Pillar 7 Your Winning Team

Silver & Gold members of Your Profit Club can go straight to the training modules.

P7M1 Lead Your Team

P7M2 Supporting Your Followers

P7M3 Getting More From Your Team

P7M4 Recruiting Your Team

Pillar 7 Your Winning Team – What’s It All About

Pillar 7 of the Eight Pillars of Business Prosperity focuses on how you can increase your profit by improving the way you lead your team of employees, suppliers and joint venture partners.

In this brief tasting of what you will learn, I cover

1 – The Basic Rule

2 – Communicating Your Vision

3 – Hiring, Managing and Terminating Employees

Even if you don’t have any employees, you may be outsourcing tasks or using suppliers to provide services that you could do yourself.

You clarified your vision as part of Pillar 2 and also considered how your personal strengths fit with the activities that create profit in your business.

The Basic Rule

Each and every employee must increase your profit to justify their existence as an employee.

They do this in three ways

  1. Directly – their own efforts directly contribute to your profit.E.g. A sales person who costs £3,000 per month but brings in profits of £12,000.It is usually clear when this type of employee is performing or when they are not.
  2. Indirectly through you – these employees take work away from you that they can do quicker and cheaper, freeing up your time to concentrate on higher value activities.E.g. a part time bookkeeper who takes away ten hours of administration work from you each week which you then use to spend talking to customers and building longer, more profitable relationships.The financial return is not as clear but you know the time and frustration saved and it is up to you to make sure that you earn the return to cover the cost.
  3. Indirectly through others – these employees are necessary to support the work and employment of the other two categories.This can be the area where costs escalate and returns are low. You are relying on your managers and their ability to build effective teams.Review your employees and identify who fits into which category and start asking yourself whether their contribution exceeds the cost.I remember Peter Thomson asking the question “Are you part of the cargo or the crew?” Each crew member makes a valuable contribution but the cargo has to be carried.Are you carrying any cargo? And if so, can you afford to keep carrying cargo?

Communicating Your Vision

Your employees need to understand your game – the objective and the rules.

If you don’t share what you are trying to achieve and the behaviours and attitudes you want to encourage and discourage, you are leaving your employees to make up their own game and rules.

Some will do what they think you want them to do whilst others may become more centred on themselves than you or the business.

I have done strategy work with big companies and hit a wall of secrecy – “We can’t tell the troops our strategy in case our competitors find out.”

But your employees can’t implement the strategy if they don’t understand what they are supposed to do or why.

It is true that there may be particular things that you don’t want to share because of their commercial sensitivity. I favour the idea of sharing unless there is a very good reason not to, rather than the other way around.

Recruiting, Managing and Terminating Employees

I will share one saying and thought I learnt from Brian Tracy

“Hire slowly and fire fast”

Many employee problems arise from doing the opposite:

  • hiring quickly,
  • discovering that the employee is ineffective or a problem and
  • hoping that “things will get better” without doing anything to make them better.

What actually happens is that the low performing employee becomes established and starts infecting the other employees’ work and attitudes.

You have probably seen it.

The answer is to hire slowly and fire fast within the legal restrictions of your country.

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