Thursday, July 09, 2009

The 7 Biggest People Mistakes - #2: Failing to Replace Low Performers

Ok, the gloves need to come off. This is a tough subject and needs tough talk. You know there are '3' types of performers in your company - A's, B's, and C's. The A's are your brightest and best. You'd love to have ALL A's in your organization, but you think you can't. If you really think you can't have a team of ALL A-players then your doomed to the same results that you have now. ...You can stop reading too.

Ok, we're still standing. Good. Welcome to those who brave to make a difference in their teams and people!

For the B's on your team, these are the people who perform up and down, with mixed results. They are steady, but rarely light things up in their performance. A .220 hitter if you will who bats .275 for a month. Lastly, you have C's. Described as those who require much of your time, worry and source of greatest discontent. Pictures of faces of your C-players are flashing in your mind as you read this.

Here are (2) fun and simple things you can do to change you IMMEDIATELY into replacing your low performers.

First, calculate a team of A-players. Take your own metrics of success; how many deals they do, monthly revenues, margin, # of calls, etc. If you aren't in a sales-type environment find specific performance metrics which apply to your group. Next, take your existing team and divide them into A's, B's, C's. Run the numbers of where everyone is at present and calculate your current productivity. Lastly, take all the C-players and B's and toss them into the A-player bucket with the higher productivity. Run the numbers again. Yep, this is what you're missing out on. Even scarier is to take that number and divide by 365 - this is the amount your missing out on EVERY DAY you don't do something.

...so you don't have time to go through so much hassle to replace people and hire A's, your thinking. Seriously?

Take this topgrading 'Mind Teaser':
Q: If you inherit 10 low performers and want to replaceall 10 with high performers, how many people do you have to hire if your hiring success is 25%?
A: 40… You hire 40 people.

Q: How many do you have to fire?
A: 40… the 10 you inherited plus the 30 you mishired. Any manager would be nuts to fire 40 people whenthe team is only 10 people. The revolving door would be chaos!

Q: How many would a topgrader have to hire, with a 90% success rate?
A: 11

Q: How many would the topgrader have to fire?
A: One… which gives the topgrader a 30:1 advantage in hiring and time savings!

Tough stuff. People deserve to be successful. If you can't make them an A-player, let them move on to become an A-player in a different role or company. I've seen it happen many times. Make it happen. Today.

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