Irreplaceable? Think again…

When I hire people, after awhile many of them get comfortable with their jobs. Even worse, some of them come to think they’re untouchable. I know they’ve grown into important roles, but that kind of attitude isn’t good for the company. What should I do?

Thoughts of the Day: Build an organization of team players by giving people goals and challenges. Remember, no matter how key an employee may seem to be, everyone is replaceable. Use regular reviews to tell people where they stand. It all comes down to what you’re willing to accept, and whether or not you’re willing to make and enforce demands.

A team of employees focused on a common goal, working together to understand and overcome a set of challenges, can accomplish substantially more than any single individual. Assign all employees to teams. Look for opportunities to have people overlap duties and back up other positions.

Target the people who are isolated, either by job function or by personal choice. For starters, ask them to join a group project, with a clearly defined goal and a leader who is good at including team members. Make it clear that part of their performance review is based on how well they perform as a team member. Ask the team leader for regular updates. If necessary, provide one-on-one counseling to the people you’re working to turn into collaborators.

Sometimes you may run into a fit issue: as in, the persons you’re counseling are having trouble fitting in as productive team members. Document the work they do. Start cross-training others to do some, or all, of their job. Keep in mind that your responsibility is to the company overall. With enough documentation and cross training, even key players can be replaced.

Meet individually and explain that sub-par performance on a team could get in the way of making progress in the company. If behavior is especially disruptive, or if you’ve been through multiple counseling sessions and there’s no real progress, make sure that person knows that they could be facing consequences up to, and including, termination, if they don’t shape up. Don’t be subtle at this stage. Make sure the message gets across.

At the same time that you’re telling people they’re in trouble, post their jobs and look for potential replacement candidates. Many times managers and business owners hesitate to draw the line with disruptive or uncooperative employees because they fear no one else can do the job. Looking for replacements, and training others to do some, or all, of the job will give you options.

In general, it is wise to conduct reviews with people once or twice a year. Try to keep people on their toes by finding the balance between giving them new tasks to master, and allowing them sufficient time to get good at existing assignments. Everyone should have a mix of some new things to learn, some things they can do really well, and a bunch of things that they’re working towards mastering.

Set the tone for the company as you conduct reviews. Give people realistic stretch goals. Put it in the context of what the company has to achieve in the upcoming year, and how their success at mastering new goals is essential to that progress.

Make time to review company results, and to plan out what’s needed for the company going forward. Make it your job to demand excellence from everyone around you, starting with yourself. Create a culture of accountability, responsibility, and striving to achieve.

Limit the time you spend with marginal performers, energy suckers, and self-serving individuals. Recognize and reward the people who perform in an atmosphere of collaboration, cooperation and acting in the best interests of the company. Give them 80% of your time. After all, the team players are your future.

Looking for a good book? Try HR from the Heart: Inspiring Stories and Strategies for Building the People Side of Great Business, by Martha Finney.


Acknowledging the People Who Make it Happen

Things have been getting busier. That’s a good thing. However, I find that when we get busy we forget to acknowledge the people who are making it happen. Any suggestions on how to keep that top of mind, and use it as a tool to motivate everyone to achieve greater results in the upcoming year – we sure could use the push!

Thoughts of the Day: Acknowledgement is a powerful tool to motivate behavior. Make sure it’s honest feedback. Schedule time to review performance and recognize results. Help everyone to stay focused on their ability to contribute.

Build a positive culture. Make sure that what you stand for is what you’d want written on your tombstone. As you look around the company ask yourself:

  • Are my people truly happy doing what they are doing?
  • Do our suppliers and customers mirror our positive outlook?

Then move on to a rigorous personal assessment:

  • How does my attitude influence everyone around me?
  • What can I do to build an upbeat environment by realizing that employees, customers and vendors all strive to benefit each other?

Finally, ask about recognition systems:

  • Can my people trust that their efforts will be appreciated?
  • What can I do to make people more comfortable giving positive feedback?

The answers to these questions will speak volumes about how well your company does in the acknowledgement department.

As CEO you have tremendous influence. The tone you set leads to more of the same. If you are always criticizing, always looking at the down side, your people will pick that up and mirror it. Regularly recognizing people when they do their best can lead to an environment where people stretch to do their best consistently.

Start by giving credit where credit is due. No company would be where it is if the only person working in the company was the CEO. Give people positive feedback they can build upon by noting their efforts to do a good job.

Don’t overlook problems. Pose them in the context of, here’s what you’ve done right, here’s what I need you to work on next, I’m confident that given your successful performance on other tasks that you’ll be able to master this one as well. If someone is struggling, figure out if they should be in the job or if they should move on. Don’t spoil the mood in the company by tolerating poor performance and then being frustrated by what you see.

Acknowledgement isn’t just something you do while walking around the company. Set up goals and reports to review performance. Look for specific examples of where people achieve results. Revenue, service levels, profit and productivity are easy to measure and recognize.

Have a monthly meeting where you go over reports, hand out gold stars, and thank people for their contributions. Ask managers to share specific examples at company meetings. Teach all your employees how to give acknowledgements. In addition to recognizing performers, use job-well-done examples to teach other people what you’re looking for.

Each day make a list of people you’ve observed doing good work. Send out thank you notes. Each week spend time walking around, observing and commenting on the good things you see happening. Also make notes on things that need improving, in the context of, “Now that we’ve achieved x, it’s time to work on y.”

Encourage people by showing them the upside – the appreciation that goes with a job well done. Reward people when they take initiative by making them shining examples in front of their peers. Make sure that your employees, customers and vendors all know how much you value them.

Looking for a good book? Grateful Leadership: Using the Power of Acknowledgement to Engage All Your People and Achieve Superior Results, by Judith W. Umlas


Want to print this article? Acknowledging the people who make it happen


Are My Sales People Too Comfortable?

I know that a productive sales force is one of the keys to our future success. It’s time for them to put things in gear. I worry that things may be too comfortable around here. Any suggestions?

Thoughts of the Day: Agree on goals and measure performance against cost. Involve people in solving tough problems to get engagement and growth. Be clear about your Conditions of Success© and make sure your company’s needs get met.

Good news is that there is a sales team in place. Any company looking to grow has to have people in place to help bring in new business. Now it’s time to figure out what your company needs. Put your sales people on a mission. Compare the payoff of sales to the cost of acquisition.

Here’s an example of how to calculate a sales goal.

  • Let’s say that the sales person costs $100k, including salary and benefits, travel costs, desk, phone, managers time, etc..
  • Assume that the company’s gross profit is 60% of revenue.
  • Assign a minimum standard multiple of 3x cost to what a sales person should bring in.
  • Multiply sales person’s cost of $100k x 3 (minimum standard multiple)  = $300k.
  • Divide the $300k by the company’s gross profit of 60% to get a revenue goal = $500k minimum revenue sales goal.
  • Compare that to what sales people in your company and industry are already producing today – is that high, low or in the ballpark.
  • Adjust the goal up, if you think there’s room to produce more. Resist the temptation to bring the goal down to make it more realistic. If you’re not making money on your sales people’s efforts, you have to figure out what else to do.

Now work backwards. What’s an average sale for your company? Divide the minimum revenue sales goal by the average sale. That’s the number of sales per year this sales person has to produce.

Wondering how many sales people you need? Figure out the company’s overall sales target for the year. Deduct the amount of revenue that will just roll in the door, from existing clients, from the website, any other non-sales force related activities. The remainder is what the sales force has to bring on board. Divide by the minimum revenue sales goal per person. That’s the number of sales people you’ll need, if all sales people are just hitting minimum performance.

Want to break through to more than minimum performance? There’s real value in giving people challenges. Gather your sales team to brainstorm how they could kick sales into high gear.

When measuring and managing people it’s best to know how high to set the performance bar. Take a look at what people on the sales team have produced in previous years. Find out what competitors demand of their sales personnel.

Take a look at how sales conditions have changed over the past few years. For many companies the sales cycle has gotten longer. The number of sales per sales person has also gone down, as sales people spend more time nurturing potential sales along a longer path to close. That’s lost opportunity, unless you can shorten the sales cycle.

Is there anyone on the team who seems to be getting any performance breakthrough? What can be done to model their behavior, attitude and skills?

Maybe it’s time for some sales training. Everyone gets rusty. Getting into a structure to exercise and build sales skills could be exactly what the sales team needs to get their game on.

Make it clear what you expect. Make sure people know you’re watching what’s going on. Put performance reports in a place where everyone can see what’s going on. Don’t hesitate to make changes if someone isn’t trying.

Ask people to make incremental performance improvements. Increase sales results a little each month. Push for one more sales call, one more prospect, one more referral request. They’ll add up over the course of the year.


Looking for a good book? 52 Sales Management Tips: The Sales Managers Success Guide, by Steven Rosen.

Want to print this article? Are my sales people too comfortable


Don’t Rush to Get a New Employee on Board

33% – 46% of new hires fail within 18 months; majority fail for attitude. More than 50% of the time hiring managers regret their decision

I was in too much of a hurry last year, and hired the wrong person. It turned into a real headache as we clashed about nearly everything, from how to do the work, to who was responsible for what. Finally I let her go. It cost me a lot of time, energy, and lost opportunity. I don’t want to go there again. What can I do different next time?

Thoughts of the Day: Assessing pre-hire is crucial, if difficult. Understand your company’s culture. Take the time to build a hiring system. Train new hires on culture as well as skill. Build bench strength. Deal with mistakes quickly.               

Most interviewers focus on interviewing for job skill. Statistics indicate that hiring managers are doing a good job of figuring out which candidates have the skills needed to do the job, and which don’t. Only 1 in 10 hires fails for skill.

Spend more time learning how to perfect the attitude / behavior interviews. Recognize that every company is unique. Specific skills are needed to perform tasks specific to the company. There are also attitudes and codes of behavior unique to each company.

Entrepreneurial companies have cultures that tend towards throwing people into the deep end of the pool, asking people to solve problems with imperfect information, encouraging people who continue to learn new things and rewarding people who take initiative well beyond the defined scope of their job. That’s fine as long as you hire for those attributes. But watch out if that’s your culture and you hire someone who values a well laid out set of procedures, someone who waits for the boss to give direction, who avoids risk, and who values routine, repetitive activities. Right person, wrong company.

Make a list of attributes that do and don’t work in your company. Look at the strongest and weakest performers in your company today. Put skills aside, list successful and unsuccessful behaviors and attitudes.

Build a set of questions that help you find out where candidates are coming from, relative to your company’s success behaviors. Ask candidates questions about what they prefer. Ask candidates to describe their best and worst bosses. Ask them to relate attributes and behaviors of those bosses to what works and doesn’t work for them. 

Use the same questions on every interview and keep notes on candidate answers on file. Track successful and unsuccessful hires and compare to interview answers. Look for patterns.

While you don’t want a company of robots, it is important to recognize that culture and values can be the glue that binds employees together. Put new employees through an orientation program to help them understand the company’s stated and implied rules of behavior. Assign a mentor to each new employee. Encourage diversity of backgrounds, while developing a uniform code of behavior.

As much as possible, hire from the bottom, train and promote. Have every person in the company be responsible for identifying and training their replacement. Four things will result. One, new hires who don’t make it will be at the entry level, lowest risk, easiest to fill positions. Two, employees in line for promotions will have already proven themselves on culture fit. Three, employees will know they fit and have a future within your company. Four, it will be much easier to fill open positions, focusing on skill training rather than culture and behavior.

Even with a system to hire, a sound on-boarding process, and a program to grow talent internally, you’ll still make hiring mistakes. It’s impossible to be perfect all the time. When there is a problem address it quickly. Implement skill and behavior training and look for immediate results. Assess the facts of the situation and avoid living in the land of hope. If things don’t turn around quickly, be prepared to admit there’s a mistake and encourage the employee to move on. 


Looking for a good book? Hiring for Attitude; A Revolutionary Approach to Recruiting Star Performers with Both Tremendous Skill and Superb Attitude, by Mike Murphy.

Here’s the PDF: 4.25.13 – Don’t Rush to Get a New Employee On Board


Say No to Being ‘Yessed’ to Death

One of our key employees  yes’s us to death. She tells us what she thinks we want to hear. I don’t know how to get across to her that we need to know what’s going on – good and bad – so she – and we – can deal with it.

Thoughts of the Day:  Make sure you’re emphasizing the right things. Set up a process for identifying and solving problems.  Log and prioritize issues.  Reward employees who seek to improve.

It can be scary to admit that something’s gone wrong or that one is in over his/her head. It’s natural to avoid risk. How you lead your employees will speak volumes about your company’s ability to make progress on big and little issues  – now and in the future.

When things go wrong, how do you react? Do you get upset? Or, do you put on a game face and embrace opportunities to make the organization better?

It takes time to change. People have to be able to step back and look at what’s going on. If they’re already overbooked, an interruption is a burden that leads to more overtime, less productivity, and more blaming when work doesn’t go out on time. Who wants to deal with that? Better to ignore the problem, hope it goes away. Instead, set up an environment where change can happen.

Look at workload. If employees don’t have some free time during the day to work on improvements, if they’re always behind, fix it. Look at how work flows through that area. Reorganize tasks and get additional staff. It may seem like it costs more, but until you make time to deal with problems at the root, they just keep costing you time, money and energy.

Even with extra time in the day, it’s impossible to deal with everything at once. Set up a log where everyone can record things that need to be worked on. Schedule work sessions to review the log. Assign people to work on items and review outcomes. Report company-wide about improvements that are being made.

Teach employees to consistently approach problem solving. Step 1: identify the problem. Step 2: Define the problem. Step 3. Make a list of all possible causes. Step 4. Decide who else to involve in the problem solving process. Step 5. Brainstorm possible solutions. Step 6. Try out solutions. Step 7. Evaluate results. Step 8. Assess outcomes. Step 9. Make adjustments. Step 10. Write it up for future reference.

Teach employees how to look for root causes. Talk about the importance of investigating why something went wrong, rather than fixing the surface. Make sure employees understand that permanently getting rid of problems requires tracing things back to their source of origin.

Sound like a lot? So is overlooking things that need fixing. A systematic approach to problem solving will lead to better outcomes and more permanent solutions. And long term, that means less stress, higher productivity and bottom line savings.

Make it clear that as problems come up, they are to be solved, not ignored. Make that a core value of the company. Teach employees that they contribute the most when they look to build better outcomes.

Look at what happens when employees come forward with issues. Are they promoted or penalized? Are they recognized for being outspoken, or shoved to the side as always complaining or challenging the status quo? Build a better organization by recognizing employees who identify problems and solutions over those who promote the values of being in control and covering up.

Loss of status, credibility or opportunity for promotion may go along with admitting a person can’t handle a situation.  Make sure this doesn’t happen in your company. Make people hero’s and winners because they continuously look for ways to improve what’s going on. Talk with your yes-ing employee about how her life gets better when she eliminates stress by working with openly with team members and management to make things work better.

Looking for a good book?

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