Episode E.006 Owner as Executive - Your Mission If You Choose To Accept It

The following is not a story nor a prescription, it is a tome on changing the mindset of business owners about their role in the company. Having spent 40 plus years working with executives and owners, I have experienced first hand how the small business owner (including myself) is the primary obstacle for going to the next level. It is based on how they see themselves and how it is expressed in the business.

Finding the right solution will not solve anything because the problem is outlook – how the owner perceives their role. If the owner cannot grow beyond themselves, the business will only be as successful as their unique mix of competencies and character takes them. 

OaE is a collection of challenges we have experienced living our Corporate Mission with small business owners: building generational wealth for business owners to create jobs in the community. 

Before you blow this off, play with the following statistic: in any population like the United States (Canada, United Kingdom, etc.) only 5% are entrepreneurs and of that group 5% will create fast growth companies. I will save you the math – the final number is .0025. That means unless you are a naturally member of the three tenths of one percent (a rounding error), you are betting against the house. If long-term success is based just on yourself without personal growth – are you ready for lottery odds?

How did we approach writing the book? Action Science vs. Rigorous Research or Accuracy vs. Precision

The essence of these two approaches is how the scientific method is used. In the hard sciences (physics, mathematics, etc.) rigorous approaches are applied to ensure what is being described is in fact the intended item, and secondly how much is a precise description of amount or degree. This approach works when the item can be easily defined (there are no alternative definitions) and easily measured. It is the preferred approach when describing elemental units which are assembled into larger units to create macro models such as ocean currents or weather systems. Also the scientific method works statistically when the variation in a system or process can be reduced to a single or very few core variables. This allows for models that describe cause-effect or correlative relationships. The goal of rigorous research is precision.

However when constructing models that describe social systems, the rigorous approach falls apart. First most social systems have many alternative and accurate definitions of the same event or item. Look at the debate in political economy about whether command or market economics are superior as one example. Secondly in social systems it is impossible to reduce the number of relationships to apply rigorous statistical models and arrive at a precise answer. A social network is the sum total of various relationships; individual, work, organizational, clients, and suppliers. Because of this it is suggested that most of the behavioral science research is invalid because the real world is multivariate and reducing it to a small number makes the results unrepresentative of reality. That leads us to a new application of scientific method, action science. The goal of action science is accuracy.  

A working definition of Action Science is a methodology of defining situations that accurately describe the current reality of complex human systems. Additionally Action Science goes beyond describing current reality into creating a framework (heuristic) for learning how to be more effective as individuals, groups, and organizations. In action science the application of the information is as important as describing it.

Unlike traditional science, it is a learning process to develop the readiness and ability to change and meet the needs of an often changing environment. It is about the knowledge that can be used to design and execute actions from face to face relationships and work groups to complex systems.  

Given our original background in rigorous research in the marine sciences and meteorology, we are uniquely positioned to apply scientific methods to human behavior. This methodology was used to design this series. 

Introduction
This is the first volume of 5 on creating, running, and growing a successful small business.  Our approach is simple, we did our research and tested it in our own companies. Once it was proven internally, we offered it to our clients and expanded the robustness of our products so business owners can take greater control over their future.In order to accelerate the performance and growth of your company, there are 5 GAPS.

• Volume One (GAP 1) - Building a Scalable Organization
• Volume Two (GAP 2) - How Much Can You Afford to Grow
• Volume Three (GAP 3) - Becoming the Lowest Cost Producer
• Volume Four (GAP 4) - Becoming the Customer’s First Choice
• Volume Five (GAP 5) - How to Incentivize Performance

Here is how to approach Volume One.
Everything is about mindset, how you interpret the role of owner. If you see yourself as a glorified technician or supervisor, that is the business's future. This book is designed for you to visualize the company at its maximum size and see yourself as the Chief Executive Officer managing results by building a Scalable Organization.