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The goal of The Wigder Report is to provide challenging ideas that will be useful for privately held and family businesses.
Guaranteeing Results of Search Projects!
by Harvey Wigder
Bob Martel, a close friend and a terrific marketing consultant, asked me: How could I give a full year guarantee on searches I do for privately held companies? The implication of his question -- was I nuts? Here is the story I told him.
Sam called me in because he wanted to hire someone to help him run his business. Outside of work, Sam was a happy man. His second marriage was highly successful and he had the means to live a life that was richer than he might have imagined. For reasons beyond his control, he had downsized the year before, but now had a stable and profitable business.
If he were younger, he would have had the fire to rebuild. Now, at 63, with options created by a life partner he loved, he wasn't as sure he wanted to make that commitment. He didn't have a person inside he trusted to run the business, and in addition, because sales managers who were previously hired had failed, Sam was both General Manager and Sales Manager. Under present circumstances, he couldn't step away.
He wasn't sure how to do it, but his objectives were:
Continue to manage the business and insure its continuity.
Be comfortable that the business was being well run, even without him overseeing every detail.
Spend more time out of work, enjoying the possibilities life had to offer.
I started, as I always do, with an assessment step. This allows me to know more about the company and gives the person who hires me a chance to see me in action. The product is a Hiring Specification and a recommendation to the client on actions to assure that the person that is hired succeeds.
This is what I learned from the assessment.
Neither Sam, nor anyone else on senior staff was a college graduate. All grew in the industry and in the company. The company was a leader with a history of innovation. The success came from the company's strengths-- industry knowledge and commitment to success. They did not happen because the company had good management processes.
Sam's senior staff had a deep personal affection for him. They respected his commitment to the business and enjoyed his open and lively personality. Sam is a caring man and had been very supportive on a personal level. All thought, however, that they were underutilized. Sam stays involved and doesn't delegate cleanly and give them "room to fail." They felt that Sam didn't really trust them and that they had the ability to contribute more.
One of his senior staff had run the area that had been half of the company but was now the core. With downsizing the scope of her job was reduced. Sam felt that she her current job fit her skills (that she hadn't excelled in the larger position.) Did she really accept that? Her peers had concerns about how she interacted with them and whether she would undermine any new executive.
My friend Bob was right on target in pointing out my risks in giving a performance guarantee. Although finding someone who might work through this maze is conceivable; it requires finding a person with an incredible number of skills. There are too many things going on that would work against (even) a very competent person being successful
The first problem is Sam's objectives for the search. He is not saying that he wants to grow the business, or is he looking for someone who can run it for him. That suggests tentativeness and lack of commitment to doing everything it takes to create a strong and lasting business.
Sam has three choices. The first is to make a commitment to do what it takes to build a stronger business. If he selects this option, he will work on three things at once. These are:
Find a sales manager with clear potential to run the business. Hire that person without guaranteeing succession, but make it clear that succession will be addressed in a reasonable time frame, and that the person is being hired as a candidate for succession.
Deal with the number two person's personal and career issues. She should receive feedback on why she her career isn't developing in the company and the performance objectives in her current position. This will leave her with two options, if she stays with the company. The first is to do her job. The second is to do her job, and begin the process of developing skills that will allow her to regain career momentum, perhaps even becoming a candidate for greater responsibility.
Sam accepts help in addressing his own limitations as a manager and commits to learning how he can delegate projects and develop subordinates more effectively.
If Sam were committed to this program, I would take the recruiting and coaching project and accept the risks of providing guarantees.
There are other options for Sam to consider. These are:
Ignore all of the advice except for hiring a Director of Sales, thereby saving money on professional fees and only focusing on the limited objective of replacing yourself as Director of Sales.
Preserve the status quo organizationally (which means do not accept the risks of making change). This option might include selling the business.
Which do you think Sam should do? I would appreciate your feedback.
Permission to reprint this article is granted, provided you let me know where it is being printed, the copyright is not removed, and the following text accompanies each article:
Harvey Wigder is the principal of Fulcrum
Resource Group. He works with the owners of private companies to develop and
implement recruiting, compensation and retention strategies. Contact him at
617-964-1855 with you comments and suggestions on small business management
issues.
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like feedback for this article, or know someone who might, please let me know.
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