4♦️ A leader has three jobs not two: Mastering upward management

This tip applies to any business leader who doesn't have complete ownership and control of their company. This includes those with investors, boards of directors, or even bank loans with repayment requirements.

Problem or challenge

Are you feeling overwhelmed by constant requests and meetings with people "above" you, like investors or board members. These interactions can feel like distractions from your core responsibilities: serving customers and managing your staff.

Complexities

The difficulty lies in the perception that your job is solely focused on customers and staff. While these are crucial, neglecting those who control funding or hold ownership can lead to bigger problems down the line.

Solution

Shift your perspective! Instead of two key areas (customers and staff), recognise there's a crucial third: upward management. Treat investors, board members, and even banks as stakeholders who require your attention, just like your customers and staff.

Split your job three ways; spend a third of your time looking after customers, a third looking after staff, and a third looking after your backers. And apply all the skills you use to manage difficult staff and difficult customers. to managing difficult investors and difficult backers

Effective leadership involves a three-pronged approach:

1. Customers: Acquisition, sales, and delivery.

2. Staff: Engagement, motivation, and development. 

3. Backers: Investors, board members, or banks (managing upwards).

Benefits:

By dedicating time and effort to managing upwards, leaders can expect:

• Improved relationships: Stronger connections with investors foster trust and understanding.

• Smoother operations: Clear communication reduces friction and ensures everyone is aligned.

• Enhanced decision making: Investor insights can contribute to better strategic planning.

Why it works:

Investors have a stake in your company's success. By proactively managing their needs, you can ensure everyone is working towards the same objectives, provide transparency and address potential issues before they escalate. Importantly though you may rely on backers financial backing so it's in your interest to foster a positive long-term relationship and secure continued support. 

Measurement:

The impact of effective upward management can be measured by:

• Investor satisfaction: Feedback surveys or one-on-one meetings.

• Reduced conflict: Less friction and smoother communication.

• Improved financial performance: Meeting or exceeding investor expectations.

My story, sources and references

Sadly this tip is from pure painful experience. If only I’d thought like this forty years ago, I’m sure I’d have been even more successful in business. Looking back I’m sure I too often simply assumed that my bosses, the corporate CEO, the PLC board director and the owning family should support me. Simply because I knew I was doing the right thing for them to the best of my ability.

And as I look back I realise my stupidity. How could I have assumed they knew I was doing the right thing and that I didn’t need to sell to them my value as well? I’d done it at an interview but then it was as if I’d done that and could assume support from then on.  

If only I’d invested the time and effort to manage their perceptions that I invested in motivating staff and customers to come on board with my ideas I’d have got far more support and backing and been able to achieve even more. I now realise I made my own life more difficult than it needed to be. Indeed I’m amazed at how much I did manage to achieve by simply assuming the support of my superiors! And it is of course a very powerful lesson that I draw on a lot as I see young leaders making the same mistake and counsel them that managing upward is a key skill and requires their sales skills too!