Jim Casler
Jim Casler
North Coast Ag Advisors
Family Business Planning

231-218-7525

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MicroManagement

11/1/2014

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Last we explored the benefits of developing Standard Operating Procedures (SOPs) for your family farm business.  Now, let’s spend some time helping you identify them, the consequences of deciding not to develop them and finally, some thoughts on how to help the senior generation of your family business stop micro-managing the team.

Identify SOPs For Your Business

Every family business is different and unique and “how” you perform tasks (Standard Operating Procedures) that provide consistent and desired results has likely evolved over time as a result of trial and error and years of experience.  Clearly documenting these tasks is the goal of your team members that are responsible for various areas in your family business.  Some areas that could benefit from SOPs include:

·         Equipment Operations and Maintenance
·         Administration / Accounting / Financial Analysis
·         Agronomy / Field Records
·         Livestock / Feeding/Health Procedures

Consequences of No SOPs

Accidents, injuries, expensive repairs, expensive “learning moments” and wasted time are just a few consequences of not having SOPs in your business.  An expensive piece of equipment is damaged because one simple task was skipped.  An accounting task only done once a year takes six hours instead of the two because the tedious process was not documented and it had to be re-learned all over again.  Have you ever wasted time re-explaining things over and over again?  Let your imagination run and think about all the benefits of documenting things for you and your team members.  Your business then becomes more systematic and less dependent on senior management for every decision or task that needs to be made.

Stop the Micro Managers!

"Managers that cannot trust the judgment of their employees and are unwilling to allow the people to assume their responsibilities are cheating themselves of the talent they pay for...or they genuinely have hired the wrong people.  "
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Occasionally, senior management leaders just can’t let go and empower their team.  Have you seen that before?  Indeed!  

Generally, micromanagement is a style of managing every detail, trying to make every decision, taking a key role to complete each significant task and trying to dictate every small step for employees. These managers tend to have lack of faith and trust in their people, are repressive which leads to little growth, annoyed employees and very little personal development.  Managers that cannot trust the judgment of their employees and are unwilling to allow the people to assume their responsibilities are cheating themselves of the talent they pay for...or they genuinely have hired the wrong people.  Though micromanaging will work for a while, it hinders progress by discouraging new ideas and team growth.

Other times, managers aren’t consistent on how they want things done.  This too creates confusion and mistrust and your business may end up losing good people because they are constantly being micromanaged.  

By developing SOPs, your inner micro-manager or senior management is tasked with truly thinking about the best way to do certain tasks.  In turn, it provides the documentation to communicate this preferred way of doing things to other team members.  Again, this all helps make your business less dependent on specific people and more able to adapt and change…say like during a generational transfer of management.  


Lastly, Standard Operating Procedures or Operations Manuals do not need to be some sophisticated, lengthy encyclopedia sized documents.  Borrow some templates.  Change them to match your business.  Don’t reinvent the wheel.  Make it easy on yourself.  They should be simple and easy to follow.  The most important thing to do though is to COMMUNICATE with your team on a regular basis. 

Can you see the benefits?  Does it take time?  Yes. 



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