Talents will soon realise they are not becoming part of something bigger and their contributions are not appreciated. Micro-managers will not give them enough space and will openly struggle with creative people. At the same time, creativity is vital for start-ups, according to an article from the INSEAD business school.
Micromanagement means trouble
Founders who engage in micro-management can find it hard to scale up their business. If employees are not empowered, there are inevitably decision bottlenecks and things do not happen as fast as would be required.
Another problem with micro-managers is that minor issues receive more attention and more time, while more resources are burned than would be appropriate. On the other hand, major decisions are slowed down or there is less space to think them through.
And that is the crucial point: the main role of a founder is to think about the big picture. These people need to make sure that everything runs smoothly and if there is a high turnover which is a direct result of micro-management, investors will see that as a sign of problems.
Empowerment is key for success
For example, the Japanese gaming start-up Bank of Innovation grew from 80 to 200 employees in two years. Senior managers empowered their teams and hired specifically people with a lack of significant experience.
They believed that when people are unaware of constraints, they are better equipped to surpass limits. Employees had full profit-and-loss responsibility over their product, which spurred a strong entrepreneurial spirit and drive within them.
You can read more about how to empower your team members in the second part of the article.
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