo, if and when things take a bad turn after you ramp up, you know what needs to be done to un-ramp for a bit if needed... and if you've never run a business without employees, you truly don't know how to un-ramp.. and that can be a very bad place to be the first time you get there.
The level to which an efficient person can operate without employees is mind blowing for many who haven't tried it. You have no idea just how much energy is going towards your employees until you try doing it without any. Sure, you'll end up doing some mundane work you might rather not do, but you also might find the free time and trade-offs to be rather shocking. By "properly" running your own business by yourself first you 1) learn your business and 2) you develop "processes" for your own work flow that enables you to claim you run your business "properly". Once you have your business optimized as a Sole Practitioner, you are in a position to decide if you want to take on all aspects of Management related to the employment of others. Sometimes employing others is the next natural step to being more creative... the caveat is that if you master running your business solo, if and when things take a bad turn after you ramp up, you know what needs to be done to un-ramp for a bit if needed... and if you've never run a business without employees, you truly don't know how to un-ramp.. and that can be a very bad place to be the first time you get there.
10) Discussion - For those who have failed going solo...
If you are in a business which "could be run" without employees, and you tried it and it didn't go well... maybe you need to try it again with the help of the info in this website and some outside coaching. Going solo is incredibly tough. If just a few items are off, you are destined to wipe out. Don't project prior failure onto future failure without properly identifying true shortcomings, and there's a good chance you don't have the insight to properly identify the true shortcomings without some help.
11) Discussion - The Familial Caveat..
There is a HUGE difference between folks who have familial partners and employees in business and those who don't. The bond that exists between family members when it comes to small business is unique. Family members will typically endure things normal partners and co-workers and employees do not. If you do not have familial support -- meaning you are either destined to be a Sole Practitioner or an Employer... do NOT use Businesses where there was/is a familial network for comparative purposes. The invisible bonds in those business are so filled with intangibles it is astounding. This is a great example of when NOT to compare out and who NOT to compare out to.
If you are fortunate enough to be in a situation in which you have familial support in your business, recognize that as both a gift and a curse. The gift is the business can likely do things faster and easier than one where that network does not exist. The curse is that it will be much harder for you to ever isolate and experiment with your own singular potential without breaking away from the family business and operating as if it does not exist.
If you are fortunate enough to be in a situation in which you have familial support in your business, recognize that as both a gift and a curse. The gift is the business can likely do things faster and easier than one where that network does not exist. The curse is that it will be much harder for you to ever isolate and experiment with your own singular potential without breaking away from the family business and operating as if it does not exist.
99) The Real World Setup for Operations
This entire website is really designed to support the Sole Practitioner journey so the information that should be here is in fact spread across this entire website.