All business owners will tell you that the absolute key to their business is people. But Jim Collins, the best selling author of ‘Good to Great’ made the distinction that it is not your people but the ‘right people’ that drive performance in the business.
Prof. Boris Groysberg of Harvard Business School, an expert of high performing people claims that up to 90% of all profit, in any business is driven by the top 10% of employees.
So what to do.
Great people want to ‘go somewhere’. That is, be part of a culture and business that is on a mission to make a difference to its clients and community. Jack Welch the former CEO of GE provides a great model for what to do with your people, how to think about them and how to develop them. This also applies to your clients.
There are four types of employees and clients as follows:
1. High performer that buys into the corporate culture – promote and empower them as much as possible.
2. Low performer that doesn’t buy into the corporate culture – fire them as quickly as possible.
3. Low performer that buys into the corporate culture – give them a second chance in a different position to see if they can be an ‘A’ player.
4. High performer that doesn’t buy into the corporate culture – do a public hanging where you fire them and then discuss with other managers their short – comings.
Like all powerful ideas the value is in the consistent and disciplined implementation. Go well.