James B. Harter
President
1248 Rolling Meadow Rd.
Pittsburgh, PA 15241
p) 412-576-2685 f) 954-206-1184
www.sigmapiconsulting.com
© 2008 Sigma Pi Consulting LLC
Delegation Done Right
Avoiding the two
headed monster of
micromanaging and
abdication.
© 2008 Sigma Pi Consulting LLC
About Sigma Pi Consulting

Not a Fraternity but a Formula for Success!
Sigma (S) => mathematical symbol for Addition
 Pi (p) => business symbol for Profit


Most entrepreneurs work 60-80 hours/week.
Even if they are making money, they don’t have
time to enjoy it.
 Sigma Pi introduces structure and efficiencies that
gives them back a life outside of work.

© 2008 Sigma Pi Consulting LLC
9 Common Problems
1.
2.
3.
4.
5.
6.
7.
8.
9.
Charlotte’s Web Syndrome
Presumption of Profit
Poor Record Keeping
No Post Mortems
Wrong Person – Wrong Job
Lack of Accountability
Inconsistent Processes
Lack of Urgency
Lack of Strategic Planning
© 2008 Sigma Pi Consulting LLC
Charlotte’s Web Syndrome


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Starts out as a paradigm.
Works until business gets too big.
Owner who was the impetus to prior success
is now the biggest impediment to further
growth.
Root Issue Is
Improper Delegation!
© 2008 Sigma Pi Consulting LLC
The Business Owner Tendency

Micromanage in areas of strength.


You are the expert and no one can do it as well
as you can.
Abdicate in areas of weakness.

You don’t know the area so you hand it off to
some one who does.
Both are ineffective !!!
© 2008 Sigma Pi Consulting LLC
Balancing Authority and Responsibility
Authority
R
e
s
p
o
n
s
i
b
i
l
i
t
y
Low

Low Authority / Low
Responsibility =>
Unproductive worker

High Authority / Low
Responsibility => Dictator

Low Authority / High
Responsibility => Frustration

High Authority / High
Responsibility => Engaged
Productive Worker
High
H
i
g
h
Micromanaging
L
o
w
Abdication
Abdication
© 2008 Sigma Pi Consulting LLC
Fixing the Problem



The unproductive
worker must be given a
job to do.
The dictator must be
held responsible to get
work done (and how).
The micromanaged
must be given authority
w/o fear of override.
But Is That All?
© 2008 Sigma Pi Consulting LLC
Proper delegation is still abdication
without Accountability!


METRICS
What gets measured
gets done!
If you are not
measuring it, you are
not managing it.
BUT Choose What
You Measure Wisely.
If you measure the wrong thing you
get dysfunctional results.
© 2008 Sigma Pi Consulting LLC
Poor Metrics
Good Metrics

Revenue only


Production only


Speed only

Revenue at a profit
margin
Production w/o
defects
Speed w/ customer
satisfaction
This is the basis of a Balanced Scorecard.
© 2007 Sigma Pi Consulting LLC
The Final Piece to the Puzzle Incentives


METRICS
What gets rewarded
gets repeated.
If you can devise an
incentive plan based on
increased profit, you
will see improved
performance in the
target activity.
Profit based
incentives
© 2008 Sigma Pi Consulting LLC
Sigma Pi Consulting Services




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Business Process Analysis, Rationalization, and Design
KPI Identification and Measurement
Balanced Scorecard
Profit Based Incentive Plans
Flexible Budgets
Job Costing and Pricing for Profitability
Executive and Staff Training and Coaching
Inventory Control and Open to Buy
“Over-Under” Tracking
Strategic Planning and SWOT Analysis
Functional and Positional Organization Charts & Reporting Structures
Employee Procedure and Handbooks
Job Descriptions
© 2008 Sigma Pi Consulting LLC
Thank you for your time.
Jim Harter, President
Sigma Pi Consulting, LLC
1248 Rolling Meadow Rd.
Pittsburgh, PA 15241
p) 412-576-2685 f) 954-206-1184
www.sigmapiconsulting.com
© 2008 Sigma Pi Consulting LLC