Micro-management
Is it Ever Warranted?
I am often asked by managers and business owners to help them justify their micro-management practices. Most often the justification is some real or perceived degree of ineptitude of the employees.
I get paid good money to give advice that will actually help business owners make money. And when it comes to micro-management, I pull no punches. Micro-management is never a good idea or practice. in fact, it is representative of poor management. The usual rationalizations are:
1) I can do it faster myself
2) I can do it better myself
3) By the time I explain it, I might just as well do it myself.
All of these ‘excuses’ are reflective of poor management skills. As a manager, your job is NOT to DO things, your job is to get things done through other people. When you do not delegate, you are holding your people back and stalling your own management career.
In order to develop your people, you must, of course, trust but verify. The whole point is that your job is to develop your people and if you can not do so then either they or YOU have to go.
BUT, if you are the boss, it is unlikely and impractical that it is you that should go. And, most importantly, the point is not to call your management skills into question but to achieve the objective of developing a productive workforce.
Delegation (NOT abdication) is the number one most important management skill. It is the number one management skill that holds managers back from operating at peak performance. It requires planning, nurturing and patience but the return on investment is an inspired, well-developed and vastly more productive workforce.
Here are a few tips on developing your people and your delegation skills:
- Open Door Policy - create an environment in which your employees trust that they can ask questions in order to develop BUT - rather than answering their questions or solving their problems, require that, along with every question or problem, they bring you 2 or 3 solutions that, through discussion, you can help them choose the best
- Communication - among the biggest initial mistakes managers and even business owners make is to assume that the employees understand the task or request. Remember, in communication, it is the responsibility of the person making the statement or request to ensure that the audience has heard and UNDERSTANDS the task or request.
- Follow Up - Do not wait until the task has been completed to find out that your employee went in the wrong direction or took the wrong approach. Create milestones and check in regularly to ensure they are on course. Do so on a timely basis to ensure timely course correction to complete the task on schedule.
- Objectivity - create a clear understanding as to what constitutes success, failure or anything in between BEFORE the task is undertaken. It is unfair to impose your standards after the fact and will be demotivating to both the best and the worst employees.
- Consequences - most managers have no problem with voicing disapproval when the task is not completed on time or to a specified standard (see Objectivity above). It is critical that negative reviews be done privately and objectively. To do otherwise simply feeds the ego of the manager and demotivates everyone else involved. Equally if not more importantly, PRAISE great performance and do it publicly. We all (EVERYONE) openly or secretly crave acceptance and praise. Thus, praising great performance inspires more praise from the person who did the job as well as all of those who witness the praise. Simple rule of thumb: Praise in Public, Criticize in Private.
Always keep in mind that running a company is primarily about managing people and therefore human nature. To paraphrase Mom's sage advice: you attract more good with honey than with vinegar.
And, I will add, that is true regardless of which side of the paycheck you sign.
So What Makes Us Different?
Executable Strategies
We help to build realistic and executable strategies based upon a comprehensive analysis of past performance as the foundation. We assist with identifying what must be done as well as what could go wrong and build contingency plans into the strategy. Our systematic process engenders buy-in and often expands the vision by incorporating the input of all members of the team.
Execution, Not Just Advice
We work directly alongside our clients and their management teams to systematically execute their strategies. Our systematic process creates alignment, inspires engagement, establishes accountability, monitors performance, optimizes productivity and provides for the timely-course corrections necessary to achieve year-end goals while maximizing sustainable profitability.
Budget Flexibility
Once the foundation is established (Financial Analysis & Forecast and Customization & Implementation of Management System), our clients choose the level of Outsourced COO/CFO assistance they require on an on-going basis. This flexibility generates the most cost-effective c-level support available to meet the operational and budget requirements of our clients.
Our Systematic Process

Financial Statement Analysis & Forecast
We start our engagements with an analysis of three years of financial statements and use this information to forecast the next five years based upon the trend in performance over those previous three years. This provides a solid foundation for setting realistic goals based upon historical performance, current company resources and projected cash flows.

Strategy Session
We provide the forecast to ownership and then conduct a meeting with the owners and the senior management team to identify financial and performance drivers (critical factors) that can be better managed to positively impact future performance. This optional 1/2 day strategy session yields a high-level strategy and starts the process of creating alignment to the corporate vision.

Develop Fully Customized Management System
We then conduct a full day planning session with all members of the management team that have responsibility for those financial and performance drivers (critical factors) and establish aggressive but achievable goals for the company based upon the historical analysis. This meeting introduces the Critical Factors Management System and solidifies the process of creating alignment and engagement throughout the organization. Every aspect of the meeting is documented within 5 business days including the performance management system (Critical Factors) that is customized to the unique requirements of each client company.

Monthly Performance Monitoring & Course Correction
We receive a monthly update of financial statements which enables us to provide a rolling forecast including projected cash flows based upon current performance. We conduct a monthly, ½ day meeting with the management team to review performance and implement timely course corrections in order to ensure year end goal achievement. Complete documentation is produced and distributed within 72 hours of each meeting.

Year End In-Depth Planning & Budgeting
We conduct a year-end, in-depth planning session, usually in November or December, during which every financial and productivity driver (critical factor) is analyzed and discussed. We work with the management team to revise the goals of the company for the next five years, develop a comprehensive strategy to achieve the goals (including contingencies for anticipated potential threats) and finalize the financial and performance budgets that will enable the company to achieve the goals for the succeeding year.

Monthly Performance Monitoring & Course Correction
We receive a monthly update of financial statements which enables us to provide a rolling forecast including projected cash flows based upon current performance. We conduct a monthly, ½ day meeting with the management team to review performance and implement timely course corrections in order to ensure year end goal achievement. Complete documentation is produced and distributed within 72 hours of each meeting.
