They are on fire. I mean they're killing it! Despite October being a traditionally slow month, my client showed me the number. "We are $104,631 over budget for the month!"
It's that time of year when you put on the winter coat and find a long forgotten $20 bill in one of the pockets, but how does a business find $104,631? "How are you doing this?" I asked, fully expecting a confidence boosting pat on the back in response. Just kidding. I'm good, but not that good. Where was I? Oh yeah, his response, "We have the right people in the right seats."
Now this business does many things well to drive financial performance but I believe he firmly hit the nail on the head. Let's dive quickly into the benefits of ensuring you have people who are a culture fit (Right People) and in roles where they excel (Right Seats).
Right people. Right Seats. You have to have both.
1. TIME - Time is money and when I hear that leaders have no time it usually points to a people problem. We waste time and the opportunity to have spent it doing something profitable when we have to babysit, motivate, watch over and ponder that one constant headache. You know who. There's a name attached to that headache and it's not Migraine.
2. GROWTH - Having the right people in the right seats (R.P.R.S.) perpetuates a culture of performance and engagement naturally. When you're surrounded with people who share the same values and are good at what they do, you're driven to give it your all. Positive peer pressure at its finest. In addition, R.P.R.S. employees are the easiest to incentivize. My client keeps having to raise individual performance goals beyond what they ever thought was possible. Good luck expecting growth if you feel like you're the only one pulling the sled.
3. PROFIT - I recently heard someone use a version of the Pareto principle (80/20 rule) to state that 80% of your customers account for 120% of your revenue. Their argument was that 20% of your customers drag you back down to 100%. Remove that dead weight and the reinvestment of energy into the remaining customer base will result in a more profitable business. It's a great insight and just as true for your employees. You may not believe me but you can do more with less and see the bottom line improve. It's not only possible but it could result in finding an extra $104,631 one month!
So why don't we all have the R.P.R.S. in our business?
The simplest answer is that we are imperfect leaders leading imperfect people. And we have a natural tendency to fall into one of two camps as imperfect leaders. First some of us are afraid. Afraid of conflict, afraid of finding a replacement, or afraid of change. The second group struggles with justice and a sense of debt to the employee. They believe they've not done well with feedback, encouragement, directives, etc. Because they've not met their own standard they're unable to judge another with any confidence or conviction. Regardless of where you land as a leader, my imperfect insight is simply...
Your insecurity, which is preventing you from making the hard
people decisions, is the most expensive vulnerability
you can hide.
Brené Brown says "Embracing our vulnerabilities is risky but not nearly as dangerous as giving up..." Time to admit that you either fear conflict or lack conviction and are unable to make the tough call. Then you need to seek ways to shore up this vulnerability. Peer groups and management systems are a great option but perhaps you should do the most risky thing of all. Start by asking your team for help. Ask them how you can get better at holding them accountable. Ask them if they believe they're a R.P.R.S. in the organization.
Amazingly, as soon as you're vulnerable with them they'll begin to be vulnerable with you. Remember you're not the only imperfect one around the table. And who knows, that little bit of risk could result in a $104,631 reward one month!
A System to Safeguard us from our imperfections...
EOS is designed to help owners define what a great person is in their organization. Trust the system that has been implemented in over 40,000 businesses to help you ensure you have the right people in the right seats.
Applicable EOS tools:
Accountability Chart (video) (PDF)- Do you know the one set of eyeballs to look into when it's time to praise or question an area of responsibility?
People Analyzer (video) (PDF) - In Black and White...are they the Right Person in the Right Seat?
Want help applying the practical tools above? Email me for a free phone consultation at firstname.lastname@example.org or call me at 717.502.2084.