Momentum Podcast: 390
Don't Hire Blind
by Alex Charfen
As entrepreneurs, we want the fastest way to do everything. We want to be able to get things done in the shortest period of time with the highest level of efficiency and the biggest results. One of the biggest issues, though, is when we skip steps in critical processes things do not go well.
When it comes to hiring, when you skip steps you're risking yourself, you're risking your organization, and in some cases, you're even risking your reputation.
As entrepreneurs, we want to see the biggest results in the shortest period of time. One of the biggest issues with this is when we skip steps, whether intentionally or by accident, in critical processes. When it comes to hiring if you skip steps, things do not turn out well. You risk yourself, your organization, and in some cases even your reputation. Analyze your business, bring in the right person for the job and you're going to crush it
Full Audio Transcript
Alex Charfen: As entrepreneurs, we want the fastest way to do everything. We want to be able to get things done in the shortest period of time with the highest level of efficiency and the biggest results. One of the biggest issues, though, is when we skip steps in critical processes things do not go well. When it comes to hiring, when you skip steps you're risking yourself, you're risking your organization, and in some cases, you're even risking your reputation.
I'm Alex Charfen and this is the Momentum Podcast made for empire builders, game changers, trailblazers, shot takers, record breakers, world makers, and creators of all kinds. Those among us who can't turn it off and don't know why anyone would want to. We challenge complacency, destroy apathy, and we are obsessed with creating momentum so we can roll over bureaucracy and make our greatest contribution. Sure, we pay attention to their rules, but only so that we can bend them, break them, then rewrite them around our own will. We don't accept our destiny, we define it. We don't understand defeat because you only lose if you stop, and we don't know how. While the rest of the world strives for average and clings desperately to the status quo, we are the minority. The few who are willing to hallucinate there could be a better future, and instead of just daydreaming of what could be, we enter the vulnerability and exposure it takes to make it real. We are the evolutionary hunters, clearly the most important people in the world because entrepreneurs are the only source of consistent, positive human evolution, and we always will be.
If you've listened to my podcast for a while then you probably know my history in real estate, but for those of you who haven't listened for that long, I'll give you a quick summary. In 2007 my wife Cadey and I introduced a product to the real estate market called the Certified Distressed Property Expert Designation. From 2007 all the way through about 2014, we sold almost 50000 units. It was 49000 units and change. Not only did we sell 49000 and change, we have over 47500 actually finish and graduate from the course and become certified distressed property experts. As a result, we are really well-known in the real estate industry. In fact, my kids used to think that I was famous because we would go to real estate conferences and people would stop me in the hall and take pictures and they'd talk to us. They'd get a little shell-shocked when they saw us. We had to consistently explain to the kids, "Hey, we're only famous at real estate conferences. Everywhere else, nobody knows who we are." It was pretty funny.
Well, this week I got a message from a contact that I used to do business with back when we were in real estate. It was really simple. It was a message that said, "Hey Alex, I need some help. I'm looking for somebody to be my operator in a growing course business that I just started. I've gotten it approved for a continuing education in a few states, and I'm going to get it approved in a few more states. What I'm looking for is somebody to come in and operate the business and act as my COO." I said, "Sure, I know a lot of people. Why don't you send me over the job description document that you have so I can take a look at it, and then maybe match you up with a couple of people?"
About an hour later I got a message back and it said, "I'm working on the job description. Let me know if you know anybody." Right there I want to tear my hair out, because here's what I know about the message that I was sent ... is that that entrepreneur who is thinking about hiring somebody doesn't have a clue what he needs and doesn't have a clue what he wants because he hasn't gone through the process of actually creating the job description document. Within about ten minutes he proved it because I got another message that said, "In addition to operations, I want them to be able to recruit and hire speakers and help me manage the speakers and help me manage classes," and then a bunch of other stuff. I thought, this is stream of thought. This isn't sitting down and creating a job description for a person that you're going to go out and find.
In fact, it's what a lot of entrepreneurs do. Maybe even what you've done, because I know I did it when I was younger. When I was in my 20s, when I got in pain I would want to hire someone. When I wanted to hire someone, I would go start looking for a person to hire way before I had clarity around what that person was going to do in my business and what I actually needed them for. The challenge with hiring that way is that it's one of the major reasons so many entrepreneurs are afraid to hire people. It's one of the major reasons so many entrepreneurs fail miserably at hiring people. It's that we don't get clear on what we need first. We go looking for the person to solve the pain instead. That is one of the biggest challenges in hiring, and it's one of the biggest mistakes you can make in building your team.
See, when you go out to hire someone, the right way to do things ... just so that you understand how you can do this, if you're in a place right now where you feel like you need to hire someone, if you're in a place where you feel like you need leverage on your team, then follow the steps and the process that actually work. One, doing an analysis of what you really need. Sit down and write down all the things you think you need help with. Or even better, do a two-week time study. Inventory your time for 15 minute periods at a time. Go back to my podcast called "Double Your Productivity in Two Weeks" and listen to how to do a time study. We have people doing these all the time. I just talked to three or four clients this morning on one of our group coaching calls, and two of them were doing time studies. Actually held them up and asked a bunch of questions about them.
When you do a time study, you analyze where you're spending your time and what you can offload to someone else. It will literally make your life easier. See, when you just go out and hire someone, you don't analyze what you need, you might end up in a place where things get harder for you instead of easier. As an entrepreneur, your goal is for your business to make your life as easy as possible. For your business to make delivering what you need to deliver as easy as possible. We're entrepreneurs. We set up a game where we make the rules. Let's make them so that we win, not so that we're crushed like this guy was going to do. Until you've done the analysis, you don't know what you really need.
Now, once you've done the analysis either through a time study or collecting a list of everything that you're looking for in the position, everything you want to offload, what you want them to do, write up a solid job description. We call it the 4R document. See, we don't just have the one section where you describe the role. That's where most job descriptions end and that's why they are so woefully inadequate and so challenging when you actually go out to hire. We have 4R's. The role, responsibility, results, and requirements. Here's what this means ... First, the role is a brief description of the role the person's going to occupy. The responsibilities are an extensive list of all the responsibilities that person is going to have working in your company. What is it that they're actually going to do? What are they actually going to produce? What are they going to be responsible for? The results are what results are they going to achieve for your business in the first 90 days that they come in, and then what results are they responsible for ongoing? Then requirements are, what are the requirements that you need for the person in the role?
See, when you sit down and you spell out role, this is what the person is going to do. Responsibilities, this is everything the person is responsible for. This is what we expect from the person, this is what the team is going to be counting on. If it was a sales person, it would be making phone calls, filling in the CRM, making sure that we have good numbers and metrics, making sure that we converted a very high percentage. Those would be their responsibilities. The results would be, convert this percentage of people. Sell this many clients. Then the requirements would be excellent sales skills, persuasive skills, phone skills, willingness to fill in our CRM, willingness to make sure our team is updated.
See, when you fill out a complete document, then you don't go off and start trying to hire someone that really doesn't exist. Or, even worse, you go out like this person from real estate did and ... Let me tell you how a typical scenario in entrepreneurial hiring goes. Someone sends a message like I got this weekend. "Hey, I'm looking for an operator to solve nondescript problems that I don't really understand." That's not really what he said, but that's what I know he was saying. Then somebody might say, "Hey, I know someone who just lost their job, or is looking for an opportunity, or wants something new. Let me send them over to you." Then the person gets on the phone with them and they have a conversation and they say, "Wow, this sounds like a great fit." By the way, they still don't know what they want.
You're literally doing ready-fire-aim, or even worse, fire-ready-aim, because you have no plan. You have no understanding of what you're doing. Then in so many entrepreneurial businesses, the worst thing that can ever happen, happens. The entrepreneur makes an offer. You make an offer to someone to hire them, not really understanding what you need. Not really understanding what they're going to do. Not really understanding the responsibilities they will have or the requirements for the role. Then the person comes in and we are consistently shocked when this scenario doesn't work out. Let's be honest, there's a reason. There was not [inaudible], there was no intelligent planning before. There was no actual analysis of what was needed. There was a pain and then an entrepreneurial shortcut to the fastest way to eliminate the pain, which is get a body in here and help them help me make this go away.
The challenge is, that just doesn't work. There's a reason why 80 or 90 percent of new hires in most entrepreneurial businesses struggle and are not happy. There's a reason why over 80% of employees worldwide are disengaged in their jobs. There's a reason why so many people take jobs and then fail. It's because there isn't the proper steps in the hiring process and in the qualification process to make sure that you've matched three things. Company needs along with the deliverables a person is going to deliver, and then that person's skillset, ability, and work history. When you can match those up, you dramatically increase your percentage chances of success.
See, when you go out to hire, I want you to win. I want you to build a team that you're passionate and excited about. I just got off my weekly meeting with my team, and every time I get on a call with all of them I'm so excited to see their faces, to hear about their week, to hear about their wins, to plan the next week of success together. To do what we do best and go out and make a massive contribution. There's a reason every one of them has a clear role. Every one of them knows what outcomes they are driving. Every one of them knows what they're responsible for and what they should be doing on a weekly basis because we started with this process for all of them. No one has been brought into our team blind, and I don't want you to bring anyone onto your team blind.
When you follow a hiring process, analyze your business, figure out what you need and bring in the right person, you're going to crush it instead of getting crushed by hiring and feeling like you really can't do it. Far too many entrepreneurs assume that they can't hire or lead a team, and the reality is, they just don't have the right process and the right structure that ensures success. You now know what that is, and you can use it from this point forward and start hiring with a much higher percentage chance of knocking it out of the park.
If you're ready to finally grow a team that can support you ... if you want to have a world-class team that gets more done than you ever thought possible, and if you want to grow a team without sacrificing your life, your family, your children, your significant other, then reach out to us. Go to BillionaireCode.com/Apply. Fill out the short application. A member of my team will be in contact with you, and then you'll end up on a call with me or a member of my team, where we will help you understand what your needs are, see if we can help you, and create a ton of momentum. If you'd like to get on one of these calls go to BillionaireCode.com/Apply. If you're ready to build a team, there is no other organization out there that can show you how to build a team fast, in a way that is going to support you and create massive momentum. Not just for you, but for everyone that you bring on your team and hire. BillionaireCode.com/Apply.