Effective Organizations

Fred Smith gives three keys to building effective organizations.

By Fred Smith

Highly effective executives develop effective organizations. Even when an organization is a "one man show" he must still select the kind of people who best help him operate successfully. Organizations vary tremendously, but I find two types of leaders. One is the leader who operates with a focus on "things" and the other operates focusing on "people." Of course there are gradation between these two types, but for this discussion let's consider them as poles. Both of these leaders can be successful, but if an individual doesn't identify his style then he consistently runs into problems.

 The "thing" focused leader is a great technician, has to know more about the details of the operation than anybody else and has to be able to see everything that goes on. He must keep the organization small enough so that he can supervise everything himself.

 We once had a department run by this type and he did a successful job until we expanded the department, then all havoc broke loose. We had to replace him with a man who could supervise from a people focus. He was a terrific leader with eleven employees, but a miserable failure with twenty-five.

 Let's think about the "people-focused" leadership style. What makes this work? I have three points for you to consider.

1) Be sure you get the right people. "One of the biggest sins of management is in not firing enough people." Did that shock you? I bet that half of you have someone in your organization who ought to be fired right now. They have been dragging their feet for years, they are not paying their way, they are obstructing and they ought to be put out of the organization. Incidentally, if you are ever in trouble, these are the first ones to turn against you. It takes a tough-minded leader to get and keep the right people. It takes real courage.

 2) Reserve for yourself the things that only you can do and delegate all the rest. What are the things in your business that only you can do? It will vary. Some of you are creative; others are administrative. However, in every business there are some things which the top executive can do uniquely. Consider delegating the rest. If you are the kind who says, "Well, I'm the only one around here who can do anything," then, friend, you are my Number One candidate for a heart attack!

 3) Develop your people. One of the largest corporations found that 85% of what was helpful in developing leaders came on the job itself, not in extra development programs. Many of you are not large enough to invest in college programs and I might confess that industry has wasted a lot of money trying to find the answers. Most of the answers for leadership development come right on the job. Probably many of you were developed by someone who was willing to delegate to you.

 Theodore Roosevelt said, "The art of good management is the ability to pick people and the humility to leave them alone." What an excellent choice of words. Strong leaders build people who can operate wisely and well without constant supervision. The leader who "needs to be needed" is professionally needy and has some serious executive flaws.

 Pick good people, delegate well and grow the people. You will enjoy the fruits of an effective organization.

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