Why distinguish between the role of owner and manager?
Many are self-employed, small business owners, and small business owners, but in many cases also medium-sized business owners, they are often unaware of the two basic things. First, there are different stages and milestones in the development and growth of companies. As an example we can mention that it is another thing to be a self-employed person who works on himself, the other thing is to have the first 2-3 employees that the owner can manage effectively, another thing is to have 10, 15 or 20 people who are already one. Not order.
There are a number of milestones in the development of the company. Second, the owners are often unaware of the fact that the roles and demands on the activities of the person heading their company are gradually changing. In this sense, at the same time, there is still little enlightenment on this issue, which has been known for many years through various studies and research across this field, which we can call “corporate governance”. There are at least three primary roles at work: owner (entrepreneur), manager (leader, boss), and expert (technician, specialist). In particular, the beginnings of the business are the time when the three mentioned roles like rivers merge into one “big river”, which is the same owner, founder of the company. In these business startups, both the management of the company (the executive) and the business itself (the operations) fall on the shoulders of a self-employed person, and a young entrepreneur / small entrepreneur. What he does not do on himself at this stage, no one will do it for him, and it will not work otherwise. If over time it becomes evident that the individual is within reach and his business starts to grow, then there will come a time when he will gradually need to hire more workers for the company.
Let us now put aside the role of the expert (technician, specialist). We will be particularly concerned with the difference in the role of owner and manager. We can create a very basic division as follows: The owner is still asking what is best for the company, and what needs to be done now (but also in a week, in a month, in a year) in order for the company to thrive. Through his role, the manager then revives the results and conclusions of the above questions, by performing specific tasks. Yes, the role of the owner comes from a certain size of the company related to thinking, finding methods, testing, strategic approach (one might say it is about vision) and giving space to people who then do the operational work. Then the owner is indispensable for another essential activity – this is control. So planning what and how to go forward as well as controlling the activities of people and companies is the domain of the owner, where it cannot be dispensed with. Some might argue that it is more about “philosophy” than real work. Unfortunately, we can often encounter this mockery where corporations live, the owner is like a “hamster in a hurry” and the racket and ripper is chock full of bitterness about his fate. He will never realize or admit that he is too much to blame.
Companies that overcome critical stages have an owner at their center, who gradually realizes that he is a self-employed “decathlon fighter” who has to do everything himself, it is necessary to move on to the next “stage of development”. It is imperative to begin delegating, planning, controlling and thus allowing the company to continue to grow. At that moment, the thing that had been mixed up until then, that is, the role and activity of the owner and manager (in one person “founding father”) was divided. The owner coordinates the company in this way, but most of the operational work within the company is performed by the manager and specialists (technicians and experts). The owner starts working for the company, not the company. This is the main difference between owner and manager. The company has an opportunity to grow, because someone regularly looks at it from a point of view, and thinks about things, what and how it could be done better, otherwise it is new and more effective. No manager will do this for the owner. If he could, in most cases he would have his own business. If the owner fails to do so, then it makes sense for the company to stand for a certain size, at a certain stage of development, which equates the owner’s capabilities and abilities to solve matters more as strategic than as working. The truth is, you can hire someone for administrative work. Hardly a business ownership. So until you differentiate between the owner and the manager of the company in your mind and your daily activities, you will not only be stressful, but at the same time the company will not be able to grow – because you will not give it comfort and space.
How do you recognize the moment when it is necessary to make a sharp distinction between the role of owner and manager?
It cannot be said that there is a particular moment in which the owner must transfer his position of “head of operations” to another person and move “higher” to a more strategic activity (which, by the way, if done well, will have a much greater impact on the overall performance and results of the company than The process itself). Instead, there are some indications that the situation in the company has come to turn – a higher developmental stage in the life of the company. Key indicators include, for example, a well-established business model, which means that through economic indicators you can see that your business is financially sound, that you are making a profit, that you have a financial cushion, and that you are growing, albeit slightly, after a year of sales year. You are expanding the circle and the number of clients. Other indicators include, for example, the fact that you don’t know what was before, you are stressed, and you spend disproportionate time working with the results you generate. And the last criterion, of course, is the economy itself – if you don’t have the opportunity to hire a manager, you can hardly make a sharp distinction between the role and work of the owner and manager. In short, you should keep doing it, even if you are overwhelmed or overwhelmed with “fifty one things”. On the other hand, there are instances when a business owner can bear the costs of hiring a manager, but in relation to a higher income for himself, he will not do so for the sake of “saving”. In the short term, this might sound like a good strategy – higher profits to you, as you save on the manager’s salary. But in the long run, this prevents the company from growing, thus creating a robust management system within the company. Or if you want a management structure. Thus, the company, regardless of its growth and management, wins to become the so-called “one-man show” management. Everything stands and falls with the owner of the company, who, very often, likes to talk in such an indispensable position. But it has one trick. The company is, with few exceptions, doomed to recession. Nobody has the power to pull everything on their shoulders indefinitely. Often the owners say something that means: I should feed fifty employees. The logic of things is upside down. Should an owner feed and feed fifty workers? Or does fifty employees feed and contribute to the prosperity of the company?
Of course, after years of hard work, when you often do everything yourself, whether you are a self-employed person or as a small businessman, the matter suddenly “baffles” in your head and begins to act as an owner, working towards fulfilling the role and purpose of the corporate position. . On the other hand, for the very sake of managing this rebirth process, the secret to the further growth of your company often lies.
Is there a difference in the role and role of the small and medium business owner?
Nothing in the world is black and white, not even in business. Of course, the degree of surgery performed by an SME owner will vary. If you look at the diaries of a small business owner, elements such as minimal or no time devoted to his people, absence of meetings, numerous trips to clients or realizations in the same field are still prevalent. Whether you build fences, sell goods, or run a bakery – and thousands of other industries – you usually find the owner sweaty somewhere in the front line. To understand each other correctly. Every work has its dignity and there is nothing wrong with baking cakes or wraps. But if the same person is also the owner of the company, then I ask who runs the company on his behalf when it is called “immediately”. On the other hand, the owners of medium and large firms, logically regarding the size and complexity of the company, devote a great deal of time to monitoring and coordination. Due to the size of the company and the scale of the problems, they have to solve many things and activities through people, of course. It can be seen that he has many priorities and responsibilities, and he often ruthlessly and ruthlessly chooses in the spirit of Pareto the perfect only the most important and useful priorities. Meetings, tasks, and everything in his diary are subject to what the company needs for further growth. It works strategically. Of course, he will start the process, but he realizes that if he is “buried” in the micro-management details, he will lose more important things that have a far-reaching impact on the company than, say, baking a few muffins. It will be forgotten and will be of little use to the company as a whole. He is well aware of his role and knows that his “bakery” will succeed if he is particularly good at planning, organizing, finding, leading, and controlling people, within the framework of business negotiations and not that he will be the best himself. County baker.
Of course, a freelance person and young entrepreneur has to go through phases when, by the way, he doesn’t have the resources to solve things other than arranging all or most of the things himself. But what is important to him is the realm of thought, as he still strives for a clear goal – delegating things to the people in his company as quickly as possible, and as often as possible. This is also his only real path to growth.