The Single Best Measure of A Business
November 5, 2005 | By Jack Yoest
Top Grading by Brad SmartProstitutes and consultants have been labeled as not being too particular about clients. Your Business Blogger may be the exception. As consultant, that is.
There are many ways to evaluate and predict the success of an enterprise. But if you are looking to invest in, to consult with or work for a company, there is one variable that will determine a winner.
The track record of the management team.
The best indicator of future performance is past performance.
Whenever I'm asked to evaluate a business plan or predict the success of a business model, the first tab I turn to is the bios of the management team.
Your Business Blogger recently turned down an interesting assignment in a market dominated by intellectual property.
The Chairman of the Board did not demand or consider recommendations to hire only "A" players.
A leader can be cheap most anywhere except in hiring management talent.
The chairman had good reasons, of course.
There were money problems, budget problems, cash flow issues (as always). To him, this took precedent over bringing on the talent needed to run the enterprise.
In this scenario I would not recommend anyone getting on this plane -- it will never quite get off the ground.
Brad Smart, Ph.D., yes that's his real name, advised Jack Welsh on personnel. From Brad we learn that "A" class talent hires "A" talent. "B" class talent hires "C" players. And "C" players...well, let's not go there.
My potential client was not hiring "A" team, forcing me to question his business judgment. There are some things even a consultant won't do.
Life's too brief to invest on anything short of the best.
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