My management team is not so hot. Does it matter?

This article first appeared November 19, 2009.

Dear Aunty B,

One of my key managers has just resigned and will be extremely hard to replace. Apart from the body blow (my head still aches from my attempt earlier this week to drown the disappointment), it has highlighted the fact that my management team is not so strong.

I have a choice. I either replace my great manager who has been poached and I sincerely doubt I will ever find someone with the diverse set of skills and talent – or I hire several people at a lower level.

I am a passionate hands-on entrepreneur who drives the business hard so should I hire more people to back up the management team?

Stuck,
NSW

Dear Stuck,

Congratulations. You are making the progression from a small business mentality to an entrepreneurial mindset. But a warning. You are about to slip back. Why?

When you started your business you were the driver. It was your passion, energy and sheer determination that drove the business. It was small so you could have a finger in every pie. And it worked because everyone bought into your vision and was carried by your energy.

Then the business reached the size where people needed to specialise rather than the start up model where one person does about 15 things and roles are not clearly defined.

Those staff then typically report to a manager who reports to you. The mistake you are making is that you are unconsciously flipping back to the start up model by hiring the two people in the lower ranks. The most important task for you at this stage is to build a top management team. The better the talent of your management team the faster you can grow. It is this management team after all that will move you away from the small business, micro managing mentality as they will drive the people under them and set the culture that guides decisions down the line.

So don’t go back to setting yourself up as head supremo with a lot of people. Build that management team! Hire people better than yourself and reward them for building your company.

Good luck!
Your Aunty B

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