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The Right Stuff

 John Kielich, CPA - Managing Director for Kolb+Co. M&A Advisers   email | bio 
LeAnne Foster, CPA - Senior Associate for Kolb+Co. M&A Advisers   email
September 2011

Saying these are uncertain economic times would be a bit of an understatement.  As a manager or business owner, you are justifiably concerned and may wonder what can be done when world events are seemingly dictating your situation.  We continue to be optimistic about the economic crisis ending and things improving.  However, regardless of what ecomonomic conditions are, you can address a critical factor that will position your company for furture sucess - the players within your organization.

Peter Drucker, a well known management expert, said it best: “The ability to make good decisions regarding people represents the last reliable sources of competitive advantage, since very few organizations are very good at it.” In other words, the success, and in many ways the “value” of your company, is based on the quality of people you have.  A helpful guide for finding the right people can be found in the book “Topgrading” by Bradford D. Smart, Ph.D. The concepts in the book have been used by numerous companies to improve their talent and obtain the competitive edge to succeed.

While the entire book is worth reading, we have chosen to share a few key points. In particular, there is an exhibit in the book that distinguishes the difference between “A”, “B” and “C” players on some key critical hiring competencies.  Below is a comparison of “A” and “C” talent in some of the key competencies defined in the book. You would be correct in assuming the “B” players fall somewhere in between. 

Intelligence – The “A” player will have an IQ of 130 or higher, be a quick study, and be able to rapidly perform complex analysis.  The “C” player will have a lower IQ and have difficulty coping with new, complex situations.

Leadership – An“A” player initiates needed change, is highly adaptive, and is able to “sell” the organization on the change.  A “C” player prefers the status quo and lacks credibility which makes people more hesitant to follow their lead.

Drive – “A” players are passionate with an extremely high energy level.  The “C” player, while dedicated,will have an inconsistent pace.

Customer Focus – The “A” player will be extremely sensitive and adaptive to both stated and unstated customer needs while the “C” player will be inwardly focused and misjudge the inelasticity of demand for the firm’s products and services.

Team Building – “A” players create focused, collaborative, results-driven teams and will energize others.  The “C” player will drain energy from others with actions that prevent synergy.