Building a successful business requires prioritizing having the “right people” in the “right seats” who are motivated, competent, and aligned with the company’s vision, enabling effective execution of strategies and achievement of financial goals.
Primary Implication
The primary reason businesses lose money is because they have the wrong people in their employ. They choose to compensate for their incompetence and lack of discipline rather than go through the difficulties of terminating them.
Getting these people out of your business frees up money to invest in the right people who will help you achieve your sales and profitability goals.
Overview
In the book “Good to Great” by Jim Collins, he introduces the principle that good-to-great leaders first get the right people on the bus, the wrong people off the bus, and the right people in the right seats. Then, they figure out where to drive it. He replaces the adage “People are your most important asset” with “People are not your most important asset. The right people are.”
No matter where your business is in its business profit stage, getting the “who” right is more important than the “what.” You can more easily adapt to a changing world if you have the right people in the right seats in your company. This happens because the right people on the bus will motivate and manage people to do what needs to get done. After all, they have bought into their role and what they are accountable for delivering. Put another way, if you have the wrong people, it doesn’t matter whether you discover the right direction; you still won’t have a money-making business. Great sales with higher profits that build cash reserves don’t happen without great people—it’s impossible.
