Question: My small business is growing, but I have only very basic skills at delegating duties to my employees. I want to become a better manager. Is there a new method or technique that I should know about?
Answer: Yes, there is. The ability to delegate effectively is a vital management skill. It allows you to leverage yourself and accomplish much more than you could otherwise. It can make or break your business. Let's talk about this.
Effective delegation is a cornerstone of good management, and it helps develop your people. In delegating, as opposed to just assigning a duty, you are loaning some of your authority to an employee. Fun idea: think of delegation as "internal outsourcing."
In a previous column we talked about the "Five Levels of Freedom to Act." Picture each employee having a rank at this moment. Here's a quick review of the five levels, from highest to lowest:
• Act on own. These employees are your superstars. At this high level you are basically giving them the authority to act in your place. These people are the most highly trusted members of your staff.
• Act, then inform. This level also has a high level of trust and autonomy. The employee has freedom to take action, but then needs to advise you of the action taken and its outcome.
• Recommend, then act. This is a more junior level of authority. This employee is dependable and responsible, but has a shorter leash in terms of their authority. Typically, many good employees are at this level.
• Ask what to do. Example: a recent or inexperienced hire. Best bet is to help them move up a notch to "Recommend, then act", as soon as they are able, or wash them out.
• Wait until told. This might be a temporary hire or a semi-employee, like a college intern.
Note that the two lowest levels have an important difference, and are commonly called "the freedom to do nothing." You don't want employees to be in these levels for very long.
The new view of delegation is not like the old way of just "giving orders." It's much more like collaboration, where you and the employee discuss the task, what resources are needed, and how it can be completed and measured. In management terms this is often called "defining the deliverable." Over time you should come to view delegation as a win-win situation. Think of it as a form of empowerment, where your staff gets increasing responsibility and gains new skills. Your business gets increased efficiency and productivity.
There's a new, simple and effective way to structure delegation. It's often mentioned as an acronym called SMARTER. In this framework, the key attributes of delegation are that it be: Specific; Measurable; Agreed; Realistic; Timebound; Ethical, and Recorded. Here are some details on this technique; see how it might fit for you.
• Specific. When delegating, it's very important that the manager and employee both understand exactly what is expected. For a sizeable task you should prepare written details about task outcomes. Brief example: "To increase export sales by 10 percent next year."
• Measurable. It's counterproductive to propose vague and unmeasurable outcomes. If you can't define the outcome in clear terms, you haven't thought it through adequately. Your measurement "metric" could be financial or something else, for example "add five new clients each month."
• Agreed. The whole point of delegation is that everybody involved buys in.
Be sure that all essential players are informed, involved and committed. You can't delegate a job to someone without also giving him or her the tools (financial, staff and otherwise) to accomplish it.
• Realistic. As you decide whom to assign the task to, look at their "skill and will." Is this something that can be done with the available resources, within the expected time frame and with the skills and experience of those you are entrusting with the task? Be honest with yourself and them about these matters.
• Timebound. An open-ended plan that lacks a defined endpoint or deadline is not motivating. Time, like any other resource, has value and has to be factored in.
• Ethical. You can't ask an employee to do something that is unethical, or that you wouldn't do yourself.
• Recorded. Keep a few brief notes about the task, how it progressed, the timeline, any interim milestones and how it was completed. Also note any significant errors or trouble spots that came up along the way.
As you use the SMARTER delegation technique, keep in mind: "Great leaders gain authority by giving it away." (Admiral James Stockdale).
ABOUT SCORE
To learn more about managing cash flow, and other small business matters, contact SCORE, "Counselors to America's Small Business." SCORE is a nonprofit nationwide organization with more than 13,000 volunteer business counselors who provide free, confidential business counseling and low-cost training workshops to small business owners. Call the local SCORE chapter at 360-685-4259 to schedule an appointment. For details about the organization,visit SCORE.org.
