Getting Everyone On The Same Page

In my humble opinion, the key to any successful business is communication.  I’m not talking about marketing or communicating with your customers and prospects, which is of course important. I’m talking about communicating with your team.  That applies, by the way, whether you have zero employees or millions.  If you are a sole proprietor running a business with no employees, you might be wondering who exactly you are supposed to be communicating with.  I don’t mean to discount those voices in your head, but I’m not just talking about communicating inside your organization.  You need to connect with your team – with the people who support you both inside and outside your organization. 

Inside your organization

If you have employees, you need to make sure they understand where you are taking the business. They need to have access to key financial and operational goals but more importantly, they need to be involved in creating a budget and building a plan for the area in which they work. Open Book management, which many people claim to support, is not just about sharing the financial statements at the end of the year; it’s about connecting everyone in your organization to your core purpose, message, and business objectives from their first day on the job. When people feel a part of something, they start thinking and acting like owners. And with full information, everyone on your team can make the kinds of daily decisions that you would support.  Think about the number of small decisions made by a cashier in a grocery store each day.  “Should I hold up this line to look up the price or should I just estimate to keep the line moving?  Should I accept these expired coupons? Should I spend the time deciding which variety of apple this is or just take my best guess? “ 

Outside your organization

Every business works with outside professionals. At a minimum, there should be bankers, accountants, and lawyers to advise you on matters of importance.  What are you doing to keep them in the loop? There are a number of changes in your business that can impact not only your bottom line but also your exposure to fines, penalties, and worse. But as a general rule, small businesses contact these professionals only when forced by a crisis to seek assistance.  (Much of the blame rests with these very professionals who charge by the hour for their time and make it costly to ask questions.) Consider sharing not only your long-term plan but also any financial updates, monthly progress reports, and more with your bankers and accountants. Include notes about new customers, territory expansions, asset acquisitions, and the like so they can advise you of any regulatory impacts on your business. 

By trying to maintain too much control of your financial information, you are not only limiting your team’s potential, you are also reducing your chances of success. The less information you provide to the members of your team, the more likely it is that they will make the wrong decisions for your business.  The more you make your team a part of your business and financial goals, the more control you will have in ultimately achieving them.