Is your growth not at what you believe is an acceptable level?
Are you unable to Scale Up your business because your people are holding you back?
In this video I will show you a simple tool to identify if you have the right people in your business and whether those people are preventing you from Scaling Up.
What’t the number one thing that prevents growth?
Not having the right people. If you haven’t got the right people you are not going to be able to grow at a level you find acceptable.
In this video I am going to give you a simple tool to help you understand do you have the right people in the business to help you grow at a level that you find acceptable. I’m going to explain what the tool is, why it is important and how to use it in your business.
In his book Good to Great Jim Collins analysed 1435 companies over a 40 year period to identify which were the ones that truly became great. And he narrowed those 1435 companies down to 11 that truly were great.
In that analysis the first thing that he identified that you must do to become a truly great company is get the right people on the bus doing the right things in the right manner. So how do you get the right people, well it all begins with knowing who the right people are.
Why is it so important to have the right people in order to grow? Well so many times I see leadership teams and companies that have so much potential to grow, but there might be some people who might not be able to handle that growth, or they might not be the right people to help the business to grow. It’s so important to get it right. So lets take a look at this example.
Imagine that you’re a CEO and you are surrounded by some people.
You’ve got a marketing person, a sales person, an operations person and a finance person. The marketing person is producing a lot of leads, the sales person is converting but operations are unable to produce at the level that sales are providing. If you don’t have the right people in each of these areas the business won’t be able to grow at the level the it needs.
In another example the marketing person is producing the right number of leads, the sales person isn’t converting and therefore the operations person isn’t busy. What ever way you look at it if you don’t have the right people in each of these areas you cant grow.
How does this happen? Well as Jim Collins says the Signature of Mediocrity is Inconsistency, if you accept mediocrity your company becomes mediocre. Well I put it to you that inconsistency in the performance of the team is a form of mediocrity. And if you accept mediocre performance the business will become mediocre.
What I see is CEO’s reacting to poor performance within their team and asking the wrong question. What they ask is “well how can I get that person to perform, maybe I should give them some more training or coaching or some more discipline” I think that this is the wrong question. I think the right question is have I got a company full of cows.
If you had a company full of cows growth would be less of an issue. Let me explain.
Cows is short for
- Capable of performing in the role
- Understand the role
- Want to do the role
So if someone is capable of doing the role they are able able to handle all of the requirements of the role now and into the future. If the company doubled in size they would be able to handle all of the needs of the role without any problem.
If the understand they role – and this comes a little back to the owner or the person setting out the requirements of the role – does the person have a complete understanding of the role what are the KPIs the metrics the jobs descriptions, what they need to do to manage their team, do they have a complete understanding of every aspect of what needs to be done to succeed in the role. To the point where it is not possible for them to misunderstand.
They want to be in the role. Is the person just waiting for the weekend? Do they have a job because they just need to pay the bills or do they really want to do this job?
- If you are capable of doing the role, and you understand the role but you don’t want to do it, its not going to work.
- If you understand the role and you want to do the role but you are not capable of doing the role, its not going to work.
- if you are capable of doing the role and you want to do the role but you don’t understand the expectations of the role it’s not going to work.
That third one, if someone doesn’t understand the expectations there is an opportunity to work with them to understand the role, but its got to be done.
It is incumbent on you to make them so clear on what needs to be done in the role that it is not possible to be misunderstood.
Two of the tools that I really liked in the people area was firstly the skill will matrix by Geoff Smart. This assesses whether they are skilled to do the role and whether they have the will to do the role. But it didn’t assess their success if they didn’t understand the role. I felt it kind of missed something.
The second is Hungry Humble Smart from Patrick Lencioni. And the Ideal Team player says that if a person is Hungry they are humble and they are Smart in terms of emotional IQ they are more likely to succeed as a team player. I really feel that is good but only as a second assessment. The first one that we are talking about today is whether or not the person is capable of succeeding in the role. If we look at all of the key roles in the business are each of the people capable of succeeding in the role. After we have done that then we can look at whether or not they would be a good team player.
Are they capable of succeeding in the role and are they capable of working in a team and generating results.
If you rated each of your people from 1-10 against these 3 CUW criteria with a possible total score of 30, what would each person score?
You should be aiming for an average of your team to be over 25. Because if you don’t have an average of 25 for people who are Capable, Understand the role and Want to do the role you won’t be able to grow.
The teams that I work with that are thriving, all of the people are over 25. And all of the teams I work with that struggle are below 25.
What is the people bottleneck in your business?
Get the average of your people over 25 if you want to Scale Up.
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ABOUT BRAD GILES
I am passionate about growing mid market businesses.
I am a certified Gazelles coach and facilitate strategic planning for leadership teams for some amazing companies across Australia. My background is as an entrepreneur and I believe that entrepreneurship is one of the most noble and yet scariest things you can do.
That’s why I help people, I help CEOs:
1. Build a plan to scale up their business
2. Execute & and be held accountable to their strategic plan
3. Keep focused so that they & their team are working on the critical few things, versus the important many
4. Put in place & use proven systems to build an awesome corporate culture that turns their company into a magnet for great people