Owners and managers who struggle with delegation are probably the rule, rather than the exception for most businesses. But imagine if there was a formula to help delegate tasks and responsibilities more effectively?
Baron Christopher Hanson, principal and lead consultant of RedBaron Strategy/Consulting, offers just that in a recent post on SmartBlog on Leadership.
In this economy, employees and business models have been streamlined aggressively, he notes. Business owners are doing a larger percentage of the daily workload. For entities to expand, thrive, hire and survive, owners must create operational capacity and create windows of time for more lucrative activities.
He suggests this is accomplished by the formula: (+A –B –C +D = New Capacity). In it:
+A activities are those that cannot be accomplished by anyone else.
—B activities are tasks that business owners can carefully train and supervise, yet after thorough examination, a trusted employee can perform as well or better than the owner.
—C activities are tasks that a business owner should be scolded for doing –– not because these tasks are menial but because they must be completed by someone else.
+ D activities are opportunities hidden among tasks delegated too foolishly.
“Profit is more realistically discovered by delegating “–B” and “–C” activities, tasks that detract from owner/present, owner/managed contribution margins,” Hanson explains. “The important take-away is that profit can be found inside small-business models by delegating –B and –C activities more and proactively engaging +A and +D activities more.
For a more detailed explanation, download the article.