Some exciting news! A major milestone! And 10 insights!
Let's start with the news. I'm excited to share that we have now sold almost 8,000 copies of Traction and are now in our fourth printing. The word is spreading, and it's helping many people. In addition, we now have 17 Implementers around the country and can reach any company anywhere. Also, we're about to launch a Web-based membership portal to help people self-implement EOS in their companies. You'll receive information about the launch date in December.
I'm also excited to share a major personal milestone. This year, I delivered my 1,000th full-day session. While I realize that, so far, this message sounds like it's all about me, it's not. In truth, it's about you.
In reflecting back on over 1,000 sessions and almost 10,000 hours of working hands-on with entrepreneurial leadership teams, I've learned some great lessons that will help you and your leadership team. I hope these will serve as constants for you as you build a great company, and that they'll give you insight, peace of mind, a kick in the ass, a wake-up call, and a few a-has. Enjoy.
- It's all about healthy relationships. My most effective clients are those with healthy leadership teams. They have strong relationships and connections with each other. While this sounds soft and maybe obvious, I'm now convinced of it. "Healthy" equals "less effort" and "faster results." Stephen Covey's book The Speed of Trust is the best at technically describing this phenomenon. Patrick Lencioni's book The 5 Dysfunctions of a Team is still the simplest. Are you proud to have each person sitting across from you on your leadership team, and do you feel he or she has your back?
- People do a lot of things right on the way up. But unfortunately, they do a lot of things wrong on the way down, and they do them before noticing they're on the way down. Jim Collins's new book How the Mighty Fall is a great read on this subject. A lot of times, as soon as you think you've got it figured out, you lose your edge and start bad habits. Are you taking your success for granted?
- There is no easy business. Many think so. I haven't seen one yet. The grass isn't any greener. Stop looking over the fence-it's dangerous.
- Most people would rather not solve their problems. It's amazing how many issues get dusted over during issues solving. People truly would rather ignore them and hope they go away. The irony is that by going to the root and solving them, you save unbelievable amounts of time, pain, and suffering. Someone must be the force to call it out and go there. That someone is you!
- Build a culture, not a company. I heard this statement about three years ago, and it's really apparent now. Leaders who constantly focus on their core values and make every decision with them in mind find that everything is a little easier. If you hire, fire, review, reward, and recognize every person, along with walking the talk, the rest takes care of itself. You'll have more fun, get more done, and have a culture, not a company.
- It still always comes back to The Six Key Components. Keep them strong, and you'll always be in the upper tier. Our clients with strength in The Six Key Components noticeably have fewer issues, are healthier, make more money, have more balance, and gain much more traction, in good times and bad. How strong are your Vision, People, Data, Issues, Process, and Traction Components?
- Slow down to go fast. The old proverb is as true as ever. Leaders who take time off, work "on" the business frequently, take clarity breaks, and plan with their teams actually grow faster and get more done than ones who work morning till night, seven days a week. I observe that they are often more creative, solve problems better, and solve them faster. When was the last time you took a clarity break?
- Leaders obsessed with providing value to their customers have fewer issues. The ones who obsess stay ahead. Your company exists for the customer. The moment your company stops providing value to customers, your problems will multiply. Every process, person, system, and service in your company needs to be aligned to solve a problem or fill a need for your customers. If you don't clearly know what your customers love about you-and what they don't-you're missing the point.
- Establishing and accomplishing quarterly Rocks and weekly To-Dos will have the fastest impact on your organization. This requires no additional explanation. Of everything we do for clients, this gets the fastest results.
- Staying on the same page is vital. You'll save time, money, and stress if you make it a habit to stay on the same page with everyone in your life. The sessions I do when people aren't on the same page require almost 50 percent more time to accomplish the same result as a team that's in sync. Are you seeing eye-to-eye with all of your people?
- Most leaders are terrible time and project managers. It pains me to say this, but it's scary and true. Most people have trouble laying out and executing a plan of attack for their Rocks, special projects, and big goals. Investing in teaching your people to manage projects and their time will bear plenty of fruit. Incidentally, figuring out a simple solution to this is going to be one of my focuses in 2010 now that I see what an epidemic it is.
- Doing the right thing gets you further in the long run, although not always in the short run. It would make your head spin to watch leadership teams decide on the easiest or quickest solution to a problem in order to move on and then watch them rehash it over and over, session after session. Time and again, observation shows that if they had chosen the right and best (though sometimes painful) solution, they would have saved considerable time in the long run. Are you choosing the right solution or the easiest solution?
- The fear of doing something is always greater than the actual doing of it. This applies to everything. Are you letting fear slow you down? Enter the danger. Do it! It will catapult you.
Okay, so there were 13 insights. I tried like heck to get them down to 10. I hope they help. Please let me know if you have any questions or comments. I appreciate your support.
Stay focused,
Gino
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by Mike Paton
Imagine you are the coach of a football team. You’ve assembled a team of talented players, carefully scouted the opposition and have a solid game plan.
You arrive at the stadium fully prepared and confident – this is a game you should win.
Now imagine that you are the only person on your team that can see the scoreboard. While the game is in progress, none of your players knows who’s winning and by how much. They can’t even see the time remaining or the down and distance without running over to the sidelines and conferring with you. How do you feel about your chances now?
Like great sports teams, great businesses often need more than the best players and a good game plan to compete at the highest level. They also need to run on relevant and useful information – not the feelings, personalities and egos that tend to drive a lot of entrepreneurial organizations.
Previous articles in this series introduced the Six Key Components™ of a well-run business and explored the Vision and People Components in detail. In this article, we’ll learn more about the third Key Component – Data.
While the coaching scenario described above may seem preposterous, it’s surprisingly similar to the way lots of companies operate. Many otherwise successful entrepreneurs don’t properly measure and use the data that will give them an absolute pulse on the business. As a result, they tend to toss and turn at night frequently - whenever things don’t “feel” right. They send frantice-mails at 2:00 am and talk with six people the next morning hoping to find out what’s really going on. At best, it’s a colossal waste of everyone’s time.
If you’re running your business based on the way things FEEL rather than the way things ARE, take the lead from great coaches and follow these four steps:
- Make sure every member of your team knows exactly what “winning the game” means. What are your company’s goals? Unless they know what success looks like, employees are like football players that can’t see the scoreboard or the end zone. At best, they’re just following your instructions and going through the motions.
- Keep an absolute pulse on the business by developing a great Company Scorecard. Measure 5-15 weekly numbers that tell you precisely what’s on track and what’s not throughout the company. Choosing predictive indicators rather than historical numbers and watching your data weekly helps you see problems develop and make adjustments before it gets too late in the game (or fiscal year). Waiting until August to turn around disappointing sales numbers is like adjusting your game plan when you’re already trailing 42-0.
- Using your Company Scorecard as a guide, develop Departmental Scorecards that give each leader in your organization a clear picture of what’s working and not working in his or her department. On a football team, for example, you might have offensive, defensive and special teams Scorecards at the next level of management, further supported by Scorecards for linemen, running backs, receivers, linebackers, and defensive backs.
- Have every team member own at least one number – we call them Measurables – that ties directly to departmental and company scorecards. When everyone is accountable for keeping at least one Measurable on track each week – three things happen. Everyone feels personally connected to your vision, your specific expectations become crystal clear, and your team stops relying so heavily on you to tell them what to do and how well they’re doing.
Like a great football team, companies that are strong in the Data Component always know exactly where they stand. The game plan is crystal clear and every player knows exactly what he or she needs to do to help the team win. When numbers are off track, individual team members often make adjustments themselves to get them back on track. That creates ease of management and peace of mind. Leaders of these organizations get better results, deal with fewer people problems and sleep better at night.
Perhaps that’s why so many of the world’s best coaches are often the calmest. When the game is on the line and time is running out, these leaders leave the pacing, fingernail chewing and frantic exhortations to others. They remain calm because they know the tough work was done long ago – finding the right players, creating a clear game plan, and building a mechanism that gives each player the tools and information needed to do the job well, adjust when necessary, and help the team win every game. The rest of the story is told on the field and in the numbers.
If you’re losing too many games or working way too hard when you win them, ask yourself how well your players can see the scoreboard. You might find that a little clarity and a handful of numbers will go a very long way.
About the Author
Mike Paton has been helping entrepreneurs get more of what they want from their companies for more than 20 years. He works with owners and leadership teams to implement the Entrepreneurial Operating System® (EOS®), a proven process for clarifying, simplifying and achieving success in growth-oriented organizations. Learn more at www.eosprocess.com or contact Mike directly – mpaton@eosprocess.com
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By Gino Wickman
People have been surprised to hear that most of my clients are still growing, and that almost all are remaining profitable in these challenging times. Obviously this is contrary to what you hear in the media. How are they beating the odds? They are doing the basics, and staying disciplined and logical (more on that in a minute).
Please understand that I am not oblivious to the challenges companies are facing. I have had some very difficult sessions helping some clients make very difficult decisions that are experiencing drops in revenue as much as 20%-30%.
My business mentor Sam Cupp used to say, "In a normal 10-year business cycle most businesses will have two great years, six good years, and two very difficult years that could potentially put you out of business, so always be prepared." These are those two tough years for many. My Dad also says that "good things happen and bad things happen and neither last."
It is important that we are strong leaders for our people and our companies. With that said, there are four critical disciplines that have been helping clients and will help keep you focused and doing the right things:
- Put the company first, stay logical, and set your ego aside. You must save the company first and foremost. One of the biggest mistakes leaders make in tough times is trying to hang on to everything, not letting go of the past, and getting way too emotional. Every decision has to be for the greater good. Your business has a purpose and vision that must lead your decisions. While this is not easy, it is vital.
- Reverse accountability chart. As you know, the accountability chart is one of the foundations of EOS and you must always be looking out 6-12 months and structure your organization the right way to manage growth. The same rule applies when things take a turn for the worst. Reverse accountability chart means you must look out 3-6 months, and if you anticipate revenues dropping, you must structure the company for that revenue drop, which means making tough decisions. Sometimes leaders have to fulfill roles that they used to fill for the greater good.
- Work twice as hard, stay disciplined, and do the basics. While the old mantra is to work smarter, not harder, unfortunately that's not always the case in hard times. While the pie is smaller, there is still business to be had. You just have to get a bigger piece of the smaller pie. Doing the basics means making sure the vision is right, that you have all of the right people in the right seats, that your meetings are at a level 10, that you have a pulse through good data, that you are maximizing sales efforts, taking good care of existing customers, and solving all problems fast and at their core.
- Be at your best-you owe it to your people. People are looking for a strong leader in these times, and that needs to be you. You have to be at your absolute best. You must keep yourself up. To do this you must stay realistic-not optimistic, not pessimistic. but realistic. A great read is chapter 4 of Good to Great, "Confront The Brutal Facts." Surround yourself with strong leaders, books, and resources.
As the saying goes, "what doesn't kill you makes you stronger." The leaders that embrace these disciplines will endure and come out of these times better than ever. Many reading this message are doing just fine. If you know of someone who needs to hear this message, please pass it on.
Stay focused,
Gino
By Gino Wickman
"When the tide goes out, it reveals who has been swimming naked."
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Gino Wickman
I’m noticing two key issues right now.
I send this with an assumption that you have read the first passionate plea. If not, click here. Trusting that from the first passionate plea you are putting the greater good of the company first, you have reversed your accountability chart (if necessary), are staying disciplined, are remaining at your best and are facing the brutal facts of reality. Here they are.
The two key issues for even the ones that are doing well on all of the above are that most leaders are frozen, and they are not fighting.
I’ll expand on each, one at a time:
1. They are frozen means that people are stuck, uncertain, feeling isolated, and confused. If you can relate, I would prescribe four remedies immediately:
- Make a list of everything that is worrying you. I know that this might seem counterproductive, but just do it. When I meet with people who are wrestling with issues, the first thing I have them do is write out all of their concerns, fears and worries. As Dan Sullivan says, “All progress begins with telling the truth.” This exercise will literally change your brain function from “fight or flight” to “rational and logical” thinking. It’s powerful.
- Do something. You’ve got to create movement in some direction. The reason you have a problem, issue, or concern or are losing energy is simply that you have not made a decision. It is time to start making decisions. As the saying goes, “It’s more important that you decide than what you decide.” So decide!
- Have a plan. Your people are eager and want to know your plan. It is vital that you crystallize it and over-communicate it regularly. You owe it to them, and they need it. The number one difference I see between employees that are motivated and the ones that aren’t is that their leadership team has a plan.
- Stop wallowing in what you’ve lost. We have all lost things as of late, whether it’s property values, 401k values, net worth, money, or clients. The world has right-sized. Treat right now as the starting point. This is the first day of the rest of your life. Just simply go forward from here.
2. They are not fighting, which means that a lot of leaders are being a little meek. I will lose a few friends with this one, but here it goes. I am noticing that people are a little spoiled. It’s been easy for the last 10 years. We have to get good at a little hand-to-hand combat. In sitting down with one of my clients that is experiencing massive growth in a very tough, competitive, and beat-up industry, he shared how he is winning. In the conversation he stated, “I realized that I have been fighting my whole life. It’s second nature for me.” Simply put, he is a good fighter.
Please don’t get me wrong: I am talking about a fair and good fight, but a fight nonetheless. Saying it another way, don’t leave any stone unturned. Make sure that you are maximizing, adding value, and taking good care of every client; that your sales and marketing are rock-solid and clearly solving a problem for people; that you are exhausting every option; and that you are staying laser-focused and everyone is doing the basics.
It is on us, the entrepreneurs and leaders, to provide the momentum. You can’t control the world economy, but you can control your own economy. Start with your family, your business, and your network, and be the positive force. Be the spark.
One last closing thought: I have a rare perspective working with 35 companies at any given time in southeast Michigan . In summary, what I see the great ones doing are the following seven things:
- They have a plan and are moving forward.
- They convey that plan to their employees often.
- They are staying realistic (not optimistic or pessimistic).
- They are right-sizing (reverse accountability chart).
- They are protecting cash flow/profitability.
- They are working twice as hard.
- They are fighting.
I hope this helps. Please don’t hesitate with questions, comments, or feedback.
Stay focused,
Gino
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Gino Wickman
Now that you've followed through with Passionate Pleas I and II, it's time to get back to the basics.
And I'm talking about way back to the basics ... the true basics: your core and your customers. If these two aren't crystallized and maximized, nothing else matters right now.
"Core & Customers"
With the work done in Passionate Pleas I and II, we now go forward from here. All of the energy in your organization must be focused on "Core & Customers." Let's take them one at a time.
"Core"
Your core is the combination of three things: core values (who you are), core focus (your sweet spot), and core target (your number one goal). For a refresher, read pages 34 through 54 in Traction. Most companies will simply go through the motions in defining these absolute musts-which can be worse than worthless.
These times require you to be completely passionate about what you do and, in addition, that you fill a need in the world.
When I say "core," I'm urging you to really ask yourself this: Are your core values, focus, and target right? If so, you must answer "yes" to the following two questions.
1. Am I still passionate about my core?
2. Is there still a need for it in the world?
If either are a "no," then you must stop kidding yourself and going through the motions. You must go back to the drawing board. Either re-read pages 34 through 54 or e-mail me right now.
If your answers are "yes" and "yes," then go forward and focus on "Customers" with every ounce of energy you and your organization have, which is the second part of this Passionate Plea.
"Customers"
If your answers are "yes" and "yes," you now must align all your people and processes around getting, keeping, and growing customers. It's time to bring back the novelty and thrill of getting to know your customers and providing value to them. Think about your energy level when you started the business. You must get back to knowing your customers' wants, needs, fears, obstacles, barriers, and opportunities, and to helping make their lives better. What you are worth is in direct proportion to the value you provide them-the need, desire, or want you fill for them.
With that said, I prescribe four disciplines regarding customers.
- Define the demographic, geographic, and psychographic qualities of your ideal customer (i.e., your target market; read pages 62 through 65 of Traction for a refresher) and focus on them.
- Get everyone in your organization clear on your core, and then get them focused on getting, keeping and growing customers.
- Make sure your sales efforts are laser-focused and that this is the organization's number one priority. Set a goal and track activity every week (download the Sales Department Checkup). One client is literally spending an intense, exhausting full day every week focusing on nothing but sales and strategizing-the pipeline, growing and retaining existing customers, clear actions, etc. And it's working. This client is growing (11% over last year) and has had its most profitable quarter in the last four years.
- Get out and talk to as many target market prospects and customers as will talk to you. Learn and understand their fears, ideas, opportunities, and worries (as described in Passionate Plea II).
So there it is: "Core & Customers." I ask that you become obsessed with these two things.
Please forward this message to anyone that you feel will benefit by it.
Stay focused,
Gino
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Small Business Monthly
By Nancy Kaffer
Gino Wickman, a business coach, founder of the Livonia-based Entrepreneurial Operating System and author of strategy guide Traction: Get A Grip On Your Business, shared thoughts with Crain's reporter Nancy Kaffer about how businesses can manage rapid growth without flaming out.
Let's talk a little about entrepreneurial culture. There are two kinds of entrepreneurs. There's the type that is looking for balance and puts the family first. The second type is the one that puts the business first and the balance is second. Neither is right or wrong, but it's true.
So what advice would you give to each? There are four prescriptions I would offer. First, I would say, stay true to your core.
What does that mean? If they will just stay true to their core values, passions, niche and their number one biggest goal, if they let those things lead and guide them, it ... keeps them focused on what's important and eliminates distraction.
Number two? Number two is a remedy I call “delegate and elevate.”
In this case, the flameout comes from the entrepreneur doing things they don't like and aren't good at. They find themselves getting away from stuff they love to do.
They should list everything they love to do, everything they're great at. That's going to help create real clarity for them around where they should be spending time.
When entrepreneurs get overwhelmed, they lose creativity.
So what's the third idea? As more and more is coming at an entrepreneur, what they tend to do is throw people at the situation. They're overwhelmed, so they'll find a family member or friend and plug a person in. The most important thing they could do is invest the time to get the right people.
What qualities should they be looking for? They need to find people that have two simple things: that possess their core values, and “GWC.” That's people that get it, want it, and have the capacity to do it. If the person they're looking to bring on has the “get it want it capacity,” then they've brought on the right person in the right seat.
Let's hear number four. Take clarity breaks. Typically the entrepreneur is ... getting buried in the day to day. Pre-schedule an appointment; spend either a half-hour a day or two hours a week for thinking time. It's going to help them become more efficient and effective, with the clarity, energy and certainty that they need to continue to grow the business.
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Calling all Entrepreneurs!
Calling all Small Business owners!
Our inaugural feature story introduces a man who has been helping people, like you, improve through change for over twenty years. Gino Wickman has worked with hundreds of business owners in a multitude of industries, and has discovered the following issues to be the most frustrating for entrepreneurs:
- Lack of control; over time, over the market, over the company. The business seems to be controlling you instead of you, the business owner, controlling it.
- People; entrepreneurial business leaders are frustrated with partners, employees, customers, and suppliers. These people just don’t seem to get your message!
- Profit.
- Growth. You’re feeling stuck and unsure of what actions are needed to take your company to that next level.
- Past strategies for improving the business. Your people dread the next new initiative as you continue struggling to gain traction.
If any of the above describes you, read up on Mr. Wickman’s Entrepreneurial Operating System. EOS will help you see your business differently. Gino says you should start changing by recognizing that “… all of your problems stem from you. It’s not the market; it’s not your people; it’s not your customers; it’s you.”
Once you’ve adjusted to this perspective, focus your business on Six Key Components. Strengthening these six segments will remove your frustrations and obstacles to growth. Through Wickman's new book Traction: Get a Grip on Your Business and the one-hundred seventy-five sessions he conducts each year, he teaches in simple yet scientific terms, how to transform your business and become strong in these six key components:
- Vision
- People
- Data
- Issues
- Process
- Traction
On his website you'll read "Gino's passionate pleas" (phase I and phase II) to business leaders during these especially challenging economics. With the unique perspective of dealing with 35 companies at any one time, here in heavily hit Southeast Michigan , Wickman advises leaders to avoid being "frozen," and to keep fighting for your business. Make a decision and move on it. "Don't wallow in what you've lost." People are looking for strong leadership during these times and as a business entrepreneur, that's you. Be realistic. Be truthful. Don't be overly optimistic and do not be pessimistic. And don't be lazy. Working smarter is great, but in these times, there's no substitute for working twice as hard. Stay disciplined. Above all, stay focused.
- Mr. Wickman says that the companies doing well in this environment, are those doing these seven things:
- They have a plan and are moving forward.
- They convey that plan to employees often.
- They are staying realistic.
- They are right-sizing.
- They are protecting cash flow and profits.
- They are working twice as hard.
- They are fighting.
The EOS process and Gino Wickman's teachings provide a toolbox of solutions for strengthening your business. Read testimonials from satisfied customers and find out more about how the Entrepreneurial Operating System may benefit your business, at
www.eosprocess.com
or contact them directly, toll free at 877-367-1877.
Editors note: If you've been part of a great change-related story and would like it considered for a future edition of Changing Times, write and tell us about it at info@emmapublications.com
The Triangle of Change
Applying the Triangle techniques
The Triangle-of-Change is another tool for managing change in your life. Like Gino Wickman's Entrepreneurial Operating System, the Triangle divides your change into easily managed components.
The change agent (that's you) better understands a change when it’s broken into these four simple categories:
- Product,
- People,
- Process,
- Performance
Give it a try right now. Bring to mind a change you've really wanted to make, but haven't been able to implement. Whether it's a personal one dealing with weight loss, exercise, or relationships, a professional one centered on your career, or a business-based improvement you've sought but haven't been able to achieve, put the Triangle to work on it.
Step 1 is always at the tip. Visualize your end Product. Invest as much time as needed to picture your desired change. Know it, feel it, see it, taste it. Once you can "see" your intended change as clearly as you can see your own hand in front of your face, Quantify it. Put pencil to paper and use units (words that correspond to a numerical value) to describe your intention. Customize your units to fit your change using terms such as dollars per hour, pounds per week, time per day, units produced per hour, parts rejected per day, hugs per week, arguments per month, etc.
Step 2 is at the foundation of the Triangle. Here make a list of the People involved. Write your name first and then include any others associated with your desired change; those involved now, and those who should be involved, but aren't yet. Label each person with an H,R, and/or I indicating who are your Helpers, Resistors, and/or those merely Impacted, by your goal.
Step 3 of the Triangle is on Process. Here you ask and answer the "what" related questions starting with "What IS going on now toward achieving my intended change?" Follow then by answering "What SHOULD BE going on?" Again, make a list. The SHOULD items will provide you with alternative actions for achieving your change. In the Process segment, decide which alternatives to put into action and schedule them onto a weekly calendar (in the book Changing Times, Decision Matrix Technology is used for deciding amongst viable alternatives). Then use your weekly calendar to put your actions into reality. This is where you pick up the phone, walk into your boss' office, draft that proposal, begin your exercise regime, meet with your team, etc. This is where you DEDICATE the time YOU have allocated TO DO the ACTIONS chosen FOR ACHIEVING your CHANGE.
In Step 4 - the Performance segment, track the status of your actions to your plan. Measure how your status compares with your plan using the units established in Product. If you decided in Process for example, to walk three nights per week, or to meet with your staff in value-added, productive meetings three mornings per week, track your results to this plan. And display the results for all involved to see.
The Triangle's premise, referred to as its core principles, is to proactively identify and resolve issues, by each of the four segments. You identify quantitatively, by segment, and then resolve by making and meeting agreements, again, by segment.
To learn more about how the Triangle-of-Change can help you achieve your personal, professional, and business goals, pick up a copy of Changing Times: Transform your life in 4 easy steps using the Triangle of Change, or write to us directly with your questions at info@emmapublications.com
Book your next change
Changing Times: Transform your life in 4 easy steps using the Triangle of Change
Changing Times is a short, simple tutorial written to help those seeking to improve their lives by better managing the sudden and intended changes in it.
Filled with practical examples and over sixty guiding illustrations, this handy reference uses seven basic WorkForms to step you through the proven techniques of the Triangle of Change.
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by Mike Paton
I have asked hundreds of entrepreneurs what prompted them to start a business, and not one of them has ever said, “Because I just LOVE managing people.”
Even during a massive economic crisis, “people problems” seem to be a frequent and painful cause of frustration for business owners and leaders. They’re frustrated about employees, partners, vendors, customers…none of them listen, or get it, or care. Unless you’ve just joined the workforce or been working alone for your entire career, you know precisely what I mean.
My first article introduced readers to the Six Key Components™ of a well-run business and the follow-up further described the Vision Component. If you easily connect the word “employees” with “frustration,” you’ll enjoy the focus of this article– strengthening the People Component.
There are thousands of books, seminars and strategies that can help you find and keep great people. Most provide valuable insight, articulate strategies, and compellingjargon, but in many companies it’s just not that complicated. To have a great team, focus on getting the Right People in the Right Seats – you must have both.
What are “Right People?” They’re employees who share your core values. They “fit” your organization, and it fits them. “Right Seats” means everyone has the talent, skills and experience to excel at something that’s critical to your business. When you have 100% Right People in the Right Seats you have an ultra-efficient organization full of happy employees and healthy teams who get consistently exceptional results.
If creating such anorganization seems like a pipe dream, your skepticism is understandable. Many of our clients felt the same way when we began working together to strengthen the People Component. Here’s what we’ve done (and the practical tools we’ve used) to change their mind:
- Discover and Define Your Core Values - the qualities and attributes that describe the very best people in your organization. You don’t “create” core values because they already exist –you just need to define them.
- Use your Core Values to hire, train, manage, and reward your people. Our teams use a simple tool called the People Analyzer to evaluate each employee and build an enduring culture full of all “Right People.”
- Build an Accountability Chart to create the ideal structure for your organization:
- Start from Scratch – take history and people out of the equation. Create the simplest and best structure for your organization. Include only those seats critical for your success over the next 6-12 months.
- Define Roles. For each critical seat, identify the 5 things you need toexcel at in order to take the company to the next level. Look forward –don’t think about how things used to work or who’s always done them.
- Put Right People in Right Seats. With your ideal structure defined, you can now place employees who share your core values into each open seat. You can use a simple tool called “GWC” to make sure each seat owner has the talent, skills and experience necessary to excel at the 5 Roles in that seat. To be a “Right Seat,” each employee must:
- Get It – have a brain that’s wired in a way to understand the rigors of the job at a fundamental level. For example, you wouldn’t hire someone who’s wired as a bookkeeper to be a salesperson, and vice versa.
- Want It – be genuinely driven to excel in this job. You can’t pay someone to want it, begthem to want it, or kick them in the tail to want it.
- Have the Capacity to do it - possess the intellect, the ability, the skills and experience to consistently do the job well in the time allotted.
If you follow these steps in your own company, you will almost certainly expose two people issues that need to be solved. The first is Right Person, Wrong Seat. You have someone who shares your values, they’ve been around for ever, you love them - but they’re in the wrong seat. They may not get it, they may not want it; they may lack the capacity - what ever it is they’re just in the wrong seat. Hopefully in your organization there is a different seat for that person – but if there isn’t (assuming you’re a “for-profit” business) you must make tough people decisions.
The second people issue is Right Seat, Wrong Person. You have a talented, productive person - they absolutely get it, want it, have the capacity to do it – they just don’t share your core values. They’re “below the bar” on the People Analyzer. And as tough as itis, you must let them go. These people are KILLING your culture; they’re chipping away at you in ways you can’t even see. They’re consuming your time and energy; they’re making other people in the company miserable. Long term they do far more damage than good.
Using these tools and making those tough decisions, you’ll ultimately get to a point where everyone on your team - 10 of 10 or 25 of 25 or 60 of 60 – are the Right People in the Right Seats. When that happens (as it does with our clients) - your company will flourish, your life will become more peaceful and more fun, and you may just start to LOVE managing people.
About the Author
Mike Paton has been helping entrepreneurs get what they want from their businesses for more than 20 years. He works with leadership teams to implement EOS® (the Entrepreneurial Operating System®), a proven process for clarifying, simplifying and achieving success in growth-oriented organizations. Learn more at www.eosprocess.com or contact Mike directly – mpaton@eosprocess.com
Weekly Book Reviews by Notable Twin Cities
Matt Meents, CEO of Reside / St. Paul Pioneer Press
Who: Matt Meents, CEO of Reside (Minneapolis, MN)
What: “Traction: Get a Grip on Your Business” by Gino Wickman
Why: “Of all the great business books I’ve read, none has had a more lasting impact on me and my business than ‘Traction.’ I used to be a frustrated entrepreneur turning out 300 ideas a day that rarely took root in a way that helped our business. So I worked harder and longer until I was burned out and ready to quit. The simple concepts and practical tools in ‘Traction’ have given me my life back and brought a new level of energy and focus to our entire team.”
“Traction’ introduces readers to the six key components of a truly great business: vision, people, data, issues, process and traction. The book makes it easy to assess your own company in those areas. It provides a full set of real-world tools and a proven system, EOS (Entrepreneurial Operating System), that helps your team become its best by constantly working to strengthen each of those components.”
“All entrepreneurial businesses are fast moving. As a provider of Web services that help businesses grow, Reside is no exception. But my 300 ideas were a source of chaos that served to complicate our forward progress rather than accelerate it. Thanks to ‘Traction’ and EOS, we’re now focused on achieving our vision, delighting our clients and working together as a more cohesive team.”
“Based on my own experience, I think this book will be particularly beneficial to frustrated entrepreneurs who want to get their lives back and love their businesses again.”
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