Who

1. Who, Not What: The Key to Business Success

The most important decisions that businesspeople make are not what decisions, but who decisions.

People drive success. In business, the who (the people you hire) is far more critical than the what (strategies, products, or processes). A-grade talent can solve any what problem, but even the best strategies fail with subpar talent. This principle applies across all levels of an organization, from entry-level positions to C-suite executives.

Costly mistakes. Hiring mistakes are expensive, often costing up to 15 times an employee's base salary in lost productivity and resources. With a typical hiring success rate of only 50%, businesses waste significant time and money on poor hires. However, these mistakes are preventable with the right approach.

A systematic approach. The "ghSMART A Method for Hiring" provides a structured framework to consistently identify and hire A Players – individuals who have a 90% chance of achieving a set of outcomes that only the top 10% of possible candidates could achieve. This method involves four key steps: Scorecard, Source, Select, and Sell.

2. The Scorecard: Blueprint for Defining A Players

Scorecards are your blueprint for success.

Define success clearly. A scorecard is a document that precisely outlines what you want a person to accomplish in a role. Unlike a traditional job description, it focuses on outcomes and competencies that define excellent performance. This clarity helps both in hiring and in subsequent performance evaluations.

Key components:

• Mission: A brief statement of the job's core purpose
• Outcomes: 3-8 specific, measurable results to be achieved
• Competencies: Skills and behaviors required for success, including cultural fit

Strategic alignment. Scorecards should directly link to your business strategy, translating high-level goals into role-specific expectations. This ensures that every hire contributes directly to the company's objectives and maintains cultural alignment.

3. Sourcing: Generating a Flow of Top Talent

I am constantly on the hunt for talented people to bring into my company.

Proactive talent acquisition. Successful leaders consistently source candidates, not just when positions open up. This ongoing process ensures a steady flow of high-quality candidates and reduces time-to-hire when needs arise.

Key sourcing strategies:

• Referrals from professional and personal networks
• Employee referrals (with incentives)
• Deputizing "friends of the firm"
• Strategic use of external recruiters and researchers

Systematic approach. Implement a system to capture and follow up with potential candidates regularly. Dedicate time each week to nurture these relationships, even when you're not actively hiring.

4. The Who Interview: Uncovering Patterns of Success

The patterns become clearer and clearer, so it becomes easy to get a fix on exactly what the individual's strengths and weaknesses are today.

Chronological deep dive. The Who Interview involves a thorough, chronological walk-through of a candidate's career history. This structured approach reveals patterns of behavior and performance that are highly predictive of future success.

Key questions for each role:

1. What were you hired to do?
2. What accomplishments are you most proud of?
3. What were some low points during that job?
4. Who were the people you worked with?
5. Why did you leave that job?

Data-driven insights. This interview format provides a wealth of specific examples and context, allowing interviewers to make informed decisions based on a candidate's track record rather than gut feelings or rehearsed responses.

5. Focused and Reference Interviews: Digging Deeper

Don't skip the references!

Targeted inquiry. Focused interviews allow team members to delve into specific areas of the scorecard, gathering additional information about a candidate's fit for the role and culture. This multi-perspective approach enhances decision-making quality.

Thorough reference checks. Conduct at least seven reference interviews, including bosses, peers, and subordinates. Use a structured approach similar to the Who Interview, focusing on the candidate's strengths, areas for improvement, and overall performance.

Key reference interview questions:

1. How did you work with the person?
2. What are the person's biggest strengths?
3. What are the person's biggest areas for improvement?
4. How would you rate their overall performance on a 1-10 scale?
5. The person mentioned that you might say X about them. Can you tell me more about that?

6. Selling the Opportunity: The Five F's Framework

You've got to do whatever it takes when you are sure you have identified the right person.

Candidate-centric approach. Once you've identified an A Player, shift your focus to selling them on the opportunity. Address their key motivations and concerns throughout the hiring process.

The Five F's of selling:

1. Fit: Align the role with the candidate's goals, strengths, and values
2. Family: Address broader life considerations and potential relocations
3. Freedom: Emphasize autonomy and decision-making authority
4. Fortune: Discuss financial stability and upside potential
5. Fun: Highlight the work environment and team dynamics

Persistent pursuit. Don't give up after the first "no." Continue to engage top candidates, addressing their concerns and demonstrating the value of joining your organization.

7. Building and Leading an A Player Team

The difference between an A and a B CEO produces an order of magnitude difference in the return.

Elevate team performance. Building a team of A Players dramatically increases organizational performance and value creation. Contrary to concerns about ego clashes, well-defined roles and a strong culture enable A Players to work together effectively.

Continuous improvement:

• Make talent a top priority, dedicating significant time to people-related decisions
• Implement the A Method consistently across all hiring and promotion decisions
• Train your team on best practices and remove barriers to successful implementation
• Recognize and reward those who build strong teams, while addressing those who resist change

Beyond hiring. Apply the principles of the A Method to development, promotions, and succession planning. This ensures a pipeline of talent ready to take on future challenges and maintains a high-performing organization over time.

Last updated: December 10, 2024