Benchmark Positions, Not People

A company's assets can be sorted into two buckets: tangible and intangible assets. Tangible assets are things the firm can buy or sell such as inventory, real estate, equipment, machinery, offices, or company vehicles. Most business owners are pretty comfortable inventorying and appraising tangible assets.

But how do you handle intangible assets; your staff? How do you know who to hire, which positions to create, and whether a job candidate is really the best fit with your firm?

Create Measurements for Positions, Not People

Instead of backing into employee evaluations, start by mapping out the parameters of each position. Establish benchmarks for each job that includes performance standards, desired personality attributes, and expected contributions.

If you've never done this before, you'll have to start by ignoring the assets or contributions of the people already occupying those titles.

Each Position is Assigned a Personality and a Prototype

One way to get started is to identify the ideal personality for the job. What traits are most likely to translate into highly effective employees that fit with your business culture? For example, do you want your CMO to be outgoing, creative, and enthusiastic? Maybe your COO should be meticulous, team-oriented, and predictable.

With a personality in place, you can then add some basic functions of the role to round out the prototype. For instance, a CMO might manage communications, create sales materials, and handle PR. Maybe your COO could head up daily operations, oversee capital improvements, and supervise department heads.

The personality and prototype should be developed as an evergreen description. Don't assign sales goals or detailed tasks. You want to create an ideal that you can refer back to this year and the next. Once your benchmarks are in place, it becomes much easier to determine if an employee’s nature harmonizes with the needs of their job. Does your current employee fit the bill? Does the person you're hiring fit in?

In our examples, the ideal CMO is outgoing, creative, and enthusiastic as they manage communications, create sales materials, and handle PR. If your current CMO fits the bill, you're in good shape. But what if that person doesn't handle PR? What if they are introverted and contemplative instead of outgoing or enthusiastic?

With position benchmarks in place, it becomes much easier to evaluate an employee's or prospects suitability. If they are a good match with the job’s benchmarks, it will be easier for them to meet your company's expectations. Therefore, they will probably be more effective, experience success, and consequently show more loyalty. Matching people to benchmarks is a win-win.

Employee Personalities are Usually Dependent on the Company's Personality

The personalities and prototypes for a job can vary significantly among companies. Don't assume that all positions look the same at all organizations. Let's continue with the CMO example. Client A wants an extroverted, big idea CMO who is comfortable taking big swings and making a splash with the public.

Client B needs a CMO that is focused on technical sales to a B2B market. This job involves a lot of market research so requires focus and attention to detail. To fit into their industry, they need someone with a professional, restrained manner.

Looking at these two examples, it becomes easy to see that Client A and Client B need two very different types of employees. Can you imagine how unhappy the high-flying creative would be working for Client B? And how frustrated Client A would be if they hired a restrained introvert?

Benchmarking Needs Change Based on a Company’s Growth Cycle

In the startup phase, companies operate differently. They must be nimble, run lean, and change quickly to meet market needs. But established businesses should be focused on creating order, systems, and processes that allow them to scale up.

That's why it's wise to revisit benchmarked job descriptions as a firm grows. For instance, independent workaholics are invaluable initially but can get in the way once systems are in place. Process-driven staffs are excellent for a large organization but can be ineffective in the launch phase.

Benchmarking is the First Step to Increased Productivity

Benchmarking is not an exact science. Assumptions are made based on your individual circumstances. But it is an effective way to begin inventorying and leveraging your company’s intangible assets. By creating benchmarks for each position, it becomes much easier to identify and hire people who can achieve their full potential within your organization. You start to hire better "fits" with your culture and requirements. You'll also identify existing employees who may not fit into the company structure.

If you can find the right person to do the right job, you'll be happier, they'll be more productive, and your company will grow faster.