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The basis of every successful business is the make up and competence or otherwise of their team

A business’s greatest asset is in its people but it could also be the business’s greatest challenge 

As the Leader of your business the success of your business rests with the success of the recruitment and the ongoing management and training of your human capital


We all know that we cannot build a business without all 3 Skills:

  1. Grinders to do the work (however they are generally not very organised and need direction from the Minders)
  2. Minders to manage the work (they are great at managing others and keeping Grinders focused. Generally very organised )
  3. Finders to bring work in (but need Grinders to do the work and Minders to manage the work )


A business needs all 3 skills for it to grow and prosper

I have seen businesses with just grinders and it’s chaotic

I have seen businesses with just managers and whilst very organised and orderly it does not grow

I have seen businesses with just Finders but the leakage creates more damage to the brand and business net of the inflow of new work coming in.


For a mature business the greatest asset and the pivotal point of a business’s success rests with the managers ability to scale their work capacity and one can only do that by effective management of staff through delegation.


There is a distinct difference between Abdication and Delegation

We know that if the business is managed well than everyone wins eg clients are serviced well, (therefore are happy to pay your fees), staff are happy (and therefore more productive), managers are able to scale what they do, which leads to more production/productivity and better profits for shareholders and business is able to pay better wages and bonuses to staff.

A well managed business is a win for all.

A poorly managed business does damage to everyone around them eg clients are poorly serviced, staff cannot get paid well as there are no profits,

shareholders do not make money and therefore cannot invest back into the business.

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Hence we spend a lot of time at the Minder level if we are to be successful which in turn benefits everyone.

Our greatest strength is our human capital (our staff) but they can also be our biggest burden and cost and the wrong person can even bring a business down.

There is an “old saying”

How does one build a small business?

Give an incompetent manager a Large business!

In addition to Grinders, Minders and Finders, Skills, people are divided into:

  1. INFLOW people who are only interested in getting a bigger slice of the pie (which means someone else gets a smaller slice). The fundamental drive of these people is self interest. It’s all about what they can get and they don’t particularly care that someone else gets a smaller slice of the pie. They typically argue for a higher wage with no corresponding increase in productivity. Unions are great at this. This is a win/loss situation and does not work. Or greedy companies pay poor wages to get a larger slice of the pie and this also does not work.
  2. OUTFLOW people are those who get their bigger remuneration by growing a larger pie. They are focused on production/productivity to grow the pie. All their decisions are based on how they can produce more or increase the pie. Their decision making process is around Results/production and not around “Being Right” or ego.

Self employed people or “commission only” people are pure “Outflow” people since they only earn what they produce. Employees can also be Outflow people if they focus on increasing their remuneration from increased productivity and not from trying to get a bigger slice without productivity (profit) increases. Naturally one increases Productivity or NET Profit by either increasing sales or reducing expenses and by being more efficient and effective. Working as a Team to produce better results/profits so everyone can benefit. They benefit by everyone else benefiting first. Like making sure your clients are happy first which in turn will benefit yourself as a successful business can pay better wages.

  1. COVERT HOSTILE people are the most Dangerous to your team and business because their only agenda is to bring you down. They are nice to your face but constantly plotting to bring you down behind your back. They are also those who have very low productivity and they start “bushfires” to distract you from their low productivity. You know who they are:
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(a)    They always have excuses for not getting results. It’s always everyone else’s fault.

(b)    They are always surrounded by drama and when they are on annual leave the whole place calms down and productivity increases.

  1. UNCONSCIOUS INCOMPETENCE are extremely damaging because they are not aware that they are incompetent. They debate with you that they are doing a good job when the poor results around them clearly indicate that they cannot do the job but they stubbornly will not acknowledge their Incompetence and blame everyone else for their poor results. You seem to spend all your time with them and no matter how much training you provide them they never seem to improve. This is incompetence and not inexperience and you must manage them out of your team as they are a heavy burden to your productivity.

Your team are your greatest asset. They are also your greatest challenge/Risk to your productivity and business.

If you manage them well, everyone wins.

If you manage them poorly (including Not removing INFLOW or COVERT HOSTILE or the UNCONSCIOUS INCOMPETENT” people from your team ) it will cause damage to everyone around you including clients, other Outflow Staff, Shareholders, which all leads to poor profits and an inability to pay better wages.

Remember “Fire fast and Hire Slow” a “Seat left Empty is better than a seat occupied by an incompetent person.”

 You know who these people are simply by their RESULTSAccept no excuses for poor results…

Ed Chan - Chan & Naylor

Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs. Click for more detail regarding this disclaimer.


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