Guiding Others To Do Great Things

Bring together people that complement one another

Whether you founded a company alone or together with one or more partners, if things go well, there comes a time when it is necessary to learn to delegate, and at that point, the entrepreneur must devote at least half of his or her time to managing human resources. Again, this is a skill that is refined over time by means of trial and error. In the beginning, it may happen that the wrong person is given too much responsibility, maybe overestimating someone or underestimating someone else… and only experience teaches us how to limit errors (knowing that it is very difficult, if not impossible, to get rid of them altogether).

The guideline should be to bring together people that complement one another in order to avoid conflict. A close-knit team cannot be made up of only strikers; neither can it be made up of only defenders. Again, knowing how to measure the various ingredients is essential.

Then, once chosen, the collaborators must be managed. In the past, the image of a successful businessperson almost always corresponded to an aggressive and authoritative figure, who had to constantly emphasize his or her own ego, while in the entrepreneurs of my generation a ‘gentler’ and more collaborative approach is more popular. It is the difference between being a boss, that is, the person who commands, and being a leader, that is, the person who leads his or her team and who becomes its point of reference.

I think that the choice between these two models depends very much on your own individual attitude. I, for example, could not be a boss even if I wanted to, because I am very empathetic. Precisely because of my personal nature, when the time comes that a collaborator who has made a mistake must be severely reprimanded, I would not be able to do it, and in any case, I would not be entirely credible. It is more natural for me to take the employee aside, make them understand what the mistake is and explain to them the reason for my disappointment and displeasure. It is a more humane process, which undoubtedly entails a greater expenditure of energy, but which almost always leads to a positive result. Despite this, I would not entirely demonize the boss attitude, because a bit of healthy realism suggests to me that sometimes, in certain situations and with certain people, it could be the most effective approach.

Another aspect that I feel is important in the creation of efficient and cohesive teams is to provide clear and precise information so that everyone knows what their responsibilities are and the limits of their field of action. This is the only way to prevent conflict situations in which someone feels stepped on by a colleague. And this is also a way to motivate employees who feel they have defined roles, clearly know what is expected of them and the objectives they must achieve. It is important that everyone is always informed of the general situation and at the same time that personal responsibilities are precisely defined. Bestowing responsibility is the best way to motivate. If you realize that a person is not able to do what they should be doing, you can take away their responsibilities, but taking on their duties and saying ‘I’ll do it for you’ is no use to anyone.

In order to motivate your team, it is very important that those at the top share information with everyone else. In the past, many managers used access to information as an element of power, without realizing that this negatively affects workflows as well as the quality and speed of the work itself.

In addition, as I see it, you cannot share the company’s objectives and results without also sharing the revenues: if all has gone well regardless of expectations, employees have every right to a bonus. Money should not be a goal in itself in one’s personal life, but simply a means of achieving other things.

In professional life, however, it is a reward. If an employee has worked and achieved results that are better than those set for them, it is only fair to give them an economic bonus. At the same time, if the work has been done correctly but the objectives have not been achieved, the employee should not be punished, because many variables can lead to failure. On the other hand, if the failure to meet the targets is due to a lack of commitment on the part of the employee in question, it may be necessary to review their position, not least in order to set a good example to others. If, within a team of ten people, nine work as they should and one does not, if no action is taken on the latter, all the others will be discouraged. The economic incentive is not just a prize but a way of recognizing the merits of an employee.

I realize that all this can seem quite obvious when you think of large companies and the manager who dishes out money that is not his or hers when it comes to deciding whether or not to grant a bonus to an employee (and even then, we know very well that you cannot take anything for granted!). But it is a much more delicate issue for small entrepreneurs, for whom such a decision can involve a significant personal sacrifice and therefore becomes a very important strategic choice.

Of course, there are many other ways to boost the performance of the individual employee: there are startups where all the company’s profits are shared; others in which some employees, considered strategically important for the company, are paid through stock options.

Added to all this are the ‘fun’ incentives, such as corporate travel, team building events, sports tournaments, the weekly cocktail together…. These are activities that have nothing to do with the company’s main activity but allow the team to get on better and become more and more productive.

Adapted from CREATE UNIQUENESS: How To Turn A Passion Into A Business by Riccardo Pozzoli.