I recently read a great article by James Timpson, managing director of shoe repair company Timpson.
About how he grew his business and its end result by abandoning the military-style corporate rules on which he had originally built his company.
To the point where he proved that fewer rules = more profits!
Instead of rules and controls, he gives his team flexibility and freedom to do the right things. He trusts them to make the best decisions for the company.
Of course, there is an inevitable conflict between freedom and control. As a recovering accountant, I like financial controls, but it got me thinking about how much we can lock people in and deprive them of growth opportunities when every part of our business is subject to rules.
I have a privileged position; I can go into companies with a fresh external perspective and see and feel things like the culture and happiness of a company. Things that are hard to see inside.
Looking back, I can think of several companies where there was a lack of energy in the office, where people only did what they had to do, and where they never brought 100% of their energy to work. And these were the companies that had a lot of rules and a lot of performance measurements.
You could just feel that it didn’t work
And I could see it by looking at their numbers.
So why do we make all these rules?
When we start out, we don’t have all of these rules. We’re just doing whatever it takes to get our business up and running. This passion, this willingness and need to try anything and break the rules are what make a company work.
Then we start hiring people and the rules come into effect.
Why do we feel the need to hold on tighter?
Are we trying to make sure everyone does it EXACTLY the way we do it?
Have we hired people we don’t trust?
Because we know damn well how we would feel with all of these rules.
Don’t confuse processes with rules
Clearly a balance is needed here; I am a big fan of processes in a company. They’re a no-brainer if you want to scale your business. Once we figure out the best way to do something, it makes sense to create a process so everyone knows “how we do it.”
It removes the frustration points, prevents us from dropping the ball, and ensures things get done. If everyone did things their own way, there would be chaos.
But we must remain open to new ideas and better ways of doing things and not create space for people to think and contribute their ideas. Too many processes can destroy the spirit of your company
I’ve seen many good salespeople beaten down by companies because they tried to impose their rules instead of taking full advantage of their experience and relationships.
Many rules bring out the worst in most people
I’m sure you remember the time when you had a job. There were almost certainly crappy rules that you didn’t agree with. Rules that make you feel and act like a slovenly teenager.
James Timpson found that his great people were just finding the loopholes and finding ways to still do what they wanted. Either that or they left.
So how do fewer rules = more profits?
His colleagues who work in the stores have the freedom to order what they want (they know their customers better), design their own displays, paint the store the color they like, give discounts and offers to do some work for free. They know that relationships and kindness are the most profitable things they can do.
They can use their own judgment, try things out to see if they work, engage honestly with their customers, and as a result, get great feedback that it works.
How simple could you make your rules?
As we think about returning to work, after a year in which many rules were ignored because you trusted people to work at home (and they still got their work done), what rules could your company do without?
What are you worried about? No really – look at this. What do you think could actually happen if there were fewer rules? What are you trying to control?
What could you let go of?
What rules are your misfits currently breaking or finding ways around?
Ask your team, I’m sure they’ll be happy to tell you!
James Timpson has two main rules:
1) Put the money in the cash register (be honest)
2) Look at the part. have standards. Look and act like your grandparents would be proud.
“Great people don’t need control, they need freedom and trust”
His point is that if your company is full of great people, you don’t need so many controls — you need the freedom to get the best out of those people.
What else will happen to these great people? They feel restricted, have no scope to try new things, and are demotivated
And then they leave you.
The compensation for fewer rules
I firmly believe that a strong vision (Vivid Vision is my tool of choice), shared purpose and shared responsibility is the way to get the best out of people AND increase your bottom line.
Make sure your team knows exactly where you want to take your company, show them where they fit into that vision, and give them some space and autonomy to help you achieve that vision.
And James’ last words…
Let’s do things with more trust and fewer rules, have more fun and make more money!
