This old Greek saying simply means that the leader is responsible for everything and anything in their company. That means everything that goes right, and anything that goes wrong. FDR said it in a different way - “The buck stops here.” Good leadership and management are the most important functions of any business. Simply put, bad leadership equals bad business.

The Four Components of a Business
To better understand this vital concept, let’s look at the four components of any business:

1) Management – which lives in the present.
2) Marketing – which lives in the future.
3) Finance – which lives in the past, and
4) Operations – which only costs you money.

When Entropy (the tendency of a system to run down) begins to happen, an imbalance that may not be obvious to the leader of a company, is beginning to occur. When the leader is unaware of trouble that is brewing in any of the four components, the “fish begins to stink”.

If the object of business is to make money, and when you make bad decisions in any of the above four components, it will cost you. You need to be aware of, and have balance between, the four components. That means that you need to “cast a wide net” so that you are conscious of everything and everyone around you. Your mindfulness of your business needs to be as adept as the fisherman looking for the biggest catch. If you do not “cast your net” in the right place, you may miss an opportunity, or worse, be eaten by your competition.

Hire Slower, Fire Faster
One of the biggest mistakes leaders make is to hire too fast and fire too slow. Make this process more productive and less painful by letting your managers or teams be actively involved in the hiring. Successful business leaders know that when staffing, people tend to hire in their own mode, like attracts like (because it makes us more comfortable). Also remember that you lead by what you tolerate, so if you or your managers tolerate insubordination, you will hire insubordinate people. Leaders need to find ways to help their teams become aware of their tolerance levels and avoid hiring in their own mode.

Begin by creating a profile of the job and the right person for it. To make the hiring procedure much easier, try using an objective behavioral assessment tool. These tests will run you anywhere from $200 to $500 each. The best one I have found is the McQuaig Word Survey. Readers can receive a free McQuaig from Accord Management Systems by calling them at (800) 466-0105 and saying you read the article by Dr. Barton Goldsmith. Remind your managers and yourself to take the time and do the research necessary before bringing anyone into a position of responsibility, and once hired, invest in training them properly for the job.

In the long run, a few dollars spent in proper training will not only save you, but make you much, much more. Training is not an HR issue, it‘s like giving your children to a neighbor and saying “raise them as I would”. Look at how you learned what you know, and create ways to help your teams learn what they need to know. Give them the tools to do the best job possible. A well-trained team member will improve your efficiency, company morale and bottom line.

The Blame Game
When a problem occurs in your company, how do you look at it? Are you brave enough to ask the very difficult question; “Am I part of the problem?”. If you can be this objective, you are probably moving forward in your business. Many leaders are unable or unwilling to ask this strategic and painful question. Most are too willing to blame a manager, a department or the economy for a downturn. The most successful leaders know that when a staff member is blaming someone else, they need to look at the person doing the blaming.

This is the first step in Creative Problem Solving - facing the problem. After you’ve admitted that there is a problem, defined what it is, and become aware of the real issues involved, as the leader, you are then responsible for creating a solution. For more information on Creative Problem Solving, and a copy of Dr. Goldsmith’s “Problem Solving Worksheet”, send an e-mail to