Get the Right People On Your Bus and

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 Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 01

What You’ll Learn Ø “Misconceptions, Myths, and Old Wives’ Tales” about hiring world class talent Ø 21 st Century Recruiting and Hiring Ø How to build a great business AND a great life simultaneously! Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 02

The Cliffs Notes Version of Good to Great by Jim Collins: Get the right

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! Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 04

kin g Ceiling of Complexity ne ws kill s, t hin shift Unique Teamwork, New State of SIMPLICITY “old pas way t ex ” ba per sed ien ce on ceiling of complexity CRISIS! Source: Dan Sullivan, The Strategic Coach Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 05

Misconceptions, Myths, and Old Wives’ Tales Copyright 2006, The Family Business Institute, Inc. FBI-2006

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 Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 07

Looking At Hiring Employees As a Cost, Not As an Investment Copyright 2006, The

“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 Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 09

Recruiting and Hiring Methodologies § word of mouth § networking § headhunter § newspaper advertising § web-based resume services § 21 st Century Recruiting and Hiring Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 10

ST 21 Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 11 Century Recruiting

The Action Plan The FIVE Priority Objectives: 1. Write job description 2. Define the target candidate 3. Determine the search process 4. The candidate interview, screening, review, and selection process 5. Evaluation and job offer(s) Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 12

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 • Scope of authority • Summary description • Key performance measures • Minimum requirements • Job duties, tasks, and periodization Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 13

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 Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 14

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 Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 15

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) Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 16

4. Candidate Interview and Screening Process - continued - § 1 st 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 Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 17

4. Candidate Interview and Screening Process - continued - § 2 nd 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! Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 18

4. Candidate Interview and Screening Process - continued - § 3 rd 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) Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 19

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! Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 20

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 Copyright 2006, The Family Business Institute, Inc. FBI-2006 -NAFA 21

The Goal Build a GREAT BUSINESS and a GREAT LIFE! Copyright 2006, The Family

The Family Business Institute’s mission is to provide complete solutions to help family businesses maximize their family and organizational success. Copyright 2006, The Family Business Institute, Inc. FBI-2002 -107