I have seen it so many times before. This time it cut too close to home. A very dear friend is the latest casualty in the endless clash between entrepreneurial business owner-CEOs and their professional managers.
Entrepreneurs are a special breed. They have the drive, focus and limitless energy to carve something out of nothing. They are indeed the engines of a capitalist economy. Entrepreneurs do not fear failure, they do things at great speed and confidence which at times may border on arrogance. They despise tardiness, pessimism, nay-sayers and the dumb-witted. They see opportunities where others see walls and they become lucky while others hope to get lucky. They don't suffer fools gladly.
With these characteristics and attitude towards life and work, entrepreneurs become successful at what they set their sights on. But, these very same values and personal characteristics that makes them so successful are also the very same things that will derail them later as the businesses grow.
An entrepreneur, lets say in the business of prawn farming, who starts a farm in Kuala Kangsar may well succeed in his endeavor with his sheer persistence and drive for success. As he is omnipresent at the farm, he is able to ensure his vision is carried out to the precise execution to his liking. He can get his hands dirty and he can ‘interfere’ in his employees job functions and take immediate corrective actions if the situation warrants. He is able to (and by right)make all important decisions pertaining to the daily operation of the business. He and he alone is the face of the business .He becomes the business.
Now, imagine that this entrepreneur enjoys great success in his prawn farming in and decides to establish 2 other farms; one in Tawau and another in Sibu. He would of course appoint a ‘manager’ for each of these new farms as he will not be able to be at 3 places at one time (although he may very well try!). Also imagine that, the 2managers that he has recruited are well qualified and are highly capable to manage these farms. The entrepreneur, in his usual driven-communication style may even have painted a very attractive picture of the critical roles these two managers are going to play in realizing his vision in making the company number one in prawn farming in Asia. He insists to his two managers that they take ownership of the farms and make it their business. His passion and drive excites these two managers and they come on board with great hope and confidence.
A few years down the road, the business grows and the company expands and prospers. But, the managers in each of the farms (by now totaling 4) increasingly feel sidestepped by the entrepreneur. Despite being told that they are to take ownership of the farm, these managers find very little to take ownership of as all decisions are either made by the entrepreneur or needs to be bounced off him. Even trivial matters like staff year-end party or who gets what and when need to be referred to the entrepreneur. Needless to say that over time these managers start to feel like office boys who take orders and has very little control over their own employees. Now, remember that these are all highly qualified and capable managers. Soon they loose passion for the business and they don't feel that they are able to inject their own DNA into the business. Being proud of their abilities and their sincere hope to leave behind a legacy which to at least a little degree, coloured by them they begin to loose hope that things will change. They stop thinking and do the bare minimum. It is not long before other opportunities come knocking and they go for it leaving behind a dumbstruck entrepreneur who is so disillusioned by the ‘disloyalty and un-gratefulness’ of these managers. He feels so angry at them as despite having them as managers at each of the farm, he has always been there to make sure that everything goes smoothly. In fact he now feels that they are simply ungrateful for not feeling thankful for all that he has done for them. Didn’t he make it so easy for them? Didn't he take the trouble to lay out the precise plans how they can become successful managers? Didn't he always…always…ensure that they run by him all their operational activities which ensured that no major fatal business errors are made? Why?
Why indeed!
The entrepreneur failed to metamorphose into a business leader even after bringing on board professional managers who were supposedly tasked to run the business for him. He could not stop the urge to micro manage. He just couldn't help himself from having to know every little detail that happens in each of the farm. He needed to be in the thick of the action and always on top of things. In that driven state he committed a grave error. An error of observation.
He failed to see how distant and disinterested his managers have become. He failed to see how much of their discretionary efforts were not directed towards the company but for other pursuits. Most critically, he failed to see how disengaged and disempowered he has made them into. He killed their initiatives by trying to inject his entrepreneurial spirit into a business that has transformed from a one-man show into a full-fledged corporate organization. He didn't quite observe that he is no longer the business. The business has become larger than himself and he needs the full and complete contribution from and participation of others.
My friend is a professional manager with a great sense of ownership for what he does. He is a passionate people person with a great sense of fairness. As much as I am worried for his next career move (which I am sure to assist in any way I can), I am glad he the made this decision. He needs to reignite his passion for his chosen vocation and it is time he embarked on a career novation.
Good luck to you RN.
Merry Christmas to all.
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