If you're a UK business owner, or department leader in a large organisation, you already know that running a company/cost centre is the steepest learning curve you'll ever face.
You have to learn on your feet - You have to adapt quickly - And you figure things out "on the hoof" - just because you have to.
My question though, Are you still learning today?
Or has the day-to-day of running your business/department quietly replaced the curiosity, experimentation, and growth that got you to where you are today?
It could be that you're choosing to coast along, you're comfortable, not challenging yourself or in a rut and just worn down with it all.
The 70-20-10 Rule of Leadership Development
One of the most widely referred to frameworks on how leaders develop is the 70-20-10 Rule, (based on over 30 years of research from the Centre for Creative Leadership).
The 70-20-10 Rule suggest:
70% of development comes from on-the-job experiences; tackling new challenges, leading change, and solving real-world problems. (Often you learn more when up you're against it, i.e. time, gaps in capability, and pressure to be seen to succeed.)
20% comes from learning through others; mentors, peers, colleagues, networks, and honest feedback.
10% comes from formal learning; training courses, workshops, qualifications, and structured study.
Now, if you think back over your career, you probably can recall seeing this balance in action.
And the biggest leaps in your ability as a leader therefore likely came when:
- You faced a challenge you'd never handled before. (Stepped well out of your comfort zone)
- You had someone to guide you, advise you, or challenge your thinking. (usually a mentor)
- You invested your time, in a course, seminar, or programme that gave you new learning, tools (and no doubt, you had a few lightbulb moments too).
The Problem Many Business Owners Face today.
Here's the catch; once a business is established, or a department is hitting its numbers, the 70-20-10 mix starts to fade.
- The 70% shrinks — As you stop taking on new, stretching challenges because you're busy managing existing operations. (Fire Fighting)
- The 20% dries up — Because you're busy, therefore you network less and seek less feedback, (often it's just easier to stay in your own lane).
- The 10% gets squeezed — formal learning feels like a "luxury" and only for when time and budgets allow self-investment.
The result!
You become very good at maintaining the business you have, (treading water) but the fewer new experiences you expose yourself to, the bigger the gap becomes in your capabilities in achieving the business or career you aspired too.
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Practical Action List: Your 70-20-10 Reset - (Pin this visual next to your desk)
70% – Learning from Experience.
- Take on a project outside your comfort zone within the next 3 months.
- Rotate responsibilities in your leadership team to stretch skills.
- Step back and review one persistent business challenge and tackle it differently.
20% – Learning from Others.
- Join (or re-engage with) a peer business network. (you'll find you're not on your own)
- Ask two trusted peers for candid feedback on your leadership.
- Find a mentor — or become one, (the return you'll obtain from mentorship will be fundamental and you'll learn in the process too).
10% – Formal Learning.
- Book yourself one course or training session in the next six months.
- Block out half a day a month for reading or online learning.
- Attend one industry event in the next 6 months, with a learning agenda, not just attending in a sales context.
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A Case Study: How One Business Owner Brought Back the 70-20-10 Balance
David, a second-generation owner of a 40-person engineering services business.
When David took over from his father, the company was profitable but static. There had been no real business growth in five years. David's days were full: managing contracts, firefighting problems, keeping customers happy. But he realised he wasn't learning anything new.
So, here's what David did:
Restored the 70% - David deliberately took on a high-risk, high-reward project in a new market sector. It meant he had to commit time, to learning new regulations, exploring the market sector, honing a bidding process, through really understanding potential customer requirements. This stretched him and his team in the process.
Boosted the 20% - David joined a regional manufacturing/engineering peer group and from this he established a quarterly "advisory circle" with three trusted business owners. His trusted associates gave David candid feedback on his decisions and shared ideas he'd never considered.
Rebuilt the 10% - David completed the Help to Grow Management programme, a 12 week short executive course on strategic leadership through Newcastle Business School. The HtGM Programme exposed David to new ideas, business models, concepts and frameworks along with learning with a group of business owners across diverse sectors.
In the last 18 months, David had not only grown business revenue by 22% but also built a stronger, more confident management team. His own learning has created a ripple effect through the business and he's now spending more of his time, passing on his learning through coaching and developing his Senior Leadership Team.
The Takeaway for Business Owners/ Department Lead.
The 70-20-10 Rule isn't just an academic model; it's based on real life learning and in-depth research and a practical reminder that:
- Experience (on the job) is your best teacher - but only if you keep seeking new experiences.
- People around you are a vital learning resource - if you take the time to make new contacts, and actively listen and engage with your peers.
- Structured learning keeps your skills sharp – but again, only if you make time for it.
As a business owner, or department leader, your company will only grow as fast as you do. If you've just been in maintenance mode and on auto pilot lately, maybe it's time to re-engineer your own learning plan.
So, to repeat my question;
How did you learn? And more importantly… How will you keep learning?
Feel free to comment. Or dm me if you wish to meet up for a chat over a coffee.
Author; Peter Fleming
E; This email address is being protected from spambots. You need JavaScript enabled to view it.
M; 07966 686112