by Randal Godden, Chairman and CEO, at TEC South Africa
This article was first published in Real Business, a supplement
to Business Day which appears on the third Monday of every month.
One of the most common catch-phrases in business is the one that
says, “People are our most important asset”. But, how
many leaders and managers really understand the full import of the
statement. In fact, the phrase would be best modified to say, “Good,
or the right people are our most important asset”.
In his book “Good to Great”, Jim Collins emphasises
the key finding in this regard with respect to great companies. To
ensure success, leaders’ biggest responsibility is to select
the right, or most appropriate people.
During the selection process, it is far more important to base people
decisions on the fundamentals, rather than specific talents. The process
should focus on key character traits, work ethic, team orientation,
base intelligence, emotional intelligence as well as dedication to
results and a clear value system. These are the brass tacks that are
more beneficial to success than a person’s specific knowledge,
technical background or skills. The latter elements are obviously a
factor in certain roles, however.
But, to be successful in this process, as managers we have to be
tough and uncompromising in our management of staff. Key factors to
take into account include:
Not compromising in the hiring process. Whenever there is any doubt
regarding a potential hire, do not proceed regardless of how the doubt
arose. It will come back to bite you.
Acting decisively when people changes are required or known – don’t
procrastinate. In taking action, however, firstly ensure that the change
needs to be implemented to correct a position in the organisation rather
than constituting an immediate dismissal.
Considering the Jack Welsh model of 20/70/10. Jack Welsh always
evaluated his people across three broad bands:
The 20 % of high performers who were outstanding stars and compensated
and rewarded accordingly;
The 70 % of strong, solid performers who were above average in industry
terms and the solid rump of any organisation; and
The 10 % of marginal performers who require career re-direction
internally or externally.
By following these basic tenets, organisations can build an outstanding
team of good people who will ensure success no matter how difficult
the environment, industry or economy challenges we all sometimes face.
The ultimate success of this philosophy, or approach, hinges on
a management team that will engage in vigorous debate to seek out the
best solutions for the required outcomes. Yet, they have to also remain
unified behind final decisions without any parochial interests.
In considering this approach, it is however important for the philosophy
to be clearly espoused throughout the organisation, and more so at
top management level. Consistent behaviour must in fact be applied
even more strenuously at this level and be focused on those who have
the greatest impact on the results of the organisation. And this applies
not just to characteristics, but to decision-making in general, and,
particularly, to people decisions.
It is crucial that the same “tough love” philosophy
adopted by the leaders is consistently adopted by senior management.
The alternative would be a creeping mediocrity that ultimately becomes
endemic to the whole organisation.
Accordingly, an organisation’s overall people philosophy has
to embrace:
Non-compromising selection of people
with the correct character traits.
Providing a challenging and interesting
environment to keep them on board long-term.
Providing development opportunities to
optimise their performance and skills.
Reward in keeping with their performance.
Ensuring that there is adequate recognition
as distinct from reward.
Trying alternatives for a good person
who is a “misfit” before de-hiring.
Recognising that if you constantly hire
and develop good people that they may move on to bigger and better
opportunities – a healthy scenario.
While it may sometimes seem easier to take the quicker approach
and settle for a less demanding people specification, the “tough” approach
leads to outstanding success in all walks of life – business,
governments and sporting teams to mention a few.
Ends |
