I have consistently contended that executives who tolerate “B” and “C” players on their teams give up a lot. Let me now quantify it:
Let’s say you are a CEO with 5 key management team reports, running a $50 million (revenue) company. Let’s say that you project 10% revenue growth next year, but you have a “B” player on your team that might hold you back a bit. If you achieve only 8% growth, you just gave up $1 million in revenue. Would hitting 8% instead of 10% be regarded as a failure by your board or parent company? Probably not. You probably still get your bonus.
If you run this company for 5 years, and you tolerate 2 “B” players rotating in and out of your management team, it might cut your annual average growth to 7%. Over 5 years time, you give up $7.5 million in revenue. If you have a $200 million company, you gave up $30 million in growth. This could erode equity by an equivalent amount when the company is sold.
In January I wrote about the 18-Month Factor – that it takes 18 months from discovering a sub-par performer before most companies have a fully effective person in that role. What if you established a zero tolerance policy for anything other than “A” players in every management position? Each time that you quickly replace a “B” or “C” person with an “A”, you could gain 2% in growth. Would the 2% difference be worth it to you?
The 2% Difference - RecruitingBlogs.com
Secrets of the Job Hunt: Developing Your Career Insurance Policy
How many of you would say that collecting Unemployment Insurance and being without a job has been the best part of your career? Has it empowered you? Has it changed how you think about managing your career? What will you do differently? Is it about taking control? Try and Get a Job the Right Way by Barbara Stafani talks about search
and maintenance of your career.
Many job seekers have learned how important it is to network. They proclaim they will continue to network after they secure a new job. So sadly, life, work, obligations get in the way and their commitment to networking sometimes fizzles out.
Absolutely, networking is one form of "career insurance". However, there may be an even more pro-active productive way of doing this...and the best time to start on this path is while you are employed.
I am talking about a portfolio career. BNet defines a portfolio career as:
Think of it this way. You have a retirement account and maybe even financial investments. You don't put all your money into the same fund do you? You diversify your investments. You do this as a form of insurance because if one doesn't perform as well, you'll be protected by the others. This is exactly the same logic you'll want to apply to your career."a career based on a series of varied shorter-term jobs at either concurrently or consecutively as opposed to one based on a progression
up the ranks of a particular profession. The portfolio worker is
frequently self-employed, offering his or her services on a freelance or
consulting basis to one or more employers at the same time. However, a
portfolio approach can also be taken to full-time employment with a
single employer, if the employee chooses to expand his or her experience
and responsibilities through taking different roles within the
organization."
How do I get started, you may be asking? It starts with assessment. What do you really enjoy doing? What are your core competencies? This is the best place to start.
I came across The Launch Coach. 7 Steps to Creating Multiple Income Streams is a free downloadable .pdf with great questions to get you started. Honestly, it really gets you thinking (and I am not getting paid to say this).
The Employment Digest has written Is A Portfolio Career Right For You? This post has references to other resources and things to consider before jumping into this arena.
Another valuable resource comes from my friend, Barry Hopson, who has co-authored a book "And What Do You Do" and maintains a blog on the topic of Portfolio Careers. .
Right now, portfolio careers are an option. With the changes in how employers are doing business and the types of jobs they are hiring for, being a contractor or working on short term projects may be the only option in the future.
Will you consider diversifying your portfolio today?
