Get Your Department Heads to Own their Numbers
You hired
good people. Now make your department
heads feel like owners of their areas.
- Keep them up to date on their operating costs. You do not have to share the whole financials with them, but certainly let them see their department costs.
- Have them budget their numbers each year. Add this into the reporting package. Hold them accountable for what they planned and make it easy for them to see how they do. Make the variances visible to them and you. They may take action on it even before you see the need.
- Give them reasonable room. Decide what they have discretion to spend on and what needs to come up to you for approval.
- Celebrate and reward their successes as well.
You, your family and your investors may own all the stock. Yet you will have something better to own if you let your people have psychological ownership of their areas.
Comments