Geoff Smart Session May 16 2010

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Geoff Smart

CEO, ghSMART
Author of #1 bestselling book on the #1 topic in
business

Who: The A Method for Hiring


Co-Creator of Topgrading, and
Leadership Advisor to Billionaires, Boards, and CEOs

Session Hosted by Verne Harnish


Gazelles, Inc.
May 13, 2010

Important Notice
2010 ghSMART Executive Learning, Inc. All rights reserved. Printed in the United States of America. No
part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopying, recording, or use of any information-storage or retrieval system, for any
purpose without the express written permission of ghSMART, except that purchaser may make paper copies
of the Scorecard, Screening Interview Guide, Topgrading Interview Guide, Focused Interview Guide, and
Reference Interview Guide for personal use.
ghSMART and the ghSMART A Method for Hiring are registered trademarks of ghSMART & Company,
Inc. Topgrading and Topgrading Interview are registered trademarks of Dr. Brad Smart of Smart &
Associates, Inc. and ghSMART & Company, Inc.

2010 by ghSMART. All rights reserved. www.ghsmart.com

Summary
1.

Hiring mistakes are your #1 problem.

2.

On average, managers make hiring mistakes 50%


of the time, and each mistake costs 15x the
persons base salary.

3.

The A Method is a solution to your #1 problem, and


will improve your hiring success rate from 50% to
90%.

4.

The A Method has four parts:

5.

Scorecard documents exactly what you want

Source generating a flow of the right

Select - structured interviews to gather the

Sell an approach for persuading candidates to

a person to accomplish in a role.


candidates.

relevant facts about a person to rate a


scorecard and make an informed hiring
decision.
join.

You can do it! You can improve your ability to hire


the right people and enjoy your career more, make
more money, and have more time.

2010 by ghSMART. All rights reserved. www.ghsmart.com

The A Method for Hiring

2010 by ghSMART. All rights reserved. www.ghsmart.com

TM

Scorecard Example
Role:
General Manager
Mission:
RiverCo is a manufacturer of hydro-electric turbines, pumps, and industrial
tools. The mission for the General Manager is to grow RiverCos largest division from
$200M to $400M over the next five years. The General Manager will have full P&L
accountability and responsibility for over 300 staff.
Outcomes

Ratings and Comments

(to be completed after


interview)

Grow revenue from $200M to $400M over the next


five years, achieving 15% annual growth.
Existing products will represent 80% of this growth.
New products will account for the remaining 20%.

A John is currently the VP


Sales of a $500M company
and has consistently grown
revenue by 20% per year.

Build a team composed of 90% or more A Players


within the next three years (currently about 20%).
Ensure 100% of direct reports are A Players within a
year.
Ensure consistent use of the A Method for Hiring in
division.

A
This is a strength. John
consistently evaluates his
team, brings in A Players, and
develops his people.

Expand capacity to accommodate 15% annual


growth.
Current plant nearing capacity. Expansion must be
obtained through operational efficiencies.

B
John understands
operations enough to know
how sales impacts capacity,
but has limited experience in
a plant.

Competencies

Ratings and Comments

Hires A players

Analytical skills

Creative/innovative

B Slow to recognize new ways of doing things

Persistent

Open to criticism and others ideas

B Does not listen to ideas from others which


could inhibit his ability to address plant capacity
given his lack of experience there.

2010 by ghSMART. All rights reserved. www.ghsmart.com

Build Your Scorecard


Mission

Outcomes

Ratings and Comments

Competencies

Ratings and Comments

2010 by ghSMART. All rights reserved. www.ghsmart.com

Sourcing Challenge
Seeking Referrals
Name 10 contacts of whom you can ask, Who are the most talented
people you know that I should consider hiring?
1. ___________________
2. ___________________
3. ___________________
4. ___________________
5. ___________________
6. ___________________
7. ___________________
8. ___________________
9. ___________________
10. ___________________
I will commit to calling at least one of these contacts a week until I have
called them all (Yes/No).
Recruiting Bounty:
I will consider offering employees a referral bounty for recruiting of
$_________ and make a go/no go decision by ________(date).
Deputize Friends:
I will consider offering external Recruiting Deputies $________ for
recruiting viable candidates.

2010 by ghSMART. All rights reserved. www.ghsmart.com

The Screening Interview


1.

What are your career goals?

2.

What are you really good at professionally?


Please give me some examples.

3.

What are you not good at or not interested in?


Please give me some examples.

4.

Who were your last 5 bosses, and how will they


each rate your performance when we talk with
them (1-10)? Why?

2010 by ghSMART. All rights reserved. www.ghsmart.com

The Topgrading Interview


Education: High and low points for high school, university, and
graduate school (5 minutes per school).
For each job in the past 15 years (20-30 minutes per job)
1. What were you hired to do?
2. What accomplishments are you most proud of?
3. What were some low points during that job?
4. Who were the people you worked with? Specifically:
Bosses: What was your bosss name? How do you

spell that? What was it like working with him/her?


What will he/she say were your biggest strengths?
Areas for improvement?
Teams: How would you rate the team you inherited

on an A, B, C scale? What changes did you make?


Did you hire anybody? Fire anybody? How would you
rate the team on an A, B, C scale when you left?
5. Why did you leave that job?
What are your career goals for the future (10 minutes)?

2010 by ghSMART. All rights reserved. www.ghsmart.com

The Focused Interview


1.

The purpose of this interview is to talk about


________ (one or more key outcomes or

competencies).
2.

What are some of the biggest


accomplishments you have had in this area?

3.

What are your biggest mistakes and lessons


learned in this area?

2010 by ghSMART. All rights reserved. www.ghsmart.com

The Reference Interview


1.

In what context did you work with the person?

2.

What were the persons biggest strengths?


Please give me some examples.

3.

What were some of the persons biggest areas


for improvement back then? Please give me
some examples.

4.

How would you rate their overall performance


in that job (1-10)?

5.

The person mentioned that they struggled in


that job with ______ (e.g. hitting their gross
margin targets); tell me more about that.

2010 by ghSMART. All rights reserved. www.ghsmart.com

10

The 5Fs of Selling


Fit. Ties the companys vision, needs, and culture
together with the candidates goals, strengths, and
values. Here is where we are going as a company,

and here is how you fit in.

Family. Takes into account the broader trauma to


the family of changing jobs. What can we do to

make this change as easy as possible for your


family?

Freedom. Is the autonomy the candidate will have


to make his or her own decisions. I will give you

ample freedom to make decisions, and I will not


micromanage you.

Fortune. Reflects the stability of your company and


overall financial upside. Heres what you can make

if you accomplish your objectives.

Fun. Describes the work environment and personal


relationships the candidate will make. I think you

will find this culture one that you will really enjoy.
2010 by ghSMART. All rights reserved. www.ghsmart.com

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What Have You Decided?


What I learned:

What I will do:

2010 by ghSMART. All rights reserved. www.ghsmart.com

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