Do you have a second line of leadership in place which is independent and accountable? Initially when entrepreneurs start their business, they are busy working “IN” the business. But if they want the business to scale up, then they would need to, set up a second line of leadership and have more time to work “ON” the business. In 2014 Gallup study, showed that entrepreneurs that delegated actually grew much faster, and they could even set more aggressive growth targets. In this blog we discuss how to develop your company’s second line of leadership (SLoM).
An EY India report recently showed that entrepreneurs who had a second line of leadership had 3.5X higher revenues than companies that didn’t. It is very crucial to be able to develop the second line of leadership.
Here are three things that you can do to actually develop a second line of leadership for your business:
Build a complimentary Team
It’s important to make sure that you have complimentary team who shares your vision. It does not make any point having people of the same strengths and doing same sort of things. To run a business it requires many different skill sets coming together, so it’s really important to have a complimentary set of people and the people who share the same vision.
Delegate effectively When it comes to delegating, there are some key important things that need to be in place.
Define Roles.Demarcate the responsibilities. It’s very important that everyone knows where does the buck stop, and what specifically they’re able to do.
Instill Accountability.Identify Key Results Areas (KRAs) and Key Performance Indicators (KPIs) for each area. Begin to monitor and measure them. Create benchmarks about what good performance looks like. Have a weekly meeting where these numbers are reviewed and action plans to move them forward are committed to. It will be very clear if someone is doing a good job or not. Achievement and recognition of achievements are key motivators of human behavior.Identify the current skills of your team and what skills will be needed for them to succeed. Develop a training plan to upskill your team so that they succeed
Allowing your team to do day – to – day management. Finally, and this is difficult for entrepreneurs allow your team to take charge and do the day-to-day management.
Yes, there will be mistakes that will happen but the kind of advantages that are there for having a good team in place, far outweigh those, and over time those things will only get better and better.
Treat your team as partners Finally the last thing is to look to treat your SLoM as partners. Is there some way in which you can involve them in key strategic decisions so that they feel part of the group? And also the other thing is that, is there some way in which you’re able to help them get an ownership? It could be in terms of employee stock options or profit sharing. If they do good work then their company grows, the value grows, and the benefits for them also grow.
So these are the 3 simple ways how you can develop your company’s second line of management so it can scale up faster.
Companies with a second line of leadership have 3.5x higher revenues on average that companies that don’t have a second line of management. Learn how you can develop your second line of management to drive your business growth faster by clicking on this short video below!
“If you have more money than brains, you should focus on outbound marketing. If you have more brains than money, you should focus on inbound marketing.” — Guy Kawasaki
Introduction of the new buying process
With increasing popularity of online and social media channels, lead generation has gone through substantial changes. The concept of buying process has changed from finding customers with mass advertising and email blasts, to “being found” and focus on building continuous relationships with buyers. Here are 5 tips on how to generate more qualified top of the funnel leads.
Sundar Pichai recently said: “The internet and digital technology will be an engine of growth for the Indian economy. Today, anyone can become an entrepreneur, a developer, or a creator, but it is important that they have the right tools and skills to digitize. We believe it is important for us to invest in training and equipping these individuals and small businesses to accelerate their journey of growth.”
A solid lead generation strategy will help you build trust and capture the interest of your buyer before they are even ready to contact sales.
What can help you achieve this goal and keep your funnel full at all times? Start with these five tips:(more…)
Teams are not made in a day or two, It takes hard work, commitment and humbleness to build a team. By definition a team is any group of people organized to work together interdependently and cooperatively to accomplish a purpose or a goal, however, in reality, a team is much more thanthat….it brings the competencies, skills, and bandwidth to achieve organizational objective.
“Coming together is a beginning. Keeping together is progress. Working together is success.” — Henry Ford.(more…)
Feeling good about the future is really important for our happiness. We all need goals that inspire us and these have to be challenging enough to excite us, but also achievable. If we try and achieve the impossible it can create unnecessary stress in our life. Choosing meaningful goals and realistic goals gives our lives direction and brings a sense of accomplishment and satisfaction when we achieve them. (more…)
Does your business have some strong risk management policies and frameworks in place? Doing business is a risky affair and you can’t avoid risk. So it’s really important to have a risk mitigation framework in place. There are certain key parameters that you need to focus on while trying to deploy an appropriate risk mitigation framework. In this article, we discuss particular aspects that you cannot possibly ignore as this may otherwise derail your growth. In fact, all the things that you’re working so hard for can be derailed.
Strong Governance Forms The Foundation Of An Effective Risk Management Strategy
Start off by setting up a strong corporate governance mechanism. If you’re going to get external lending and funding, then it’s important to have strong governance in place. Here, you’ve got to look at not only statutory compliance but you should also make sure that everything is done and reported in a transparent way. (more…)
Businesses fail due to diverse reasons. However, scarcity of funds remains as one of the major contributors to business failure. In today’s highly competitive world, businesses perish when they fail to grow. With growth being primarily fueled by continuous investments, a dearth of adequate funding may actually hinder growth, which, in turn, may shorten the lifeline of your business. The inflow of external finance can promote a drastic growth of your business only if you know how to capitalize on it. Additionally, you should have certain key things in place in order to be able to attract the right type of finance.
What do you need finance for?
Why do you need finance to grow? You may need finance to grow in a number of different ways:
Expand into new markets
Acquire human capital and get the right talent in place
Develop new products or services
Expand the reach through marketing.
So finance is required to support major functions, and it can really help accelerate the growth of a good company.
Getting Funded through Private Equity
So how can we attract finance especially by means of private equity? When you opt to raise funds through private equity, a group of financiers lends you money and, in return, they take a shareholding in your company, so they’re invested in that particular way. According to the latest weekly DNA Money update, PE-backed companies outperform various companies that are listed on the SENSEX. Additionally, it shows that the revenue growth of PE-backed companies over a five-year period is 40% as opposed to just 18% for the NIFTY Midcap or just 15% for non-PE-backed listed companies.
Interestingly, the asset growth is also 46% higher compared to just 16% with non-PE-backed listed companies, and 18% for SENSEX-listed companies.
We will reveal 4 key steps, which will improve your readiness to acquire PE finance:
Would you like to earn revenues that would be four times higher than what you currently earn today? Well, there’s one simple way through which you can achieve that. A recent EY report revealed that the companies which did this one thing had four times higher revenues than the companies that did not. So what is that one thing? Well, it’s related to your operations.
Focus On Your Core Activities
Companies that segregate their core activities from your non-core activities have four times higher revenue vis-a-vis companies that don’t. In this article, we present two different examples that make a business case for this.(more…)
Being the best is never an accident. If you’re aiming to be amazing at what you do – whether it’s your business, your job, or even your relationship – one of the best things you can do is elevate who you study from. I have made it a habit to only learn from the best! Recently I had the opportunity to spend 90 minutes one to one with the world’s #1 leadership coach. Dr. Marshall Goldsmith. He is the leader that leaders look up to. He shares the secrets of being a more successful leader.
If you google “helping successful leaders,” you’ll notice something strange. Virtually the entire first search results point to one person: Dr. Marshall Goldsmith.
Harvard Business Review and The Wall Street Journal noted that Dr. Goldsmith is one of the top 10 leadership and business experts in the world. He’s also the author of What Got You Here Won’t Get You There (one of my favorite book titles of all time).
I recently sat down with him and asked him questions I’d been wanting to ask for years.
Dr. Goldsmith is one of the few people who can answer these questions. Recently, I sat down to talk with him as part of my Titan Masterminds program to help accelerate the success of entrepreneurs. (Full interview transcript at the end of this post).
I want to share some of my favorite parts from our chat: