How to build a team that delivers superior performance?

April 4, 2009

In this title, we have several items we need to address in order to answer the question. These items are:

  • Build the team
  • Deliver
  • Superior performance

Build the team
Either, you start with new staff or have to deal with existing employees, building a team comes down to the following:

  1. First of all, you need to know what results you want to achieve, short-term, as well as long-term. This is the only way you will need what talents and skills you need to have in your team.
  2. You must have in your team all the abilities you require, but how there are distributed between the team members is somehow secondary. Just like a sports team, you need a mix of those skills and talents. The team members must be complementary. You will not succeed if you have only goalkeepers or only forwards.
  3. Next to the talents and skills, you must make sure that the team members are compatible with each other. Another essential element for a successful team is the interpersonal “chemistry”.
  4. You, as the manager, are the one that will have to nurture this chemistry, by making sure that all the team members will work towards the common goal. Individual agendas are simply not acceptable if you want superior performance.
  5. You must make sure that your team members are in a position in which they do what they do best. There no worse waste than having people doing things they are not good at, or not being able to do what they have that can add lots of value to your company. This sounds obvious, and yet it is one of the most common sins that organizations commit.
  6. Since your team members have all their own particular mix of skills and talents, change the jobs descriptions and task distribution to make sure their abilities are used at their maximum, if needed. Changing a job description is easy, but changing a person is not.

Deliver
In order to deliver a superior performance, you need to identify the following:

  1. What to deliver.
  2. When to deliver.
  3. How to measure progress and know where you are in the whole process.
  4. Communicate regularly and frequently with your team members about the progress made and give immediate feedback to make sure that the plan is on track.
  5. Make such meetings efficient and never leave without making an action list allocating responsibilities and timelines for the completion of these actions.

Superior performance
In order to achieve a superior performance, you will need the following

  1. Set superior goals to your team. If you in this, then you will not beat your competition
  2. Set superior goals to your team members. If you fail in this, see above.
  3. Know your competition and what they want to achieve. If you do not know this, how can you know that your goals are aiming higher than theirs?
  4. Communicate a lot with your team members. Make sure they know what you expect from them, and let them know how they are doing. There is nothing like too much communication. There is something like too many inefficient meetings, but that is for another article. If you want to achieve superior performance, count on average a very minimum of half an hour of communication with each of your direct reports per day.
  5. Use performance indicators to monitor progress. This is different from an incentive, such as a bonus. An incentive helps getting a better result (well at least that is the idea) by promising a reward. A performance indicator as the term says it, just indicates how good a performance is at a given point in time, and helps you take corrective action if needed.
  6. Encourage a bottom-up communication. Your staff are the ones closest to the action. You, as the manager, are one step further. What they see, hear and experience is of great value, as very often they have the best views on how to deal with business situations. Listen to what they have to say! All they expect from you is to give them directions and make the harder decisions.
  7. Nurture a culture of entrepreneurship! Since you have selected people with superior abilities, let them express their full potential by delegating and encouraging them to take initiative. Although their level of talent makes this easy, this does not mean that you should be lenient in the way you supervise and manage. Delegating just saves you a lot of time that you can spend on coordinating and communicating.
  8. Nurture a culture of performance! This sounds obvious, and yet this is where many companies fail. This is not about pep talks. This is about creating an environment where beating expectations becomes a game. This is about involving your team members in setting the superior goals. You know when you have achieved this when your staff tells you enthusiastically that they think they can exceed the previously set goals.
  9. Nurture a culture of challenge! By this, I mean healthy positive challenge, of course. Talented people know they have talent and they like to express their opinions. Feel good when your staff challenges your ides and your objectives, especially when they claim that they can achieve even more. Of course, your role here as a manager is to make sure that they are realistic, by challenging them, too. Do not feel threatened by such behaviour; it is very sound and stimulating. Nothing kills initiative and enthusiasm as negativity and dictatorship (on the other hand, authority is good).

Copyright 2009 The Happy Future Group Consulting Ltd.


Making a business plan can be fun when you have a small business

April 4, 2009

(Article of mine published for the Vancouver Board of Trade’s Small Business Council in November 2003)
To many people, business plans have a bad reputation. Here are some common misconceptions about business plans.
Making a business plan is no fun. Actually, a business plan follows the same process as planning a vacation. The same questions need to be addressed: where to go, how to get there, how long it lasts, how much it costs, etc. No one seems to have a problem planning vacations.
You need a business plan to get a loan. A business plan is not a “marketing tool” to access funding, it is the very essence of your company.
Business plans are for big corporations, not for small businesses. All companies obey the exact same business, market and accounting rules. Small businesses are simply smaller.
A business plan is about financials. Surprisingly enough, it is not. The financials come at the very end, after all the elements of your business have been thoroughly described and analyzed.
A business plan does not need to be a complicated process. Here are some tips to you get started.
Define the vision and mission for your business.
Start with the sales plan because money flows in from revenue; make sure you have that right from the start.
Know the strengths and weaknesses of your company.
Review the opportunities and threats in your business environment.
Set your objectives and determine your strategies.
Go backwards in your supply chain to identify the cost items directly related to realize the sales, then review all the other cost items. This way, you set up your profit and loss statement.
Only then, quantify all your assumptions. These are the financials and provide possible scenarios for your business.
Do not forget to make a cash-flow statement.
Always be in charge of the plan. If you do not write it yourself, make sure the writer consults with you.
Do not hesitate to involve others and ask for feedback.
To sum up, think of your business plan as the best way to make sure you will still be able to plan vacations in the future.

Copyright 2009 The Happy Future Group Consulting Ltd.


Why use revenue to define top companies?

April 4, 2009

(Article of mine published in the Vancouver Board of Trade’s Sounding Board of October 2003)Some of you will likely wonder why I ask this strange question. By recently reviewing such a list, I wondered about the relevance of the revenue criterion. Indeed, this review raised an interesting question: What does top 100 really mean? Are the companies the best? Are they the most profitable, the most sustainable, the most viable? Or are they just the ones cashing in the most revenue? If so, what about the cost side, in particular the cost control aspect, of business we hear so much about when we hear business specialists comment on company performances? Are the high revenue companies also the most cost efficient?
Clearly, investors and money lenders are much more focused on profit than on revenue. And what about working capital and cash flow? It seems we hear about them only when it is too late.
To define the best, it would be quite interesting to present the list based on an indicator such as economic value-added (EVA), which is a combination of profit and working capital. Such an indicator provides a good estimate of how the company uses its resources and how it financially performs. It also reflects how much wealth is created and allows simple comparisons between companies, not so much on how big but on how efficient and viable in the future they will be. Using this indicator as a management tool will also create a totally new approach to business, by aligning goals from all departments and staff, from the CEO down to the workers. Everyone will have the one and same objective: A higher value for the organization, which nicely meets the current trend towards more value-added products versus producing mostly commodities and raw materials. Further, an EVA-like approach would help make communication and employee compensation simpler and more consistent.
Creating more value for companies, together with a positive competitive atmosphere between businesses of all sectors, would stimulate our economy to excellence.

 

Copyright 2009 The Happy Future Group Consulting Ltd.