Riverside Manufacturing

In 1989, George Carson began making cabinets for friends in his basement.

His costs were low.So were his prices. There was no overheadThere was no overhead..

Word spread. Business flooded in.

George dropped his day job to make Riverside Manufacturing a real business.

He hired a helper and moved to rented space.

George had a micro business!

Riverside Manufacturing

George was a “hands on” owner. He:• Made every hiring decision.• Managed all employees.• Made every important decision.• Knew the intricate details of the business.• Didn’t need metrics, reports or documented processes.

But, with all the work,

George was stretched thin.

Riverside Manufacturing

The employees:•Produced & installed the cabinets•Made sales calls•Resolved customer issues•Shipped product•Handled administrative tasks

OOverhead remained lowverhead remained low – there were no managers.

“We have good people. We just get it done.”

-George Carson

Before George knew it, Riverside Manufacturing grew to 40 employees!

Riverside Manufacturing

Vacations were scarce and time off was at a premium.

George worked 75 hours per week and didn’t see much of his family.

Worse, business began to stagnate:

• Sales growth stopped• Profits evaporated• The shop and inventory became unorganized• Work was always behind• The lack of processes led to constant fire drills• There were never enough hours in the day or days in the week!

Riverside Manufacturing

George was at a loss.

What happened What happened to his growing business?to his growing business?

Riverside Manufacturing

Riverside was growing.

Profits were good.

Then…

Things began to go wrong.

George wouldn’t let go.

He was drowning.

He couldn’t keep up with the work.

The business was suffering.

Without knowing it, George was the George was the constraint to growthconstraint to growth!!

What Happened?

• What challenges do principals face as their businesses grow?

• Where are the transition points?• Does classifying a business based on

sales and number of employees work?

We need a new way We need a new way to classify businesses!to classify businesses!

Questions…

• Do the work

• Manage the workers

• Manage the managers

A New Way to Classify Businesses

Midsize

Small

Micro

The Principal’s Role

Midsize

Small

Micro • Do the work

• Manage the workers

• Manage the managers

Micro

• Make tactical decisions

• Do the work

• Develop strategy

The Principal’s Role

Micro• Make tactical decisions

• Develop strategy

Small

The Principal’s Role

• Get the right workersin the right jobs

• Manage the workers

The Principal’s Role

Midsize

Small

• Develop strategy

Midsize

• Delegate authority &hold accountable

• Document process• Develop robust metrics

• Hire the right managers

• Doing the primary work of the business• Making tactical decisions• Hiring and managing workers

Principals must Let Go To GrowLet Go To Grow

What We Learned…

• Doing the primary work of the business• Managing those who do the work• Managing the managers, overseeing

the enterprise

Principals must Let Go To GrowLet Go To GrowThe principal’s skill set must change dramatically as the business grows:

What We Learned…

What Does This Mean for Me?

In what stage is your business?

In what stage should it be?

• Micro

• Small

• Midsize

Are you successfully doing the primary work of the business?

Are you making good tactical decisions?

Do you have a good strategy for your business?

If You Run a Micro Business…

Have you let go of doing the primary work of the business?

Are you hiring the right people?

Do your people deliver the results you want?

If You Run a Small Business…

If You Run a Midsize Business…

Have you delegated:

Tactical decision making?

Hiring of the workers?

Management of the workers?

Do you have effective managers?

Do you have documented processes?

Do you have the right metrics?

We’ve told you what you need to do.

We haven’t said a word about how to do it.

That’s a problem with a lot of business books!

Good to Great: “Get the right people on the bus.”

How do you get the right people on the bus?

How do you do the things we have been discussing today?

What Now?

Buy the book!Buy the book!

The insights documented in Let Go to Grow are valuable lessons for anyone looking to increase his or her management effectiveness.

--Douglas P. Gernert, CEO, Totes Isotoner CorporationDouglas P. Gernert, CEO, Totes Isotoner Corporation

Doug and Polly White have written an extremely well researched and helpful guide for CEOs who want their small companies to grow into larger ones.

--Kim A. Lopdrup, President, Red LobsterKim A. Lopdrup, President, Red Lobster

Let Go to Grow is the road map for entrepreneurs who seek to achieve that elusive next level in their business.

--Gerardo I. Lopez, President and CEO, AMC EntertainmentGerardo I. Lopez, President and CEO, AMC Entertainment

What are People Saying About Let Go To Grow?

Doug & Polly WhiteWhitestone Partners, Inc.(804) 379-7929WhitestonePartnersInc.com

Helping principals manage the transitions from Micro to Midsize.