1269: 7 Common Elements When Transitioning from Founder to CEO by Dr. Jeff Cornwall on Entrepreneur Transition

[00:00:00] This is Optimal Work Daily Episode 1269, 7 Common Elements When Transitioning From Founder To CEO. By Dr. Jeff Cornwall of Dr. Jeff Cornwall.com. And hey there, I am Dan and I'm your narrator here. Welcome to this Friday edition of OWD. Hope your week's been a good one. And we're going to get right to our post now as we hear from Dr. Jeff and optimize your life.

[00:00:30] So, let's get started.

[00:01:00] but you have to establish what your role will be as the CEO.

[00:01:04] Growth changes your job.

[00:01:06] Many entrepreneurs start their businesses

[00:01:08] because they like the hands-on part of their business.

[00:01:11] Engineers like to engineer.

[00:01:13] Furniture makers like to build stuff.

[00:01:15] At some point in the growth of the business,

[00:01:17] the entrepreneur begins to move away

[00:01:19] from the hands-on part of what their company does.

[00:01:21] This can be a painful and frustrating period.

[00:01:24] As they move away from the hands-on,

[00:01:26] entrepreneurs must learn the other strengths and weaknesses

[00:01:29] they bring to the business.

[00:01:30] If you have an act for numbers,

[00:01:32] keep the financial management of the business

[00:01:34] part of your core responsibilities.

[00:01:36] If you're good with customers,

[00:01:38] don't be in a hurry to give up selling and customer relations.

[00:01:41] Your job description as CEO

[00:01:43] should be a reflection of your skills, abilities, and knowledge.

[00:01:47] However, no matter what your specific role

[00:01:49] as the CEO is in your business,

[00:01:51] growth demands you start to build your team.

[00:01:55] Delegation hesitation.

[00:01:58] There are three common mistakes

[00:01:59] that entrepreneurs make when delegating.

[00:02:01] The first mistake is being hesitant to delegate.

[00:02:05] When first beginning to delegate to employees,

[00:02:07] some entrepreneurs might feel that no one can do

[00:02:09] what they do as well as they can do it.

[00:02:12] Employees might not care quite as much

[00:02:14] as the entrepreneur does.

[00:02:15] After all, this is your business

[00:02:17] and your reputation is tied to its success.

[00:02:20] To employees, it's simply a job.

[00:02:22] To overcome this hesitancy to delegate,

[00:02:25] entrepreneurs should remind themselves

[00:02:26] that sometimes good enough is good enough.

[00:02:30] While employees may not carry out the tasks delegated

[00:02:33] to the level of perfection that you would,

[00:02:35] they can learn to perform these tasks well enough

[00:02:37] for the business to run smoothly

[00:02:39] and for customers to stay satisfied.

[00:02:42] Moving too quickly,

[00:02:44] the second mistake entrepreneurs make

[00:02:46] is rushed delegation.

[00:02:48] Rather than being hesitant to delegate,

[00:02:50] entrepreneurs who make this mistake

[00:02:52] seem as if they can't wait to get tasks off their plates.

[00:02:55] We see this quite often with serial entrepreneurs

[00:02:57] who are so eager to get to their next new business idea

[00:03:00] that they don't take the time

[00:03:01] to get their current one running properly before moving on.

[00:03:05] These entrepreneurs delegate without providing proper training

[00:03:09] and without giving clear expectations for performance.

[00:03:12] In the rush to delegate, tasks and responsibilities

[00:03:15] can also end up being assigned to the wrong person

[00:03:18] or mistakenly to multiple people simultaneously.

[00:03:21] This can lead to chaos and frustration.

[00:03:24] To overcome rushed delegation,

[00:03:25] develop a clear and detailed plan

[00:03:28] that includes what needs to be delegated,

[00:03:30] who should be assigned the task

[00:03:32] and what needs to be done to prepare employees

[00:03:34] for their new responsibilities.

[00:03:36] Trust.

[00:03:38] The third mistake is undermining the delegation process.

[00:03:41] Even after the delegation of tasks and responsibilities,

[00:03:44] employees will still tend to want to go directly

[00:03:47] to the entrepreneur to get an answer to a question

[00:03:49] or to make a decision instead of going

[00:03:52] to the person now assigned to that area.

[00:03:54] If the entrepreneur answers that question

[00:03:56] or makes that decision,

[00:03:58] it will completely undermine the authority

[00:04:00] of the person it has been delegated to.

[00:04:02] I developed a seven second delay to avoid this mistake.

[00:04:06] When I was asked for an answer or a decision,

[00:04:08] I would always pause for a few moments to ask myself,

[00:04:11] is this still my responsibility

[00:04:13] or have I delegated this to someone else?

[00:04:16] If I had delegated it,

[00:04:17] I'd answer by sending them to the employee

[00:04:19] to whom I had given that responsibility.

[00:04:22] Delegation is a lot like raising teenagers.

[00:04:24] At some point, you have to begin to let go

[00:04:26] so they can learn and grow up.

[00:04:29] With your business,

[00:04:29] if you don't learn to let go and delegate,

[00:04:32] your business will never successfully grow up

[00:04:34] to the next stage of development.

[00:04:37] Seven common elements of CEO job description.

[00:04:40] As founders build their team

[00:04:42] and delegate responsibilities to their leadership group,

[00:04:45] they must pay attention to seven elements

[00:04:47] that are part of every entrepreneur's

[00:04:49] job description as CEO.

[00:04:51] One, growth can be stressful for everyone in the company.

[00:04:55] The entrepreneur must remind everyone of the vision

[00:04:57] as to where the business is headed

[00:04:59] and provide inspiration for the company's potential.

[00:05:02] Two, the entrepreneur must be the keeper of the culture

[00:05:06] and lead the efforts to create an intentional culture

[00:05:09] that represents the founder's values.

[00:05:11] Three, growth requires resources.

[00:05:14] As the CEO,

[00:05:15] the entrepreneur is responsible

[00:05:17] for securing the necessary resources

[00:05:19] to ensure successful growth.

[00:05:21] Four, the entrepreneur must work with the leadership team

[00:05:25] to create systems that will support ongoing growth

[00:05:28] and ensure customers needs are being met.

[00:05:31] Five, the structure of the business

[00:05:33] should never just happen as people get hired into the business.

[00:05:37] The entrepreneur must ensure that structure

[00:05:39] is tied to the strategy, culture,

[00:05:41] and business model of the company.

[00:05:43] As CEO, every entrepreneur must be prepared

[00:05:46] to be the chief strategist

[00:05:47] and adjust the direction the business takes

[00:05:49] based on changing market demands and opportunities.

[00:05:53] Seven, finally as CEO,

[00:05:55] the entrepreneur serves as emotional shock absorber

[00:05:58] to keep a positive climate in the business

[00:06:00] even when the business faces

[00:06:02] the inevitable challenges that are part of growth.

[00:06:05] By integrating these elements into your job description,

[00:06:08] you will be on the path

[00:06:09] to becoming a more effective CEO of the business you founded.

[00:06:12] You just listen to the post titled

[00:06:19] Seven Common Elements when transitioning from founder to CEO

[00:06:23] by Dr. Jeff Cornwall of DrJeffcornwall.com.

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[00:08:37] Get started today.

[00:08:38] And thank you to Dr. Jeff.

[00:08:41] Growing up entrepreneurship and small business

[00:08:43] was normal dinner time conversation

[00:08:45] at the Cornwall household.

[00:08:47] This set the stage for a decades long career

[00:08:49] pursuing entrepreneurial ventures

[00:08:51] and sharing his knowledge in the classroom.

[00:08:53] Jeff has spent more than 40 years

[00:08:55] as a serial entrepreneur.

[00:08:57] In the 1970s he started several small businesses

[00:08:59] and was involved in various family ventures.

[00:09:02] In the late 1980s following several years in academics,

[00:09:06] Dr. Cornwall co-founded Atlantic behavioral health systems

[00:09:09] in Raleigh, North Carolina and spent nearly a decade

[00:09:12] leading the company as president and CEO.

[00:09:15] After growing to more than 300 employees

[00:09:17] he and his partners sold most of their healthcare holdings.

[00:09:20] After the sale Dr. Cornwall decided

[00:09:22] it was time to return to the classroom

[00:09:24] to share his experience and knowledge

[00:09:26] with aspiring entrepreneurs.

[00:09:28] He's now the president and CEO of the entrepreneurial mind

[00:09:32] and his blog was named one of the 100 best websites

[00:09:35] for entrepreneurs by Forbes Magazine.

[00:09:37] So definitely you want to check that one out.

[00:09:39] Come by Dr. Jeff Cornwall.com for a lot more articles.

[00:09:43] But that is going to do it for today

[00:09:45] here on Optimal Work Daily.

[00:09:46] Hope you enjoyed this Friday show

[00:09:48] and that you have a great start to your weekend

[00:09:50] and I'll see you right back here again

[00:09:52] for the Saturday show tomorrow

[00:09:54] and that is where your Optimal Life awaits.