Most states require that every business shut down periodically to take inventory. It's essential to physically count the products on the shelves, to re-calculate the value of equipment, supplies and other physical items that make the company run. The law requires this for equipment and products for sale, right down to the smallest items on the shelves.
Smart companies also do it with regard to their people and their skills.
Jack Welch is famous for saying that at General Electric he wanted a 10% turn-over in personnel every year. The bottom ten percent were encouraged to find other employment because he wanted only the very best, the most highly motivated and the most creative people working for him.
That may sound harsh, even heartless, but he made two vital points. (1) Do you really want unproductive people in your organization? And (2) no one benefits from having people in positions that don't suit them. We actually do people a favor when we gently but firmly encourage them to go where their talents and abilities will be better utilized, and the company is definitely better off. Under Welch's leadership, GE grew to be one of the world's great companies.
Too often, in small businesses and professional offices, owners fail in this vital obligation.
From time to time, step back. Get some outside advice and perspective. Have the courage to judge yourself and your people in terms of productivity, in terms of ability, and in terms of "best fit." If your company isn't producing the results you expect, it may be time to take a careful inventory not just of the products on the shelves, but of the people on your team.
This is where an outside coach can be particularly helpful. Every week, get on the phone with an objective person who can tell you what they see, and help you with the difficult decisions. Take inventory! You'll be glad you did.
Smart companies also do it with regard to their people and their skills.
Jack Welch is famous for saying that at General Electric he wanted a 10% turn-over in personnel every year. The bottom ten percent were encouraged to find other employment because he wanted only the very best, the most highly motivated and the most creative people working for him.
That may sound harsh, even heartless, but he made two vital points. (1) Do you really want unproductive people in your organization? And (2) no one benefits from having people in positions that don't suit them. We actually do people a favor when we gently but firmly encourage them to go where their talents and abilities will be better utilized, and the company is definitely better off. Under Welch's leadership, GE grew to be one of the world's great companies.
Too often, in small businesses and professional offices, owners fail in this vital obligation.
From time to time, step back. Get some outside advice and perspective. Have the courage to judge yourself and your people in terms of productivity, in terms of ability, and in terms of "best fit." If your company isn't producing the results you expect, it may be time to take a careful inventory not just of the products on the shelves, but of the people on your team.
This is where an outside coach can be particularly helpful. Every week, get on the phone with an objective person who can tell you what they see, and help you with the difficult decisions. Take inventory! You'll be glad you did.
By Philip Humbert
