Get the Right People On Your Bus and Get Your Business Moving Forward! 2006 NAFA Annual Convention Program September 20, 2006 www.familybusinessinstitute.com Wayne Rivers Phone: 877-326-2493 Email: wayne@familybusinessinstitute.com FBI-2006-NAFA01

What You’ll Learn “Misconceptions, Myths, and Old Wives’ Tales” about hiring world class talent 21st Century Recruiting and Hiring How to build a great business AND a great life simultaneously! FBI-2006-NAFA02

Get the right people on the bus – and the wrong people off! The Cliffs Notes Version of Good to Great by Jim Collins: Get the right people on the bus – and the wrong people off! FBI-2006-NAFA03

Owners of Closely Held Businesses: Tend to be involved in virtually every decision at their companies Are severely limited and constrained in the time, energy, and attention they can devote to any one task Are surrounded largely by talent which is MEDIOCRE Even Michael Jordan couldn’t produce championships without at least one other SUPERSTAR! FBI-2006-NAFA04

Ceiling of Complexity new skills, thinking shift CRISIS! Unique Teamwork, New State of SIMPLICITY shift new skills, thinking “old way” based on past experience ceiling of complexity Source: Dan Sullivan, The Strategic Coach FBI-2006-NAFA05

Misconceptions, Myths, and Old Wives’ Tales FBI-2006-NAFA06

The Definition of Stewardship Closely held business owners feel a real sense of stewardship about their employees A different way of viewing stewardship from a Methodist minister “ . . . letting the WRONG people hang around is unfair to all the RIGHT people. To let people languish in uncertainty for months or years, stealing precious time in their lives that they could use to move on to something else when in the end they aren’t going to make it anyway – that would be ruthless.” Jim Collins Good to Great FBI-2006-NAFA07

Looking At Hiring Employees As a Cost, Not As an Investment FBI-2006-NAFA08

“We’ve Tried to Hire People In the Past, But They Never Seem to Work Out” Entrepreneurs can get talent, however, they’re not good at hiring GREAT talent! The typical recruiting, hiring, and training process Bragging about low employee turnover hides a multitude of sins Lack of knowledge about HOW TO hire great people; NO PROVEN HIRING SYSTEM FBI-2006-NAFA09

Recruiting and Hiring Methodologies word of mouth networking headhunter newspaper advertising web-based resume services 21st Century Recruiting and Hiring FBI-2006-NAFA10

21ST Century Recruiting and Hiring FBI-2006-NAFA11

The Action Plan The FIVE Priority Objectives: Write job description Define the target candidate Determine the search process The candidate interview, screening, review, and selection process Evaluation and job offer(s) FBI-2006-NAFA12

1. Write Job Description Why should we go to the trouble? 3 to 5 page document you’ll use to hire, MANAGE, and EVALUATE your employees Contains: Reporting relationships Summary description Minimum requirements Scope of authority Key performance measures Job duties, tasks, and periodization FBI-2006-NAFA13

2. Define Target Candidate Clone excellent existing employees Have a specific picture in mind for the perfect employee Use assessment tools to evaluate current as well as prospective employees FBI-2006-NAFA14

3. Determine Search Process Write ad Solicit e-mail responses with cover letter and resume (you’ll get DOZENS of responses!) Sort into A, B, C quality applicants to screen down to top 15% Develop and utilize 30 minute telephone interview questions FBI-2006-NAFA15

4. Candidate Interview and Screening Process 30 minute telephone appointments Consistent questioning for all applicants Take notes Cut the to 15% in half (or more) FBI-2006-NAFA16

4. Candidate Interview and Screening Process - continued - 1st round of face-to-face interviews (90 minutes to 2 hours) Script for consistency Goal is to cut top 7.5% to about 3% Have them bring evidence and documentation of resume highlights, examples of quality work Administer screening and profiling assessment tools FBI-2006-NAFA17

4. Candidate Interview and Screening Process - continued - 2nd round of face-to-face interviews (90 minutes to 2 hours) Put your businessperson’s intuition ON HOLD and stick to the process! Give challenging homework assignments or skills tests. Don’t be afraid to pile it on! FBI-2006-NAFA18

4. Candidate Interview and Screening Process - continued - 3rd round of face-to-face interviews (2 hours) TEAM interviews Score the candidates on a 1 to 10 scale for all job requirements, skills, abilities, and outputs (helps take the emotion and rationalization our of the process) FBI-2006-NAFA19

5. Evaluation and Job Offer(s) Evaluate the assessments and homework Check references Check criminal background, credit report Make formal, written offer to top prospects Keep the other top candidate(s) on hold Negotiate and hire! FBI-2006-NAFA20

5. Evaluation and Job Offer(s) - continued - Housekeeping: Inform unsuccessful candidates review and initial the pages of job description Non-compete, non-solicitation, and non-piracy agreements Develop separate orientation and training action plan FBI-2006-NAFA21

The Goal Build a GREAT BUSINESS and a GREAT LIFE! FBI-2006-NAFA22

The Family Business Institute’s mission is to provide complete solutions to help family businesses maximize their family and organizational success. FBI-2002-107