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harvey WigderThe Wigder Report

Management Ideas For Privately Held Companies

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:

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.

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This is what I learned from the assessment.

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:

If Sam were committed to this program, I would take the recruiting and coaching project and accept the risks of providing guarantees.

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There are other options for Sam to consider. These are:

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.

If you would like feedback for this article, or know someone who might, please let me know.
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