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April 1, 2024
Management Minute – Right People Right Seats
Fewer things are more important than having a great team working at a high level of performance. There are many steps to accomplish this. Let’s tackle an important one today. Are all of your employees the right people for your business and do you have those great people in the right positions? For the first of those questions, take all of your direct reports and rate them on a scale of 1 to 10. Ask your direct reports to do the same thing, running down the management chain till you get all the folks in your company rated. Then compile and review the results with your team. There will be lots of excuses as to why those who rate lower than a 7 are working for you. The real question is what are you going to do about it.
We all hold onto people because we tell ourselves that the labor market is tight and it is better to have someone in that seat rather than no one, but it is rarely true. When someone is obviously underperforming, it is easy for everyone to see. That poor example sets a bar of performance that represents the minimum it takes to work for your organization. When that bar is too low, then the whole organization can gravitate to that lower level of performance. Not a single high-performing sports team has any low rated people on their roster. Why do you? It is time to clean up your roster, no excuses.
The other half of the equation is, are all your high performers in the right seats. What does that mean? Sometimes you have a great team member, but they are not in the role that permits them to be their best. Sticking with the sports analogy, how many Centers on a football team would perform at a high level if they played in the Wide Receiver position? “None”, would be my guess. So first you, then your direct reports, should go back down your list of those who rated 7 or above and ask yourself. Based on what I know about their personality and skills, is each person in the position that will permit them to perform at their very best. If not, you have two good choices, modify their position to shape it to their skillset or help guide them to a position where they will really thrive. Both you and your team will be glad you did.
Business Headlines and Commentary
· In spite of 30-year mortgage rates in the upper sixes, sales of homes rose 9.5% in February from January. That is the first time in more than two years home sales increased for two consecutive months. Sales are still down 3.3% from February of 2023. The most expensive homes had the greatest increase. Prices of homes continue to rise to near record levels, so it is more a matter of needing to move and acceptance of reality that are making the difference. We will see what the spring and summer markets show us.
· The annual issuance of Treasuries continues to set records. Nearly doubling since the start of Covid and totaling $23T in 2023. Net new issuance was $2.4T last year. Although it fluctuates, the last quarter saw $7T in bonds issued. So far, the system is holding up fine. The question is when will we reach our limits.
· There are lots of inflation measures. Both the Overall Personal Consumption Expenditure Price Index and the associated Core Index rose in the last 12 months by 2.5% and 2.8% respectively. Still above the Fed targets.
· Sales of electric vehicles continue to rise, but not as quickly as new models coming to market and their associated manufacturing volumes. A number of plants have reduced production. Electric vehicle startups continue to burn cash and feel the financial stress of the market conditions. The question is if the regulators can force consumers to purchase enough electric vehicles to change the path for the manufacturers. Hybrids appear to be the consumer’s favorite.
· 6-month Treasuries are yielding 5.33% unchanged, 30-year Treasuries are 4.45% up 2 basis points, and a 30-year conventional mortgage is 6.79% up 5 basis points.
· A link to current commodity prices https://markets.businessinsider.com/commodities?op=1.
Asa J. Beck
Cogent Strategies, LLC
Vistage Chair
(303) 507-9777 Cell | asa.beck@vistagechair.com | vistage.com
Cogent Strategies, LLC, an independent contractor of Vistage Worldwide, Inc.
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