As a Mergers & Acquisitions (M&A) Coach, I often start client meetings with, “How do you describe your management team?” Assess the team. Take a look at their productivity, engagement, relationships with one another and their direct reports. Include the protocol for problem-solving, decision-making and accountability. Is this team an asset or a liability?
Cy Wakeman, a drama researcher, was interviewed by entrepreneur, Gary Vaynerchuk. During the interview they discussed Wakeman’s finding that 2.5 hours per day was spent on drama at work. Workplace drama takes a heavy toll on any organization by reducing engagement, productivity, and resilience- it can derail your M&A deal. This type of drama in a management team could seriously decrease the value of your company in M&A. Roll up your sleeves, dive in and lead your team to their greatest work.
There are goals, objectives and strategies for creating a healthy work environment with your management team.
As CEO, the business owner determines the health of the workplace using a growth mindset along with accountability. If you are an owner who intends to sell the company some day, or to acquire another to grow, the management team is an important element in valuation. If your entrepreneurial toolbox is lacking the latest in coaching tools, find an M&A coach.
Next, how would you assess your operations? You may be wondering what the topic of operations is doing in the middle of an article on management teams. As it turns out, the human component of operations determines the sustainability of any operational improvement. This has a direct impact on your company’s valuation. This is your opportunity to visualize what the ideal version of your management team looks like, and increase the value of your company. How is the ideal vision different from the reality?
You may tell yourself that you will take care of those issues later-much, much later. Right! You may want to reconsider as these steps offer a much more immediate return on any investment of time and energy. The National Center for the Middle Market published a report earlier this year, along with Dr. Peter Ward (Fisher College of Business) entitled, “The Operations Playbook: A Systematic Approach for Achieving and Maintaining Operations Excellence”. The report explores why companies find it hard to make and sustain improvements in operations.
A Key Takeaway:
Manage your operations as a four-part system.
- Problem-solving subsystem
- Daily management subsystem
- Strategic subsystem
- People development subsystem
The National Center for the Middle Market is an amazing source of information:
If you are interested in the ”Ask GaryVee” interview with Cy Wakeman, it’s number 266.
