Why People and Culture Are Key to Working 'On' Your Business

Embrace the Uncomfortable Feeling of Dealing With People

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Samin Saadat
Executive Director, Posted on Jul 24, 2024

After working with over 500 small and midsize business leaders and founders, we have noticed a common pattern and received consistent feedback: “I don’t want to deal with the people side of my business and be involved in working ‘in’ the business.” This sentiment reflects a desire to avoid handling day-to-day operations and addressing immediate team issues.

Instead, these leaders want to focus on working ‘on’ the business and growing it. This means dedicating their efforts to strategic planning, growth initiatives, and long-term goals. However, they often realize that expecting others to manage the people-related aspects of the business while they concentrate solely on strategic tasks can hinder their growth.

Understanding this distinction is essential for Small and Medium-sized Enterprises (SMEs) leaders, especially during growth phases. It allows them to prioritize their time and efforts effectively, driving the company forward.

Over the last two years, while most small and midsize businesses have struggled, those that managed to turn things around were led by individuals who actively engaged in people management and culture building. These leaders often share stories of remarkable transformations, where their companies not only survived but thrived during challenging times.

Now, let's delve into why your involvement in people management and culture building is not just a managerial task but a strategic necessity.

Common Misconceptions

A common mistake among SME leaders is delegating people management and culture building entirely to others, considering it as working “in” the business. While delegation is necessary for efficiency, completely stepping back from these areas can have severe repercussions.

When leaders disengage from people management and culture building, they often experience detrimental effects, including a weakened company culture and decreased employee morale. These issues become particularly pronounced during periods of growth or crisis when strong leadership is most needed.
Moreover, when a company's strategy changes, it is essential to reflect on its existing culture. Identifying the strengths you want to maintain can help meet strategic objectives while recognizing necessary changes ensures alignment with the new business direction. As we know, culture eats strategy for breakfast. While you set the direction and strategy for your business, your people and your culture will be the engine that ensures you fulfill the vision.

The Benefits of Leader Involvement

Based on our clientele, leaders who actively participate in people management and culture building report higher levels of engagement and motivation among their teams. This involvement fosters a sense of purpose and commitment.

Being closely involved helps leaders stay informed and make better decisions. They can address issues more effectively and experience progress and small wins, resulting in a more resilient and adaptive organization.

Leaders also experience personal growth, finding themselves more engaged and motivated working on their business. This dual benefit underscores the importance of maintaining a hands-on approach in these areas.

Tips for SME Leaders

Strategizing and addressing the people and culture aspects of a business requires a high level of expertise; it goes beyond mere common sense. In fact, the entire field of industrial and organizational psychology is dedicated to equipping leaders and organizations with the necessary resources to manage people and culture effectively. So, don't feel alone - understandably, this can be stressful, as it requires specific skills and resources.

We've discovered that when we collaborate with our clients to engage in this aspect of the business, they learn how to approach it effectively, including what to delegate, what not to delegate, what to handle in-house, and what to outsource. As a result, our clients report higher levels of joy and engagement. They experience increased energy and positive feelings towards their business even during challenging times.

Conclusion

Involvement in people management and culture building is critical to working "on" your business. It drives engagement, enhances decision-making, and fosters both personal and organizational growth. We understand that managing people is one of the most stressful jobs, and your passion as an entrepreneur lies in the results and value added by your organization. However, this stress can be turned into joy and engagement if you provide resources to teach you how to approach the people-related side and develop the required skills.

Therefore, take a moment to reassess your approach to these vital areas today, and contact Jalapeño to turn things around for your business.


About the Author: The human brain, behaviour, and interactions with their environment never fail to intrigue Samin Saadat. After spending long hours in psychology labs at UBC and completing her Master's at the Sauder School of Business, she entered the workforce. She observed a gap between what research suggests and what companies do to increase productivity and profitability. Over the last 10 years, Samin has developed expertise in people growth and culture building by working closely with business owners and individuals to develop the right mindset, skills and environment for cultivating a thriving workforce. Also, Samin strongly believes every single individual, regardless of their race, age, status, gender, position, mental health matters and physical conditions, deserves to reach their full potential. They all have something unique to offer. Now, Samin is on a mission to bridge the existing gap in the workforce and support individuals and companies to reach their full potential through Jalapeño Employee Engagement—leveraging technology and psychology to bring research findings to life to help companies save invaluable dollars and to help individuals enhance their quality of life.