Finding the right manager could be a long-term process with no guarantee of the results. The person that you think will be a great manager may not want to be a manager, may try the position and then decide that he doesn’t like it and leaves, his wife or significant other gets a job in another city and they move…anything can happen. But, from the positive side, you might find someone
who can step up to the plate, take on the responsibility and shine…and build a great, profitably department with contented team members who love coming to work.
Don’t limit yourself to those who are already working in the field (or in the office) rather than managing. I’ve known many office managers who have become great managers. I’ve known many field workers who could not make the transition from worker to manager and went back in the field. So, keep an open mind with respect to who might be your next managers.
Here are the musts for your managers:
#1: Know the role of a manager.
The role of a manager is to operate a profitable department. They must take care of internal personnel issues and customer issues before they turn into major crises.
#2: Give your managers access to the Profit and Loss statement for their departments.
This is a manager’s scorecard. They can’t achieve #1 without knowing when they are doing well
and where the problems are if they aren’t so they can be corrected. Therefore, you need departmentalized financial statements…and they have to be accurate! If the person you want to be a manager has no understanding of how to read a profit and loss statement, they have to go to school or you have to teach them how to read financial statements.
#3: Establish the most important KPI for the manager
What minimum net profit per hour for the department do you, as the owner, want the departmentto achieve? The manager’s bonus will be based on this number.
#4: With the manager, establish the KPI’s for the team
Your manager will need input to these key performance indicators (KPI’s) because the manager must believe in them to use these measurement tools with his team.
#5: Give the manager the authority, responsibility, and accountability for the department
Giving authority can be the toughest one for owners. Many like giving responsibility without the authority to make decisions. Owners must let the manager manage. Will the manager make mistakes? Of course. The manager must correct the mistakes and learn from them. That makes the manager better.
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This Week’s The Financially Fit Business Podcast:
The Importance of Financial Analysis Trends I had the honor and privilege of presenting the importance of financial analysis trends to Scott Bunce’s Vistage Group.
Scott interviewed me about the why and how of financial analyses. Click here to listen:

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