Get the Right People on Your Bus and Get Your Business Moving Forward!

1. Get the Right People On Your Bus and Get Your Business Moving Forward! 2006 NAFA Annual Convention Program September 20, 2006 www.familybusinessinstitute.com Wayne Rivers Phone: 877-326-2493 Email: wayne@familybusinessinstitute.com FBI-2006-NAFA01

2. “Misconceptions, Myths, and Old Wives’ Tales” about hiring world class talent 21st Century Recruiting and Hiring How to build a great business AND a great life simultaneously! What You’ll Learn FBI-2006-NAFA02

3. The Cliffs Notes Version of Good to Greatby Jim Collins: Get the right people on the bus – and the wrong people off! FBI-2006-NAFA03

4. Tend to be involved in virtually every decision at their companies Are severely limited and constrained in the time, energy, and attention they can devote to any one task Are surrounded largely by talent which is MEDIOCRE Even Michael Jordan couldn’t produce championships without at least one other SUPERSTAR! Owners of Closely Held Businesses: FBI-2006-NAFA04

5. shift new skills, thinking Unique Teamwork,New State of SIMPLICITY CRISIS! “old way” based on past experience Ceiling of Complexity ceiling of complexity Source: Dan Sullivan, The Strategic Coach FBI-2006-NAFA05

6. Misconceptions, Myths, and Old Wives’ Tales FBI-2006-NAFA06

7. Closely held business owners feel a real sense of stewardship about their employees A different way of viewing stewardship from a Methodist minister “ . . . letting the WRONG people hang around is unfair to all the RIGHT people. To let people languish in uncertainty for months or years, stealing precious time in their lives that they could use to move on to something else when in the end they aren’t going to make it anyway – that would be ruthless.” Jim Collins Good to Great The Definition of Stewardship FBI-2006-NAFA07

8. Looking At Hiring Employees As a Cost, Not As an Investment FBI-2006-NAFA08

9. Entrepreneurs can get talent, however, they’re not good at hiring GREAT talent! The typical recruiting, hiring, and training process Bragging about low employee turnover hides a multitude of sins Lack of knowledge about HOW TO hire great people; NO PROVEN HIRING SYSTEM “We’ve Tried to Hire People In the Past, But They Never Seem to Work Out” FBI-2006-NAFA09

10. word of mouth networking headhunter newspaper advertising web-based resume services 21st Century Recruiting and Hiring Recruiting and Hiring Methodologies FBI-2006-NAFA10

11. 21ST Century Recruiting and Hiring FBI-2006-NAFA11

12. The FIVE Priority Objectives: Write job description Define the target candidate Determine the search process The candidate interview, screening, review, and selection process Evaluation and job offer(s) The Action Plan FBI-2006-NAFA12

13. Why should we go to the trouble? 3 to 5 page document you’ll use to hire, MANAGE, and EVALUATE your employees Contains: • Reporting relationships • Summary description • Minimum requirements • Scope of authority • Key performance measures • Job duties, tasks, and periodization 1. Write Job Description FBI-2006-NAFA13

14. Clone excellent existing employees Have a specific picture in mind for the perfect employee Use assessment tools to evaluate current as well as prospective employees 2. Define Target Candidate FBI-2006-NAFA14

15. Write ad Solicit e-mail responses with cover letter and resume (you’ll get DOZENS of responses!) Sort into A, B, C quality applicants to screen down to top 15% Develop and utilize 30 minute telephone interview questions 3. Determine Search Process FBI-2006-NAFA15

16. 30 minute telephone appointments Consistent questioning for all applicants Take notes Cut the to 15% in half (or more) 4. Candidate Interview and Screening Process FBI-2006-NAFA16

17. 1st round of face-to-face interviews (90 minutes to 2 hours) Script for consistency Goal is to cut top 7.5% to about 3% Have them bring evidence and documentation of resume highlights, examples of quality work Administer screening and profiling assessment tools 4. Candidate Interview and Screening Process - continued - FBI-2006-NAFA17

18. 2nd round of face-to-face interviews (90 minutes to 2 hours) Put your businessperson’s intuition ON HOLD and stick to the process! Give challenging homework assignments or skills tests. Don’t be afraid to pile it on! 4. Candidate Interview and Screening Process - continued - FBI-2006-NAFA18

19. 3rd round of face-to-face interviews (2 hours) TEAM interviews Score the candidates on a 1 to 10 scale for all job requirements, skills, abilities, and outputs (helps take the emotion and rationalization our of the process) 4. Candidate Interview and Screening Process - continued - FBI-2006-NAFA19

20. Evaluate the assessments and homework Check references Check criminal background, credit report Make formal, written offer to top prospects Keep the other top candidate(s) on hold Negotiate and hire! 5. Evaluation and Job Offer(s) FBI-2006-NAFA20

21. Housekeeping: Inform unsuccessful candidates review and initial the pages of job description Non-compete, non-solicitation, and non-piracy agreements Develop separate orientation and training action plan 5. Evaluation and Job Offer(s) - continued - FBI-2006-NAFA21

22. The Goal Build a GREAT BUSINESS and a GREAT LIFE! FBI-2006-NAFA22

23. The Family Business Institute’s mission is to provide complete solutions to help family businesses maximize their family and organizational success. FBI-2002-107