business strategies

Why Star Players Make Bad Managers

When an employee performs extremely well, earning plenty for your company, it may be tempting to promote them to manager. After all, they might encourage others to succeed, right? However, a recent study by the U.S. National Bureau of Economic Research suggests that maybe you shouldn’t.

A Bad Boss in the Making

In order to move up the pay ladder in most companies, generally a person must be promoted to management positions. And the role of manager seems like the perfect reward for that one great employee. It comes with higher pay, greater responsibility to help that person grow, and more perks. And, some employers may hope, one high-flying team member can share those skills with a whole group, increasing productivity overall.

However, not everyone excels at managing other people. Sometimes that star employee is good at leading a team for just a short time, but you may see a decline in performance if they take over long-term. Also, though they may be able to make friends and work together, they may not show the empathy and desire to help others that is essential for a manager.

Should you end up with a person like this in a management position, you may find you’ve got a manager who dislikes their team, neglects the other employees, and/or is clueless about how to take a group in the right direction. Trust between members of a department may fall, and productivity certainly will. That seemingly great reward, in the end, will cost your business.

What to Do Instead

Want to promote someone to manager? Don’t do it based only on their closed deals or their productivity. Find out who has the drive for their whole team to succeed. Learn who would be helpful, rather than potentially harmful, in a conflict or when an employee is under stress. This kind of person may not be your star employee, but they may make a great manager. That same study found employees and sales thrived under managers who weren’t the top performers.

Along with promoting the right people, rather than just the best salesmen, you may want to examine the structure of your business. Help your company grow a professional career path, not just a managerial stream. Employees have a wide variety of skills that your company can benefit from. Provide more opportunities for motion and growth for those who do well but aren’t suited to become managers. This will help the right people become managers and everyone else stay invested in helping your company grow. And that, we all know, is vital to the longevity of a company, not just star players.

4 Franchise and Business Strategies

Before you start up your franchise, you need to put considerable thought into your business strategy. What works for one business might destroy another. So, every franchise will need its own unique strategy. While we can’t tell you how to run your business specifically, we do have some excellent business strategies you might consider putting into practice for your franchise.

Build near your consumers

People will shop close to where they live. And they may not live very close to shopping centers. Big stores in the business districts may be profitable, but they shouldn’t be your only source. In a more time- and environmentally-conscious world, people want to walk or bike to stores and restaurants, or at least take shorter, more efficient drives. They want the convenience of places like Starbucks. Don’t make them travel further than they want to, especially if that’s one of the core issues with your current strategy. Otherwise, with the Amazon giant looming overhead and offering lower prices, consumers might just shop online.

Get involved in your community

Ask yourself, “How could my location/business be an asset to the community?” Go get involved and find out how your business can sponsor a team, host an event, or give back. You’ll spread your name via word-of-mouth, especially if you partner with another business. In doing so, you can combine customer bases and attract new buyers.

Interact with your customers

Whether it’s replying to questions in a timely manner or playfully roasting your competitors like Wendy’s does, your business relies on customer interaction. This isn’t just to make sales; you need to engage your customer base regularly. And, on top of that, you need a genuine voice that fits your brand, not just a “salesman” voice. Though that’s your end goal, making it only about sales will drive off customers who see this behavior as insincere.

Be flexible

Is a strategy not working out for your business? Then don’t force it! Let go of strategies that cost you money and customers. And you don’t have to wait until the end of the fiscal year to do it! Come up with something better right away. You’ll spare your business and brand potential damage.

 

What strategies have you found for your business? What worked, and what didn’t? We’d be happy to hear from you!