Numerous articles have been written about the importance of having the right people in an organization. The group of employees that make up a business—the team—is one of the few remaining sources of sustainable competitive advantage. As it has become more and more difficult to find good people, it is imperative for business owners and managers to be constantly focused on developing and improving their skills, processes, practices, and experience in two critical areas:

Because resources are plentiful that provide guidance on how to effectively attract, interview, assess, hire, and compensate high-performing employees, it is the second point on which we will focus. Don’t misunderstand, I totally agree that these capabilities are critical to success in today’s world. But so is the ability to take a hard look at the people already on board and make room for higher performing (in an overall sense) team members, where appropriate. I used the term “transactional” above, as it relates to performance. Let me explain what I mean. There are three key elements in managing employee performance: