To succeed, every company needs a strong management team. Family businesses tend to try to grow their management team from within the family. That is not always the best way to do it. However, if your desire is to leave the business as a legacy to your children, then you must put in place the necessary training to make this possible.

What are the characteristics of an effective manager?

According to the 2014 L.E.A.D. Survey managed by Adrian Goldsmith of Chase Research, the top 5 most important characteristics for a good manager to have, in order to positively influence their staff performance in their role at work (depending on your role in the business) are:

By Employees

By Managers

By Leaders

Clearly communicates where the business is going

1

1

1

Gives honest feedback on how their team members are going

2

2

2

Trusts team members with challenging work

3

=7

6

Fair / even-handed / reasonable

4

=4

4

Listens to / respects team member input into decisions

5

3

3

Peter Drucker, the Father of Modern Management, is one of the most widely quoted and influential thinker on management. One of Drucker’s most famous quote is “Management is doing things right; leadership is doing the right things.” Drucker believed that above everything else, managers should be leaders. In many small businesses, this occurs, not by choice – the role of manager and leader usually fall on the same person.

However, not every manager is a good or great leader. John C Maxwell, my mentor and also the acknowledged world leadership expert, identified 5 levels of leadership:

  1. Position – People follow you because they HAVE to.
  2. Permission – People follow you because they WANT to.
  3. Production – People follow you because of what you have done for the organisation.
  4. People Development – People follow you because of what you have done for them personally.
  5. Pinnacle – People follow you because of who you are and what you represent.

To be effective, management must become Pinnacle leaders. A Position Leader will lose their team as soon as a “better offer” is received. Fortunately for us, leadership is a learnt skill.

Prepare them to take over your business and continue your legacy. While you can try to grow your leadership management team organically over time, that is not the best approach. Get an outsider’s perspective and expertise to jumpstart their leadership.