As an entrepreneur, you’re accustomed to shouldering a myriad of tasks, ranging from significant decisions to minor details. While this aspect of the job is undoubtedly rewarding, it can also be incredibly draining.
Delegation is a concept familiar to most entrepreneurs, yet many struggle to implement it effectively. Some believe that working tirelessly and managing numerous responsibilities is simply part and parcel of the entrepreneurial journey. However, experts suggest otherwise.
Regardless of your available time or inclination to handle everything solo, delegating tasks and responsibilities is pivotal for your business’s success. Let’s delve into why experts advocate for delegation:
Increased Earnings
According to a 2014 study by Gallup, which analyzed 143 CEOs on the Inc. 500 list, those with strong delegation skills experienced a significant boost in revenue—up to 33% more than their counterparts with lower delegation abilities.
Similarly, a 2016 study focusing on US lawyers conducted by researchers from the Kellogg School of Management revealed compelling results. Lawyers who effectively delegated tasks to associates saw a substantial increase in earnings, approximately 20% more than if they had handled everything independently. Moreover, top-tier lawyers, equipped with advanced delegation skills, garnered earnings at least 50% higher than their peers.
Easing Stress
When you think of an entrepreneur, words like “passionate”, “busy”, and “stressed” often come to mind. While passion is indeed crucial for entrepreneurial success, it can sometimes lead to stress when taken to an extreme.
According to a 2018 study by entrepreneurship and innovation experts, Silvia Stroe, Joakim Wincent, and Vinit Parida, passion is essential for individuals to navigate the uncertainties and resource shortages inherent in entrepreneurship. However, when passion becomes obsessive, it can lead to negative outcomes such as reduced well-being and burnout. Entrepreneurs often find themselves overwhelmed by their passion for their businesses, taking on excessive workloads without realizing it.
Role overload, a concept coined in 1970, occurs when the demands of one’s role exceed their time, energy, and capabilities. Recent research has identified role overload as a leading cause of stress among entrepreneurs. This stress can manifest as anxiety and depression, impacting work performance negatively.
Delegating regular, recurring tasks can significantly alleviate role overload and reduce stress. By freeing up time, entrepreneurs can focus on the quality rather than the quantity of their work, leading to a more balanced life.
Facilitating Business Growth
In addition to reducing stress, effective delegation also increases the likelihood of business growth. According to the same study by Gallup, CEOs with strong delegation skills are 57% more likely to plan significant business growth over the next five years compared to those with lower delegation abilities.
Delegation enables entrepreneurs to focus on strategic planning, decision-making, and execution, rather than getting bogged down in day-to-day tasks. This focus on high-impact activities leads to better results and allows for reinvestment of additional revenue into the business, further fueling growth.
Boosting Employee Performance
Delegation isn’t just beneficial for business owners; it can also lead to improved performance among employees. A study conducted in 2020 found a positive relationship between effective delegation and employee performance.
Delegating tasks allows employees to develop their skills and knowledge, empowering them to take on more responsibility. Many small businesses are leveraging delegation to enhance task performance and communication. CEOs are granting their assistants greater autonomy in task selection, recognizing their impact on company performance and providing necessary support.
For delegation to be effective, employees need clear expectations and an understanding of how their roles contribute to the company’s vision. They should also be equipped with the tools and resources required for their tasks. Delegation is an ongoing process; as employees grow, they can handle more responsibility.
Elevating Leadership Value
Delegation also enhances a CEO’s leadership value by enabling them to focus on strategic decisions and ensure alignment with company goals. Effective delegation fosters mutual benefit for both leaders and subordinates.
John Muir, in his article “Effective management through delegation”, emphasized the mutual gains for leaders and their subordinates. When employees are given opportunities to showcase their skills and contribute to company success, leaders earn respect and loyalty.
Moreover, trust is a cornerstone of effective leadership. The book “Management Skills: Making the Most of People”, Authors Robin Evenden and Gordon Anderson highlight the importance of leaders demonstrating interest in others’ development and motivating them to excel. Delegation builds trust when employees are entrusted with meaningful work, autonomy, responsibility, and challenge.
Embrace Delegation as a Habit
Now armed with the knowledge of delegation’s benefits, it’s time to integrate it into your daily routine. While delegation might seem daunting at first, following simple steps can set you up for success right from the start.
Consider Your Tasks
Take a moment to reflect on the tasks you tackle daily, weekly, or monthly. Ask yourself a few questions:
– Is your expertise essential for the task, or could someone else handle it with guidance?
– Does the task drain your time and energy without yielding much in return?
– Is it important but frequently delayed due to lack of enjoyment?
– Is it often overlooked because it’s not a high priority?
If any task fits these descriptions, it might be a good candidate for delegation. Visualize your life without these tasks. If it brings relief or excitement, it’s likely a suitable choice.
Identify Required Skills and Experience
Once you’ve identified tasks for delegation, consider the skills and experience necessary to execute them effectively. This step ensures you find the right person for each job. Whether it’s technical expertise, organizational skills, or specific software proficiency, matching tasks with the appropriate skills is key to successful delegation.
Craft Instructions
Detailing task requirements and procedures is essential for smooth delegation. Think of it as creating a user manual for each task. Outline what’s needed to complete the task, including access to tools, software, and any other pertinent information. Providing clear instructions upfront minimizes the need for repeated explanations and empowers your assistant to work autonomously.
Trust from the Start
While trust is typically seen as something earned, adopting a “trust by default” approach is crucial for effective delegation. Waiting for trust to develop over time can slow down progress. Instead, entrust tasks to your team members or assistants from the beginning, understanding that they may execute them differently but focusing on the desired outcome. This approach fosters confidence and empowers your team to excel in their delegated roles.
What’s the takeaway?
Many entrepreneurs hesitate to delegate tasks, often unaware of the significant benefits it can bring. Experts emphasize that delegating can lead to higher revenues, enhanced employee performance, and increased leadership value. When implemented effectively, delegation becomes a potent tool for entrepreneurs.
Are you ready for a more successful, less stressful life? Ready to regain control of your time?
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Ready to take control of your time? Get in touch with us, and we’ll hook you up with a dedicated pro who’s ready to tackle those time-consuming tasks.
Book free 30 min discovery call with our expert team to begin, and we’ll match you with a dedicated professional who will help you stay organized.
Or why not give a skilled virtual assistant a try for free today?
