What distinguishes the big cheese from a top banana?
What distinguishes the big cheese from a top banana? I will not weary you, here is the main issue: department income, which is controlled by the head. I want to share with an interesting study on this subject in this very article, as well as to invite you all to the discussion.
In early January I held a set of analysis on selection and adaptation of employees in our company in 2015. Interesting trends were set, how can the cooperating between fresh low-level manager and high-level expert affect the profitability of managed departments.
In this article I want to focus on one. So, I analyzed our leaders who recruit his or her division by their own and revealed a trend: middle managers seek for beginners as experts (71% of requests), they block strong, and hence concentrate on the low and medium level tasks of complexity. While the heads of divisions with higher categories, first category managers for example, concentrate on strong professionals and take on the most complex tasks and it follows thence cash (68%).
Why does this nonsense happen? I found an easy answer. Here you can see three main reasons:
Low-level managers focus on the expenditure side of the unit budget, rather than look for more profitable, complex projects that have just been implemented the first category managers. Thus, they are doomed to a permanent job in the area of low-income problems.
Weak delegation skill: formulation of the problem, qualitative feedback during implementation, and acceptance of the results. Whereas strong leader clearly sees the future result, understands how to make money on it, the person who knows when and whom to put the appropriate tasks package.
And finally Reason #3
The head still partially takes on professional tasks, he becomes both a leader and a specialist of high category, thus spending the time to perform prof. tasks, he doesn`t need professionals to manage. This, again, leads to the lack of time for new revenues.
In response to this trend, I see that the strong ambitious specialists are interested in working with a competent leader who regularly finds interesting projects and understands how to make money for the Company and for the team, and therefore can give an interesting and profitable job for the specialist. On this basis, I`ve developed a number of solutions which, in my opinion, can raise the level of management without delay, and therefore the general level of profitability of business units:
- Product management technology is included in an internal managers training program, the part of which is precisely the identification of revenues. I believe that due to this technology, the heads of departments of our Company will be able to raise the profitability of their department regularly, therefore of the Company in whole. This will definitely lead to a stable growth.
- The program of current leaders retraining will immediately run in March.
- I input the mandatory requirements for the heads of the 2nd category (we have “categorical” system: 3 – the lowest, 1 – the highest) selection and adaptation of the highest category employee. This requirement is enshrined as an objective in terms of the development of competences for the primary categories of managers. Thus such a qualification requirement I want to push managers to the development of the ability to work with highly qualified specialists.
- For applicants of a leadership position I introduce initiation training as a mandatory reference point before the final appointment to the post. Thus an applicant will be trained and prepared to work with highly qualified specialists.
The other day, I held a creative discussion with the heads of departments of our Company on this matter, where presented trends and suggested solutions, including the material of this article. Got agreement. Solutions will be run at the first produce results of the quarter.
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