Effects of Good Hire And Bad Hire On Your Business

Don’t worry about overpaying for talent. The cost of a bad hire is 20 times that.

Mistakes cost you money, reputation, and sanity.

A bad hire infects the rest of your team.

When they finally leave, you also lose the investment you made in them, plus you have to rescue projects they abandoned.

On the other hand, a great hire takes the burden off your shoulders instead of creating more problems for you to solve.

Good Hire Bad Hire

They anticipate what’s needed and spring into action without you needing to initiate it for them.

Their value keeps multiplying over time since they know your business well and build up teams, scaling the goodness.

When this happens, reward them handsomely and proportionately to their value.

The most successful entrepreneurs I know are not the smartest or hardest-working people. They build up great teams around them.

Same mistake as hiring someone you like, whom YOU believe in, but they haven’t demonstrated that they are committed.

They will give up easily, causing you to lose the investment you’ve made in them.

Avoiding loss is the key to hiring instead of trying to give everyone a chance.

See my blog post on the “5 most important traits to run a successful business” and Having Good People Is Key to Your Business!

What Qualifies You to Provide a Credible Opinion

Many people have strong opinions, whether credible or not, about what you should or should not do, whether backed by experience or not.

And the more people you have, the more unsolicited opinions you’ll have coming at you– from family, friends, people who work for you, and random people on the internet.

The tricky balance is allocating enough time for people and making them feel like they’re heard while not making everything open to debate.

As a leader, you often have to put your foot down and hope everyone supports the decision enthusiastically and understands why.

Ultimately, the leader makes the decision.

Ray Dalio covers this expertly in his book, Principles.

The Dunning-Kruger Effect (incredible concept) says that the most uninformed people have the strongest opinions.

The antidote to DK is #LDT (learn, do, teach)— to only voice your opinion when you have learned something and implemented it successfully yourself many times to have a credible opinion.

#LDT for giving credible opinion

To provide advice, even when you really believe in something without achieving it yourself, is to be a backseat driver or armchair quarterback.

I constantly catch myself and others voicing opinions on something. Then consider if the opinion is backed by a successful implementation to ensure that it is not from a hypocrite or an unknowing and well-meaning victim of DK.

I’ve discussed this at length with mentors many levels above me, but never yet found one who has been able to get people in a large organization to understand #LDT (to provide an opinion only when qualified).

I thought there must be a way to teach this seemingly simple concept– since it would open the eyes of many.

But my mentors have said the solution is not to force this learning on people but to have a super high bar in the first place (avoiding the problem altogether).

Isn’t it incredible how good, intelligent people can come to opposite conclusions?

How do you address leadership challenges?

See how Extreme ownership has taught me that there are no bad teams, only bad leaders.

More important than making money is making meaning.

Are you around people who talk only about six figures, seven figures, and all that?

It can be alluring and flashy, especially if you don’t have it yet. But I can guarantee you their lives are hollow, since their self-worth depends upon your validation.

The peacocks are attractive, but ultimately are parasites trying to use you.

Be like Piotr Podbielski, who focus on giving, instead of only taking. He’s successful AND he feels good inside from the lives he’s impacting via his mentorship programs.

I’ve had kids steal from me— a co-founder steal a brand new Silverado and two jet skis, or employee drive off with a BMW 328i in the middle of the night— yet claim they’re here to “give back”.

Thankfully, there are more Piotrs in the world, multiplying their impact on hundreds of people— so the math still works out.

And that’s why I keep on doing what I’m doing.

Are you around the people who talk only about their success all day and want YOUR money?

If you give me a gold medal first, then I’ll be motivated to start training for the Olympics.

Laugh if you want, but this is a common attitude for the lazy employee mindset.

I’m being paid only a fraction of what I’m worth, so I’m justified to pay only partial attention and do half-quality work.

Ever been with a half-quality girlfriend or get surgery from a half-quality heart surgeon?

Earn it the old-fashioned way, so you’re invited up to a place of prominence.

Instead of sitting on the throne and then being disgracefully told you have to move.

Better to start from a position of humility and have others lavish respect on you, which you’ve earned.

Don’t wait for others to praise you to get going or wait for guarantees, even if it’s “unfair” that somebody else appears to be paid more for working less.

Take action now!

The CEO of American Airlines told me that managers are either loved or productive, but rarely both.

You see, it’s easy to be loved as a boss– don’t hold people accountable. Constantly praise, skipping the hard conversations. Let deadlines slip.

It’s medium hard to be an effective boss, since it means you have to be willing to crack the whip and rid the team of parasites. Not everyone will love you when you have to deliver.

The super rare boss is both loved and effective. Studies show that less than 1% of managers are able to pull this off.

The key to their success is instilling a CULTURE so strong that weak performers don’t even make it into the company.

While the problem creators demand your attention, resist the urge to oil the squeaky wheel. Focus your time disproportionately on the high performers.

By definition, that means you cannot be spending all your time on the troublemakers, no matter how much noise or drama they cause.

Your team clearly sees when these rebels get away with their behavior, which is why your culture is defined by what you’re willing to tolerate.

Loved, productive, or both….

Which of these 3 manager types are you?