Tag Archives: Culture

How Do You Interview New Tech Hires? Four Necessities

Situation: A CEO wants advice on hiring new technical staff. Important considerations are cultural fit, identifying the characteristics of effective people, assuring that the right people are hired, and evaluating people for specifics tasks. In the past hiring technical people has proven challenging and poor hires have inhibited company growth. How do you interview new tech hires?

Advice from the CEOs:

  • It is critical to be clear on the factors necessary to be successful in the enterprise. Once these have been identified, align the factors with existing individuals in the organization as role models. Also align these factors with those who will be involved in candidate selection. This facilitates identification of good candidates.
  • Develop clarity on candidate evaluation. Identify and develop questions that will allow candidates to describe what is important to them and what they want to get out of their career choice.  In addition to specific knowledge, candidates should demonstrate a personal value system compatible with the company’s culture. They must also demonstrate a high energy level.
  • Once there is clear articulation of desired characteristics of candidates work with others such as college placement organizations, friends of the firm, Craig’s list, and so on to assist with candidate identification. A well written position description not only describes the type of individual desired, but also why someone would want to join the firm.
  • It’s imperative to be able to give a sales presentation on the company including specific reasons why people should join it. Avoid getting so wrapped up in the selection mode that you fail to recruit. Some who have done this were stunned to find that after they have made their selection the candidate was no longer interested.

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How Do You Minimize Hiring while Launching a New Market? Five Points

Situation: A company is planning to expand operations into a new geography. The CEO wants to avoid hiring a new sales person out of the main office as they make this move because he wants the expansion to fund itself. How do you minimize hiring while launching a new market?

Advice from the CEOs:

  • Start by profiling the ideal customer for the new geography.
    • The definition should include business sector, company size, current capabilities in terms of the service provided by the company, and openness to working with outside service providers.
  • Consider a satellite office or franchise option. The two key employees to staff the office will be an engineer and a principal manager for the office. The principal manager will be the sales person.
  • Target initial clients that meet the profile of the existing business but in the new geography.
  • Use what has been learned over the years in the principal location to build an effective culture in the new location. Select key people for the new location that would fit well into the current location.
  • How can the principal manager network in the new location to attract clients?
    • Clubs
    • Organizations
    • White Papers
    • Advertising and Mass Mailing
    • Author a book or be featured in a chapter of someone else’s book
    • Generate partnerships or affiliations for business development

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How Do You Increase Employee Engagement? Six Suggestions

Situation: A  CEO wants to increase employee engagement throughout her family-owned company.  Performance is frequently poor, employees sometimes treat each other badly, and employees rarely put out the extra effort that could make a difference. What have others done to turn around a poor company culture? How do you increase employee engagement?

Advice from the CEOs:

  • To add some energy, for example to the accounting department, bring in AccountTemps for 3 months to bring everything up to date. This will help to establish a new level of expectation within the company. AccountTemps can also produce templates that will make it easier to stay up to date in the future. This will send a message to employees that the company is willing to invest to create new standards.
  • For those who are managing underperforming areas, link their pay to performance.
  • Leverage promising young employees by giving them more responsibility in their departments. This may facilitate a shift of resources to areas of the business needing attention.
  • Have employees make customer phone calls – to current and former customers – with instructions to listen to what the customers have to say about the company’s product and services.
    • Collect and use this information to foster a customer-oriented mindset.
    • Encourage employees to take pride in the final value delivered (or not delivered) to the customer.
  • Consider a second “Founding of the Company.” An event that will wake everyone up and reinforce both the value that they represent for the company and the company represents for them.
  • To increase cohesion within the company, create an event to bring everyone together, and help them to see and value what employees share rather than what makes them different.
    • Ask employees to put up photos of themselves at age 4-6. Ask those with children to add pictures of their kids as well. Conduct a contest is to match the photo to the employee.
    • Use special events to build a team focus at work. Examples are a company picnic with a 3-legged race or a movie and pizza at 6:00pm.

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How Do You Hire and Retain Good Salespeople? Ten Points

Situation: Many companies struggle to find good salespeople. They find that few of those they hire last very long. Some individuals don’t have the skills to sell, others find the job more difficult than they anticipated, and some leave for better pay at another company. How do you hire and retain good sales people?

Advice from the CEOs:

  • Hiring salespeople is most important job a company or owner has, yet it often receives the least attention.
  • Determine what the company needs the person to do.
    • What skills do they need? Is past experience aligned with the company’s needs?
    • Do they have experience in the company’s market.
    • How much can the company afford to pay?
    • Is the pay offered market competitive?
    • What is the pay scheme: salary, salary plus commission, commission only or commission only following a learning period?
  • Advertise
    • Use internet portals, referrals, ads in the local paper or recruiters.
  • Review resumes for basic qualifications and weed out all that do not meet those qualifications or who lack experience in sales.
  • Test or screen applicants using an instrument such as: Identity Compass, Sales Skill Assessment Scorecard, The Caliper Profile, Sales DNA, DriveTest, SalesGenomix, DISC, Myers-Briggs, Grit or Objective Management Group (OMG).
  • Bring interesting applicants in for interviews.
    • Are they relaxed and comfortable with those who interview them?
    • How do they react to pressure?
    • Do they seem to be a good match with the company culture?
    • Are they comfortable with the company’s philosophy, size, reputation, and products or services?
  • Check references – not just those provided, but talk to companies where they’ve worked in the past.
  • Call customers with whom they’ve worked.
  • Remember that past performance does not guarantee future results

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How Do You Manage Growth? Six Points

Situation: Many companies face challenges managing growth. Growth is a complex process involving strategy, staff and company culture. What guidance can the group give to help guide planning for growth? How do you manage growth?

Advice from the CEOs:

  • Think of growth in term of five major components of organization and growth: structural, cultural, facilities, documentation systems, and people.
  • Structural
    • Consider different ownership and profit sharing options. Look for options that fit the objectives of the company.
    • If you are looking at multi-location solutions, develop a structure that can be easily copied in new locations that are added but which is complementary to the home office structure.
  • Cultural
    • If the business is family-run and looking at moving to a non-family structure, look for options that will preserve the best aspects of the culture as it has developed.
    • Keep company values intact.
    • Focus on maintaining engagement and commitment.
  • Facilities
    • The transition from single-site to multiple-site is particularly traumatic. The jump from 2-sites to 3-sites is much easier because an effective model is already in place.
  • Documentation Systems
    • Growth can compel the company to adopt entirely new systems, especially when passing certain thresholds for government regulations (i.e. 50+ employees).
  • People
    • Hire and retain for the right mindset – consistent with company culture and structure.
    • Specialists can be a real asset for their particular talents, but they seldom have the view of the “big picture” that is required for a turbulent environment.
    • Compensation – align compensation with company culture and priorities.
    • “Ownership” may have to change from sole ownership to shared ownership in order to keep key talent engaged.
    • Add new skill sets to address needs but assure that these complement existing skill sets.

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How Do You Make Hard Decisions on Employees? Four Points

Situation:  A company needs to adjust expenses to control costs. It’s largest expense item is payroll. They are evaluating three options to adjust staff costs to anticipated revenue. Alternative A – Cut everyone back to part-time. Alternative B – Cut a few employees, but keep retained employees busy. Alternative C – A balanced approach between these alternatives. From others’ experience, which is best? How do you make hard decisions on employees?

Advice from the CEOs:

  • The unanimous response from the group – for employees, Alternative B is the most positive approach. Extended cutbacks in hours has been painful for all and led to grousing. Once staff were cut it helped retained employees to focus on their work.
  • When it comes to vendors, use Alternative A – don’t pay everything that you want to pay, but pay what can be paid consistently and predictably. It is critical as this is done to make sure that promises are kept.
  • When it has been necessary to make cuts – how has employee morale been maintained?
    • In the short term, those who remained have been happy to have a job. Longer term, companies have had to do more than this.
    • One option is to set quarterly revenue and expense targets. When gross or net margin targets have been exceeded, companies committed to share some of the excess with employees.
  • Before making any decisions, have a meeting with employees and openly ask them what they’d like to see that will help to build company culture and enthusiasm.

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How Do You Maintain a Culture Focused on Quality? Five Points

Situation: Quality is a CEO’s #1 objective for his company. As the company has grown and processes have become more complex with more people involved, consistent quality is becoming an issue. The CEO wants to refocus and reestablish a quality culture to support future growth. What have others done to increase the quality of their product or service? How do you maintain a culture focused on quality?

Advice from the CEOs:

  • Trust is a company’s most important commodity. This trumps financial exposure. In case described, the client trusts the company to produce and deliver a quality service upon which they can rely.
  • Go all of the way back into system design – or how any particular product system is set up.
    • Assemble a diverse group to review both the company’s deliverables and the system inputs.
    • Brainstorm everything that can break.
    • Prioritize the list based on potential exposure to the company.
    • Do a deep-dive analysis of the top 5 or 10 exposure areas.
    • Reprioritize after the deep dive has been completed.
    • Fix all issues identified in order of exposure.
    • Repeat the exercise periodically to assure that quality is maintained.
  • Empower and reward anyone who develops improvements in quality control.
  • Shield the company from any exposure over which it has no control. This can be accomplished through language in the company’s service agreements, and through language covering service deliverables.
  • Once the company has shielded itself from an exposure, set up flags in the monitoring systems that will alert the company of events or situations that will impact clients. This allows the company to inform clients of situations that may impact them without making recommendations as to how the client should handle the situation.

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How Do You Build an Effective Compensation Plan? Six Suggestions

Situation: A company hires and trains engineers from outside of their field. Their pay scale is typically below market for engineers in this field. Once the company trains them, these engineers are candidates for recruitment by other firms in the field that are considered premium employers. The CEO wants to address this situation. How do you build an effective compensation plan?

Advice from the CEOs:

  • In addition to compensation, a high-quality workplace and work experience are equally important.
  • Give the lead engineer or team compensation tied either to engineering charges or gross profit on successful projects. This can be a small percentage – but offers them a compensation upside that they are unlikely to find at another company.
  • Create a peer-recognition award like another company’s RAVE Award (Recognition, Achievement, Value, and Enthusiasm). On a regular basis – perhaps quarterly – the engineering team has the opportunity to select one of their members for this award. Components of the award may include a plaque, a free dinner or massage, or something that team members value. Ask them what they would like to see as rewards within the program.
  • A similar technique is a peer recognition box. Engineers nominate peers for recognition based on performance in a team project. At regular intervals, draw a name from the peer recognition box, with the winner receiving, for example, a gift certificate. The dollars are less important to the recipient than the recognition.
  • Focus on making the company “the place for talented engineers to work.” This can be as much a cultural situation as a place to make a great salary. The more that the company creates a fun and personally rewarding culture, the more it builds “stickiness” into the job. Ask the team for their input to shape the team and work environment.
  • Provide performance incentives for meeting quality objectives while exceeding time objectives. This beats existing cost estimates, so share some of the savings with the team working on the project.
  • Make special company celebrations a regular part of the company culture – for example, evenings out at premium restaurants and including spouses or significant others. By treating significant others well, the company creates a disincentive for the employee to leave.

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How Do You Build a Strong Team? Six Solutions

Situation: A CEO wants advice on how to strengthen her team. She is confident in her employees’ capabilities, but wants to see more teamwork and collaboration to add to the company’s culture. What have others done to encourage team building, and how has it worked out? How do you build a strong team?

Advice from the CEOs:

  • There are many options for team building activities. Look at the Discovery Channel for some ideas: Monster Garage, American Chopper, and programs like these. They feature some highly effective methods of building team camaraderie.
  • One CEO regularly conducts team building activities:
    • Taking the crew to the new Star Wars or blockbuster movie opening.
    • Go-Cart racing.
    • This is done during working hours, and the employees appreciate both the effort of the company, and the fact that they are not asked to do this after hours.
  • A caution – this type of activity may help morale, but it may not contribute to retention.
  • While team building functions are an essential part of building and maintaining company culture they are only part of the task of building a strong team. The group considered conditions at previous companies that prompted employee departures:
    • Lack of advancement or any clear path to advancement,
    • Ambiguity in roles and expectations,
    • Salary and advancement caps,
    • Poor managers,
    • Lack of consistent or clear feedback on performance.
  • Looking at this list, the converse represent the things that a CEO should do to build a strong retention culture and strong teams:
    • Clear expectations of employees in terms of performance,
    • Clear and public tracks for advancement in job and salary increases,
    • Frequent and consistent feedback on performance – both positive and as necessary corrective feedback – but always with considerate and constructive delivery,
    • Well-trained managers.
  • These factors parallel the findings of the Gallup Organization in their investigation of factors contributing to high levels of employee engagement and profitable growth.

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How Do You Shift a Key Employee to Manager? – Pt 2 Three Points

Situation: A CEO wants to promote a key employee from rainmaker to manager. This will not involve a change in expectations or metrics for either the new manager or the employees who will report to her. However, there needs to be more forcefulness and clarity on what needs to be accomplished, both for the new manager and her team. How do you shift a key employee from rainmaker to manager?

Advice from the CEOs:

  • Don’t just measure calls. Measure the outcome from calls. Develop an objective and a metric or set of metrics that they can run to. Link their activity to business results. They will respond because they will be able to impact the firm as well as their careers.
    • Tie individuals’ metrics to the business culture that the management team is creating and create win-win links.
  • What is involved in changing the business focus to new markets?
    • Build a replicable system for servicing a particular channel. Use the lessons from this exercise to build systems for new channels. As the team moves into new channels, tweak the replicable system so that it responds to the specific demands of that channel.
    • For new channels, identify the most important needs of the new customer – from their perspective – and develop a client service model to meet this need. For example, if the goal is to develop an investment service for foundations and endowments, the key variables may be acceptable return with a high degree of safety. Tailor an investment portfolio, as well as a client service strategy to meet the most important needs of this sector.
  • What is involved in creating a smooth hand-off within client relationships?
    • Start bringing in others to whom will be handed off the relationship as early in the client relationship development process as possible. Allow rapport and trust to develop, and prep the client for the expectation that a smooth hand-off is part of the ongoing client relationship.

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