A Common Denominator
When it comes to great businesses, they all have one thing in common: the right people who fit the organization’s culture, values, and behaviors are in the right seats. They love what they do, have a passion for the organization, and demonstrate the capabilities to successfully complete their responsibilities.
Jim Collins’ book, Good to Great, speaks to the idea of getting the right people into the organization and then placed in the right seats. This idea was a hallmark of those companies who went from good businesses to great ones.
Gino Wickman shares that strength in the People component of the EOS Model™. This model is for business owners and their leadership teams wanting to achieve their Vision.
Gino calls it “making sure you have 100% right people in the right seats.”
So how can you reach your business vision, 100%? By placing the right people in the right seats.
Who Are the Right People?
First, identify who the right people are for your organization.
- Their behavior is consistent with your Core Values.
- They fit your company culture like a glove.
- You love having them around.
Are People in the Right Seats?
Next, evaluate the seats in your organization. Every seat, as defined by the Accountability Chart, has five or so major roles/responsibilities. A person in the right seat “GWC’s” the seat:
- Gets It. The key roles/responsibilities are part of their natural god-given talents and a part of their DNA.
- Wants It. They get up every day looking forward to work they do in their seat
- They Have the Capacity to do the job well. This can include education, training, experience, and time to do the job well.
The Two Major Potential People Issues
You can have the right person in the wrong seat.
Looks Like: This person fits your culture like a glove, and you love having them around.
The Problem: They do not GWC their seat.
The Bottomline: Your business still needs to make a profit and most cannot afford to carry employees who do not GWC their seats.
The Solution: If your business is large enough, move them to a seat consistent with their natural strengths. However, if you are not large or do not have a seat that is consistent with their abilities, you have a difficult choice to make.
You can have the wrong person in the right seat.
Looks Like: This person gets work done and produces results.
The Problem: They do not share your company’s Core Values.
The Bottomline: They are, at this minute sabotaging, your Company’s culture and will do much more damage in the long run than the current results they are delivering.
The Solution: When this happens, we beg and plead with you to remove them from your organization.
Key Tools to Assess People Issues
The three primary tools to assess People Issues are the People Analyzer, the Accountability Chart, and the 3-Strike Rule.
1. People Analyzer
When using the People Analyzer, follow these four steps:
- First, list each of the Company’s Core Values in the upper diagonal spaces and then G, W, C in the last three diagonal spaces.
- Then you rate the person’s behavior against each of your Core Values as follows:
+ = Most of the time their behavior is consistent with that Core Value
+/- = 50% of the time their behavior is not consistent with that Core Value and 50% it is
– = Most of the time their behavior is not consistent with that Core Value
- You then rate the person on with respect to their seat on: Do they “Get It”?, Do they “Want it”?, and Do they “Have the Capacity”?
- Lastly, set “The Bar” for your business.
Setting The Bar
Typically, that means a + for most of the Core Values and a +/- for the rest of the Core Values. All G, W, and C should be yeses. (i.e. the bar for a company with five Core Values would then be 3 +’s and 2 +/-’s. Anyone below the bar would at first need coaching and if behavior does not change, use the “3-Strike Rule” to move them out of the company.)
2. Accountability Chart
Think of the Accountability Chart as an organization chart on steroids. For each seat on the Accountability Chart, the five key roles/responsibilities for that seat are included. When done well, the Accountability Chart brings clarity to who is responsible and accountable for what in the organization. This is an especially useful tool for small organizations with an overlap in duties.
3. The 3-Strike Rule
The 3-Strike Rule is a go-to for addressing any employee issues.
- Strike 1: Discuss the issue(s) and your expectations with the employee and give them 30 days to address the problem.
- Strike 2: If you don’t see improvement, sit down with the employee to discuss his/her performance and give them another 30 days.
- Strike 3: If you still don’t see improvement, let them go. They are not going to change…and your team will thank you for it.
Taking Your Business From Good To Great
To take your company from good to great, you first need to be honest in evaluating your employees and the positions they hold. In the long run, it is better for everyone involved to have the right individuals in the right roles.
Utilize the People Analyzer and Accountability Chart to find clarity with your employees and positions, and always implement the 3-Strike Rule for those whose actions don’t align with your company culture or who don’t complete their responsibilities.
Jim Collins, Good to Great
Gino Wickman, Traction: Get a Grip on your Business
For more information on Core Values and how to use them during the hiring process, watch Gino Wickman’s video, Building Company Culture by Perpetuating Core Values.