TAKING INVENTORY

Most states require that every business periodically take a

complete inventory. It's essential to physically count the

products on the shelves, to re-calculate the value of

equipment, supplies and other items that make the company

run.

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 and 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 find a

situation where their talents and abilities will be better

utilized. They'll be happier and more productive, and your

own company will be more profitable. 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.