Effective Delegation vs. Abdication – Part 2

Why You Say You Don’t Want To Delegate? I’ve surveyed many clients over the years, and the top reasons I have heard for not delegating are:
  • It will take too much time
  • I can’t afford the time to train someone to do this
  • No one can do it as well as I do
  • The last time I delegated something it was a disaster
Let’s look at each of these one by one. It will take too much time – It does take some time, at first.  But let’s look at this from another angle.  You have a single monthly task that takes you a mere hour per month.  you delegate it to a member of your team who is qualified, but has never done this particular task before.  Taking a worst case scenario, in month one, you have the designated person observe you doing the task. and because you are teaching as you go along, it takes 1-1/2 hours.  In month two, you observe your team member doing the task and assist when necessary.  Again you invest 1-1/2 hours of your time.  In month three you again observe and invest one hour.  In month four, your team member accomplishes the task alone and you invest .25 hours reviewing the results. In subsequent months you simply review the results for ten minutes, or less and your team member, becomes almost as proficient as you, requiring 1.1 hours to accomplish the task.  Results after one year:
Month Your Hours Without Delegating Your Hours With Delegation Team Member hours
1 1 1.5 1.5
2 1 1.5 1.5
3 1 1.0 1.25
4 1 0.25 1.25
5 to 12 1 each 0.1 each 1.1 each
Total Hours 12 5.05 14.30
Your Total Saving   6.95  
That is almost seven hours that you have made available to devote to higher value activities. I can’t afford the time to train someone to do this – Now let’s put some value to your time.  Assume you earn, or would like to earn $200,000 per year.  That equates to $69.44 per hour, realistically assuming the typical 60 hour weeks most entrepreneurs works.  Assuming your team member is a manager earning $75,000 per year, and works 50 hour weeks, the value applied toward the hours expended in the table above is:
Month Your Cost Without Delegation Your Cost With Delegation Cost of Team Member
1 $69.44 $104.17 $46.88
2 $69.44 $104.17 $46.88
3 $69.44 $69.44 $39.06
4 $69.44 $17.36 $39.06
5 to 12 $555.52 $55.52 $275.04
Total $833.33 $350.69 $446.88
Raw Saving   $35.76  
Added Value of your time   $482.61  
Net Value Added   518.37  
But wait, there’s more! If you invest your time towards more appropriate, very productive, high-value activities, you can expect a return on invested time of at least five times.  That equates to a return from saving about seven hours in the first year by effectively delegating a one hour per month task of just under $7,000.00!  In subsequent years, the delegated task yields an even greater monetary return. Now let’s take a quick look at delegating a menial task to a more appropriate person, say a $20,000 per year administrative assistant.  In this example the monetary saving is significant:
Month Your Cost Without Delegation Your Cost With Delegation Cost of Team Member
1 $69.44 $104.17 $15.63
2 $69.44 $104.17 $15.63
3 $69.44 $69.44 $13.02
4 $69.44 $17.36 $13.02
5 to 12 $555.52 $55.52 $91.68
Total $833.33 $350.69 $148.96
Raw Saving   $333.68  
Added Value of your time   $482.61  
Net Value Added   816.29  
And that is before the ROI on your time being invested more effectively. Clearly, you can’t afford to NOT delegate as many tasks as possible! This is Part 2 of a continuing series about effective delegation.  I welcome your comments and case studies.  Stay tuned, Part 3 will be published shortly.  

What Can We Learn About Business From Luke Donald?

While catching up on my non-business reading the other day, I read an article in the May 2012 edition of Golf Digest by Jaime Diaz about Luke Donald (Golf Digest Article).  The article triggered a few ideas about business that will assist you in achieving greater success as a businessperson:
  1. If You Want To Manage It, You’ve Got To Measure It (An oldie but a goodie) – Shot-Link has provided professional golfers many additional pieces of data they can use to improve their game.  Luke Donald, not the longest hitter in the game, looked at the stats, selected several to focus upon, and took action to build on his strengths.  Result? Luke attained number 1 position on the World Golf Ranking for 40 consecutive weeks.  The lesson, carefully develop and select your KPI’s (Key Performance Indicators),  measure them consistently and develop an action plan to improve your results.
  2. Build On Your Strengths – Many times we are tempted to improve those things we are not good at instead of building on our strengths.  In business, we can, and should, improve on our strengths and, without totally ignoring, effectively delegate those things we are not good at, hate to do, or shouldn’t be doing.  Luke did not ignore his driving accuracy while he became “a colossus astride the vital real estate from 100 yards and in.”  Turn defense into offense.
  3. Cover The Fundamentals – In order to achieve consistency Luke Donald went to work on his fundamentals.  Consistency is perhaps the key ingredient in your recipe for long-term success.
Working with an ActionCOACH business coach is mostly about all of the above.  To learn how I, or my colleagues will assist you being ranked number 1 in your field, please contact me.

A Great Business Quote From Ralph Nader

The Quote:

“The function of leadership is to produce more leaders, not more followers.”

Which, of course leads to the question you should be asking yourself; Am I, and the systems in my business, division or area of responsibility focused on developing leaders?  If not, why not? Great, effective and admired leaders will tell you that one of the most gratifying aspects of leadership is developing and mentoring leaders.  Don’t know how to begin? Two good places to start are The 5 Levels of Leadership: Proven Steps to Maximize Your Potential by John C. Maxwell, and Instant Systems by Bradley Sugars, the founder of ActionCOACH.  After you read, talk with your mentor, advisor or coach to map out and follow your path to true leadership.

What, exactly is a business coach?

While on the golf course yesterday, one of my playing partners asked “What the heck is a business coach?”  He told me he had never heard of business coaching.  It turns out that I get this question a lot, so here is my answer:
  1. A Business Coach is an EDUCATOR – we identify our client’s business blind spots (we all have them) and educate them on things about business they didn’t know they didn’t know.
  2. Once we identify a business blind spot, we work with our client to prepare them to increase their knowledge so that they can either embrace new areas, or effectively delegate to their team.
  3. The subjects we deal in are, for the most part, the fundamentals of business upon which all successful businesses are built.
Before I was able to get to my final point, my playing partner asked “Isn’t coaching and consulting the same?”  That is a perfect lead in to the most important difference between consulting and coaching, and the primary factor that makes business coaching extremely effective:
  • Accountability – Just like a sports coach, we stand side by side with our clients to insure they use the education and stay focused on achieving their business goals.