09/ 26/ 2007
The Expert:
Nick Fera
Chairman and CEO
Parlano Inc.
Chicago
As CEO of a growing technology business, I face a multitude of challenges. I have lots of constituents to keep happy: employees, investors, partners, suppliers and, of course, customers. For anyone facing a similar situation, I offer this advice: Surround yourself with trusted professionals and help them work effectively. But that isn't all. You also need to step back and let them do the jobs you hired them to do.
No matter how many hours you put in, you can't possibly do all the things you did when you launched the firm: write the press releases, build the Web site, code the software, prepare the financial statements and more. You have to trust the skilled employees you hired. Yet there's a delicate balance. Too many business owners step too far back from the action in their growing companies and set themselves up for failure.
So the conundrum is: How do you step back to see the big picture while still staying adequately involved? How do you create a culture of involvement so that you know what's going on and can contribute your knowledge as well? After all, it's your experience and success that put you in this leadership position. You need to channel that experience into the organization and keep it on course.
Assuming you have the right team, you need the right tools. I keep tabs on progress and contribute when I'm needed by using special collaboration technology adapted to the way we do business.
With offices in four cities, employees in additional remote locations and customers scattered around the world, we really need to collaborate efficiently. For us, e-mail is too slow and unorganized. All of it seems to have the same urgency whether it's a customer request or a pharmaceutical ad. Instant messaging is point-to-point and doesn't really reflect the way we work, which is in cross-functional teams.
We've settled on continual online group chats, which allow me to organize real-time, ongoing discussions around the important events, people and activities of our firm, such as projects, customers and partners. In some of these discussions I'm a leader, in some a contributor, and in others I simply monitor progress.
This practice is extremely effective for my company. We have flattened the hierarchy around these discussions, making it clear that individuals can speak their minds and that a CEO's involvement does not equal micromanagement. That's critical. The organic knowledge we build and share throughout the organization via these interactions creates a lasting competitive advantage for the firm beyond the obvious immediate benefit of keeping me and the rest of the team informed. Our approach simply generates more valuable knowledge than other collaboration mediums and makes it easier for individuals to absorb.
Our advantage is not easily replicated by competitors whose communication technologies have yet to evolve and whose silos are still standing tall. Our way of working has made our company strong, our service to customers high and our results for investors ahead of expectations.
Without the right culture and collaborative technology that adapts to it, business owners can stretch themselves too thin. You never want your team to think you're too involved, yet not really contributing anything valuable. In the end, we recognize that as a growing software firm, we are not a production line. Rather, we are knowledge-driven and deal with complex transactions that involve many people going in many directions. Any way we can keep employees informed and foster grassroots contributions benefits everyone.
How to stay in touch without micromanaging:
- Surround yourself with the right people and trust them to do their jobs. Be careful about who you hire so you'll feel comfortable handing over major responsibilities.
- Step back but not out of the picture entirely. Delegating is important, but checking out altogether is dangerous. Find the right balance.
- Use technology to collaborate and foster discussion at all levels. Experiment with different tools until you find what works best for you and your team. Don't simply surrender to e-mail's shortcomings.
- Explicitly encourage employees to speak their minds and support them when they do—even if you don't always agree with them.
Tips for helping employees embrace collaborative technology:
- Don't implement collaborative technology unless it has a noticeable impact on workflow. Technology for technology's sake doesn't help anyone.
- Be an early adopter yourself. Set an example for employees by using the tools from the beginning.
- Insist on professionalism, even if the forum is more relaxed. Instant messages and group chats are more casual than formal memos, but don't allow employees to cross the line.
