By Jennifer Prosek, CEO, Cubitt Jacobs & Prosek Communications

When my daughter was born in 2007, I was overjoyed and terrified. Of course, I was nervous about being a first-time mom. But what really scared me was the possibility that the company I had spent ten years building might sputter, shrink and fail if I diverted my focus, even for an instant. I wasn't one hundred percent sure my management team could fill my shoes. I knew, in some respects, this was the moment of truth.

As it happened, my concerns were unfounded. Just over a year later, I am celebrating my daughter's first birthday and another year of double-digit growth. But what I am really celebrating is the fact that I have built a true management team, capable of running a sustainable business versus an owner-led practice.

The outcome could have been very different. As we grew from fewer than a dozen people in one office to 75 professionals on two continents, we struggled with a problem common to most small and mid-sized firms: How do you create effective management when you are constantly consumed with client and employee needs and the myriad other details of running a business?

As the company expanded, we had our fair share of growing pains and management missteps. We made some senior hires who looked good on paper but were disappointing in practice. Our infrastructure could not always handle our growth spurts and our hiring for entry-level and junior staff was uneven.

But gradually and mostly organically, we developed an organizational and management structure that filled three key objectives: It supported our agency goals, helped us provide great service to clients, and—perhaps most important—supported our staff in reaching their professional goals.

While each agency is different, there are principles and practices that were helpful to us and are likely to be useful to others. As stated, my maternity leave could have marked the beginning of the end. Instead, it marked our arrival at a new stage, with a self-sustaining culture and team that can run the business, and even survive its founder.

While earning my MBA at Columbia nearly a decade ago, I learned the true measure of success is building a company that survives and thrives, even if the founder exits. That lesson stayed with me and has shaped my thinking.

From my experience, every small and mid-sized public relations agency needs every member of the team to have an "owner's mindset." That means they understand the big picture, are committed to keeping each account fresh, are almost insanely focused on client service and are capable of independent decision making.

What does this mean for management? It means your management philosophy and practice must be based in empowerment and creating an entrepreneurial culture. That doesn't mean people get to run amok. You need leaders, managers and supervisors. But to really make "management by empowerment" successful, the focus must be on encouraging every employee to truly "own" their accounts and clients—and their careers. It's "follow your bliss" in the workplace.

For example, four of our departments—Digital Media, Editorial Services, Investor Relations and Events—were started by employees. Not only are we now able to provide those services to clients, they offer opportunities for new and existing staff who want to pursue those specialties.

An entrepreneurial culture is also transparent. People simply do better work and are more conscientious when they understand the organization and their contribution. In many cases, that transparency includes sharing financial information (with the exception of individual salaries). Seeing how the numbers add up helps people understand why each client is important and the reality of overhead costs.

And when it comes to building a "management by empowerment" culture, flat is beautiful. Clearly, all companies need lines of authority and supervision—but those things should help the agency function efficiently, not squash initiative and creativity. In my view, this is the only structure of the future, as firms compete for the best of the "new generation" which does not respond to traditional management rules, hierarchies and structures.

People also need tools and resources, including professional-development workshops and classes. The results can be surprising. In one case, after participating in a staff-led new business workshop, a summer intern took her newfound knowledge and skills and landed two new clients.

And let's not forget the rewards. Paying market salaries just isn't enough. Today's top talent are looking for international travel experiences, financial support for MBAs and graduate degrees and new business development rewards. Our unique "commission for life" program, which rewards employees at all levels for new business contribution, has created an "army of entrepreneurs" who are invested in the company's growth as it aligns with their personal financial and professional opportunity.

For small and mid-sized firms to succeed, every person must be actively contributing. In our experience, the most effective way to accomplish that is to give employees autonomy, encouragement and resources. That way, they have the best chance of hitting the agency trifecta: a satisfying career in a dynamic, financially stable agency with interesting accounts and happy clients.

Jennifer Prosek is CEO of Cubitt Jacobs & Prosek Communications with offices in New York, Connecticut and London. She can be reached at jprosek@cjpcom.com and (212) 279-3115 x104.