Insights + interviews
Some Things To Think About When Leading A Business
The Active Age spoke with several career builders as they shared their tips and thoughts with regards to the responsibility in leading a business or running a business unit.
One of the biggest fears people have is failure. While the rewards are huge, be it monetary emotional, when running a business, the spectre of failure always looms in the distance. Given the perception that failure happens, we wonder why and how do leaders continue to build their businesses on a daily basis and what are some of the pitfalls to avoid or signs to capitalise on?
This article consolidated and summarised the perspectives and opinions of a panel of career builders we have interviewed, they are:
- Mr. Lim T T, 53, partner of an architecture firm
- Ms. Sarah Duncan, 50, owner of her own fitness studio
- Mr. Ong C Y, 55, regional managing director of a technology multi-national corporation (MNC)
Talent and People
One of the biggest developments in recent years has been the introduction and adaptation of Generation Y/millennials into work teams. This is a transitional stage where there are multiple generations present in team structures – baby boomers that are about to retire, Generation X leaders or managers and Generation Y/Millennials as team members.
Panellists have shared that there’s a definite increase in tension within team structures as multiple generations learn to work effectively and productively with one another. One tip that was shared, is the establishment of processes that align the working styles of each generation. Regular catch-up meetings informal or otherwise can help team members set expectations and deadlines. One simple process can be a recap or summary captured during the meeting to ensure that everyone is on the same page and have the same understanding of what’s required.
Commenting about Generation Y/Millennial members, the panel shared that they’ve learnt to open up to share more about their vision or mission for the brand and company and how it has helped them connect and set better goals with the team.
Delegation
The panel agreed that delegation is more than an art. It goes beyond ensuring that the right team is in place. It is about hiring the right fit fr the role.
A key sharing for younger team members is for them role play the “stepping into their boss’ shoes and fill them”. Our panel gained from having mentors that consistently guided them through their formative years. Now as leaders, they look to build and groom team members to learn from their earlier mistakes and leapfrog ahead to tackle new challenges for the company.
Cash Flow and Margins
One of the biggest challenges of any business is maintaining money in the bank and charging an appropriate margin for products sold or work done.
A pitfall many young leaders fail to appreciate is when to stand their ground and charge the client for time spent and work done. They forget that once they give in, it starts the slippery slide down the slope. Customers appreciate working with candid and transparent people, and the panellists agree that having walked away from a sale before, that it is not the end of the road, although it might feel so. There’s a silver lining in being firm. A panellist revealed that there was once a customer that swapped companies and eventually returned, because he valued the quality of the relationship.
Some panellists emphasised that cash flow is critical for smaller companies and how they need to ensure that a healthy cash flow is needed to keep the company afloat, at least during the earlier years. They opine that team members should learn how to read and do basic accounting to add value to the business.
Adding Value
All the panellists agreed that a strong reason for their present-day success was their belief in adding value to their brands, companies and teams. The definition of what constitutes ‘adding value’ changes along with the situation and the type of leader or manager the person is.
The constant process is that the individual looks for what the optimal or best scenario would be in a given situation. Using the optimal scenario as a goal, the team member looks for means and support to achieve this scenario. The panel also pointed out that team members shouldn’t use this as an excuse to ignore agreed upon protocol but learn to work within the system to effect change.
Building Relationships
The panellists shared that one of the best time investments, at first subconsciously and even more so once they were aware of the impact, is the building of relationships and the growing of a network.
In a team environment, understanding colleagues and their competencies can help to make the team more efficient and productive, while career contacts and network, be it colleagues in the office or business partners, served a purpose at different stages, from a support system to a career booster (perhaps in the form of a referral for a job) and best of all, forging friendships.
