Entrepreneurs are frequently self-sufficient. They are opposed to
structure and authority. This determination drives them to pursue their
own vision and forge their own path. When taken to its logical
conclusion, this strength becomes a weakness. The desire for
independence and freedom from structure drives the entrepreneur to
resist the imposition of hierarchies within their own business. Changing
an entrepreneur's mindset is often the first step in enabling them to
take their business to the next level.
The shift in mindset comes
before the shift in behaviour. When they understand the value of
hierarchy, it liberates them to maximise and leverage their own and
their team members' potential. Some tasks are worth $10.00 per hour,
while others are worth $1,000.00 to $5,000.00 per hour. The more time an
individual spends working at their maximum capacity, the more money
they will earn and the more value they will create. To work at your
best, you must make use of the time, energy, creativity, and
intelligence of others.
You can leverage people, technology, and hierarchies in addition to people. Let me provide an example. One of our clients is a successful business owner. Over the last ten years, he has increased his revenue to $12,000,000.00 and his net income to $2,500,000.00. He did everything in his business at first. He began in an Executive Office Suite and only moved into his own office when he had enough cash flow to cover the overhead. The first person he hired was an administrative assistant. She took over all of his desk's $10.00 to $50.00 an hour tasks, allowing him to focus on higher-value activities. He hired more employees as the company expanded. With each new hire, the business gained higher-level capabilities, allowing the entrepreneur to increasingly optimise. He also invested in technology and put structure and systems in place to improve efficiencies and effectiveness.
Building a hierarchy facilitates optimization and leverage from an organisational standpoint. In an ideal world, your position in a hierarchy reflects your maximum capability. Most entrepreneurs are unfamiliar with the science of establishing the necessary or required organisation to achieve their goals. We were able to introduce him to the art and science of individual and organisational development in this case. At the levels of individual and organisational effectiveness, the combination of art and science is a potent mix.
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