9 Ways To Assemble A Management Team To Scale Up Business

Every successful company comes to a stage when it is not possible for the owner to manage every aspect of operations in addition to looking for ways to expand the business. At this point in time, it is important to decide whether business operations will maintain at the same level or steps could be taken to scale up.

If the decision is in favour of an expansion of the scale of operations, it is necessary to recruit a top management team for the purpose. Recruiting top managers is a difficult task.

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An incorrect hire will not only be bad for business but can lead to the existing employees getting demoralised. Additionally, getting rid of a senior employee can be a tricky affair and is a task that every company owner would like to avoid.

Recruiting the wrong person in a top management post can also have other negative consequences. You could lose the reputation that you have built up for your company if the new manager cannot get a grasp of what he needs to do in the new job quickly. You could even start losing your regular customers to the competition.

Here are a few pointers on getting your top management recruitment decisions right:

1. The Recruit Should Be A Good Cultural Fit 

While it is difficult to define the culture of an organisation, every company has its own set of unwritten rules and norms.

When filling a top position, it is best to ask a candidate how they have handled specific situations in the past. Their replies will give you an indication of whether they will fit into your company culture.

Another way to get the candidates to reveal their minds is to ask them to relate their experience in a previous company where they felt that they did not fit into the culture.

Chevron, the oil and gas major has a very distinctive culture. Their employees live by the ‘the Chevron Way,’ which implies practising safety first, being supportive, and looking out for your team members always.

Obviously, a top manager who does not work with these values will be a total misfit.

According to Kevin Kelly, CEO of executive search firm Heidrick & Struggles, the greatest challenge a top manager faces after joining a new company is understanding its culture. He says, “40% of senior executives leave organisations or are fired or pushed out within 18 months.

“It’s not because they’re dumb; it’s because a lot of times culturally they may not fit in with the organisation or it’s not clearly articulated to them as they joined.”

2. Does The New Recruit Have The Qualities Necessary To Do Well In your Industry

A person who has done very well in a certain company can be a misfit after moving to a different industry. But it is also true that senior level hires can perform well in a company that operates in a sector of which they have no prior experience.

When Angela Ahrendts, CEO of Burberry, left to join Apple as its senior vice president of retail and online stores, the move was heralded by many as an affirmation of the belief that cross-industry recruitments make good business sense.

When hiring someone from a different field, it is necessary to ensure that the new recruit quickly learns the ropes and is provided adequate guidance. It would be advisable to provide a quick briefing about your company and industry to the new hire.

While teaching someone the basics may take up the time of other senior managers, it could be worth the effort because of the insights the new person would bring to the table.

3. Why Did The Candidate Leave The Previous Job?

Although getting an answer to this question should be a priority, it is surprising how many recruitments are completed without a thorough understanding of the reasons behind the candidate leaving an earlier employer.

When putting the question, ‘Why did you leave your last job?’ to a candidate, be prepared for a rehearsed reply.

In some instances, the candidate will rant about his previous employer. If this happens, you should have a very good reason why you want to recruit this particular person.

It is also imperative that you do a discreet reference check to satisfy yourself about your prospective employee.

Getting fired from a job should not automatically disqualify a candidate for a top management slot in your company. What is more important is to understand the reason reasons leading up to the termination and see whether the person has the skills and attitude required for the position that you have in mind.

4. Use An Executive Search Firm If You Can Afford It

Don’t underestimate the value that a professional search firm can offer. They have an extensive database of candidates and are very useful when you are trying to get someone with a specific skill-set.

Another reason to use these firms is that in many cases the best candidates do not actively apply for jobs. They are approached by search firms to fill positions that match their profile.

In fact, a good recruiter often has a set of likely candidates on its existing database. You will be paying the recruiter to approach these candidates and, most importantly, convince them to consider joining your company.

When you are trying to hire a person who will be critical to the success of your business, engaging an executive search firm is usually a good idea despite the amount that it can cost you.

5. Build A Team Whose Skills Complement Each Other 

Few individuals have the entire range of skills necessary to manage a business. When recruiting for the top management of your company, you should keep in mind that apart from functional expertise, the candidate should have strengths that complement those of your other team members.

A company with an aggressive marketing department needs a strong finance function to keep it in check. After all, the corporate objective is not only to increase sales and market-share, it is to do it in a manner that results in greater profits and cash flows.

6. Develop A Job Description For Each Role That You Want To Fill 

Making a formal job description has a dual benefit. It ensures that you hire someone who matches your requirements. In addition to this, it formalizes your thinking process and helps you to crystallize your thoughts about the skills that you are looking for.

The job description that you make is also useful for performance management. It will help you set the goals to be met and provide a yardstick with which to measure whether they have been achieved.

7. Do A Check For Integrity

 It is very difficult to judge how a prospective employee will behave under real work conditions. Someone who comes across as perfectly honest and straightforward may have a record that is an automatic disqualification for the senior post that you want to fill.

There are several precautions that you can take on this count. First, you can administer an overt integrity test. This asks directly about criminal history and puts up general questions that reveal the candidate’s attitude towards honesty.

You should also conduct a personality-oriented test that will serve to reveal traits that may be the cause of interpersonal problems and other attitude related issues.

Another vital check that you need to carry out is to verify the claims made by candidates in their applications. CV fraud is rampant and can take place even at the highest levels.

Some years ago, Scott Thompson, CEO of Yahoo, had to resign after it was discovered that he had only an accounting degree instead of an accounting and computer science degree as claimed by him.

Before finalising a candidate, make sure that all the information presented in the CV is really true.

8. What Is The Past Record Of Successes For The Candidate?

This is probably the most critical factor you need to consider when filling a top position in your company. If a candidate has a record of strong achievements, there is a higher probability that a similar outcome will be delivered in the new assignment.

Sundar Pichai, Google’s new CEO, has had a string of successes since he joined the company in 2004 after a successful stint at McKinsey, the high-profile consultancy. He worked on Google Chrome and the Chrome OS and was also involved with Google Drive, Gmail and Google Maps, all immensely successful products, before being elevated to the position of CEO.

His exemplary record was probably the reason that, as rumoured, both Microsoft and Twitter had tried to recruit him.

9. Be Sure To Give Your New Manager The Guidance And Information To Function Effectively

When your top management team gets a new member there will be high expectations all around. But it is up to you to provide a structured program for the new hire to get familiar with the company and the portfolio to be handled.

The business owner will need to extend support and help overcome any resistance from the existing employees. If you do not do this, all your efforts and the money that you have spent in finding the right top manager may turn out to be a waste.

Once you have put your team in place it is up to you to give it the freedom and the means to get results. Remember that as a leader it is not your job to achieve your company’s business goals. Instead, it is your job to facilitate and empower your top management team so that they can take your company to the next level.

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