What Aptitude is Often Most Important But Hardest to Find in a Key Employee?


Recruiting quality employees who don’t need spoon-feeding and adult supervision to do your deep thinking for you is often a challenge. Becoming one of those employees can be a challenge too…the aptitude is more natural ability and gift than learned traits.

By far the most challenging position I have ever recruited for was a business analytics manager. The skill set is rather common but the aptitude is not. I believe that a business analytics position is not only one of the most difficult positions to fill, but it can be one of the most valuable positions in your organization. It was a new position in my organization that was intended to provide a focus to challenging business issues that required broad and deep analytic capability given a rapidly changing set of commercial and industry dynamics. Some of the essential core skills included finance, accounting, tax, legal, leadership, research, marketing and operations, or key elements thereof. So what is this mysterious aptitude and why is it so hard to find? I should note that this same aptitude is relevant to certain other (but not all) positions in many companies, both big and small.

I will tell you a little story to help illustrate. After a rather extensive internal and external search, I wasn't getting the pipeline of qualified candidates responding to the opportunity that I hoped for. As I was venting my frustrations to one of my managers, we shifted discussion topics to dogs. I recall him describing his springer spaniel to me. The dog apparently had endless energy and curiosity. Whenever my manager opened his back door, his springer spaniel would race out into the backyard in a mad tear. The dog was always searching for something, anything that moved. My manager described how it would push over the garbage bin in the backyard and once found a live rat underneath it. The dog joyfully brought the rat to the back door to show the family.

It was at that moment that it suddenly occurred to me what I was really seeking in a candidate. I needed a springer spaniel. I needed a rat chaser! I needed someone that would see and root out problems and issues that I had not even thought about and present them to me like that springer spaniel did. The dog not only found the problem on his own, but it engineered a solution, developed and implemented the plan (i.e. tipped over the garbage can) and brought the owner the dead rat. Problem solved!

The springer spaniel did not need its owner to take it on a leash through the backyard to point to wear potential rats might be. His dog did his own search, tipped over kid’s toys and bins, rooted under fences, whatever it took to find the problem.

I was heading up a new organization in a restructured entity and I didn't have time to spend leading my management team or analysts to every issue and challenge that might be buried or hidden in the backyard of my responsibilities. I needed managers who had the initiative, the aptitude, and the skills to root out issues on their own, evaluate and return to me with answers. I needed people to do my thinking for me. Most business owners and executive leaders need that too.

An analytic person generally has a certain process and way of thinking that is generally consistent with a problem solver. A common problem solving process consists of several key steps, none of which can be missed. The key steps consist of identifying the problem or opportunity, identifying alternatives or options to solve the problem or exploit the opportunity, evaluating the primary alternatives, stress testing the best alternatives in evaluating risk, and finally judgmentally determining or recommending the proposed solution. In my view, a good analytic and strategic thinker always focuses on alternatives and choices.

My list of attributes of a rat chaser includes:

  • Self-starter; needs little or no guidance or instructions

  • Self-learner; if they aren’t already very knowledgeable about the business or subject matter, they figure out a way to get it (without you having to babysit or spend significant time training)

  • Self-aware; don’t live in a bubble, very aware of others

  • Not an unsociable, shy, isolationist, hide-in-the-corner type person

  • Engaging but not threatening

  • Git ‘er done attitude

  • Problem solver

  • Dig deeper for answers

  • Naturally curious

  • Strong on research and acquiring information, using existing relationships, back channels, colleagues or friends, etc.

  • Likely tech-savvy with a keen eye on the future

  • Don’t agree with what you say because you are the boss

  • Search for truth in facts and data and connect that to logical and reasonable projections or predictions

Character, aptitude and softer attributes such as most of the above are difficult to evaluate in resumes and short interviews with potential candidates. More time and intricate examination is needed to assess a rat chaser candidate depending on the level you expect them to work at. There is sometimes a fine line between a rat chaser who digs under bins for the love of the job and loyalty to the company and ownership… and a rogue employee that seeks personal glory. Beware of imposters.

Ultimately I modified the job description in my search for a business analytics manager, but of more effect was change and clarity in the criteria used for assessing candidates and the interview rigour. It is easier to find something when you know what you are looking for.

My advice to others frustrated with searches for positions requiring such aptitude is don’t stop if your initial recruitment effort didn’t work. Keep your ears and eyes open for that aptitude, that special person that can fill the role. They may not be the type that approaches you. You might have to do a bit of “chasing the rat chaser” yourself.

There is beauty and elegance in marrying together your intimate knowledge and experience in running your business with a robust, chomping-at-the-bit springer spaniel ready to bust through the door to get to the back yard.

It's not what you don't know that kills you... It's what you know for sure that just ain't so.          - Mark Twain

                                             

A feature article by Dwayne Coben of Coben Advisory Inc. (www.coben.ca). Coben Advisory is a specialized corporate & executive advisory firm that offers services to help our clients plan, improve, grow and/or exit their businesses.

Start-ups on a Runaway Train

runaway train pic.jpg

A start-up with initial success starts spending money like a drunken sailor until the money quickly runs out and all the investors are surprised. Sound familiar? Instead of gaining initial momentum and consolidating a position, the founders put the train engine on full blast headed down the tracks without having tested the brakes or fully mapping out the route. Often in no time they spend all their dry powder and they're left wondering what happened and where do we go from here. It's easy to get excited about a project or a new venture especially when positive feedback comes in the initial rollout of the marketing effort. Entrepreneurs start to feel invincible. Sometimes egos take over preventing sensible decisions based on rational analysis, risk assessment and careful management of the cash position. They end up on a runaway train with nowhere to go but a crash at the end of the line.

I have found in my past experience that new ventures and the entrepreneurs who run them are generally pretty cautious with the planning, but the business takes a whole new level of seriousness once initial capital is in the bank account. Plans sometimes change for good reason but the budget and timing impacts are often left to the side in favour of higher priority activities. The plan was apparently good for raising the money but that was its sole purpose. Move over accountants and finance weenies…we now have to get on with the real work. You generally only get one shot at commercializing…or accelerating the train down the tracks. If you screw it up, there is usually no turning back. There's just trouble and mess ahead with a lot of effort at the end of the line to clean it up.

I am falling on my own sword here as I too have been on a runaway train a few times in some of my own entrepreneurial ventures. I subscribe to advice in a quote from Steven Denn, “You can never make the same mistake twice because the second time you make it, it's not a mistake, it's a choice.” However, I don’t always follow it myself. Shame on me. Nobody’s perfect and it’s easy to get caught up in the hype of a great story. In some past positions in my career as a CFO or controller, I have found myself in the position of being the conscience of the shareholder, holding the feet of the enthusiastic CEO by a rope (like holding on to a hot air balloon) in attempting to keep the company grounded and on track with a logical pre-planned spending. Companies need all kinds of people to make them successful. One of those types is that CEO or promoter with boundless energy and enthusiasm. If not for them, the idea would likely never have got off the ground.

As a rule, before you take someone’s (“someone’s” includes your own) money for your venture, you should have a plan for the money that in fact gets you to a finish line of commercialization…not half way to your destination. Rationing your cash flow doesn’t sound very entrepreneurial, but it is a necessity for any cash-constrained start-up venture. Better safe than sorry. Find the next lily pad to jump to. Find a spot if you can that gets you to cash flow self-sufficiency if you can and then map out a path from there. Go big or go home works well in movies or for the small minority of companies for which that strategy has succeeded. Bear in mind that somewhere between 15 – 50% of start-ups fail in the first couple of years (…the public research on this data point is all over the map). I am a financial geek, so it is my proposition that you should at least get the critical part of sufficient capital rationalization right at the outset. There are enough other risks to worry about that are out of your control.  You should not need to expose yourself to full-on financial risk of runaway spending.

This is not a call out to stop being a high risk-taking entrepreneur. I merely suggest that if you are fortunate and talented enough to find money for a start-up, you should take the effort and responsibility to make it last long enough to meet the objective established for that money. I don’t see anything wrong with spending money quickly in accordance with a well thought out defined plan to reach a goal that all involved have agreed to. That is just entrepreneurs being entrepreneurs. The unforgiveable circumstance is when the money is not controlled and trickles out or is shovelled off the back of the truck in great volume without a plan …or alternatively without a corrective action plan when things significantly change.

If you are musically stuck in the 1980’s like me then here is a bonus offer. I dare you to not listen to the entire live version of AC/DC performing Rock N Roll Train (Running Right off the Tracks) (from Live at River Plate) on YouTube. I warn you though, if you are like me, the chorus “runaway train, running right off the tracks” sung by the band and the enthusiastic Argentinian crowd will rattle around in your head for days and you won’t be able to get rid of it.

 

A feature article by Dwayne Coben of Coben Advisory Inc. (www.coben.ca). Coben Advisory is a specialized corporate & executive advisory firm that offers services to help our clients plan, improve, grow and/or exit their businesses.