First of all, let me define the two terms. Jim Collins, author of “Build to Last” and Jerry Porras embarked on a six year research project that identified these two types of companies: A time-teller is one that manages the company according to her/his personal vision. This person is the reason for the whole existence of the organization, she guides its sales, its manufacturing/service practices, its pricing policies, its human resources activities, etc. In other words this is the commonly known as a micro-manager. I would suggest that the iconic time-tellers of our time are Steve Jobs of Apple and Mark Zuckerberg of Facebook.
The clock-builder is the manager who creates a team of managers that drive the company’s overall direction and day to day activities. Although she may be the visionary of the company, her vision is more related to corporate development and the emphasis is more on the business of the business as opposed to the activities of the business. A couple of examples of this kind of leadership are Jack Welch, of General Electric and Akio Morita Co-founder of Sony.
Although all of us start our small businesses as time-tellers, since we have to do all the tasks and cannot delegate much in the beginning, there is a strategic mindset that makes some of us focus more on the development of the organization than investing our energies on the total dedication to increasing sales and managing the cash of the company.
In the long term, 50 to 100 years, the likelihood of time-teller companies’ survival is lower than the survival of the clock-building companies. The main reason is lack of leadership, because the leader either retires or passes way, and the rest of the organization had always relied on the owner’s ability to tell them where the opportunities were and how to tackle them.
The Clock-builder type companies have a much better chance of survival in the long term, because there is a system of development that does not depend on one person. There is an organization that creates the environment for innovation, development, market penetration, and all of the strategic initiatives that drive a company to success.
This decision should be made as early as possible in the life of a company, since it affects the culture and the sense of responsibility that each member of the organization feels they have on the overall direction of the company’s future.
Even if you are a one or two person company, it is important that you understand the different roles and responsibilities that you are executing during the day. If you are running a larger organization, it is important to understand the distribution of responsibilities, let the employees run with their responsibilities and hold them accountable when dates are due and tasks need to be finished.
There are six timeless fundamentals to creating a clock-building company; these are proven concepts that transcend the day-to-day struggles of everyday business management.
We at Lanata & Solis Business Consulting Services, L.L.C. can help you lay the ground work to create a company that will live for many years, based on the strength of its core team, which at the end of the day is the most valuable asset any company has.
Give as a call today and we will give you a complementary one hour appointment in your office to assess your needs, and to create a tailored solution that addresses your requirements.