This post is part of the #PMNG Knowledge Series
on Project Management – Exploring the philosophical, structural,
and HR imperatives of growing a business in Nigeria, by Subomi Plumptre.
Case Study: I once volunteered at an NGO where
I was asked to suggest new service providers for an upcoming project.
I contacted a referral by email, phone, and twitter. To date, the requested
invoice has NOT been received. I eventually worked with a second referral.
The relationship was cordial; turnaround time prompt; depth of reasoning
rich, and availability constant. Today, he has become my defacto service
provider of choice. I learned a valuable lesson from the two interactions
– a business cannot grow, stabilize, or expand without administrative
capacity.
Talent is not enough and sometimes a business is
its own worst enemy. An entrepreneur cannot engage the market at certain
heights or on multiple fronts without administrative capacity. Building
this capacity is the only way to get serious about business. Yes, you
can make money through “deals,” but at a certain age, you cannot
run around looking for deals. Easy come, easy go. No structure, no sustainability.
Administrative capacity is the difference between
a one-man company and a corporation. Everything the business seeks;
from finance to contacts to new business is fueled by administrative
capacity. An entrepreneur cannot raise funds, cultivate networks, or
deliver quality if he/she is too busy putting out fires, doing documentation,
running the office, or putting off customers with inefficiency. Customers
should never take their money elsewhere because a business is unreachable.
With the availability of multiple devices and contact points, this is
unacceptable. The quality of contact also matters. Never put an ignorant
or disorganized person in charge of your brand interface. Customers
will leave and you won’t even know why.
A growing business also needs core managers. People
to develop or expand business lines and play political roles. The administrative
staff should deal with the day-to-day paperwork. When an entrepreneur
is bogged down with paperwork, quality control, & administrative
tasks; there will be limited business growth.
I will show you how to develop core administrative
and management teams despite the decrease in the quality of our educational
products and paucity of talent. (I’m assuming of course that you already
have a professional team, so I’ll focus on the business of the business).
First, you must accept that as a growing business,
you cannot afford great talent. The competition is fierce; the pool
of talent shallow. Therefore, you must innovate and be open to new HR
and remuneration models. You must decide upfront what you are willing
to give up to get talent. If you can’t pay top salaries, are you willing
to invest time and emotions, for instance, give up future earnings or
equity? I’ll explain:
Time and emotions: you must rigorously (re) train from scratch,
investing 3-7 years and pouring your life into your team.
Equity: to develop new business lines, you may choose
to give out equity or share profit with experienced talent in a bid
to attract and retain them. You do not need to give equity in the core
business, to protect the culture. Rather you can spin off the new venture
as a complementary entity and give equity or share profit in that unit.
If you choose to invest time or equity, there are
three (3) models named after three (3) global companies: GE, SouthWest
Airlines, and Google. You should choose a model that suits your business
growth stage, personality, industry, and is sustainable.
GE runs a process model; an assembly line that churns out leaders through
ongoing training, mentorship, exposure, and opportunities. This model
works for already structured organisations that need leaders for rapidly
expanding businesses on an ongoing basis. It’s expensive as it requires
internal & external training, progress mapping, documentation, and
such. But if your business has branches, it’s a good model as you
can dispatch people from the core company who embody your culture to
run those units.
The Southwest model is for an entrepreneur looking for one (1) or two
(2) core managers who can run the business in his/her absence; “successors”
so to speak. Young, bright minds are closely mentored – they eat,
travel with you; have long philosophical conversations with you. They
are family. You look out for them and defend them. You train them and
earn their loyalty. This is a huge time/emotional investment. The fear
is, what if they leave? While you may institute minimum engagement contracts
or non-compete agreements, people may still leave due to circumstances
beyond their control. But the truth is it’s the only way to produce
a certain kind of loyalty. You win some, you lose some. There are no
short cuts, and, you cannot financially afford ready-made experienced
staff. They’re out of your reach. However, if you have an urgent HR
need, you can use contract consultants to plug the gap while you take
the time to groom your core team. Your business will not outlive you
without a core group who believe in you and the business. The core team
frees you to dream of new businesses and explore other ventures. They
allow you to enjoy the fruit of your labor without worrying whether
the company will collapse if you’re away.
Google runs a venture model – this applies to businesses that have venture
funding or are at stage two (2) funding. They can afford talent. The
key is to look for industry experts who can open doors or expand the
business. Often they are older than you and will only do it if you give
stock options or profit-sharing. They are beyond salary and have the
luxury of working where they choose. They will only join you for the
challenge and the chance to build something great or own a share of
something potentially big. They will want something they can cash out
later should the venture prove successful. So it’s a win-win for all.
When recruiting, there are some things that are
non-negotiable in admin or management staff. I will list them. But to
ensure the right fit, identify a friend or mentor who already embodies
what you’re looking for and make sure that they are on the recruitment
panel. They will help you spot “themselves” in the candidates
and will provide a measure of objectivity.
For admin staff for a growing business, some critical
competences are required in the first 6 months of engagement/training.
If they do not exist by then, please fire – you’re carrying
dead weight. The competences are:
Ability to quickly produce impeccable proposals
& invoices
Constant availability via electronic channels
Ability to develop & manage a calendar and provide clear project updates
High ratio of completed to uncompleted tasks
Forget everything else on your checklist. If these competences do not exist, please do not hire or fire thereafter. For Management staff in a growing business, these are the required competences:
Constant availability via electronic channels
Ability to develop & manage a calendar and provide clear project updates
High ratio of completed to uncompleted tasks
Forget everything else on your checklist. If these competences do not exist, please do not hire or fire thereafter. For Management staff in a growing business, these are the required competences:
Networking ability & political astuteness
Ability to create new income streams
Leadership & training ability
Resource management
Strategic vision, planning & execution
The 1st three functions that must be filled at management level are: New Business Development & Execution – Financial Management & Investments – Relationship Management, Service & Quality Control.
Ability to create new income streams
Leadership & training ability
Resource management
Strategic vision, planning & execution
The 1st three functions that must be filled at management level are: New Business Development & Execution – Financial Management & Investments – Relationship Management, Service & Quality Control.
As a growing business, you are truly on the path
to being serious about making money and building a sustainable company
when you have built a strong admin & management team. This year,
make hiring the right people your top priority.
Subomi Plumptre heads the corporate practice at
Alder Consulting, Nigeria’s leading brand consulting firm. At Alder,
she consults on idea development, business strategy, social media strategy,
and brand development. She sits on the Board of A Figment of Imagination,
a 3D firm, and is a member of the Board of Trustees for The Leke Alder
Foundation. She is also co-chair of the Management Board of the Nigeria
Leadership Initiative (NLI) and an Associate of the Advertising Practitioners
Council of Nigeria (APCON).
(Source: Awpnetwork)
