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.
For more details on delegating click here for the 7 steps to become an effective delegator.
- 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.
You can access the other Growth Pillars here:
Business Growth Pillar # 1: Be Customer Centric
Leave a comment below about how you develop your second line of leadership.