The 7 Red Flags and Toxic Behaviors Happening in Your Business + How to Correct Them
Episode 629: Show Notes
As owners and CEOs, we’ve made plenty of mistakes, but we’ve also learned a lot from them. In today’s episode, we discuss some of the mistakes we’ve made, as well as the errors we’ve seen TONS of CEOs make over the years. So, if you recognize any of these in yourself, don’t worry, you’re in good company! Tuning in, you’ll hear us break down the 7 most prominent red flags and toxic behaviors that continue to happen in business. Learn how to recognize them, why they happen, and the tiny course corrections you can make to solve them.
The things that we are pointing out today are based on specific lessons we’ve observed throughout our careers. We’ve seen these errors play out in various ways, from friends who have needed to course-correct, to mistakes that we have inadvertently made in our own business. We’re taking this as an opportunity to share our knowledge so that you can become aware of these potential pitfalls and hopefully skip them altogether!
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Stepping Into Your CEO Seat
In our opinion, the general conversation around stepping into your CEO seat has come with some flaws. Not only has it predominantly been discussed through a very gendered lens, but it has also been structured as a false dichotomy where there’s a wrong and a right way to do something when in truth there are many nuanced approaches one can take. We’ve learned repeatedly in business, even at the CEO level, that you have to find what works for you, and what’s in alignment with your goals. There are universal traits that we’ve recognized that hold people back from really thriving in their CEO seat in a way that is good for them.
How Much Time Do You Really Have?
You are, to some extent, lying to yourself about your time. This one is super common, but don’t worry, if you ask the right questions, you can start getting back your time and working in your zone of genius! First ask yourself, where is your time actually the most beneficial, and by that we mean, where exactly is your zone of genius? What is the number one thing that is delivering client results? Ask yourself what is truly resulting in sales in your business. Think about the environment and perspective that helps you live in your zone of genius most effectively. Maybe you need to carve out quiet time for yourself every morning that’s conducive to operating in your zone of genius. Perhaps you’re already spread way too thin and you need to accept that there are some things you won’t have time for, or that you need to give yourself permission to get something done at a much slower pace.
You Can’t Just Wear Your Owner Hat
So often owners want to only wear the owner's hat when that's not always what is needed from them. While the impulse doesn't come from a bad place, not going where you're needed most can prevent your business from growing. So often owners think that to make important decisions for their business they need to be operating solely as the owner and nothing else. But that's actually not true. There's also a misconception that you've somehow failed if you can't delegate everything and just be the owner. Your business and your team need your involvement, and you need to be involved to understand what the business needs and make the best decisions as an owner!
Are You Delegating Poorly?
Red flag number three is one that we all need to give ourselves a little grace over because chances are you were never taught how to do it properly. This red flag is all about delegating poorly and not having a firm grasp on the structure in which delegation needs to happen. You need to identify which pieces of the project actually need to be delegated and which don't, as well as who’s responsible for various pieces, and finally understand the bigger picture of your organization and identify what makes sense in terms of distributing responsibilities. Once you step into your power and recognize the potential within your team and your company you can start to delegate like a pro and unlock more time and success!
Why You Need To Design The Solution Before You Hire
This is a big one. When you don’t design your solution before you hire, you end up hoping that the people you onboard will be your hero. And that is a recipe for a toxic work environment because you’re setting an impossible expectation. You’re hoping that they will swoop in and save the day and figure it all out. And when they don’t, six weeks later you’re frustrated and want to fire them, which is an unpleasant experience for everyone involved. It also might not necessarily be fair or reasonable since their role was probably not to fix your business. This problem can come up often when business owners have unrealistic expectations of a new hire. If you don't have the solution of what's going to work, then you can’t delegate and train someone to get the result you want.
Why Contractors Are NOT Employees
One of the biggest red flags we’ve seen concerns employing contractors, which is actually a contradiction. Firstly, because it’s illegal. You may not realize that what you’re doing is so close to the line, but when you expect a contractor to provide specific results and show up to particular meetings on a routine basis, then that amounts to more than simply unethical expectations from a contractor.
This is a really big one, especially since it’s so easy to fall into. Perhaps you’ve hired a contractor for something general or specialized. But as your company has grown and evolved, you have started putting your contractor in different roles because they’ve delivered so well. You’re doing this as if they're an employee that you can simply move around different departments within your business. And ultimately the original contract is essentially null and void because it no longer corresponds with what you laid out in the beginning, which means you’re not getting the results you originally talked about. You’re also not addressing that issue in a way that is appropriate for a client-contractor relationship. Once you become aware of this problem you can set new boundaries and create ethical and fair relationships with your contractors!
How to Avoid Creating Unethical Circumstances
Creating unethical circumstances is something that often comes from good intentions and it’s easy to do it without even realizing that you’re doing it. When you are looking at the ethics of your business and how you employ people, it’s important to view it holistically. Because when someone works for you, it's not just their pay, the hours they're working, or benefits that matter, it's all of it. And if you’re not considering the holistic value that you can offer your team, then you’re likely to overcompensate in certain areas, while overlooking others. As an owner, you might feel comfortable making personal sacrifices, but it’s not fair to expect that of your employees. We believe it's critical that when you consider your employees, you take into account their whole life, especially when you're asking for so much of their time.
Allowing Perfectionism to Prevent Improvements
Allowing Perfectionism to Prevent Improvements is not just a CEO red flag. It can also apply to your team, especially when they see you doing it, as the owner or CEO. If you’re waiting for things to be perfect before you move forward, then you’re never going to grow. While there may be valid reasons to delay something, we’ve often seen people delay things simply because they’re afraid of messy action. People are worried that if they put something out that's not fully representative of what they want to do, then they’re doing it wrong. But if you adopt a spirit of experimentation then you allow yourself more room to grow as you develop and take on new clients. It’s also a great way to honor existing clients and allow them to be the first to try out new services and perks!
Quote This
You as the owner have to be the responsible one that understands the difference between how you can communicate with a contractor versus an employee, what you can expect of them, and vice versa.
Highlights
Stepping Into Your CEO Seat [0:08:00]
How Much Time Do You Really Have? [0:12:23]
You Can’t Just Wear You Owner Hat [0:16:08]
Are You Delegating Poorly? [0:20:36]
Why You Need to Design The Solution Before You Hire [0:28:01]
Why Contractors Are NOT Employees [0:31:38]
How to Avoid Creating Unethical Circumstances [0:36:57]
Allowing Perfectionism to Prevent Improvements [0:43:47]
ON TODAY’S SHOW
Abagail & Emylee
The Strategy Hour Podcast
We help overwhelmed and creative entrepreneurs break down their Oprah-sized dreams to create a functioning command center to tame the chaos of their business. Basically, we think you’re totally bomb diggity, we’re about to uplevel the shiz out of your business.
KEY TOPICS
CEO, Founder, Toxic Work Environment, Red Flag, Unethical Environment, Benefits, Salary, Delegation, Employees
