In these turbulent times, all businesses have a desire to improve their performance. Performance improvement is needed at the individual level, at the team level, and ultimately, in the business.

One of the most critical elements to a great business that consistently improves is a structure that causes performance at the individual and team levels of the business.  If the structure points the individual and team performance towards a clear set of key goals within a common, agreed upon future vision, business results will be achieved. Many business owners ignore using a structure or ignore refining the structure once built, and lose many opportunities to easily develop their people, the team and the business.

This case study deals with some of the most immediately beneficial structural elements that a business needs to survive and to thrive in these modern times.  In it, we show how to make an immediate impact and how to improve your long-term business fundamentals.

The challenge

With this client, the challenge was all of the firefighting that occurred on a regular basis.  There was little time left over to develop the business. The individual employees were very good at what they did, yet they worked with each other primarily by oral tradition and instinct. This made it difficult to develop other, less experienced employees except over a relatively long period of time.

Position deliverables were unclear and in some cases contradictory. The owner was too involved in the day to day operation of the business and unable invest his attention on some of the more strategic elements of the business.

Identifying the primary issues

There were no job descriptions, except the ones gathering dust from 15 years ago. Employee evaluations were infrequently done, if ever. Most evaluations occurred when a major problem developed and it looked as if it might be necessary to terminate someone’s employment. Employees were not clear on how their role fit into the overall strategic picture.

The leadership team was great at details, but had a difficult time focusing on the most important issues and longer term objectives. Everything seemed important to them, which really meant that nothing was important. Everything seemed to “just happen” without clarity of how it all fit together.

The owner desired to invest less time, not more.

The business environment was changing with increasing competition and tighter margins. Better results were needed to prevent the business from deteriorating.

Recommended actions

• We conducted The 3Rs Interviews with the top 10 positions in the company and focused on identifying the six Key SMAART Deliverables that were most valuable for each position in the business.   
• Job Descriptions were built that included a position scorecard. The owner and each position met with us to “negotiate” and refine the Key Deliverables. 
• Based on the position scorecard, we structured a quarterly evaluation and then role played the evaluation process with each manager/leader.

Recommended actions – continued

• A company calendar was built to schedule out the evaluations for a year in advance, along with other regular reviews and events such as process improvements and training. 
• A bonus pool was set up to be paid quarterly, based on company profit.  Half would be paid within 30 days of the end of the quarter with the balance paid at year end close out by the CPA. If a position earned 87% of their points based on the position scorecard, they would be eligible for 87% of their part of the bonus. 
• Weekly meetings were set up for each member of the core team to share individual goals and to identify critical actions to achieve key goals for the business. As part of these meetings, we structured time to harvest the wisdom into a process and procedures manual for new hires and to create a future training program. 
• For the business overall, we set six key goals for the business. The key goals were clearly communicated and linked to team objectives and the individual position scorecards. 
• Over time, we put all of the major business processes and sub-processes into a common written format. 
• Each process, job description, goal, etc. was added to the company calendar to be reviewed, updated and refined at least annually.

Summary

Structure is deceptively obvious and can appear to be boring. However, the right structure with job descriptions, employee evaluations, bonuses and meetings are valuable tools in improving individuals, teams and businesses. Without these structures being set up and administered well, the business will not be aligned to maximize strengths and minimize weaknesses. 

A lack of structure allows attention to be diverted from the most important actions and can result in a poorly coordinated business. It is important to set up a structure for the employees so they will be able to put energy into the right areas of the business. 

Mistakes to avoid

• Not creating a structure causes each meeting, process, etc. to have to be individually customized each time. Wasting time and energy allows mistakes to be easily made. 
• Assuming that oral tradition, osmosis and example are the best ways to teach. 
• Not meeting often enough to exchange ideas, experience and reconnecting with each other. 
• Creating job descriptions, evaluations, bonuses and team meetings that are not aligned and linked together. 
• Not using a company calendar to spark brief review and refinement of every structure at least annually. 
• Not tying key long-term company goals directly into the structures that will reinforce and realign followers towards these goals. 

Some practical advice

• Set aside two hours to lay out job descriptions, team goals and company long-term key goals on your conference room table. Ask yourself the question, “Do they all look in aligned and support each part of the company, or do they look like disconnected pieces from several different companies?” 
• Have job descriptions that focus on the most important five to seven results for a position that are SMAART (specific, measurable, attainable, agreed upon, reasonable and time frame). Make sure the results define what you want in a superstar. 
• Even if everyone is busy, have your core team meet weekly, even if only for a short period of time, to be able to keep the goals clear and to be a thermostat for/with them. Keep everyone busy with key actions with the long and short-term goals in mind. 
• Always use agendas for meetings. Have someone take notes and send them to the group the day after the meeting. 
• Give everyone information to be used in the meeting at least one day prior, so there is time to absorb and think through what the data really means. 
• Use structure to create habits so that it takes little energy to do activities, but is high impact for the individual, the team and the business. Habits allow energy to be invested in creative answers rather than on basic recurring needs. 
• Employee evaluations are a great way to coach and teach employees. It is also a mechanism to find out what your audience most desires and how to motivate them.

Special offer: The High Performance Power Structures^™ Exploration Session

If you are interested in learning more about how The High Performance Power Structures^™ Exploration Session can help you make an immediate impact and improve your long-term business fundamentals please contact us. 

You may also wish to learn more about our unique process for Business Owners called The Comprehensive Independence Builder^™, in which we address all of the obstacles you face and then help you use innovative strategies to protect and enhance your business, improve your quality of life and better achieve your goals.  

To schedule The High Performance Power Structures^™ Exploration Session or for more information on our process, please contact us at 800-786-4332, or info@appliedvisionworks.com.