THE GENERAL MANAGER’S JOB

by

SAM BOYER

 

To start with, it’s not a job…. it’s a position.  And it is not at or near the top of the organization.  It is in the center of the organization; similar to the hub of a wheel with spokes.  The spokes represent the numerous areas of influence including: owners, breweries, employees, unions, retailers, competitors, supply vendors, lenders, and regulators.  The spokes also put pressure back on the hub.

The general manager is the focal point of the beer distributorship.  He/she is the individual that has the authority to impact immediately any and all areas of a distributorship.  It is therefore of extreme importance the holder of the general manager position be experienced in management and possess the attitudes and skills necessary to be effective.  Certain attitudes and skills are more important than others.  The most important include:

Mental toughness is a must.  This is required and cannot be acquired.  The general manager either has mental toughness or he/she does not.  Mental toughness is the psychological ability to address stressful situations, resolve them, and then be able to function without allowing doubts and guilt to affect your subsequent duties.  Mental toughness is sometimes confused with being callous.  They are different.  Being callous means the general manager does not care about the results of actions or decisions.  With mental toughness, the general manager cares about the results but will not let them affect future actions or decisions.

Has the ability to communicate.  Without the ability to communicate the general manager will not survive.  Written, oral, and public speaking communications skills are a necessity.  And in today’s environment, the general manager must be computer literate.  Not all communication skills required of the general manager are for downward communications.  He/she must be a very capable listener.  How else will the general manager find out the information required for effective decision-making?  The body language of the general manager is also a great communication channel; it can either inhibit or advance the other communication skills.  The effective general manager must not only be able to talk the talk but must also walk the walk, literally.

Has to be entrepreneurial and loathe bureaucracy.  Bureaucracy breeds out-of-control costs.  With the pressure that is being brought to bear on the profits of beer distributorships today, even one “extra” position within a staff of 100 cannot be tolerated.  Even if the general manager is not an equity owner, he/she must perform like one.  This position influences sales, expenses, and margins.  If the general manager is not entrepreneurial how can the owner(s) expect to receive an adequate return on their investment?

High energy is required.  The position of general manager is at the center of a complex organization and pressured from many different directions (in the hub and spoke situation the spokes put pressure on the hub).  The holder of the general manager position must have high energy.  Without high energy, the stress of trying to balance the pressures from all the various spokes will be overwhelming.  The spokes on the wheel cannot be balanced with anything less than high energy from the general manager.  If energy is not applied equally to the spokes, the wheel will be out of balance, the beer distributorship will bump along, and it will not achieve its full potential.

Detail orientation is mandatory.  Beer distribution is a business of pennies.  A one-penny reduction in a supplier’s FOB on a million cases is a $10,000 addition to your net income.  Multiply this situation by the number of decisions a general manager makes in only one day and the need to be detail oriented is obvious.  A general manager that knows the financial details of the operation and how his decisions affect them will maximize the owner’s return on investment.  The general manager that knows the details of sales, warehousing, delivery, human resources, and administration will effectively manage the distributorship.

In-market time is a must.  All of the sales of the distributorship are outside of the facility.  The general manager must be your top salesperson when it comes to selling the image of your organization.  This requires contact on a regular basis with retailers of all types and sizes.  A general manager that is not in the market on a regular basis (one day per week) is a general manager that is making critical decisions with limited or second hand market knowledge.  This is a significant weakness but is easily corrected.

Mediocrity is not tolerated.  Successful general managers are goal-oriented individuals.  Performance to goals or standards for the staff is a must.  If staff members are not performing the general manager must take action.  Allowing mediocrity to exist is self-defeating.  Mediocrity breeds mediocrity!  The general manager that addresses it immediately will communicate to all staff members mediocrity is not tolerated.  Aggressive and consistent review of all goals for all individuals results in improved goal attainment and drives out mediocrity

Personnel decisions are not delayed.  When personnel decisions are required, a delay for any reason is not acceptable.  A delayed personnel decision is a bad decision.  This is part of being tough minded.  Whether it is a new-hire, promotion, or termination the decisions should not be delayed.  Moving ahead with the utmost determination will always strengthen the position of the general manager.

Flat organizations are embraced.  The closer the general manager position is to the positions that sell and deliver your products the more effective he/she will be.  Eliminating layers of management between the general manager and the staff is essential for quick reactions to competitive forays.  Flat organizations and their ability to react requires the elimination of bureaucracy.  Flat organizations require more spokes in the general manager’s wheel, but each spoke makes the wheel rounder.  The rounder the wheel the smoother the organization will operate.

Improvements to the organization are constant.  The effective general manager is not satisfied with the status quo.  He/she is always looking for ways to improve each aspect of your beer distributorship.  They know that without continuous improvement the performance of the operation will deteriorate.  A deteriorating operation will have declining profits, employee turnover, and eventually, a new general manager.

The general managers position is both a rewarding and difficult position.  It is rewarding in the control he/she has over the results and performance of the organization; it is difficult in the complexity and demands placed upon the position.  This is especially true when organizational performance is not up to the expectations of the owner(s).  But then, all you have to do is compare your general manager against the above criteria and work with him/her on the areas that require attention.