Part 14

The first stumbling step toward organization, therefore, is to RECOGNIZE and DEFINE the PRINCIPAL and the DEPUTIES in a given task.

A good manager, though, can't simply go and deputize every detail of his job. That might be nothing more than the trick of a lazy man.

Yet a rising young executive (on our list of casual acquaintances) has done exactly that. He has carried it to such a fine point that he is able to spend three afternoons a week with Col. Bogie. He is still rising, although some of us have abiding faith in the old adage that what goes up must come down. In other words, he's rising to a fall.

No, organizing is not deputizing in that sense of the word.

In EFFECTIVE ORGANIZING, it will be noted from the examples cited, work is deputized only when the "principal" is left free to do something else more important or more profitable.

The "big boss" didn't hand the plant over to his assistant until he knew his undivided attention was needed elsewhere--until he knew he could spend his time more profitably in another phase of the business.

Analyze the conditions under which the sales manager delegated part of his dictation to a system, and part of his stenographer's typing to a duplicating machine. You will see that the work deputized fulfilled two conditions:

It was work the system and the machine could do to advantage--

And work which he and his stenographer could do only at the expense of more important work.

Wherever there is delegation of responsibility in any true job of managing, the same two fundamentals will be seen.

Too often a manager says: "Never do anything your subordinate can do for you." But it is not good management when turning a job over to a subordinate leaves the manager idle and unproductive--with nothing on his mind except his hat.

The good manager, whatever may be his particular job of managing, follows two rules when he deputizes or distributes work to man, money or machine. Such work, he knows, should be:

1. Work which that other person or other thing can do to good advantage.

2. Work which the manager would do himself only at the expense of something more important.

Deputizing your work so that your days are free for golfing or yachting is far from the spirit of true organization. When a Schwab deputizes, another job profits by the increased time he is able to give to it. Every time he passes on a bit more responsibility, the whole enterprise profits through his greater freedom for the big sweep of the business. And when a manager fails because he has never learned to share responsibilities, we shudder at his folly--never stopping to think that the sole reason it was folly was because there was a bigger job for him to do. Deputizing his work would have left him free to exercise big, broad judgment in a way that only leisure and calmness could afford.

* * * * *

A few years ago, two young men went into business in a small Illinois town. They were honest, industrious, well liked. Austin was a born salesman; Black was a shrewd buyer. It looked like a good combination and the local banker gave them a line of credit.

One year went by. Two years. Austin and Black were just skinning by. A fair living was all they were getting out of the business. Volume--which was what they needed--was increasing, oh, so slowly.

A salesman came along about that time and told them some things they didn't know. A little more skill in watching the stock; cutting out lines which weren't paying; trimming purchases on slow-moving stocks; pushing specialties before they went bad on their hands--those were some of the methods which meant added profits.

It certainly looked like good business to hire another clerk so that the partners' time would be free for these new phases of the business.

The clerk was taken on--and things began to hum. Soon Austin and Black saw other steps they ought to take. More attention must be given to advertising. That meant another clerk. Next came a bookkeeper, an assistant bookkeeper.

Trade was increasing, you see, and net profits were increasing. Extra clerks were needed all right, but the proprietors went the whole hog and put on so many that they themselves no longer had to stand behind a counter. They were both badly bitten by the bug of supervision.

Finally the tide turned. It usually does.

And when Austin and Black went to the bank one day to get an extension of credit, the shrewd old retired farmer on the other side of the desk laid down the law.

They got the extension--but only on certain conditions.

The chief condition was that they do LESS MANAGING and MORE MERCHANDISING.

And that's what they are doing today.

There were two managers who organized their work, increased their profits. Up to a certain point, every time they deputized their work, it was an advantage, because it left them more time for better merchandising.