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Mediocrity is not OK.

Posted by James King at 1:00 30/07/09

We start with another FSJ quote;

"The MBAs say you should set high standards, let people know what's expected of them, and hold them to that. I do a little twist on that and say, Hold people to an impossibly high standard, but here's the twist - don't tell them what that standard is. And fire them if they fall short." He goes on to reason; "You know what that does to people? Makes them crazy. And guess what? Crazy people are more creative. And productive. Every shrink in the world knows this." - Fake Steve Jobs, oPtion$

Mediocrity is not OK. OK is far from OK. This sentiment has been expressed to me on many occasions, in meetings with investors, advisors, mentors and many successful entrepreneurs.

You need to make sure staff perform. But how do you know when you are hiring if someone will get in to the office at 5:30 am and work like someone is whipping their back till 10 o'clock at night? How do you know that, even if they turn up at 10 am and head home at 4 pm, that they are better than the "slow burner" who works all hours under the sun, as candidate who works less hours may be super efficient? References?

Yeah... right. References can be more than misleading. They can be damaging. I recently was discussing this with a friend (a successful guy who constantly impresses) and he highlighted a problem that he sees in the city, in particular with recruitment, trust and communication have disintegrated.

It used to be the case that if you were useless, you stabbed someone in the back, screwed up hideously or were generally a pain in the backside, you would get the sack and not find a job anywhere as backs were turned, doors were closed and relationships severed. You wouldn't know who had talked or what had been said, you just knew that your options had become very limited.

Now, you can be a complete failure and find a job (even a high powered job) by providing references. References that you, as an applicant, have provided. Referees who give references knowing full well that you know it is them giving the references. And what's worse, you can leave yourself wide open to a severe legal bashing if you say "this guy is a useless, lazy, ignorant tool who I suspect took money from the office charity box"... even if it is true.

How did this come to be... Lack of a healthy professional respect for competitors? A litigious society? A sizeable growth in the population where you can't expect to know everyone by 2 or 3 degrees of separation?

Potentially, I don't know. It may not even be a completely bad thing as the Data Protection Act (DPA) that enables you to find out what references have said does certainly offer candidates protection from liable and unfair deformation of character.

I have come to the conclusion that it is better to ring than to email when checking references as people can be a bit more candid. That it is important to check with previous employers beyond the referees they propose. Also, that it is important to ask why the candidate is changing jobs in the interview process (note; "I need a change of scenery" can often mean "I've only got a few weeks before they kick me out the door") and that a new employee's trial period of employment should be judged very critically.

When you hire staff, I would suggest you offer a trial period of three months. That on day 3 (yep, not day 1) that you sit down and set targets for the next three months - be it weekly, monthly - that's your call.

And if they fail to hit the targets; sack them. Do not keep them because "they tried hard" or "they nearly hit their targets". You don't need that. You should demand excellence. You need to rely on your staff to deliver, and at least deliver on goals they jointly set.

It is horrible to have to tell people that you have to let them go, but trust me when I say that, it is a much worse experience to see your company / your dream crash and burn because you held on to the wrong staff.

*** As an additional note, I just tripped over this article which offers another referrence check model which is interesting, well worth a quick read - ben.casnocha.com/2009/06/best-reference-check-strategy-ever.html

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