I love Seth Godin’s perspective. Maybe not always, but many times. He posted a great quip on how we buy, think, and I’ll assert, hire people. His punch line = we’re making bad decisions on a regular basis.
Good decisions are the lifeblood of any entrepreneurial company. We’re not like big companies who have access to cash, debt, or blame that cushion the undesirable consequences of bad decisions; many of whom can make bad decisions for the next decade without disruption.
In our world, a bad decision today can mean total chaos tomorrow.
This is especially true and critical when it comes to the people we have in our businesses. My experience tells me our hiring decisions are frequently inspired by the overwhelm of one or two individuals. You know the scenario – Bob and Sandy keep complaining about how busy they are which interferes with their ability to meet deadlines or do great work. You end up hiring another person, not because there’s a clear picture of the functional value of that seat, but just to get Bob and Sandy into action.
Rinse and repeat. Then we wonder why business went from being a dream to a nightmare. There’s a better way to make good people decisions.
Start with core values. Not the ones on the poster hanging in the lobby, but 3-5 clearly and rigorously distinguished values that precisely define the type of culture you have that drives growth. These become both a strategic and tactical hiring tool that will ensure you never second guess a hiring decision.
Then organize your entire company within an accountability chart. When complete, it’ll look a bit like a traditional org chart, but minus the pseudo-authoritative dysfunction. This will be your functional blueprint that outlines exactly what functions need to exist to allow the company grow. In other words, the true value of any given seat in your company.
EOS companies who use core values and an accountability chart to make their operational and hiring decisions are consistently profitable and scalable. Companies who don’t… I’ll have you guess on that answer.
To learn more about where your company excels and where it could benefit from improvement, take our Organizational Checkup.