“The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.” – Peter Drucker
As organizations grow, it is easy to have key positions filled by people who limit growth. Therefore, replacement of some people is inevitable as an organization grows it must shed some skin because few people can keep up with a fast-growing organization completely. It can take decades to develop all these skills, and a company can go through fast growth spurts. Some larger organizations spend a fortune on organizational development (OD) to ensure this does not happen. This is valuable, but often not necessary until a company is very large to reach optimum performance. Any company under $1 billion in revenue should be able to have its CEO select and replace the senior staff appropriately. If this is done right, then that senior staff will be able to do it on the next level down.
The rule is to hire people at a slightly lower level than you were expecting to hire. This way they have a chance to grow into the job with great mentorship. Hire people who are better than you. Many senior people want to bring in people who are less than they were in their last job. This ensures that they will always be the “top dog” and can never be replaced. Do not do this! You want people who are significantly better than you. You want to bring in people who will replace you one day and push you up to a higher level. A better CEO will make you more money!
| Method | Appropriate For |
|---|---|
|
Micromanagement (MM)
(Also appropriate for a while for new relationships to get up to speed on each other's strengths, weaknesses, and style) |
Individual Contributors |
|
Management By Objective (MBO) |
Experienced Managers (possibly supervisors) |
|
Management By Exception (MBE) |
Experienced Executives |
|
Leadership |
Business Managers, CEOs, GM, Managing Directors |
Be open to hiring people from outside your industry. Most skills are transferable. Hire people for intelligence, problem-solving ability, ambition and a willingness to learn, not just for their experience in the same job in the same industry. If they have a great track record of success that is the key. Focus on the business skill they need to learn and not all the others.
Hire slow, fire fast. It is important to take your time and make sure you are bringing in the right person for the job. Rushing the hiring process can lead to costly mistakes. However, once you realize someone is not the right fit for the position or the company, it is important to address the issue promptly and make the necessary changes. Keeping someone who is not performing well or does not align with the company’s values and culture can have a negative impact on the entire team and hinder overall success.
Invest in ongoing training and development for your employees. Providing opportunities for learning and growth not only benefits the individual but also contributes to the success of the organization. When employees feel valued and supported in their professional development, they are more likely to be engaged and motivated to perform at their best. This can lead to increased productivity, innovation, and overall business success.
I have created a one hour mini-course that will be sent out with a new, short video each day called The Entrepreneur’s Journey: Sign up here now.
In conclusion, effective management methods involve understanding and adapting to individual needs and abilities. By implementing a combination of management styles such as micromanagement, management by objective, management by exception, and leadership, managers can effectively guide and empower their teams. Hiring the right people, investing in their development, and making necessary changes when needed are crucial for organizational growth and success. Remember, great managers focus on developing their team members and creating an environment that fosters continuous learning and improvement.
Bob Norton is a long-time Serial Entrepreneur, CEO and investor who founded six companies with four exits that returned over $1 billion to investors for a 25X ROI. Two others are still in development. He has trained, consulted and advised thousands of Entrepreneurs, CEOs and boards since 2002. Mr. Norton works with companies to 2X to 10X growth rates and valuation using AirTight Management™, the world’s most comprehensive Leadership Operating System. He also helps companies raise capital to fund growth. He is also the Founder of The CEO Boot Camp™ and Entrepreneurship University™ for early-stage companies that have not reached product-market fit and $1M ARR.
What can we help you with today? Scaling, training, consulting, coaching?
Call (619) SCALE06 or (619) 722-5306 9am-6pm CT
Or Schedule a free 30-minute strategy session by clicking here.