Who Is the “Right” Person for the Job?

Learn how to get the right person in the right seat with the accountability chart and “GWC”

Putting the right person in the right seat is one of the biggest challenges to overcome when you want to grow your business. Each individual on the team must be motivated, committed, and in alignment with the company’s vision—and they also must be assigned to the right role and have clarity about their responsibilities.

But how do you find that “right” person for each business position? And how do you clarify roles for the organization?

Start by creating an accountability chart and integrate the concept of “GWC:” uncover who gets it, wants it, and has the capacity to do it.

The accountability chart

When it’s unclear who is responsible for what within your organization, or when goals aren’t being met and time is being wasted, create an accountability chart.

This chart indicates the responsibilities of each employee, providing clarity about where each person fits within the organization. Without clearly delineating which worker owns each area, problems are often left unsolved.

First, define the major functions of your business. What makes your organization move? Then, assign each person to each role so that they own that function. Instead of getting caught up on job titles, focus on who’s accountable for what tasks and responsibilities. Don’t let ego get in the way of operations; focus on collectively reaching for goals and achieving what’s best for the business.

The accountability chart helps you compartmentalize who is doing what. You and your team will also better understand where one process ends, and another begins. This supports organizational clarity because knowing who’s accountable helps each problem get solved quickly—which, in turn, helps your business become more efficient.

Using the GWC to find the right people

Now that you understand the benefits of an accountability chart, how do you know where to put which people? Merely creating the chart doesn’t mean that the right individuals are assigned to the proper functions. You need to find out if your people “GWC” the role: Get it, Want it, and have the Capacity to do it.

Get it: The right person just “gets” it. This means fully understanding the role and its responsibilities, and how the position fits into the large organizational structure.

Want it: Some people love what they do, and it’s obvious. The right person will genuinely desire the position.

Capacity to do it: Capacity refers not just to skills and experience but to both the physical and emotional abilities to perform the responsibilities of the role. The right person must be willing and able to meet the requirements of the job.

All three elements of GWC must be present for the right person to sit in the right seat.

Tips for hiring the right people

When hiring new employees, keep these tips in mind to make sure you’re finding the right people for your organization.

1. Clearly define and clarify the role

You won’t get the right candidates applying or interviewing for the job unless you and your team have clearly defined the role. This helps you narrow down exactly what the most critical skillsets are for this person to have.

2. New hires must align with company values

Match up hires with the company culture and values. This involves asking questions that center around your values and mission. Tell candidates about a typical day at work, and ask them if they’re comfortable with that kind of environment. Ask them why they want to work for a business like yours and what their ideal workplace looks like.

3. Be open to hiring externally

It’s always tempting for companies to hire internal candidates for open positions. This often simply makes sense. It can save time and money on the recruiting and hiring process, and motivating internal employees to find their perfect fit within the company should always be encouraged.

However, this is not always the right way to go, and many companies end up with the wrong person for the job because they wanted to support current employees. Be open to interviewing external candidates, too.

4. Follow your instincts

The right person for the job may not fit into a specific box defined by skills and experience. In interviews, follow your instincts about a candidate. Don’t get hung up on checking off a list of qualifications on a resume. Instead, also consider whether their drive, personality, and commitment match up with the job’s needs that are defined on the accountability chart.

When you can create a clear accountability chart and use GWC to make sure the right person is in the right seat, your organization will be far likelier to fill positions effectively.

The team at Provident CPA & Business Advisors assists entrepreneurs and business owners with growth and development plans. Get in touch today to learn about how we help implement the Entrepreneurial Operating System (EOS).

How to Practice the Pareto Principle

The Pareto Principle is a way for businesses to optimize business performance and maximize growth. Here’s how you can apply it to your operations

The Pareto Principle, also known as the 80/20 Rule, helps entrepreneurs have a better grasp of how to grow their business. The 80/20 Rule is commonly applied across industries, including sports, risk determination in healthcare, personal finance, engineering, computer science, and many more.

While the modern principle was first developed by an economist and related to the distribution of land and wealth, entrepreneurs who can understand how it shapes performance will see major improvements in areas like valuable customer acquisition, time management, and cost-efficiency.

Pareto Principle explained

The Pareto Principle generally has to do with cause and effect and follows that 80 percent of outcomes originate from just 20 percent of causes. The concept is named after the Italian economist Vilfredo Pareto, who first applied the principle to land ownership at the end of the 19th Century. He found that 80 percent of land in Italy was actually owned by just 20 percent of the population, and his theory proved to be accurate in other regions as well.

But Pareto also applied his theory to other areas, including gardening. He noticed that 80 percent of his peas came from just 20 percent of the pea pods.

Another theorist, Dr. Joseph Juran, started to apply the theory to business productivity in the 1940s. He posited that 20 percent of production problems caused 80 percent of product defects.

In other industries, the 80/20 theory works similarly. For example, in sports and fitness, the application of the principle has theorized that 20 percent of exercises or training efforts produce 80 percent of the results and impacts.

So how does the principle apply to modern businesses?

The Pareto Principle and sales

It’s commonly thought that in business, 20 percent of your customers represent 80 percent of your sales. This means that certain customers are far more valuable than others. Once small business owners understand this, they can make improvements to their business plan by:

  • Focusing more time on the most valuable customers
  • Identifying traits of the 20 percent
  • Recognizing specific behaviors from the 20 percent that indicate an intent to buy
  • Bringing in new clients with those identified traits

It’s important to note that this principle does not mean that your other customers aren’t as important as the 20 percent. It just helps you know where to focus your attention to help you increase revenue and sustain business growth.

Time management

Another way to improve your business with the 80/20 Rule is by using it to improve time management. Think about all of the small tasks you do throughout the day that keep your business functioning, but that don’t directly contribute to increasing revenue. You have to do paperwork or run errands or enter data. These tasks are necessary, but they are not part of the 20 percent of what you do with your time that brings in 80 percent of your revenue.

It’s easy for entrepreneurs to want to do everything themselves instead of delegating. But focusing your energy on things like sales, business growth, marketing, and obtaining new valuable clients is a much more valuable use of your time.

Try hiring an assistant or contractor for everyday activities like administrative tasks, writing marketing copy, or even home maintenance chores like laundry that take away from your focus on your business. Remember that just 20 percent of the things you do with your time contribute to 80 percent of revenue.

Business cost management

The Pareto Principle can also be applied to cost management for your business. It would follow that 20 percent of costs are responsible for 80 percent of revenue. This can help you avoid counterproductive spending and help you improve your budget and cash flow. But it can also help you understand how big of an impact it would have to cut costs that contribute to a large portion of sales.

This is a similar idea to the concepts that 20 percent of customers and 20 percent of time spent are directly contributing to 80 percent of sales. The principle can be applied to other areas of the business as well, like marketing efforts or the value of individual sales team members.

The 80/20 Rule is still implemented by business owners across industries to help them plan for where to invest money, energy, and focus for optimal growth.

When you need assistance creating a sustainable business plan, the team at Provident CPA & Business Advisors can help. We provide growth and profit improvement services for businesses and incorporate the tools of the Entrepreneurial Operating System® (EOS) to help align teams and increase productivity. Contact us today to learn more about our services.

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Understanding USPs for Your Business

When you know how to identify and communicate unique selling propositions (USPs), you’re on your way to growth

Your unique traits are what make your business stand out from competitors. These traits are also known as your unique selling propositions (USPs) for your products and services, and they need to be communicated to consumers convincingly and engagingly. USPs aren’t just words in your mission statement—they need to be characteristics that drive and differentiate your brand.

Without nailing down USPs, your marketing efforts may feel ineffective and trajectory stagnant. With all the competition that the digital age has brought, it’s more important than ever to keep the message fresh to stand out online.

Clearly defined and well-communicated USPs are at the heart of a successful business plan—keeping people interested in what your products and services provide.

Defining your USPs

Start by asking yourself what makes your business different. Of course, you’ll have a lot of similarities with competitors, but your USPs should be totally unique to you. Ask: What makes you special for your ideal audience? What motivates the behavior of your audience? What do they really care about? Why would they care about your product or service? Your offerings should solve a specific problem for your customer base, so start there.

Research what your closest competitors are listing as their USPs. What’s working for them? How focused are they on the customer experience? How do your products differ from theirs? What services do you provide that they don’t? One pro tip for creating USPs is to focus your ideas around one specific area of the market, instead of trying to compete with every brand that’s slightly related to your industry. In some industries where products are virtually the same, a USP may be the level of service your business provides in conjunction with that product. In others, the essential product or service offered is truly unique.

Also, start researching the USPs of brands that aren’t necessarily competitors, but are successful in communicating and delivering on their distinguishing characteristics.

Another way to get ideas is to talk to your customers directly. Ask for feedback about what they really liked about working with you and what they believe makes you stand out from other brands—or doesn’t. Schedule interviews and phone calls to better understand the customer experience. This also gives you an opportunity to add testimonials to your website that highlight your USPs.

Make sure that whatever USPs you come up with are true based on your track record, and that they are realistic about what you can and do deliver.

How to communicate your USPs

Once you have well-defined USPs, it’s time to start communicating them effectively. Think about how you can integrate them into your company’s mission and vision, and create an “About” page description that includes your USPs. You can even list them out as bullet points and further explain each one.

Make sure you can communicate your unique traits in a succinct, clear manner. Keep it simple and easily digestible. Create a sort of elevator pitch that you can easily send to customers. You can even clearly and directly state that these values and deliverables are your USPs. Headings on a website may read “How we’re different” or “What sets us apart,” for example.

It’s also useful to view your USPs as promises you’re making to your customers. On your social media accounts, website, email communications, videos, and advertisements, make sure that you’re making your promises clear about what clients can expect when working with you—and why they should.

Finally, your team should be aligned on your USPs so that the entire business has these priorities at the forefront of all that they do. Just like your mission and vision drive the team toward goals, USPs should influence the way your company interacts with customers and delivers.

The Entrepreneurial Operating System® (EOS) is a toolset to foster growth in your business and align your team around a specific set of goals that support your company’s vision. This system is made specifically for small business owners and provides a holistic approach to strengthen your enterprise.

At Provident CPA & Business Advisors, we use EOS to help our clients formulate a realistic plan to create a durable growth trajectory. With the right tools and principles, you’ll be able to better connect with and grow your client base. Get in touch with the Provident team today to get started.

Get a Grip: Why You Need Traction to Grow

Traction is the difference between spinning your wheels and getting your business on the road to success. Learn how these methods of gaining control can supercharge business growth and focus.

To grow your business, you have to guide it consistently and carefully. Business success is not about luck. It’s about you harnessing the tools you have to push your vision forward.

Traction is crucial in growing and sustaining your business. To increase revenue and customers, teams must be aligned, and all parts of the company must be contributing to moving the overall machinery forward toward your vision.

So what is business traction, exactly, and how can you create it?

What do we mean by traction?

Think of traction in the literal sense, with the tires on your car. Without traction, nothing is making your vehicle move forward. When you hit the gas, your wheels just spin, meaning you’re expending energy but not getting anywhere.

Don’t just spin your wheels in business, wasting energy that’s not leading you to reach your goals or to grow. Traction is your ability to make nearly every decision and action count in the long run. It’s about taking control of the business and being deliberate. You can only fill the gap between vision and execution with traction.

The Entrepreneurial Operating System® (EOS) allows you to gain traction in all of your business’s moving parts. This means creating a team that holds each other accountable, is disciplined, communicates well, and executes actions and steps that move you forward. Making these changes may be a little uncomfortable at first, but recognize that temporary discomfort is a requirement for growth.

How do you create traction?

Let’s break down these moving parts.

1. Creating an accountable team

The vision and goals you’ve created won’t be realized unless everyone is on board and acts consistently to reach those goals. This requires accountability for all personnel, including (and especially) leadership. Set up clear tactics to holding each other accountable for plans, strategies, and methods that have been put in place.

Methods of accountability include checking in with team members to ensure deadlines are being met, steps are being executed, and every decision made aligns with the company’s mission and vision for the future.

2. Building a disciplined team

These methods then contribute to a more disciplined team overall. A sense of direction will be made clear for everyone when it can be defined in big-picture terms. Explain how each role fits into that big picture.

If something is not serving the overall goal, it should be reevaluated to see if it’s still a relevant process or task. This creates more efficiency and leads to more growth opportunities.

3. Communicating more effectively

A big issue that can develop quickly on any team is poor communication. When this happens, resentment builds, trust lessens, and all that discipline and accountability go out the window. The three factors must work in conjunction with one another.

Make communication a priority within your team. Promote honesty and openness, and give employees at all levels a chance to voice their opinions and contribute to the strategy. Ask for feedback and change your approach accordingly. Update your recruiting practices so that you’re focusing on hiring team members who are a good fit with the company’s values.

How does traction promote business growth?

When your teams are aligned, and they’re holding each other accountable to reach goals and stay in line with the company’s vision, traction is created, which then shifts into the key elements that lead to growth. These key elements are revenue growth and better lead generation and customer retention strategies. Without traction, you won’t be able to handle or execute these important elements of growth.

With traction and momentum created by an aligned team, your business can contribute to and properly manage increased revenue, more customers, and more repeat customers. These are all crucial elements for long-term growth, and they’re realized by creating and meeting specific goals, in addition to measuring success.

Well-defined goals and a clear vision both attract investors for new companies and help more established companies to remain stable and sustainable. Progress toward these goals must be measured regularly to help improve strategies for optimal success.

Metrics to track include things like sales numbers, churn rate, customer retention rate, customer lifetime value, and customer feedback. Employee response time is also a significant factor to be aware of to improve customer service.

It’s time to bring discipline and accountability to your team to execute your vision better and create a sustainable, growing business.

Provident CPA & Business Advisors implements EOS with our clients to help you improve the six key components of your business: vision, people, data, issues, process, and traction. We help you solve big problems for good and create plans that will promote growth and profit improvement. Get in touch with our team to get started.