An associate of mine has spent many hours discussing with me how important the people factor is in business and how so few seem to understand the real significance of this.
We each share a common belief that if you do not get the people factor right in the business as a priority, then all the work of most accountants and lawyers will be to no avail as the real potential of that business will not be achieved. Quite simply these people do not deal in people, their feelings, ethos and values – they invariably deal in numbers, models, regulations, ratios and law, commercial reality. After all this is their core business and they exist for that purpose.
There is a growing force in the US that is pushing this people focussed view more strongly than we do in Australia at present but we are starting to see the change however so many still just do not get it.
With the impact being faced as a result of the significant gaps between the generations we now see particularly between “Gen-Y” and the “Baby Boomers”, we are seeing distinct issues arising around succession planning for business owners. This is particularly the case in family business owners looking to pass the reigns over to their children.
As a business owner you may have the greatest product available in the market but without the best team of people supporting your business you will struggle to succeed in the long run of events.
I remember asking Tony Smith founder of the Breakfree resorts organisation what he attributed to his success rising from the humble beginnings of footy tour organiser. He said he simply employed smarter people than himself.
A philosophy I concur with and certainly Tony is not original with this view as anyone who has read Richard Branson’s autobiography can attest to the fact that Branson did the very same thing.
Surrounding yourself with smarter people is important but not the complete solution. Not only do you need smart people but you need the right people on your team. It is important that all your people fit in to the business culture sharing common values and ethos.
Understanding people is what separates the best form the better. In any business you will have teams be they formally or informally structured. Understanding how to develop these teams, communicating with them and leading them are all factors critical to your business success and your ability to achieve sustained growth and development of your business.
A common concern in many businesses especially now with such low unemployment rates here in Australia is how to get the right people, retain them and dare I say it, get rid of the dead wood.
The answer to this is not to be addressed here but may I suggest that you give thought to your own business? Have you got the right people in your teams, are they actively sharing your business values and ethics and do you instil a sense of belonging and worth within them? Are you carrying people who hold your business back?
Maybe you have not given this much thought lately. Do you indeed have the basis for evaluating your staff performance to identify the leaders, the achievers and the dead wood? Keeping good people relies on many aspects. Now may be a good time to give this some consideration or seek assistance with managing and developing your own teams better.
Posted in Business Culture
