Smart people think nobody else can do their work better than them. Nobody. So they feel they have to control everything. Millionaires eventually figure out that if you want to scale and build a very big business, you have to learn that you can’t do it all by yourself. You need a lot of help. Millionaires go from being smart to being wise. Wise entrepreneurs learn to delegate and leverage.
In today’s video I talk about the 11 laws of delegation. I’ll also share with you the things you cannot delegate.
#1: Delegate Up
You have to learn how to delegate up. So what does delegate up mean? When we first started the YouTube channel, since I can’t edit videos, we delegated up by bringing on Paul. I’m not the best at compliance, so when it comes to compliance, we delegate up. When it comes to website and app development, we hire experts at code. They can produce insane products for us, because we learned to delegate up.
The better you are at delegating up, the better products you produce, and the better systems and company you create.
Listen in here for how effective time use increases the value of your business.
A lot of times you’re going to be the best at something, but that doesn’t mean you should do it. For example, I can be very, very effective doing case management. I’d be phenomenal at it. But I’m not going to do it. The company needs me in a completely different position more than they need me sitting there doing case management.
Just because I’m better at something than someone else doesn’t mean I need to be doing it.Just because I’m better at something than someone else doesn’t mean I need to be doing it. Click To Tweet
Sometimes entrepreneurs are like addicts. They can’t let go of something they’re addicted to. You have no idea how much control freaks are addicted to doing everything themselves. They fire people galore. Thirteen years ago, I fired 27 assistants in my first two years of business. You know why? Because I didn't think any one of my assistants could do it as good as me. And I was right. But I was not growing at the pace I wanted to grow. The moment I delegated, my business exploded, because I was finally using my time in proper areas to grow my business. And all of those assistants that worked out are now making much more than they were, so it was beneficial to everybody.
Listen in here for how to duplicate yourself by teaching someone how to do what you do.
To delegate effectively, you have to find the right match for the job. So you can’t put someone at the front desk if they don’t like people and aren’t good on the front desk. That’s not proper or smart delegation.To delegate effectively, you have to find the right match for the job. Click To Tweet
You can’t hire someone for business dev if they have a short temper. If you hire a person with a short temper to do biz dev, when you send them out to visit your customers, they’ll piss everybody off. For instance, they may be unwilling to wait to see a customer, and because of it, you could lose an account.
Proper delegation requires finding the perfect position for people.Proper delegation requires finding the perfect position for people. Click To Tweet
Einstein has been credited with saying, "Everybody is a genius. But if you judge a fish by it's ability to climb a tree, it will live its whole life believing that it is stupid." So don’t ask a fish to climb a tree. If you do, you’ll make them feel stupid. Instead, ask the fish to swim. Delegate things properly and put people in the right department where they can max themselves out.
This one is very simple. You can replace the word inspect with micromanage until you trust. I get into this topic in detail in this video and article.
Delegation requires being clear on what you expect someone to do. If you’re unclear with the direction you give, people will be frustrated because they won’t know how to please you or make you happy. Then there’s friction. So be clear with your expectations. Ask, “Do I make myself clear? Does this make sense to you? Do you have any questions?” Then use email to document what you said, and hold them accountable by following up with them.
Stop doing $10 an hour jobs yourself. Let me explain what I mean by this. I’ve said in the past that I love to iron and I love shining my shoes. But at one point, even though I couldn’t afford it, I stopped doing both because I had to increase my own value.
When I say this, some people ask, “Well, Pat, are you saying that person's worth $10 an hour?" Yes. If someone is saying yes to a $10 an hour job, they’re saying, “I’m worth $10 an hour.” If someone says yes to a $70,000 a year job, that’s what they’re worth. If someone says yes to a $40,000 a year job, that’s what they’re worth.
Now after reading this you may say, “I’m going to say no to those job offers.” That’s not very smart because if that’s truly your value in the marketplace saying no to those jobs means you’re unemployed.
So yes, if a person is worth doing a $10 an hour job, you shouldn’t be doing it as an entrepreneur that wants to scale. You need to be not just smart, but wise.
Now you better understand that the person doing the $10 an hour job is just as important as anybody else on the team. If you delegate to somebody and they don’t know how important their job is, they won’t do good work to the best of their ability.
I like hiring project managers. Right now we’re working on a very, very big project. We don’t have time to do everything ourselves. I hired a project manager from Australia who is the best of the best. He’s phenomenal at what he does. He gives me reports, and we get on Skype calls. I know exactly what’s going on. I personally found this guy and recruited him.
Initially this was supposed to be a 10-hour job, but we’ve done so many hours of work right now. We’ll do business with him for many years to come.
Hiring project managers allows you to do bigger things to grow the business.
The last law is to be a leader, not a doer of all. A lot of times we say, "He's a doer. He does everything himself. He's a doer." Great. Be a doer, but only in the areas where you’re very good. Don’t do it all.
Now when you start a business, you have to do it all. But eventually you need to change from being a doer to being a leader.
So now let’s talk about the things where delegation is not an option.
A High Level Skill or Behavior
Now this could be something you can delegate, but it can also be something you cannot delegate. If it’s your main skill, delegation isn’t an option. It could be a big deal that you have to negotiate. Another examples is something in your area of expertise where you have to know how to connect the dots to come up with a formula. You have to be a part of these things.
If you aren’t, this is where delegation goes wrong. If you just say, “Here you go” the person you delegate to will come back after 40 hours of work and it will be all wrong. Maybe there’s part of it you need to do, and some of it you don’t.
Delegation varies depending on your stage of business. For instance, in the survival phase, you touch everything, but later on, you don’t.
You have to touch your best customers. They like to do business with you. The same is true of your best partners and vendors. This doesn’t mean every single time. I don’t deal with my customers and vendors every single time. But you better believe I deal with them when it comes to important issues. I’m involved as the CEO with my best customers, vendors and partners.
Sales Force Loyalty
A lot of times CEOs don’t want to deal with sales. But it all has to do with what kind of company you want to build. I love dealing with sales. I’m the happiest when I’m dealing with sales. Here’s why. When you take sales out, you’re out of business. You better be good to your salespeople, because if you aren’t, I guarantee you somebody else - like me - will. I’m always looking for great salespeople. I take care of them if they come and work with us.
Next, when you have a crisis, you can’t just say, “Hey, we have a crisis. You handle it.” Nope, you have to be a part of it. You can’t just let a crisis go because if you don’t deal with a complaint when it’s small, it can grow to the point that you can’t solve it any more. You could have solved it easily if you got involved early on and said, “Tell me about the problem” and then, “Okay. Let me make three calls.”
Big Ticket Items
Depending on your company’s standards you may say, “Any purchases up to $10,000 needs the presidents and CFO’s approval. Anything above $20,000 needs my approval.”
I have a very simple system. If you come to me and say, “I have a purchase to make that’s $50,000.” I always ask, “Do we have three different options?” If they say no, I have them come back with two additional options. Together we evaluate them and then move forward from there.
As the CEO you need to touch finances when it comes to big ticket items.
Heartbeat Behind the Brand
The last one is the heartbeat behind the brand. The heartbeat behind the brand is the leader, the CEO, the entrepreneur, the visionary. You’re the heartbeat behind the brand. You know the story. You’ve touched it. You grew this thing, and you’re completely vested in the heartbeat. The heartbeat has to do with how people view the company. It’s about how the story’s being told, the mission and vision. You can’t tell others to put together the mission or vision statement and you’ll approve it. You have to be a part of it.
So mastering these keys to delegation and knowing what you should and should not delegate is the difference between being smart and wise. Delegation is why people become millionaires.
Millionaires don't become millionaires because they have no clue what they're doing. They're extremely wise, and they realize they need a big team. If you want to eventually become a millionaire, you need to leverage and delegate. You need to find good people that you can bring up with you. And when you win big, everyone that’s part of your business wins as well.
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