TAKING INVENTORY

Most states in the US require that every business shut down
periodically to take inventory. It’s essential to
physically count the products on the shelves, to re-
calculate the value of equipment, supplies and other
physical items that make the company run. The law requires
this for equipment and products for sale, right down to the
smallest items on the shelves.
Smart companies also do it with regard to their people and
their skills.
Jack Welch is famous for saying that at General Electric he
wanted a 10% turn-over in personnel every year. The bottom
ten percent were encouraged to find other employment
because he wanted only the very best, the most highly
motivated and the most creative people working for him.
That may sound harsh, even heartless, but he made two vital
points.

(1) Do you really want unproductive people in your
organization? And

(2) no one benefits from having people in
positions that don't suit them.

We actually do people a favor when we gently but firmly encourage them to go where
their talents and abilities will be better utilized, and
the company is definitely better off. Under Welch's
leadership, GE grew to be one of the world's great
companies.
Too often, in small businesses and professional offices,
owners fail in this vital obligation.
From time to time, step back. Get some outside advice and
perspective. Have the courage to judge yourself and your
people in terms of productivity, in terms of ability, and
in terms of best fit. If your company isn't producing the
results you expect, it may be time to take a careful
inventory not just of the products on the shelves, but of
the people on your team.
This is where an outside coach can be particularly helpful.
Every week, get on the phone with an objective person who
can tell you what they see, and help you with the difficult
decisions. Take inventory! You'll be glad you did.