While business is simple, there are many companies who are struggling, and I dare to say that they failed on the first thing: they don’t have the best people.
The rich is getting richer and the poor is getting poorer. The well-managed company is getting better and poorly-managed company is getting worse. The reason is simple: Business is run by people, and successful business is run by people with brain. This world has a serious shortage of brainpower, there is an excess supply of stupid people.
To have a successful business, you need the best people to do the thing that they do best (i.e. the thing that they love to do). How many companies out there yell out, “People are our foundation” or “People are our most valuable assets”? Plenty of them. It’s easy to make claims like that, especially if everybody else is saying that. Not many business leaders want to be left behind or to be the odd one. The problem with these guys (the same problem with their brainless underlings) is that they don’t know what they are talking about. People are not your asset. You don’t own them. Your most valuable asset is cash. No cash, no people, no business.
- Hire the best people. People who can actually work and make things happen. People with passion. People who can do better than you. Hiring is a big deal. You are about to change the company and that person's life. Interview twice, recruit once. Hire slow.
- Hire people that you can fire. Business is not personal. You can hire your acquaintances, just make sure you can fire them. When you need to fire them, fire fast. You know it when you are being a good leader: when you hire people who can fire.
- Set a smart compensation and benefits scheme. You pay peanuts, you get monkeys. You pay too much, you get an empty wallet. You must accept the fact that money is the primary reason why people work. Volunteers are extreme case, but usually they have enough money to support themselves.
- Be fair. By nature, survival is only for the fittest. Nobody is 100% objective, but if you need to discriminate, discriminate by performance.
- Develop them. If you can't develop them, you are probably a burden to the team. Help them grow and discover themselves. Engage people and they will contribute to the company for themselves.
Good grasp!
ReplyDeleteTwo questions:
1. How time dimension (timing and time-horizon)has been / could have been taken into account? Should it?
2. Most if not all of the principals pivot around individual self-interest. Could group cohesiveness play a part in the principles, especially in Asian context?
1) How time dimension (timing and time-horizon)has been / could have been taken into account? Should it?
DeleteThis sounds so scientific (I see terms that I only heard from Big Bang Theory). Sorry. me no understand.
If you are asking about the difference between the practices in 1950s and 2000s, the principles for People Management remain unchanged. The way to execute it may be different (we hire and fire differently sure with LinkedIn), but principles are timeless.
2) Most if not all of the principals pivot around individual self-interest. Could group cohesiveness play a part in the principles, especially in Asian context?
If 'group cohesiveness' refers to the team spirit, belonging, yeah it plays a part to determine the performance of the people. Group behavior are a product of individual behaviors of its member.
But remember, the paymaster is the master. If someone gel well in a group, but that group can work better without that person; or can work better with other group without that person; and that person is not aligned to the company mission; that person needs to go.
..If I misunderstood your question, please understand, I read this in the morning, before my coffee.