Does anyone have experience running a business in absentee ownership?
June 08, 2020
by a searcher from The University of Michigan - Stephen M. Ross School of Business in Ann Arbor, MI, USA
The size of the company and the industry it is in matters in this case but is there a correlation to what the minimum size of the work force has to be for this to work? You also must have a good manager in place and incentivize him to run the operations with the same level of rigor and passion at the expense of lower cash flow to you. What are the key success criteria to make absentee ownership to work? I am curious to hear some of your experiences and insights on this topic.
from University of Toronto in Toronto, ON, Canada
IMHO you hit the nail. If the on-site manager/leader is both financially aligned for the long-run and inherently a highly influential person, there is a fighting chance. I've had a few remotely run companies in different sectors. But in particular, I have a healthcare brick and mortar company that is completely owner-absent and growing. Of note, I did have 3 remote clinics pre-C19, but I had to close down 2 due to lack of the star manager mentioned above. TBH,, the manager is doing a better job than I.
Side notes: The home-base should handle all accounting/expensing/HR controls, be insightful with staff recognition and rewards, be a trusted expert and advisor for all difficult decisions, and add value through routine positive contact. - Just my 2 cents.
from The Chicago School of Professional Psychology in Philadelphia, PA, USA