Bad hires can put morale into a downward spiral.
Every hire affects the average of the employees in your company. Hiring someone good brings the average up, hiring someone bad takes it down. Even hiring someone that is no better or worse than average consolidates my position and makes it harder to improve with good hires later.
For startup companies where the team is small, the influence of each new hire on the average can be huge. It’s not just that you have a team member that isn’t performing – it can created a downward spiral of falling morale.
One of the worst mistakes I have ever made was hiring the wrong person for a job. What makes it even worse is that I knew inside he wasn’t the right guy for the job from the start.
At the time, I justified the decision using a series of arguments, for which I now repent. I have heard these arguments used by others many times since then, so I will list them here in the hope that they might help others avoid making this mistake.
Take a break from whatever you are doing for just a few moments, and enjoy a bite-sized piece of wisdom from a great author with The Startup Daily.
Karl Krantz has recently started this site, which provides a useful quote from a business book every day. You can subscribe by RSS, twitter or to by e-mail, which is exactly what I have done. That way it sits in my inbox until I get a quiet moment to look at it. It makes a very welcome break from the tasks of the day, and gives me the opportinity to step back and think about the bigger picture.
Some of the snippets are new to me, some are neat ways of looking at an issue that bring a smile to my face, and some are just welcome reminders.
The posts also reference the book from which they are taken – some of which are now on my wishlist…
In the spirit of Follow Fridays (#FF) on twitter, I’m going to try to make a regular friday post linking to sites I find useful and interesting. I’m going to try to avoid the glaringly obvious, but please excuse me if you are already familiar with what I post this week or others.
Today’s link is inspired by a conversation I was having with an entrepreneur last night, and is to Edinburgh based blog StartupCafe. Here are three reasons why I think it’s worth subscribing or bookmarking, and why I keep telling other people about it!
Hello, and welcome to this new blog!
Salient Point helps young companies make sense of the complex world around them. This can include customers, markets, suppliers, competitors, business models and investors. This blog is intended to share thoughts from my colleagues and I that might be of interest to our customers, and to others involved in technology startup businesses in Scotland and elsewhere.
I’ve had a few interesting conversations recently about the difference between the numbers that are useful in managing businesses, and the numbers that are usually used by accountants. I am very familiar with this from working in a larger consultancy earlier in my career, where none of the key numbers (forward load, utilisation and average fee rate) would ever appear in any formal financial statement.
These days I do most of my work with startups, which are often funded by investors and don’t have any sales to speak of. Until startups companies generate significant sales, the numbers I always want to see to manage the business are burn rate, runway and “drop dead” date. Since these don’t have formal definitions in conventional accounting, I thought I’d post the definitions I use! If you are using different numbers for the same purpose, perhaps you could post a comment and share your version with us!