Whether you have owned your business for generations or for a short time the decision to sell isn’t always easy. Once a decision is reached, your thoughts will turn to...
Two golden business rules
As a corporate solicitor I have been privileged to work with some of Gloucestershire’s most successful businesses and observe their leaders first hand. I am often asked what these leaders get right that makes their businesses successful. They follow what I call the ‘Two Golden Rules’.
Firstly the ‘20-60-20 rule’, because in any organisation your employees can be broken down into 3 broad groups: the top 20% (your “stars”) always go the extra mile, they see opportunities rather than challenges and they bring solutions rather than problems. Then there is the bottom 20% who resist change, see every challenge as a problem and regularly complain. The middle 60% that is left are people who will either follow the top 20% or the bottom 20% depending on the leader.
A good leader focuses his/her time and attention on the top 20% and gives them the resources, the praise, the promotion and the pay rises but ignores the bottom 20%. Result? The middle 60% follow the top 20% and you have a thriving progressive business. The bottom 20% keep quiet or leave! Unfortunately most business leaders focus all their time and attention on that bottom 20% trying to appease them, but if you want success you need to turn away from the bottom 20% and engage with the top 20%.
The second golden rule is the ‘10% rule’. Surely everyone would agree that, as a minimum, a good leader would spend at least 10% of his/her time focussing purely on the business by which I mean not the day-to-day tasks but the strategic issues: where is the business going, where are the emerging markets, what is the long term plan? However, although 10% of your time only equates to 2 or 3 days per month, how many business leaders actually spend 2 or 3 whole days per month just focussing on the business? Leaders who tend to be successful.
WSP are passionate about the success of local enterprise in Gloucestershire and take pride in supporting clients on their business journey, from opening the doors to developing an exit strategy. The company commercial department at WSP Solicitors gets to know your business inside out and provides you with a realistic commercial view.
For legal advice on commercial law please email email@example.com or call 01452 411601.
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