How To Delegate Work and Responsibility

Delegating work, responsibility, and authority is difficult in a company because it means letting others make decisions which involve spending the owner-manager's money. At a minimum, you should delegate enough authority to get the work done, to allow assistants to take initiative, and to keep the operation moving in your absence.

This Guide discusses controlling those who carry responsibility and authority and coaching them in self-improvement. It emphasizes the importance of allowing competent assistants to perform in their own style rather than insisting that things be done exactly as the owner-manager would personally do them.

"Let others take care of the details."

That, in a few words, is the meaning of delegating work and responsibility.

In theory, the same principles for getting work done through other people apply whether you have 25 employees and one top assistant or 150 to 200 employees and several managers. Yet, putting the principles into practice is often difficult.

Delegation is perhaps the hardest job owner-managers have to learn. Some never do. They insist on handling many details and work themselves into early graves. Others pay lip service to the idea but actually run a one-man shop. They give their assistants many responsibilities but little or no authority.

How Much Authority?

Authority is the fuel that makes the machine go when you delegate work and responsibility. It poses a question: To what extent do you allow another person to make decisions which involve spending your company's money?

That question is not easy to answer. Sometimes, an owner-manager has to work it out as he goes along, as did Tom Brasser. His pride in being the top man made it hard for him to share authority. He tried, but he found to his dismay that his delegating was not as good as he thought.

One day when he returned from his first short business trip. Mr. Brasser stormed out of his office. He waved a sheaf of payroll sheets and shouted "Who approved all this overtime while I was away?" I did," the production chief answered.

Realizing that all heads were turned to see what the shouting was about., Mr. Brasser lowered his voice. Taking the production manager with him, he stepped into his office.

There he told the production man, "You've got your nerve authorizing overtime. This is still my company, and I'll decide what extra costs we'll take on. You know good and well that our prices are not based on paying overtime rates."

"Right," the production man replied. "But you told me I was in full charge of production. You said I should keep pushing so I wouldn't fall behind on deliveries."

"That's right," Mr. Brasser said. "In fact, I recall writing you about a couple of orders just before I went out of town."

"You can say that again. And one of them - the big order - was getting behind so I approved overtime."

"I would have done the same thing if I has been here," Mr. Brasser said. "But let's get things straight for the future. From now on, overtime needs my okay. We've got to keep costs in line."

Mr. Brasser then followed up with his other department heads, including his office manager and purchasing agent. He called them in, told them what had happened, and made it clear that their authority did not include making decisions that would increase the company's operating costs. Such decisions had to have his approval, he pointed out, because it was his company. He was the one who would lose, if and when, increased costs ate up the profit.

Yet, if an owner-manager is to run a successful company, you must delegate authority properly. How much authority is proper depends on your situation.

At a minimum, you should delegate enough authority:

(1)  To get the work done,

(2)  To allow key employees to take initiative, and

(3)  To keep things going in your absence.

To Whom Do You Delegate?

Delegation of responsibility does not mean that you say to your assistants, "Here, you run the shop." The people to whom you delegate responsibility and authority must be competent in the technical areas for which you hold them accountable. However, technical competence is not enough.

In addition, the person who fills a key management spot in the organization must either be a manager or be capable of becoming one. A manager's chief job is to plan, direct, and coordinate the work of others.

A manager should possess the three "I's" - initiative, interest, and imagination. The manager of a department must have enough self-drive to start and keep things moving. A manager should not have to be told, for example, to make sure that employees start work on time.

Personality traits must be considered. A key manager should be strong- willed enough to overcome opposition when necessary and should also have enough ego to want to "look good" but not so much that it antagonizes other employees.

Spell Out the Delegation

Competent people want to know for what they are being held responsible. The experience of Charles P. Wiley illustrates how one owner-manager let them know. He started by setting up an organization. He broke his small company into three departments: a production department, a sales department, and an administrative department.

The manager who handled production was responsible for advertising, customer solicitations, and customer service. Mr. Wiley regarded the administrative department as the headquarters and service unit for the other two. Its manager was responsible for personnel, purchasing, and accounting.

Mr. Wiley also worked out with his assistants the practices and procedures necessary to get the jobs done. His assistants were especially helpful in pointing out any overlaps or gaps in assigned responsibilities. He then put the procedures into writing. Thus each supervisor had a detailed statement of the function of each's department and the extent of each's authority.

This statement included a list of specific actions which they could take on their own initiative and a list of actions which required approval in the front office - Mr. Wiley, or in his absence, the assistant general manager.

Mr. Wiley had thought about the times when he might be absent from the plant. To make sure that things would keep moving, the production manager was designated assistant general manager and given authority to make all operational decisions in Mr. Wiley's absence.

In thinking about absences, Mr. Wiley went one step further. He instructed each department head to designate and train an assistant who could run the department if, and when, the need arose.

Once you have decided what type of business you want to start and The investment requirements, you're ready to select a location.
The number of aggressive companies already in the area should affect your choice of location. Many areas are overloaded with
service channels or certain forms of restaurants. Check on the amount of your kind of business from Census figures, the yellow
pages, or by personally checking out the location.

Factors Aside from the Possible market, availability of employees And number of aggressive businesses have to be considered in
choosing a location. For instance, how adequate are utilities - sewer, water, power, gas? Parking facilities? Fire and fire
protection? What about housing and environmental factors like schools, cultural and community actions for employees? What is the
average cost of this location in rents and taxes? Check on zoning regulations. Assess the enterprise of the neighborhood
business-people, the aggressiveness of civic organizations. In short, what's the town soul? Such aspects should give you an idea
into the city or town's future.

Chambers of Commerce and local universities usually have made or Are familiar with local polls that can provide answers to those
questions and the many other questions which will happen to you.

Next you must decide in what part of city to locate. If the city is Very small and you're establishing retail or service business,
there will probably be little choice. Only 1 shopping area exists. Cities have outlying shopping facilities along with the central
dining area, and stores spring up along main thoroughfares and local streets.

Think about the shopping center. It is different from other locations. The shopping center building is pre-planned as a
merchandising unit. The website has been intentionally selected by a programmer. On-site parking is a frequent feature. Clients
may drive , park and do their buying in relative speed and safety. Some centers provide weather protection. Such amenities make
the shopping centre a valuable site.

Additionally, there are some limitations you should know about. As a tenant, You become part of a retailer group and has to cover
your pro rata share of the budget. You must keep store hourslight your windows, and set your signals according to established
rules. Many communities have restrictions on signs along with the middle management may have additional limitations. Moreover, if
you're considering a shopping center for your first store you could have an additional problem. Developers and owners of shopping
facilities look for successful retailers.

The kind and variety of merchandise you carry helps determine the Kind of purchasing place you select. For instance, clothing
shops, jewelry shops and department stores are more likely to be more successful in buying districts. On the flip side, grocery
stores, drug stores, filling stations, and bakeries usually do better on principal thoroughfares and neighborhood streets beyond
the shopping districts. Some sorts of stores customarily pay a low rent per square foot, while others cover a high rent. In
the"low" class are furniture, grocery stores and hardware stores. At the"large" are cigar, medication, women's furnishings, and
department stores. There is no hard and fast rule, but it is helpful to observe in what kind of area a store like yours often
appears to flourish.

After deciding an area ideal for your type of business, Obtain as many details as possible about it. Check the competition. How
many similar businesses can be found nearby? What does their sales volume seem to be? If you are establishing a store or support
trade, how far is it that people come to exchange in the area? Are the traffic patterns favorable? If most of your clients will
probably be local populations, study the population trends of the area. Is population increasing, stationary or decreasing? Are
the people native-born, mixed or chiefly foreign? Are fresh ethnic groups coming in? Are they mostly laborers, clerks, executives
or retired persons? Are they all ages or mostly retired, middle aged, or young? Judge buying power by assessing average house
rental, average real estate taxes, number of telephones, number of automobiles and, even if the amount is available, per capita
income. Larger shopping facilities have this sort of information out there, and will ensure it is accessible to serious
prospective tenants.

Zoning ordinances, parking availability, transport facilities And natural obstacles - such as hills and bridges - are important
considerations in locating any sorts of company. Possible sources for this information are Chambers of Commerce, trade
associations, real estate companies, local newspapers, banks, city officials, neighborhood merchants and private observation. In
the event the Bureau of the Census has developed census tract information for the specific region in which you're interested
you'll find this especially valuable. A census tract is a small, permanently established, geographical area within a large city
and its environs. The Census Bureau provides population and housing characteristics for every tumor. This information could be
valuable in measuring your marketplace or service possible.

Deciding upon the actual site within an area may well be accepting what you May get. Very few plants or buildings will be suitable
and in precisely the exact same time, accessible. Should you have an option, make sure you consider the possibilities carefully.

For a production plant, consider the condition and suitability Of the building, transport, parking facilities, and also the sort
of lease. For A store or service establishment, assess on the closest competition, traffic Leak, parking facilities, road
location, physical aspects of the construction, Kind of lease and price, and the rate, cost and quality of transportation. Also
Investigate the history of the website. Find answers to such questions as: Has the Building remained vacant for any amount of
time? Why? Have various Kinds of Stores occupied it for short periods? It might have proved unprofitable for them. Sites on which
many enterprises have failed should be avoided. Vacant buildings Do not bring traffic and are generally regarded as poor
neighbors, so check on nearby unoccupied buildings.

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