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We all like to think that we are improving. At
least that’s what a professional or business owner should be thinking:
continual improvement. It is a worthy goal that can consume a lifetime
without being accomplished. Over the years I have performed informal studies
of human nature. Observing business owners on their quests for business
betterment has become a fascination. Why can’t all businesses improve and
prosper? What elements distinguish the successes from the failures?
In larger business environments there is a layering of
hierarchy that may contribute to success. Smaller businesses shy away from
this multi-tier environment because it is perceived as slow, cumbersome, and
inefficient. And it may be. But there are characteristics that are quite
beneficial; some elements are accountability, meeting goals, and the need to
justify one’s actions.
In smaller businesses the focus and
struggles are different. Daily operations are the challenge with little time
left for goal setting or performance measurement. Many times there is little
to no direct accountability since the owner is the chief executive officer,
shareholder and the Board of Directors. They are their “own bosses”. Often
that may have been a motivational factor for them to start up their business
venture.
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That independent spirit is a great
attribute if properly focused. The company moves forward, conquering new
markets and providing a strong future for the shareholders and employees and
paying creditors. Over time something can happen; personal goals or
weaknesses actually replace or dominate basic business goals, diminish the
corporate performance and compromise the future. Why? – because humans left
unaccountable will generally migrate to their favorite activities or avoid
unpleasant obligations.
A timely third party reality check,
sort of like an early warning system, can be invaluable. It exposes the
operations-immersed business owners to real world ideas and triggers a
reassessment of purpose. It can be accomplished informally by discussing
issues with other business owners or more formally through consultants or by
forming an executive committee.
So it seems that many small
businesses need a dose of what many of the owners fled from, structure and
accountability. Not the full corporate program but a lighter version. It
helps the “unaccountable” keep on track to success.
Garry Jones, CPA
3/03
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