Business Mistakes
Errors which will destroy your business.
If you are doing or have done one of these actions, rethink:
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Hiring Relatives
Consultants, reading this, grab for the Pepto. The idea that “family” won’t steal from you has been disproven so often the obverse is true… Family Will Steal From You. Further, you won’t lock up Family.
Secondly, other employees are put on the backfoot. They could complain to the “boss” about the Office Manager playing dominoes all day, but can’t complain to the Aunt of the offensive employee. This means employees will quit, will unwork, will harbor resentment and the business will suffer. If you have to hire a family member, give them very narrow responsibility and prevent their need to interact with staff.
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Overruling a Manager
Fire a manager if s/he isn’t performing. Never leave a manager in place if a decision has been made which you disagree with. If a manager fires someone and you decide to reinstate that person, by undercutting the authority of the manager you have now given him or her an all expense paid vacation in your office. The manager will never attempt to interfere in the behaviour of the employees again. S/he will hide in the office while workers will do what they please.
If the manager is not to manage, make sure this is built in the Terms of Reference, for example, that all hiring and firing is done by committee and the only authority the manager has is to “report” the employee. If a manager reports an employee and the decision is to keep that person, explain why to the manager. If not, you are in the position of overruling a manager, which means, there is no manager.
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Changing Systems That Work
Before you change anything; from a schedule to equipment, examine efficiency. Just because what you are doing or using doesn’t conform to whatever you are being sold, doesn’t mean change is necessary. Nothing that is working is obsolete. Only where you are losing efficiency do you think of change. Many systems need so much tweaking to do what you want them to do that unless you can do the tweaking yourself, you’ve invested in inefficiency.
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Sacrifice Freedom for Security
Many businesses become so worried that a customer might steal they enact systems which make customers cease their custom. Most people are not thieves and do not like to be treated as potential felons. Customers need to try on clothing, need to see the color in sunlight, or compare different garments. Many want to physically examine an item before purchase. If there is a problem with any of these activities; i.e. not allowing customers to try on clothing, blocking access to natural light or preventing a customer from examining a possible purchase, the potential purchaser will simply walk out without buying a thing. You can deal with the entrance and exit points while leaving the shopping area virtually free.
Sales clerks are not police officers, let them offer to help in a friendly manner, and if dismissed, avoid standing on the shoulder of a shopper. Some women are very sensitive about their weight. They don’t want you to see them take a size twenty two. Some may not want you to be watching the cup size. Teach your clerks to watch unobtrusively, and always be alert to assist.
If you can avoid these four errors, you have laid the foundation for a successful business.
4 Comments
Good article.
I def. agree with #1 – especially if that realtive is unqualified for the position. Not a good manaing strategy.
Cheers.
It’s a very bad policy, especially as the relative is sure
she won’t be fired. Most relatives are given jobs because
they can’t find jobs.
The first bell should go off if Niece Jo has never held
a job for longer than a month, or if Cousin Sam gets fired
on a regular basis.
The one exception I have to the Hiring family rule is your own children. Start them early (Weekends and summer from age 10. Earlier if they are bright.) Make sure all the senior managers know they are “deputy nannies”. Meaning the child must follow orders as if they came from the principal. I.e. You are not interested in any complaints unless it’s something insane and backed up by other people.
If you do this and over the years, have him/her work in all the departments and eventually in middle-management by late teens, then when he/she hits mid twenties, you can be confident you have created a replacement for yourself and go off to play gulf while the child runs the business.
That is different; you aren’t exactly hiring a relative, you are training your child to take over the business. There is no reason to rip off yourself…(your left hand sneaks into your wallet, steals 1k and puts it in your left pocket). But hiring ugly Jo who prob. invested in Cash Pus with Auntie Ann’s money is par