Situation: A CEO wants to add a key person in sales. For a long time most sales have been handled by a long-term employee with a strong sales background in the company’s market, often working closely with the CEO. This sales person is nearing retirement. What process do you use to add a new sales person?
Advice from the CEOs:
Involve non-sales personnel in the interview process. These individuals are important to your company culture, and will necessarily be working with the sales person. They may bring insights to the interview process that you do not see. In addition, involving them in the selection process will smooth the on-boarding process of your eventual hire.
Work with current staff to create a 90-day on-boarding plan for the new person. This helps in two ways: it identifies important characteristics that you will want to see in a good candidate, and it provides an on-boarding road map that will help the new hire to succeed.
Consider going one step further and have current personnel identify and pre-qualify candidates for you.
Use creative as well as traditional methods to identify potential candidates. In the process, make sure that you are not misrepresenting your situation or creating legal or ethical problems.
Have your options in place when you are ready to move on a particular candidate.
Situation: A company’s Sales Manager is likely to retire in the next two years, but has no strict timeline. This individual is the chief rain-maker and has been for many years. The subject of replacing this individual has been sensitive when mentioned in the past. How do you replace a Sales Manager and how do you manage the transition?
Advice from the CEOs:
Have a frank conversation with the current Sales Manager. For the company to thrive it is necessary to start selecting and training an individual to take his place when he retires. Have him help develop the recruitment and transition plan. Also involve your Customer Service Manager.
o Hire a person like the current Sales Manager and allow for up to two years for the new individual to get up to speed.
o Find someone who is currently associated with one of your key customers and who has contacts.
o Adjust your compensation scheme to focus on growth and customer diversification with enhanced commissions for bringing in these accounts.
To ease the transition, start to build a different customer relations structure – one where the CEO has more engagement with key customers.
An alternative to replacing the Sales Manager is to create a different organizational structure. For example, hire a COO who will eventually take over business development as well. Think longer term about to how you want the management structure to grow. Build your future vision of the company into this process.
Situation: A company wants to execute a strategic shift in direction – taking it into a new business which will diversify its offering to customers. The CEO needs to assure that everyone is on-board to both speed the shift and minimize cost. What are the keys to successful strategic change?
Advice from the CEOs:
Be front and center with your vision. State the vision clearly, in terms that everyone will understand. Focus on the benefits of the change for the company and employees and be realistic about the challenges involved.
Be enthusiastic. This is critical to all change efforts. Be cheerleader as well as leader.
Plan ahead and begin to communicate well in advance of the anticipated change. Plant seeds and encourage the team to generate options or solutions. Give all levels of the organization the opportunity to become involved and participate in both design and implementation of the change.
Be consistent in messaging and support across the team. Don’t vacillate or promise what you can’t deliver. Employees will watch for the presence or absence of consistency. If it’s absent, they won’t join in.
Conduct scenario analyses. This enables you to try out different futures and implementation options.
Identify critical issues. Look at possible results – first consider the “most likely”, then “best” and “worst” possible outcomes. Considering best and worst generates new alternatives, and improves the perspective on the most likely outcome.
Conduct visioning exercises. Create a graphic vision of possible futures.
This increases group participation and sparks creativity.
It improves group function, thereby enhancing results.
Visual representation is more memorable than standard bullets and lists.
Special thanks to Jan Richards of J G Richards Consulting – jgrichardsresults.com – for her insight on this topic.
Situation: A company’s employees are increasingly getting offers from other companies. They believe that they have a good team, a good work environment and offer a competitive pay and benefit package. However, they are concerned that the job market in Silicon Valley is heating up. How do you keep your employees on-board when they start receiving offers from others?
Advice from the CEOs:
Make sure that your wage and benefit scale continues to be competitive. The Silicon Valley Index, published by Assets Unlimited in Campbell, is the best local survey covering Silicon Valley and the San Francisco technology market.
Survey after survey finds that compensation is basically a hygiene factor – it has to be good enough so that needs are satisfied, but it isn’t one of the more important factors in retention. The Gallup Organization has determined that respect, challenging responsibilities, and personal recognition are much more important factors in employee retention. Be sure that you are actively involving your key personnel as leaders in formulating and updating your processes, and that there are plenty of opportunities for recognition and celebration for your staff.
If you are generating a profit, share this with the employees as an incentive. This may well be better spent in fun and team-building activities like a weekend in Tahoe for a team, or supporting their creative needs by sponsoring their efforts in engineering design competitions. Whatever is appropriate for your company, involve your employees in setting company performance goals and give them a voice in determining how achievement should be rewarded. Making them part of the process builds better long-term loyalty.
On the sales side, establish a reward incentive structure for bringing in new business for the company to prompt field personnel to develop and exercise their business development skills.
Whatever you and your team decide, be sure that your choices support your overall strategic plan.
Situation: A company has been seeking additional engineers. Unexpectedly, three excellent candidates independently approached the company seeking employment. This opens the door to expand the department and also to create an additional layer of management consistent with the company’s growth objectives. Currently, in this small company all engineers report directly to the CEO. What are best practices adding a layer of management to the company?
Advice from the CEOs:
Remember that aspiration does not equal talent. There is a big difference between good individual contributors and good managers. The best predictor of managerial success is past successful experience.
You have a number of senior engineers who have been with you for a long time. Have any expressed an interest in management responsibility? Do any of them have a track record successfully managing teams? Similarly, evaluate your new candidates both in terms of both their ability to contribute as engineers and their prior management experience.
If you hire one or more of the candidates, start them at the senior engineer level. Let the company and the rest of your engineering team get used to them and observe the quality of their contribution.
Once you are ready to create a new level of management, make this an open process. Announce your plans to the engineering team, and ask them to approach you individually if they are interested. See who steps up.
When the time comes to make the promotion, how do you communicate this to the group?
If you’ve used an open process to evaluate one or more candidates for management, the group will already be prepared when you announce the new structure and promotion.
An important part of the message is that the company is growing and that there will be ongoing opportunities for talented engineers to earn promotions to management.
For those interested, start with small steps as leads in team projects. Who if effective at guiding their team? Who is a positive source of energy for the team? Who is helpful and goes above and beyond for other team members and for customers? How do they respond to team obstacles? Observe and coach them along the way.