What a great week it's been! On Tuesday, we hosted our bi-annual "Your Profit Blueprint" event for all the business owners and business leaders in our community to create a strategic plan for growth in 2019.
I encourage you to check out all of the photos from the event on Facebook. This week's podcast is also a short recording from the event, where I discuss how to plan for growth in uncertain market conditions.
So in keeping with the theme of growth and progression in 2019 (and continuing from our last week's article about evaluating and rewarding your employees), today I want to discuss the "promotable model" - your strategy for promoting your best employees in the next 1, 3 and 5 years.
When somebody new starts in your business, how many successes does it take for them to go from rookie to the next level, and what are the requirements for that?
Once this person reaches the first level, how many jobs or outcomes need to be delivered in what timeline for them to go to the second level?
Last week, I discussed the idea of having two annual appraisals: one for performance, and one for performance and remuneration. You can create a proactive road map for people in your business, showing the requirements to move up to each new level within the business.
If people reach their next appraisal and they have fulfilled their requirements, then they get the promotion and/or the pay rise. If not, they don’t.
It’s really quite simple.
You can have five levels within your structure, so that people know they can move up to the top level within five years if they meet the requirements (see the image below). Then there’s no misunderstanding.
Every period – for example, a three- to five-year career progression period – is a great period for people to evolve and grow and ultimately lead in their role, then effectively delegate to someone else as they promote themselves to next level, or take new opportunities as the organisation grows.
As you can see from the diagram, in Year 5, your employee could have 5 people reporting to him or her and those five people will have 5 direct reports each too. The overall team under that employee’s management is therefore 30.
It’s pivotal that the people you bring into your business are aligned with your core values – so, it’s important that you know what your core values are! They are about who you are and what you stand for as you move forward to achieve your purpose.
The ultimate core values that I use are generally based around a strong bias:
1. A strong bias towards high-performance change
2. A strong bias towards solutions
3. A strong bias towards excellence
4. A strong bias towards urgency and accountability
5. A strong bias towards transparency and doing the right things right.
What often happens is people get busy. They don’t take the time to go through their core values consistently, and go through the recognition and core structures. They don’t recognise their values when hiring or during the appraisal process, and so they don’t select the right people to do things right.
So as your team continues to grow over the next 6-12 months and beyond, remember to implement these lessons. Be precise and particular about your requirements, and strategic in your thinking. Don't just hire people out of convenience or desperation - be sure to hire people who fit your business, are suitable for the role, and outline how you envision them to progress their roles in your business in the short and medium term.
Power to you!
Founder, CEO - Business Benchmark Group
Could you use some guidance to run a more successful business? Contact Business Benchmark Group - we offer free workshops so you can "test drive" our coaching with no obligation whatsoever.
Call 03 9001 0878 today, or get in touch through our website.
Stefan Kazakis on 5 May 2018
Responding to change is a critical part of the culture and operations of the business. You, your team and your business must be agile and flexible. ...Read more