The Ratio Check

I was on a call last week with an owner who was exhausted. Seven years into building his company, good revenue, solid team on paper. But he couldn't take a two-week vacation without his phone buzzing every few hours.

I asked him one question: "What percentage of your decisions does your team actually make without you?"

He paused for a long time. Then said, "Maybe 30%."

That number tells you everything.

There's a simple ratio worth checking in your business. How many decisions flow through you versus how many your team handles independently. Most owners think they've built a capable team. But the ratio doesn't lie.

If 70% of meaningful decisions still require your input, you haven't built a business. You've built a job with employees around it.

The goal isn't to get to zero, you should be involved in the decisions that actually require your judgment. Strategy, culture, key relationships. But the operational, day-to-day, "what do we do when X happens" decisions should be handled without you long before they reach your desk.

The ratio shifts when you stop being the answer and start building systems that are the answer.

That owner I mentioned, he knew his number the moment I asked. He just hadn't looked at it directly before.

Most owners haven't.

What's your ratio right now, and are you honest about what it's costing you?

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From "The Owner's Almanac" - 90 days to build a business that runs without you. Available on Amazon.