5.15.80: THE 80% & RULES OF MANAGEMENT - WILLIAM EASTMAN

Today's show continues in Discipline #3 on How You Professionalize the Business . The second element, a companion to last weeks show on the Rules of Leadership, is the other side. Instead of spending your time pulling people toward your direction, you are now push people by control the things. 
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​PROFIT RADIO - "A Network of Entrepreneurs for Entrepreneurs"

Introduction
We introduced the 5.15.80 Model at the beginning of the Season. It was a combination of research into small business performance and our practical experience from the last 2 decades. You could go to any area around the global with a market based economy and randomly select 1,000 companies, here is the distribution you would find: 5% or 50 companies that own their markets, 15% or 150 companies that are making money, and 80% or 800 companies that are barely surviving.

This series is about how to move from one level up and our concern in this series is the 80%, not how you get here - that story would be too ugly. The focus now is how to create a long-term future for the business and join the 15%.

LISTEN > ENGAGE > APPLY

Show Objectives
We are going to cover the 3 methods of Professionalizing the Business required in the early stages to take it to the next level.

Disciplines to Date

• Discipline #1: Bring Processes Under Control
• Discipline #2: Distinctify Your offer
• Discipline #3: Professionalize Leadership & Management

Key Issues - Owner Perspective:

1. How do I manage the business to success?

What You Need to Know
I spent several years running a leadership and management program for supervisors, managers, and executives. The following list is a summation of that experience and growing several companies as an executive. Once you have started developing your skills for the role, here are some rules for leading and managing.

What You Need to Do
Rules of Management - The Management of Things

• #1 Bring Order Out of the Chaos. The number one role of management is to bring stability and clarity to the work day. It is not the responsibility of the people reporting you to figure this out. Look at the situation, focus on what are the critical few now and leave the trivial many to later. Trust me, they will not make the same quality decision you would make. 
• #2 Remove Obstacles. This is the essential question whenever talking with the people that report to you. What is preventing them from getting the job done right and on time? Your job is to make it go away. Remember when things are not being done right or on time there are only 3 reasons - obstacles external to them are getting in the way, they lack the ability to perform, or are unwilling. If you don’t remove the obstacles, accountability becomes impossible.
• #3 Problem Solving, Not Fault Finding. Here is the deal - if people are shot for bringing bad news, you will find out what is wrong when it blows up - deal with the guilty party later. Right now you have a problem that needs solving and they only way that can happen is for bad news to be delivered immediately.
• #4 Solve Problems, Not Treat Symptoms. Once the problem is brought to your attention, make sure it is the problem. Many times we treat the symptom and wonder why the problem resurfaces later. I recommend the principle of the 5 Why - when somebody brings you a problem ask why did that happen and keep asking why until you get to the root cause.
• #5 Everything has a Budget. Business is a game like Monopoly except the money is real. Everybody's job is more than completing tasks, it is about advancing the business. Every job should have at a minimum labor hours and materials if appropriate. There are many methods of teaching the business to your employees, this is just the fastest. Get everybody into the game!

Next Week - Part 3: Discipline 3 of 5.15.80: The Stages of Growth - What Does The Future Look Like and How Are We Going To Get There?

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