Monday, September 29, 2014

Systems vs. Performers


Timmy Chang, Graham Harrell, Colt Brennan, Dan LeFevour.  If you don’t recognize these names, you are probably not alone.  If you don’t recognize them, you probably don’t know what they have in common:  All four are in the top 15 all time in NCAA College (2nd, 4th, 6th and 13th respectively) for career passing yards by a quarterback.  All played their college football at DIV I schools and all were on an active NFL roster at one point in their career.  What they also have in common is the fact that they weren’t successful at the highest level. 

Of the thousands of college athletes that have gone into the professional football since 1963 only 287 have made it to the hall of fame.  There are many more names that can be added to that original list of players that were very successful in college, but didn’t make it to the next level.  This natural attrition is a by-product of the NFL’s ability to successful determine the performance quality of the potential incomers.  It is also determined by fit.  Some players can continue to develop based on the system they are brought into.

Not everyone is capable of improving on their own.  As a matter of fact, I would go out on a limb and estimate that over 90% of the people out there need a proactive and disciplined system around them in order to reach their potential.   Of the remaining 10%, I would go out on the same limb to say that 9-9.5% of them are more than capable of implementing strategic plans and ensuring that the other 90% follow them.  That leaves us with .5-1% of the employees that are capable of coming up with strategic plans, determining the steps that need to be made, and ensuring that the rest of them are able to comprehend and follow the tasks that are handed down.  Based on these percentages, for every 1000 employees a company may have, only five people in that group even have the potential of being performers.  Of those five, how many of them are in a position to affect change?

Now, take out the section of the employee populous that is made of entrepreneurs, self-employed, consultants (not that all consultants are in that group, but the percentages would be higher) and other high-performance based groups and those five employees may dwindle down to just one or two.

This brings up the question:  “Is it better to have a great system or have great performers?”  Now the obvious answer would be to have both.  Unfortunately, like the NFL, there is some Darwinism going on.  Not everyone coming into the business world has what it takes be a great performer.  In fact, I would hazard a guess that percentage wise, there are fewer All-Stars available in the business world than there are in the professional sports world.  If the success of your organization depends solely on the ability to draft or sign a Peyton Manning, you might be in trouble. 

Performers are those that can go anywhere and make it better.  Performers are people that are capable of reading the business and being able to come up with profitable completions non-dependent on the effective skill level of the rest of the team.  That isn’t to say that a performer can be successful alone, just that a top performer by nature makes the team better.  The downside to a top performer is that when they leave, a lot of the performance goes with it. 

Systems, if implemented correctly and led through disciplined processes create an effective team that makes all of the individual members better.  These systems are the infrastructure of a successful organization.  People inside the system are interchangeable.  This provides the ability to increase productivity, growth and engagement from everyone working within the system.  The other benefit of an effective system is the ability to accurately rate your employees.  Every day becomes that pre-season game where you can effectively ascertain your talent level.  If you know exactly what the expectation of each person is, you have a way to measure it.  When you measure it, you can see what is working and what is not.

If your business can’t be successful without the All-Star performer, you need to take a harder look at the infrastructure you have in place.  Good systems and structure give you a lot more agility and strength.  If you are lucky enough to get an All-Star performer on top of that, that’s when the discussion of dynasty can happen.

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