I have a number of rules of thumb.This is one.Time and time again over the years, I have seen owners fire their first GM within 12 months of appointing them. Occasionally they don’t, and even more occasionally the GM goes on to seriously damage the business.That’s not to say you shouldn’t appoint a GM, but do it as if you were doing it a second time.In which case you would not:

Call them the CEO. Especially if you intend to be at work more than a day a week. It’s fine to call them CEO if you are stepping right away from the business to a board role, but if you appoint them CEO, they will think they’re there to run the company instead of you. This will end in tears. Call them a GM, have them clearly report to you as MD. If they want a Chief in their title, call them Chief Operating Officer. Anything but Chief Executive.

Look for someone just like you or the opposite of you. First, define the role: what do you want to keep, what do you want them to do? Then find the people with the right attributes and experience to play that role. Third, find the person you can work with (see next)

Ignore chemistry. You don’t have to be bosom buddies (better if you’re not), but you have to understand and respect each other’s strengths, and most important you have to be able to communicate honestly and effectively. Our new workshop is on the neuroscience of teams, and it’s fascinating to consider how many MD-GM relationships break down because they were using the same words but speaking different languages.

Be an “Indian giver” of authority. An interesting phrase – Native Americans had no sense of ownership, so when they “gave” land to the early settlers, they were actually only lending it. Of course, the white culture held that once something was given, it was given forever. Neither were right or wrong, just completely different. It’s the same with the MD-GM relationship. For the GM to succeed, they need credibility and authority. Every time the MD countermands the GM, their authority is eroded. Every time the MD takes back a role that s/he had delegated, the GM is undermined.

It’s a difficult step, one of the hardest.  The best way to manage it is to start now on reducing the dependence of the business on you.Find out how we can help you - Register for The Power of the 3 Day Week webinar.