Companies that segregate their core & non-core activities have on average 4x higher revenues vis-a-vis companies that don’t. Neeraj shares 3 ways in which you can leverage this Business Growth Driver!
The number one challenge that I’ve seen with entrepreneurs as they grapple to scale up their enterprise is people. In my last blog, we saw how important a second line of management is but still overall people struggle on that particular front. So how do you have happy and engaged employees?
In this blog , I share 3 Specific challenges that entrepreneurs struggle with.
- Hiring the right people
- Building a formidable team that’s able to independently grow
- Retaining the particular talent
In my last series of blog, I share some very specific ways in which we can do that. The number one way in which you can address a majority of these people-related issues is making sure that you have an employee-engagement system in place.
According to a recent EY report, If you are able to invest in a total-rewards mechanism, then you will find that you have a 15% higher employee productivity than companies that don’t.
There are 3 specific ways in which we can have happy and engaged employees:
- Right People in the Right Place:
Make sure that you have the right people in place. Develop a hiring process in which we are able to get across the long term vision of your company and get your people excited about it.
Seek to understand what are the aspirations of your people and make sure that these are aligned with you. Show how by meeting the company’s goals, the company’s visions, they are able to also positively impact their aspirations.
The best advice that I’ve got as far as people go is this: Hire slowly, fire quickly. Make sure that you have a very specific way in hiring people and invest in that particular process. It may take some time and effort to do that but don’t cut corners there because it’s really important.
Imagine if you were hiring a partner, just not an employee and if tomorrow this person is going to be a partner in your business. What are the kind of interview would you want to conduct? What kind of things that you would want to ask?
I am also providing a link here on the three specific things that I look for when I’m hiring people.
2. Up-skill Your Team: Make sure that you are investing in upskilling your team. You’ve to define the Key Results Areas for each particular role. Have an assessment to identify the skills gap between a person’s current ability and what the job will demand. This will figure out what training you require for your team to help bridge the gap.
Help your employees become more successful in their job. If you are able to do that, then you are able to get happier and more productive employees.
3. Retaining the Talent: To retain top talent you need to have a total rewards system. It’s not just making sure that you have a good salary package in place but there are many other things that come into play here. For example do you have a recognition system in place? This is an important way in which you are able to retain and engage talent.
Do you have a process of performance review and feedback? This will help you and team to know how well they are doing. You need to have a process of continuous feedback.
These are 3 simple ways in which you can have happy and engaged employees.
Leave a comment below about how you keep your employees happy and engaged?
Iconic entrepreneur & billionaire, Mr. Harsh Mariwala shares his entrepreneurial journey with Neeraj. Watch this captivating interview with a number of gems and tangible takeaways for every entrepreneur who wants to succeed.
Visit Ascent India Foundation on http://www.ascentfoundation.in/ to find out how Ascent can help you enrich your entrepreneurial journey.
In this episode you will discover:
- The first business he started as a youngster (02:00)
- What question does Mr. Mariwala ask himself before he does anything. (05:00)
- How does he see giving back (6:00)
- How can innovation impact business growth (8:00)
- A great insight into hiring great people (12:00)
- Great tips on building a strong culture. (14:00)
- Tips on people management and retaining talent. (17:00)
- More details of the Ascent platform that Mr. Mariwala has created to support entrepreneurs (22:00)
- Mr. Mariwala’s productivity mantras. (22:00)
- 2 books Mr. Mariwala recommends for entrepreneurs that he had read recently (29:00)
- How growth is like oxygen for a business (32:00)
- A key to growth that has helped Marico be a market leader is so many sectors. (33:00)
Let us know what your key learning was from this successful entrepreneur by leaving a comment below.
Read the Transcript
Read a word for word transcript here.
Management guru, Peter Drucker famously said “what gets measured gets managed.” I’m a great fan of managing your business by key numbers. It gave me a clear pulse of the business and gave me clarity on what I needed to focus on before it’s too late. The challenge is that many times entrepreneurs don’t measure these important numbers or they end up tracking the wrong numbers. In this blog I’d like to share four key learnings in this matter:
- Leading vs. lagging indicators – My biggest “AHA” moment came when I learned this distinction. I will give you a simple example of weight to illustrate the point.If you want to manage your weight then getting on the weighing scale will only tell you the current situation. No change will happen by getting on the weighing scale daily. This is a lagging indicator. It is the result of all your previous decisions and actions.If you want to change your weight then you need to focus on monitoring and measuring 2 key numbers that can proactively help the end result of managing your weight. These would be considered leading indicators. Take for example you can focus on:(a) your calorie intake – you could limit your daily intake to below 2000 calories per day.
(b) amount of time you exercise in a week – you could decide to jog for half an hour three times a week.You could set goals here on the amount of calories you burn. It’s easy to measure these days with various watches in the market.
Both are measurable and both are actions that you can proactively take in the future. If you focus on taking actions on these two indicators daily or weekly, then over time they will impact your weight (lagging indicator).
For example in a business context, one of your goals this quarter could be to generate 1 crore of new revenue. This is the Lag measure.
The lead measures or Income Producing Activities (IPA’s) that can impact the business generation are:
(i) Number of Qualified New Prospects that you have contacted.
(ii) Number of existing customers you have met or called today to upsell.
(iii) Number of people on your database or social media channels.
In one of my earlier blogs I shared a slidedeck on how to get teams to execute key goals in more detail. Have a look at how to lead and manage winning teams.
One of the most important things we can do to scale up a business is to develop a team. Successful delegation is a crucial part of team management and a powerful way to boost your productivity. While most people think they know how to delegate I have found them to be ineffective because they miss crucial steps. With these seven steps you can become an expert delegator:
Step #1: Decide on what to delegate
Before delegating anything, first ask yourself whether the task needs to be eliminated or automated? If the task is necessary and cannot be automated then I put it through the following matrix to see what to delegate:
As a general rule I want to keep all items in zone 1 – The Flow Zone with me. These are tasks that I’m highly passionate about and I’m very proficient at too. These are items that energize me and add the most value to my business.
I want to delegate all other tasks in zone 2, 3 & 4, starting with those tasks in my disconnection zone first. These are tasks that I have a low passion and proficiency for.
Step #2: Select the appropriate person to delegate to.
It was a revelation for me to find that there were things that were in my “disconnection zone” that were in the “flow zone” for other members of my team. This is why it’s important to build a complimentary team. (more…)
Recently I was working with a group of business owners helping them craft their compelling vision. Every great company is powered by a compelling vision. It usually is an expression of the founders of the company. It energizes everyone in the company to become more and strive for more. It clearly communicates the WHY that powers the company.
A powerful vision inspires you and your people. It gets their juices flowing. It attracts others to you, be it clients, vendors, partners, employees and investors. It gives us tenacity to strive forward even in the midst of adversity. The pursuit of the worthy vision transforms you into a better expression of who you can be. It grows you as a person. It helps contribute beyond yourself, thereby giving you deeper meaning and satisfaction in life. It helps tap into your spirit! So how does one create a compelling vision for your company?
- A core ideology
- An envisioned future
Each of the above can be broken down into a further 2 parts:
Parts of a core ideology
- Core values – These are values that the company lives by. These are ones that they value is good by themselves and they would even consider changing their business model to ensure that they are living by these. For example one of Tata’s core values is trust. One of Disney’s core values is wholesome entertainment.
- Core purpose – This is the key reason why the company exists. For example Tata Group is committed to improving the quality of life of the communities it serves. Disney’s core purpose is to make people happy. What’s your core purpose?
Parts of the envisioned future
- BHAG – The Big Hairy Audacious Goal, a term coined by Jim Collins, refers to a goal that powers the company and it looks to achieve in the next 10-30 years.My BHAG, when I first started BNI India, 11 years ago was simple – to help 100,000 entrepreneurs become crorepatis through the BNI referral system, so that they could employ 10 more people in their company, so that we could create 10 lac jobs and thereby we could positively impact 10 lac families across India. At the time, when I set the BHAG, BNI worldwide had 90,000 members in total, so my BHAG was a real stretch. My colleagues laughed at me.
A good BHAG should have a “gulp” factor. It should equally excite and scare you. Part of you should say “That’s nuts!!” and part of you should say “imagine for a moment if we achieved that – how incredible would that be?”
- A vivid description of the envisioned future – Paint a clear picture of what the world would look like when you complete your BHAG.Who would we need to be as individuals and as a team? How would the world or our target market be better as a result of us?What are some of the key milestones we would have achieved on the way to achieving the BHAG?
So what’s your compelling VISION? How are you positively going to impact the world? Leave a comment below.
HOW TO MANAGE WINNING TEAMS – Created with Haiku Deck, presentation software that inspires
Leading teams that are clear about what needs to be done, who play full out and achieve their goals is every leaders dream. While most business schools tend to focus on strategy, entrepreneurs really struggle with execution. Management guru, Ram Charan says that 70% of strategic initiatives fail because of poor execution.
So why is executing difficult? Execution is difficult because there is a battle between the URGENT vs IMPORTANT things. Let’s look at these in more detail:
Urgent work is the daily work – operations, support, sales etc. Urgent things drive us. We tend to react to these things. Onthe other hand important things are our goals – Where we want to be. This is what we drive. Unfortunately we are busy being busy. Urgent work always wins over important, unless we develop some key disciplines to help us execute.
There are 4 tried and tested disciplines to great execution that have been identified by authors Chris McChesney, Sean Covey & Jim Hulling in their excellent book: “The Four Disciplines of Execution”
- Focus on the Wildly Important Goal (WIG)
- Act on the lead measure
- Create a compelling score board
- Cadence of Accountability