Hiring Disfunction - Amateur Hour
My father was an amateur entrepreneur who always hoped to
discover a business 'goldmine' but never did. It was always
an emotional rollercoaster: he would get excited about
something and then slowly come to realize that there wasn't
any gold at the end of the rainbow.
A series of bad ventures eventually split our family apart.
In his newsletter this month, marketer and Google adwords
guru Perry Marshall (www.Perrymarshall.com) talks about why
some entrepreneurs succeed in business while others go through
a predictable failure cycle, one I recognized immediately
from my youth and my own first entreprenuerial attempts:
* Idealization of some concept that seems like a simple path to
riches.
* Demoralization when the idea won't work.
* Frustration that ideas don't seem to work out like they
should...until the next concept comes along that 'really is the one.'
People who experience this cycle are missing two major elements
to make money and succeed at business - a concrete dedication
to the business of success (not the feelings, but the business), and
a process by which to test and determine whether an idea is going
to pay off.
Without these tools, the entrepreneur is left with only an emotional
merry-go-round of hope and despair. They pour themselves into
ideas that aren't ever going to work, or not without significantly
more (or different) work than they're prepared to do.
A successful entrepreneur breaks the cycle with an action-oriented
process that gives them the ability to:
* Investigate concepts to see if there is a track record of sales and
profit in a business.
* Quickly and cheaply test specific marketing and sales avenues
to see if they can consistently drive interest and convert sales.
* Commit or abandon quickly based on the facts they've
gathered.
Often I see business owners fall into the same entrepreneurial
cycle when hiring. Absent a solid process they fall into:
* Idealization of some individual based on referral, charisma or
availability.
* Demoralization when it turns out the person wasn't a match for
one or more reasons.
* Frustration over their inability to find profitable employees...until
the next one comes along and convinces them that they 'really
are the one.'
This is the cycle of the amateur hiring manager or owner, and it
can lead to performance nightmares, financial or operational
difficulties that only get worse as time wears on. Fortunately,
you can break out of this cycle with the right mental preparation
and some basic tools.
Ask yourself a few questions:
* Have you been able to successfully investigate whether the
person has been in your kind of job and wants to remain in
it for a long time?
* Have you been successful at testing them with very difficult,
no-nonsense interviews to see if they have already consistently
succeeded at the tasks and deliverables you've got lined up for
a new employee?
* Do you have the time, candidates and chutzpah to commit or
abandon...either someone meets your tough standards and you
turn immediately toward hiring and managing them toward
success, or you abandon them and keep looking without a
backward glance?
If you find yourself on an emotional rollercoaster of becoming
infatuated with people, hoping they work out, and then being
disappointed when they don't, you may need help to evaluate
your hiring process and break the ruinous cycle of amateur hiring.
If you don't, it will eventually ruin the credibility and stability of
your team.
In case you're wondering, that's what we do - give you the tools to
build relationships that will produce margin and stand the test
of time.
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