Empowering Managers: Running Departments Like Small Businesses

Shay Berman is the founder and president of Digital Resource, a 6X Inc. 5000-ranked full-service digital marketing agency.

Think scaling a business means growing big? Not always! Let me tell you about an approach I swear by: treating each department like a small business by empowering managers to think like entrepreneurs, make tough decisions, and own their results. 

But empowering your team isn't just about tossing tasks their way. It's about building a vibrant ecosystem where everyone feels valued. 

Fostering an Entrepreneurial Mindset 

The key to running departments like small businesses lies in nurturing an entrepreneurial mindset among managers. This is about seeing beyond day-to-day tasks and envisioning what could be. It means embracing risk, thinking creatively, and acting decisively—qualities that are second nature to successful entrepreneurs. 

In my experience, fostering this mindset starts with trust. Give managers the autonomy to make decisions and the freedom to fail and learn from their mistakes. This empowerment leads to a culture of accountability, laying the groundwork for departments that operate with the dynamism of small businesses. 

Financial Management and Budgeting 

As managers view their departments as small businesses, understanding and managing their finances becomes a top priority. It's about making decisions that align with departmental and organizational goals while optimizing resources for the best possible outcomes. 

I encourage managers to adopt a proactive approach to budgeting, treating every dollar as an investment in their department's growth. This involves regular financial reviews, setting clear revenue goals, and tracking expenses against those goals. 

Empowering managers with financial responsibilities fosters a sense of ownership, encouraging them to seek innovative ways to maximize their budget while driving efficiency and productivity. 

Goal Setting and Performance Metrics 

Setting clear, actionable goals and performance metrics is another crucial aspect of empowering managers. This process transforms broad objectives into measurable outcomes. 

For instance, if increasing customer satisfaction is a company-wide objective, each department should identify how they can contribute to that goal through their unique functions. Setting up key performance indicators (KPIs) for tracking progress ensures that everyone is moving in the right direction and allows for adjustments along the way. 

By measuring performance against set goals, managers can celebrate wins, identify areas for development, and strategize more effectively for future success. 

Customer-Centric Approaches 

Placing the customer at the heart of every decision and ensuring their needs and satisfaction drive departmental actions should be the focus of any business. Try these three approaches: 

• Feedback Loops: Actively seek out customer feedback to understand needs and adjust your strategies accordingly. 
• Personalization: Tailor communication and services to meet individual customer preferences to show that you value them. 
• Empathy Training: Training sessions focused on empathy can significantly improve how teams address customer concerns. 

By embedding these customer-centric practices within each department, you're not just able to meet expectations but exceed them. 

Resource Management and Efficiency 

Resource management and efficiency are about maximizing departmental resources to meet customer needs while staying within budget. In practice, this means streamlining processes and cutting out waste. 

For example, if you’re running a marketing department, automating repetitive tasks helps the team work more efficiently. This could mean integrating forms with a CRM or establishing email templates. 

By focusing on efficiency, the payoff is twofold: enhance customer satisfaction through faster service and higher quality while reinforcing operations' sustainability. 

Marketing and Branding the Department 

Marketing and branding aren't just about logos or slogans; they're about defining your department's value proposition and making sure that both your team and the broader organization understand the unique benefits you provide. 

• Develop a Departmental Brand Identity: Create a visual and messaging identity that reflects your department's mission and value.  
• Showcase Success Stories: Share your department's wins and highlight your team's contributions. 
• Engage in Cross-Departmental Collaboration: Encourage collaboration to build relationship currency. 

By strategically marketing your department, you foster a culture of pride and purpose, aligning your team's efforts with the organization's broader goals and enhancing overall performance. 

Risk Management and Problem Solving 

Proactive risk management involves identifying potential issues, like the risks of relying on a single supplier, and preemptively crafting solutions to safeguard operations. 

Creating a workplace where every team member is vigilant and proactive about identifying risks is crucial. 

For example, before rolling out new software, a manager could assemble a task force to navigate potential integration issues, ensuring a smooth transition and preventing disruptions. 

Innovation and Continuous Improvement 

In my company, innovation is about keeping our departments current and ahead of the curve. For example, by regularly reviewing and updating our technology stack, we can use the most efficient tools, improving productivity and service quality. 

Consider implementing a suggestion system where employees can propose innovations, such as a new project management tool to streamline communication and workflow. This inclusivity propels the department forward and boosts morale by valuing each team member's input. 

Moreover, dedicating time to regular review sessions to assess what's working and what isn't ensures continuous growth. This cycle of innovation and review is vital to maintaining a dynamic, forward-thinking department. 

Leadership and Team Development 

Leadership is more than just guiding; it’s about inspiring and empowering each team member to reach their full potential. Encouraging ongoing learning and professional development opportunities can transform a good team into a great one. 

Creating a supportive environment where leadership is not just top-down but collaborative can significantly impact team dynamics. An example could be implementing regular team-building activities that strengthen relationships and promote mutual respect and understanding among team members. 

Remember, empowering managers to be leaders in their own right, with a clear vision and the tools to motivate their teams, is essential for cultivating a department that thrives on creativity, innovation, and mutual success. 

Fuel Your Teams, Fuel Your Success 

Empowering managers with the right tools, knowledge, and support is not just beneficial; it's transformative. It encourages a culture where accountability, creativity, and growth flourish. Remember, the strength of your organization lies in empowering its parts.