One of the most common mistakes small business owners make is that they create a people-dependent business.
This happens when you hire and promote people based on their personalities and skills…
resulting in your business relying heavily on individuals.
This can cause problems when someone leaves or wants to take a holiday because it is often hard to find someone with the exact personality and skill set that you need.
So, what should you do instead?
Start with these three steps to make your business less dependent on individual people:
1) Think Positions, Not People
Start thinking about the positions your business needs to achieve its goals. Ask yourself, “What positions does my business need to achieve business goals?” Instead of hiring all-rounders, define specific roles like office manager or sales representative. Doing so helps you build a reliable team that does not depend on unique skills and personalities. This will make it easier to hire and replace people when the time is needed.
2) Create an Organisational Chart
An organisational chart is a useful tool to start a position-focused approach. It involves creating three organisation charts:
- one for the current positions your business has
- one for the future (say, 5-10 years from now) so you have an idea of the big picture; and
- one for the next 12 months.
The last organisation chart helps you see the positions you need to hire to bridge the gap between the present and the future. This is the one that will help you identify the priority positions you need to recruit for your business…
3) Make Clear Job Descriptions
Vague job descriptions can often morph and blend when your business is based on people. So, write clear job descriptions for each position in your organisational chart. Outline the responsibilities, required skills, and key performance indicators (KPIs) for each role. This clarity helps you to hire based on the position’s requirements. As a result, it becomes easier to find the right fit and transition when you need to replace people.
Designing your business around positions rather than people guarantees your long-term success. It also makes it easy to systemize your business. As a result, it becomes easier to hire the right person that you are going to need.
