American businesses make me laugh some times... (insurance, company, interest)

[sterlinggirl]

Originally Posted by Mathguy

1) It's a 5-8 person company.
2) It actually is a waste of time for certain people to be doing jobs they are over-qualified for.
3) A whole bunch of the current financial crisis can trace it's roots to consumer spending and debt levels stretching back to the credit card debt boom in the 80's\90's. Then there is the whole refinance to grab equity and live beyond your means craze. Plenty of blame to go around.

Pretty much alll the small business CEO's I know work their butts off and are very shrewd.

1) In a 5-8 person company the CEO doesn't have any reasonable excuse not to know how to do everything in the business. They may not be as talented in every job, but they should at least be proficient in every position.

2) That's assuming that the CEO is always busy. If he/she has any spare time, it would be productive to make sure they knew how to keep the business running if a key employee left unexpectedly. The CEO of a small company should also know enough about the company to ensure that everybody's time is being utilized effectively. You can't do that if you don't know what your employees are actually doing.

3) True

[sterlinggirl]

Originally Posted by 8 SNAKE

Just exactly how many CEOs do you know? Of the ones that you do know (assuming you actually know any), how large are the organizations that they run?

Quite a few, mostly from small and medium sized corporations.

If you're suggesting that any CEO of a moderate or larger sized organization should keep up with changes to the UPS website, I'm going to fall out of my chair laughing. Same with other "mundane" tasks. Those are wastes of time for someone who should be focused on the big picture and steering the overall direction of the company.

The CEO of a thousand person company shouldn't spend a great deal of their time with mundanities, but they should at least make an effort to learn about the things they're making decisions on so they don't make things worse instead of better.

In my experience, CEOs who never get their hands dirty tend to make worse decisions than their counterparts who get out on the floor on a regular basis. I've seen millions of dollars wasted on ideas that looked great on paper that even the bottom rung employees knew were impossible to achieve in real life. The typical CEOs that I saw making that type of mistake are the ones who had the largest egos, while the ones who were humble enough to talk to the janitor generally had a much better idea of how to keep things running at top efficiency....and any CEO worth their salt knows that the easiest way to add to the bottom line is to be more efficient.

[GoCUBS1]

Originally Posted by sterlinggirl

1) In a 5-8 person company the CEO doesn't have any reasonable excuse not to know how to do everything in the business. They may not be as talented in every job, but they should at least be proficient in every position.

2) That's assuming that the CEO is always busy. If he/she has any spare time, it would be productive to make sure they knew how to keep the business running if a key employee left unexpectedly. The CEO of a small company should also know enough about the company to ensure that everybody's time is being utilized effectively. You can't do that if you don't know what your employees are actually doing.

Maybe this is about the level of detail.... E.g. I know which tasks must be performed by our admin people but not necessarily all the minute details. The UPS process is a good example.... I know that when customers call to check order status, there is a process on the UPS site but I choose not to spend my time becoming an expert on this process as I have already hired someone who is. When I have free time, I choose to spend that time on activities that significantly increase profits (e.g. sales, marketing, financial). Cost savings from being slightly more efficient on a UPS site are nominal (unless we're talking about managing shipping costs which I'm on top of).

I also find that micromanaging details to this level can be detremental to employee morale. I believe in surrounding yourself with the most competent people you can afford and giving them the freedom to become the "experts" in their area. If a person quits, perhaps there may be an activity that I (or another employee) may need to learn in a pinch but I am confident this can be handled effectively (especially if work processes are well-documented and there is online support).

[pundit]

Some small business CEO's I have came across are not capable enough to keep track of too many details. Some of them did not have good grades in school. Not that it's mandatory to have good grades but that if you cannot have good grades, you cannot be running a business. Running a business in a globalized world is more difficult than achieving good grades at school. They are CEO's because either they are good at sales. or it's their own company or friends/relatives..not because they are good at running business. They work hard but lack the sophisticate knowledge(marketing.finance,law general management etc) and intelligence required to fight against the big brothers. There are few exceptions however. Like people starting business after getting their MBA degrees or having earned lot of experience in big organizations.

Most of them were successful because of high credit availability. They should thank fed for that. Now they are blaming the bad business on an economy which is actually correcting itself. As if fed should print money and put it on their customer's pocket for them to be successfully run the business.
From now on their real test will start. One good thing about this market is this will differentiate between capable and incapable people. Hopefully they will learn something from this downturn. The businesses (and CEOs) who can wade through this will be the real survivors.

[user_id]

Originally Posted by GoCUBS1

The best CEOs (and leaders in general) I know are masters at hiring the right people, mentoring/training them, and then effectively delegating direction/work load to these people.

So, essential they are worthless. A CEO should be overseeing the companies entire flow stream, that would include shipping. Changes in the way shipping are handled is rather important and something the CEO should be familiar with.

A CEO that just delegates is worthless.

[user_id]

Originally Posted by GoCUBS1

M. The UPS process is a good example.... I know that when customers call to check order status, there is a process on the UPS site but I choose not to spend my time becoming an expert on this process as I have already hired someone who is.

Umm....what? An expert in looking up tracking numbers? Gee, how long does it take to master that skill 5 minutes? By not knowing "the process" you have no idea how to improve your flow.

By the way this is something that can be largely automated, but I'm sure the "expert" is unlikely to tell you about it.

Originally Posted by GoCUBS1

I also find that micromanaging details to this level can be detremental to employee morale. I believe in surrounding yourself with the most competent people you can afford and giving them the freedom to become the "experts" in their area.

Typical American business compartmentalization, this way of doing things has a number of short comings. Be careful, someone may eat your lunch soon.

[GoCUBS1]

Originally Posted by user_id

So, essential they are worthless. A CEO should be overseeing the companies entire flow stream, that would include shipping. Changes in the way shipping are handled is rather important and something the CEO should be familiar with.

A CEO that just delegates is worthless.

Please review my post... I believe you misunderstood it. Again, I said "I am on top of managing all shipping costs." CEO's must understand all overall business processes at their company (where did I say they should not?). If they did not, they could not build cost-effective infrastructures or effectively operate their business.

And why would you assume a CEO would "just delegate" everything? They just should be able to delegate the right stuff to the right people. It is about the details. CEO's do not need to understand each minute detail on how to enter every piece of data on a UPS screen... Waste of time... There are a million of these "5 minute processes" at a company (and many business owners own multiple companies). A CEO could spend every waking moment micromanaging the minute details to try to save a few bucks. Or, with a cost-benefit analysis, they could put their skills/time to use on higher-level tasks that offer substantial profit/ cost savings to the company. A good CEO knows how to prioritize these things. That's fine if many of you disagree with this... But I'm just curious about how many of you are actually successful business owners?

[GoCUBS1]

Originally Posted by user_id

Umm....what? An expert in looking up tracking numbers? Gee, how long does it take to master that skill 5 minutes? By not knowing "the process" you have no idea how to improve your flow.

By the way this is something that can be largely automated, but I'm sure the "expert" is unlikely to tell you about it.



Typical American business compartmentalization, this way of doing things has a number of short comings. Be careful, someone may eat your lunch soon.

Umm.... The process is already automated - on the UPS site. Or would you like CEO's to spend their time improving another company's web site processes? On our side, we have already developed software/databases to automate shipping cost entry/tracking in our p.o./invoice systems. And we review these reports at weekly meetings so process improvement suggestions are addressed there. I do hire out the development though. Or, would you like CEO's to also become experts on database/software development as well?
You are making a lot of assumptions about my business processes in your post. And my lunch is just fine...Thanks... (In fact, I'm about to eat another's lunch as I've just heard one of my biggest competitors may be out of business)...

[GoCUBS1]

Originally Posted by pundit

Some small business CEO's I have came across are not capable enough to keep track of too many details. Some of them did not have good grades in school. .

Many successful CEO's are more than capable of keeping track of many details.... They are just keeping track of details they feel are of greater value to the company (and the average employee is not aware of the amount of higher-level details). There has also been research (if I have time, I'll look for it) that shows successful CEO's must learn to give up minute details and delegate more effectively.

Originally Posted by pundit

Not that it's mandatory to have good grades but that if you cannot have good grades, you cannot be running a business. Running a business in a globalized world is more difficult than achieving good grades at school. They are CEO's because either they are good at sales. or it's their own company or friends/relatives..not because they are good at running business. They work hard but lack the sophisticate knowledge(marketing.finance,law general management etc) and intelligence required to fight against the big brothers. There are few exceptions however. Like people starting business after getting their MBA degrees or having earned lot of experience in big organizations..

Successful business owners come in all shapes and sizes... Having good grades or an MBA is not necessary (though it's good if you want to work for someone else or highly specialize in an area such as law, finance). Much of this "sophisticated knowledge and intelligence" is obtained in the trenches of real-world business experiences/networks NOT from MBA textbooks or being a cog in the company-specific processes of a big organization. I do agree that being good at sales is a huge advantage though. And I would also rate drive, hardwork, and risk-taking traits above good grades.

Here are some successful CEOs who don't have college degrees... Many had poor grades, no family connections (were completely self-made) and started with a "lack of sophisticated business knowledge." Yet the list seems to include some of the very top entrepreneurs/CEOs of the century.

• Mary Kay Ash. The founder of Mary Kay Inc. started a cosmetics business. While she didn’t have a college education or any training, she successfully created a brand known throughout the world. To date, nearly half a million women have started Mary Kay businesses, selling cosmetics. Their appreciation for Mary Kay Ash is unwavering.
• Richard Branson. Richard Branson is best known for his thrill seeking spirit and outrageous business tactics. He dropped out at the age of 16 and started his first business venture, Student Magazine. He is the owner of the Virgin brand and its 360 companies. His companies include Virgin Megastore and Virgin Atlantic Airway.
• Coco Chanel. An orphan for many years, Gabrielle Coco Chanel trained as a seamstress. Determined to invent herself, she threw out the ideas that the fashion world deemed feminine, boldly using fabric and styles normally reserved for men. A perfume bearing her name, Chanel No. 5 kept her name famous.
• Simon Cowell. Simon Cowell started in a mailroom for a music publishing company. He has since become an Artist and Repertoire (A&R) executive for Sony BMG in the UK, and a television producer and judge for major television talent contests including American Idol.
• Michael Dell. With $1,000, dedication and desire, Michael Dell dropped out of college at age 19 to start PC’s Limited, later named Dell, Inc. Dell became the most profitable PC manufacturer in the world. In 1996, The Michael and Susan Dell Foundation offered a $50 million grant to The University of Texas at Austin to be used for children’s health and education in the city.
• Barry Diller. Fox Broadcasting Company was started by a college dropout, Barry Diller. Diller is now chairman of Expedia, and CEO of of IAC/InterActiveCorp which includes Home Shopping Network and Ticketmaster.
• Walt Disney. Having dropped out of high school at 16, Walt Disney’s career and accomplishments are astounding. The most influential animator, Disney holds the record for the most awards and nominations. Disney’s imagination included cartoons and theme parks. The Walt Disney Company now has annual revenue of $30 billion.
• Debbi Fields. As a young, 20 year old housewife with no business experience, Debbi Fields started Mrs. Fields Chocolate Chippery. With a recipe for chocolate chip cookies, this young woman became the most successful cookie company owner. She later renamed, franchised, then sold Mrs. Field’s Cookies.
• Henry Ford. At 16, Henry Ford left home to apprentice as a machinist. He later started Ford Motor Company to manufacture automobiles. Ford’s first major success, the Model T, allowed Ford to open a large factory and later start the assembly line production, revolutionalizing the auto-making industry.
• Bill Gates. Ranked as the world’s richest person from 1995-2006, Bill Gates was a college drop out. He started the largest computer software company, Microsoft Corporation. Gates and his wife are philanthropists, starting The Bill & Melinda Gates Foundation with a focus on global health and learning.
• Milton Hershey. With only a fourth grade education, Milton Hershey started his own chocolate company. Hershey’s Milk Chocolate became the first nationally marketed chocolate. Hershey also focused on building a wonderful community for his workers, known as Hershey, Pennsylvania.
• Steve Jobs. After attending one semester of college, Steve Jobs worked for Atari before co-founding Apple Computers. Now without the “Computers” in their name, Apple includes innovative products such as the iPod, iTunes, and most recently the iPhone. Steve Jobs was also the CEO and co-founder of Pixar before it merged with Walt Disney.
• Rachael Ray. Despite having no formal training in culinary arts, Rachel Ray has made a name for herself in the food industry. With numerous shows on the Food Network, a talk show and cookbooks, high-energy Rachael doesn’t slow down. She has also appeared in magazines as well has having her own magazine debut in 2006. She knew she was a success when a website dedicated to bashing her was created.
• Ty Warner. Sole owner, CEO, and Chairman of Ty, Inc., Ty Warner is a savvy, yet private business man. Ty, Inc., made $700 million in a single year with the Beanie Babies craze without spending money on advertising! He has since expanded to include Ty Girlz dolls, directly competing with Bratz dolls.
• Frank Lloyd Wright. Having never attended high school, Frank Lloyd Wright surpassed all odds when he became the most influential architect of the twentieth century. Wright designed more than 1,100 projects with about half actually being built. His designs have inspired numerous architects to look at the beauty around them and add to it.

[8 SNAKE]

Originally Posted by user_id

So, essential they are worthless. A CEO should be overseeing the companies entire flow stream, that would include shipping. Changes in the way shipping are handled is rather important and something the CEO should be familiar with.

A CEO that just delegates is worthless.

There are one of two possibilities with you.

1. You have absolutely no idea what a CEO/leader should do
2. You're trolling

Which is it?