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How a retail business owner successfully developed a Management Team

How a retail business owner successfully developed a Management Team Retail-Business.jpg

This retail business owner had grown his business from a $500,000 per year business to over $3,000,000 per year in a 15 year period. A recent acquisition added another $1,000,000 in sales, so the business was now at $4,000,000 in sales.

The goal was to drive the business to $5,000,000 in sales while maintaining margins.

The old methods of managing the people and the business were breaking down. The owner was making all the key decisions, allowing the people to defer to the owner, and not make any decisions on their own.

The business was also running into issues with people not effectively working together.

What we did: We worked with the owner to access the capabilities of the people and analyzed the management approach. We eliminated one layer of management and organized the people into a more streamlined management team. Clear duties and responsibilities were developed for each person in the team, and they were held accountable for the results in their area of responsibility.

We then took all the managers and formed them into a management team that would work together to make the best decisions and implement those decisions.

What we learned: When given the responsibility and authority most people will rise to the challenge and make very effective decisions. The managers like to be in control of their areas, and like to be able to make decisions.   The managers can react quickly to changes when they don’t have to constantly “check with the boss”.

The result: The business hit its sales target of $5,000,000! The managers feel responsible for the business and are making effective decisions. The business is running more smoothly than ever before, allowing the owner can more easily stay out of the day to day operations and has more time for future planning.

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