Resourcing 101 for CEOs
By Mike Myatt, Chief Strategy Officer, N2growth
It’s not what you have, but what you’re able to make out of what you have that matters. All great CEOs understand in the concept of creating leverage via proper resource allocation. Top CEOs know how to create resources where none exist - they know how to deploy and redeploy resources to maximize opportunities and to minimize risk. So my question to you is this…are you over-resourced, under-resourced, resource aligned, or do you even know? In today’s post I’ll look at the topic of resourcing as a key success metric for CEOs…
If you think CEO means chief everything officer, you won’t last very long at the C-suite level. An attitude of attempting to do everything yourself is nothing short of a recipe for disaster as a CEO, and in fact, is exactly the opposite of how top performing CEOs think. Furthermore, the best CEOs consistently spend time contemplating how not to do things themselves. Let me be clear that I’m not advocating an abdication of responsibility, but rather an understanding of highest and best use of financial, human, and technology resources. Without leveraging down it is virtually impossible for a CEO to create any real velocity or momentum in growing the enterprise.
It has been my observation that when deadlines are missed, or important initiatives don’t get off the ground, it is usually an issue of poor resource management. When I hear CEOs say things like “I didn’t have time” or “I didn’t have the necessary resources” I only have one question: Why not? When I hear a CEO complain about a lack of revenue growth while maintaining a small sales force supported by paltry marketing investments…well go figure. You see if the project/initiative was worth planning and implementing, it should have been worth resourcing. As a CEO, if you couldn’t resource the project you either had a flaw in your planning process, you misunderstood or misapplied your talent, or you should have never started the project/initiative to begin with. The most successful CEOs are like the corporate version of MacGyver in that they can overcome any obstace with whatever resources they have at their immediate disposal.
If you expect miracles from your under-resourced staff you are likely to be disappointed. However if you expect great things from an appropriately resourced staff, you will be consistently rewarded. If you continually stretch your resource rubber band too tightly, trust me when I tell you that it will eventually snap. As a CEO, your goal is not to see how much you can get out of your people, but rather how much leverage you can create for your people…there is a big difference.
On the flip side of the coin is being over-resourced…overspending is not the same thing as making prudent investments. Just throwing money and resources at a problem is not a solution…it simply constitutes unnecessary margin erosion. Overspending is a tactic for the lazy or the incompetent. The trick is to throw the right talent, and the appropriate investment at a challenge in a fashion that creates a certainty of execution while still generating return on investment.
The bottom line is this…apply your best talent and the lion’s share of your operating capital towards exploiting your greatest opportunities or toward solving your greatest challenges. Everything else is majoring in minors…
Mike,
Once again the substance of your posts contains 'meat' vs 'milk'. Solid wisdom.
Two thoughts in support of your excellent comments…
- The 80/20 rule always applies. The CEO should proactively determine which 20% (or other appropropriate measure) drives 80% of the results and organize his/her resources to insure they spend most of their productive time doing those things. This rationale also applies to every member of the team.
- The CEO must maintain the mindset that his/her job is to 'Work ON the business', not IN the business. The business IS the product, not what they sell.
Keep the hits rolling! I'm enjoying your daily doses of C-Suite wisdom
Mark
Excellent points, Mike. I think this issue is especially true for entrepreneurs who start out as solopreneurs and are used to doing everything themselves. They need an outside person like you to ask them WHY they are doing certain things themselves, when they now have a team of people to help them. I've been guilty of this myself, and it requires a shift in thinking re. the best use of my time AND a willingness to have someone else take over something I personally enjoy doing. Just because we're highly competent in a particular skill doesn't mean that's the best use of our time for the business. And truth be told, sometimes we hold on to things we're comfortable with to avoid stretching into other areas that are unfamiliar or HARD.
Hi Meredith:
Thanks for your candor and your excellent observations. As you pointed out, leaders need to learn that just because they can do something, doesn't mean they should. I always appreciate your thoughts and hope all is well. Thanks for stopping by Meredith.
Thanks so much Mark…you comments always add substance to the discussion. When all is said and done, it boils to focusing on the right things, at the right times, and for the right reasons. Great comment Mark.
Reminds me of Stephen Covey's "First things First" Quadrants.
1) Urgent/Important
2) Not Urgent/Important
3) Urgent/Not Important
4) Not Urgent/Not Important.
Be working in Quad 2 and as Mark says work ON the business… Cooking with gas.
Many of us get caught in that Quad 3 trap and all of a sudden, life is a fire drill…
Creating leverage. Surrounding yourself with the right mix of talent. Finding the resource "sweet spot." These are the takeaways for me, Mike. Thanks for sharing.
Thanks for your comment…If you follow the link embedded in the second paragraph of the post it takes you to piece on delegation in which I actually include Covey's Quadrant grid. Solid concepts to be sure…
Thanks for commenting Joe. The association of the three aspects highlighted in your comment with a leadership "sweet spot" is an astute observation. Always appreciate your thoughts Joe.