Pivotal Change: How Delegation Sets the Stage for a Strategic Exit
If you want to grow your business - and eventually step away from it - you’ve got to get delegation right. It’s not just about handing off tasks - it’s about giving your team the responsibility and authority to take things to the next level. And if you're thinking about an eventual exit or succession plan, mastering delegation is the key to making that a smooth, successful transition.
This is exactly what we dove into on the latest episode of Pivotal Change with Ryan Herpin, and let me tell you, the insights here are game-changers for anyone running a business and thinking about the future.
In this episode, Ryan took us through the delegation process, showing how leaders can gradually step back from the day-to-day operations without losing control of the business or compromising team morale. It’s all about building trust, creating systems that function without you, and making sure your team is empowered to lead.
Why Delegation Is Crucial for Your Future Exit
Listen, if you’re running a business, there will come a time when you want to step back, whether it’s for a strategic exit or a succession plan, or for expansion and new ventures. But here’s the thing: you can’t just vanish overnight. You need to delegate effectively and train your team to handle the responsibilities you’ve been carrying. This isn’t something you can do last-minute - it’s a gradual process, and it starts now.
Ryan is adamant about one thing: delegation isn’t a one-time fix. It’s a gradual, ongoing process that takes time. You don’t just throw responsibilities on your team all at once and hope for the best. You need to give your key players the tools and the trust to handle the load, step by step. And you need to ensure they have the right systems and processes in place to function without constant supervision. You need to expect and train through the mistakes and speed bumps that are bound to show up.
But how do you actually do this without disrupting the business? How do you keep your team engaged and morale high while you slowly back out of the daily grind?
How to Delegate Without Losing Control
First and foremost, delegation isn’t about handing off every task to every person in the company. You’ve got to target the right people - those you trust, those who show potential to step up. Delegation isn’t about making people do things; it’s about empowering them to take ownership.
Ryan’s advice? Start gradually. Slowly increase responsibilities for your main people. Offer guidance when it’s needed, but create a system that works in your absence. The business should be able to run smoothly whether you’re there or not.
Here’s where Ryan hits the nail on the head: “You’ve got to stay in the loop enough to make sure things are going in the right direction, but not so involved that you’re micromanaging every single detail.” The key is to be present, but not hovering. Your team should know they can come to you for guidance - but also feel confident enough to take charge on their own. It’s all about balance, and if you want to dive into that, look up my content on Equanimity.
This gradual process of delegation keeps morale high because your team knows you’re there when they need you, but they also know they have the authority to get things done on their own. It’s about building trust, and as Ryan said, “If they know you trust them and have confidence in their ability to succeed, morale will stay high.” And remember leaders, your ability to give trust and for them to achieve success is a direct reflection on you and your efforts in training and preparing them for the new responsibilities!
Maintaining Work-Life Balance While Staying Engaged
Now, here’s where most entrepreneurs struggle. As you start delegating more, how do you maintain a healthy work-life balance while still staying connected to the business? I am not a huge fan of the term “Work-Life Balance” but it will serve its purpose for this discussion for sure because of the great points being made.
Ryan’s approach? Once you’ve mastered delegation, work-life balance becomes a lot easier to maintain. The key is focusing on high-level strategic decisions and empowering your team to handle the operational tasks. Regular reviews and updates will keep you informed without dragging you back into the weeds of daily operations.
But this doesn’t mean you disappear completely. It’s about finding a balance between stepping away and being available when your team needs you. Ryan talks about how important it is to have “availability without being present all the time.”
You should be able to take time off, but also jump in when something big comes up. "You’re not glued to the desk, but you’re not completely absent either.” This flexibility gives you room to breathe, but still allows you to stay engaged when it matters most.
Preparing Your Business for a Strategic Exit
So now let’s talk about the bigger picture: how do you start preparing your business for an eventual exit or succession plan? Ryan has a simple answer: documentation, mentorship, and solid governance.
The first step in preparing for your exit is documenting everything. Key processes, roles, responsibilities - if it’s not written down, it doesn’t exist. That way, when it’s time to step out, you have clear guidelines for how everything should run. This is necessary if you’re passing the business to someone else or selling it. Buyers want to know that the systems are solid and that the business can run without you.
And then, of course, it’s about building your team. “Identify people who can step up into leadership roles and start mentoring them in leadership skills.” If you’re preparing to exit, you need someone who can take over and keep the business running smoothly. This means building them up, teaching them the ins and outs of the business, and giving them the strategic mindset they’ll need to succeed. And giving them specific permissions along the way for initiatives and responsibility takeover.
Financial health is another area Ryan stresses. You can’t sell or exit a business if the numbers aren’t right. Keep the business profitable and solid so when the time comes to step away, the transition is smooth. Don’t get lackadaisical and let the profit margins close and diminish, finish strong!
And lastly, governance. Set up formal structures that allow the business to operate without you. This will ensure the business can run seamlessly after your departure, no matter if you’re selling it or passing it to someone else.
How Often Should You Check Your KPIs?
One final key point from Ryan: you can’t delegate without measuring progress. “You’ve got to have metrics and a baseline to measure against.” Whether it’s quarterly or monthly, reviewing key performance indicators (KPIs) is necessary to ensure everything is running smoothly.
The process of reviewing these metrics shouldn’t be overwhelming; it should be integrated into the way you run the business. Ryan prefers to check in monthly because it allows you to catch small issues before they become big ones, especially early on in the process. But if you’re a high-growth business, quarterly reviews are also effective.
Tune into Pivotal Change
If you’re serious about learning how to delegate effectively, create systems that work in your absence, and set your business up for a strategic exit, then this episode of Pivotal Change is for you. Ryan’s insights on delegation, work-life balance, and preparing for the future of your business are invaluable for any entrepreneur looking to step away while still ensuring the business thrives.
Ryan Herpin is just one of many experts sharing the strategies and mindsets that can help you not only survive but thrive in business. Stay tuned and get ready to make the changes you need to see success.
