Summary of the Key Points
This article illustrates a practical principle through the real story of a boss: as a company grows from small to large, the boss cannot always act as a "firefighter" (resolving issues and problems personally). Instead, they need to learn to establish systems (rules and authority structures). The former addresses immediate tasks, while the latter creates a mechanism that enables the team to make decisions on its own, freeing the boss from recurring issues and fostering organizational growth.
Why Do Bosses Become Overworked Rather than Efficient?
In the early stages of a company, it's natural for the boss to take on direct responsibilities—handling key clients, negotiating prices, and refining proposals. However, as the company expands, if sales personnel still rely on the boss for every complex issue (such as negotiating discounts with major clients or dealing with non-standard requirements), it indicates that the company has not developed a robust sales system. This is similar to the boss in the case study: although sales increased and the client base grew, the boss became increasingly exhausted because they were constantly dealing with the same types of problems, just with different clients. They thought they were solving issues, but in reality, they were filling in the team's lack of decision-making capabilities.
The Pitfall of Repeated Problem Solving: More Dependence, Less Organizational Growth
When a boss repeatedly solves problems, it may seem like they are securing current deals, but this leads to two major issues:
1. Lazy Teams: Salespeople rely on the boss for help instead of trying to find solutions on their own, assuming the boss will handle everything.
2. Lack of Organizational Progress: The company fails to establish methods for resolving problems, so the same issues recur in the future.
What is a "Leverage Mechanism"? Actions That Are More Valuable than Just Solving Problems
The article refers to establishing systems as a leverage mechanism—actions that not only solve current issues but also make future situations easier to manage. For example:
- Immediate Task: Resolving a single deal.
- Leverage: Establishing rules such as pricing thresholds, non-standard project guidelines, and contract terms that allow the team to make decisions independently.
The boss in the case study categorized orders from the past six months by type (price, non-standard requirements, contracts) and identified recurring issues due to lack of clear rules. They then established rules for customer segmentation, sales authority, non-standard project approval, and contract boundaries. This created a framework that enabled the team to make decisions on its own, reducing the boss's workload.
How Obvious Are the Changes After Establishing a System?
After three months, the effects were immediate:
- Reduced Boss Involvement: Salespeople referred to authority tables for pricing issues, used checklists for non-standard requests, and consulted the boss only when necessary.
- Improved Team Decision-Making: The team could make decisions based on established rules.
- Enhanced Company Capacity: Transactions were no longer dependent on the boss; the system enabled the entire team to close deals.
This Principle Applies Beyond Sales
This logic is applicable throughout an organization:
- Recruitment: Finding candidates personally by the boss is a task; creating job profiles, interview question banks, and talent pools creates a leverage mechanism that ensures there are qualified candidates available when needed.
- Meetings: Coordinating meetings manually by the boss is a task; establishing meeting processes and decision-making mechanisms makes meetings more efficient.
- Approvals: Signing off on everything manually by the boss is a task; setting up approval authority structures ensures that tasks are handled by the appropriate personnel.
To determine if an action is worthwhile, ask yourself three questions:
1. Does it solve a specific issue or a category of issues?
2. Who’s workload will be reduced after the action is implemented?
3. Will similar issues occur less frequently in the future?
If the action only solves a temporary problem, follow up by turning it into a rule, process, or standard that can be used by others in the future. The goal is to empower the team to make decisions independently.
In Conclusion
The most valuable action for a boss is not to secure each deal but to ensure that no future deal requires their direct involvement. For a company to grow, it must shift from relying on individual capabilities to leveraging systematic processes.