Thursday, May 28, 2009

The People Formula, PxS=P

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You will always here it said that people are your most valuable asset. I have learned that people are also by far your most expensive and complex asset. Based on this notion and a lot of hard lessons, I have developed a formula that I keep front and center whenever I am dealing with HR or the “people asset”. Over the next couple of weeks we will run through this formula as well as an accompanying method I use to implement it. The formula is PxS=P. Passion x Simple = Practical.

Passion. Much ado is made about passion and without it a startup stands little chance for any level of success. Most startups love attracting people to their cause and attracting passionate people to a cause is generally not that hard. In saying that, one of the most prominent reasons for failure in startups is that startups attract passionate people to a cause. Lets me stress this again so you don’t think I made a mistake in what I wrote; "One of the most prominent reasons startups fail is that they attract passionate people to a cause". A cause is something that brings about an effect or a result. A causes on it's own is a problem. A causes is a "big idea" and big idea’s have a lot of interpretations of what the big idea is, how it gets accomplished, why it needs to be accomplished, who should accomplish it, and the most contentious, who’s cause or idea is it? Passion is a double edge sword. While a passionate team can bring enthusiasm, drive, fortitude, adherence, focus, dedication, and more, it can also bring politics, ego, obstinance, burnout, and disappointment amongst other challenges. In order for passion to be effective it needs to have a purpose. A purpose channels and causes passion. While a cause can bring about a change a purpose gives reason and direction for that change. A purpose has context, a context that is created from clarity (There is that word again "clarity". Everything starts with step 1 (clarity) as previously outlined. Clarity, Clarity, Clarity).

With clarity you can create purpose. With purpose you are less likely to attract the “wrong” passionate people which is just as important as attracting the “right” passionate people. By really working the clarity questions from Step 1 with your team you are putting in the first, most important, least expensive, and most effective layer of HR screening possible. In doing this you will automatically implement the most important aspect of the formula: Attract people to a purpose not a cause.

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