A common problem with small businesses is that employees demonstrate a lack of initiative, particularly where owners have strong personality types. This manifests in tendencies to ask permission or advice too frequently of a business owner.

When a business relies excessively on the owner for answers, decisions and direction, it damages the value of the business.

Business owners often think they need to mimic large companies to solve this problem by implementing a Rolls Royce version of decisions and authorities in the form of a manual or schedule complete with budget limits and fancy titles and carefully defined areas of authority. While “best practice” would be lovely, it is often hard to put this in practice in a small business, where resources are more limited.

However, there is a very simple, in-between step many are unaware of.

The 3 Ms framework.

You can train your staff that each time they want to ask you, the owner, a question to think through the 3 Ms. Is this issue minor, medium or major?

Minor

If it is of Minor consequence (i.e. has minimal impact on the business), that staff member is free to make a decision. If there’s a problem or mistake, it is then their responsibility to fix it. But be careful not to punish them – they are doing right by the business in this way.

Medium

If the issue is of Medium consequence, then the staff member should ask around with colleagues to find out an answer.

Major

If the issue entails a Major consequence to the business, the owners’ guidance needs to be sought.

This should cut down the number of issues coming your way as a business owner and allow employees to become more autonomous. When implemented well, it also tends to improve the value of the business over time, since owner reliance is reduced. Also, to minimise risk, you can call it a “trial” if you like.

Remember, this is a cultural change, which tends to take time.

Stay patient and consistent.

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