How Hedgehogs Hire

In my last column, I explored Jim Collins' "hedgehog" principle, and how powerfully this can be used to attract great employees. After many dozens of CEO interviews, I'm convinced that leaders with well-defined hedgehogs deploy the most successful hiring models.

Recent job growth figures mean that more firms are competing for the same talent. This causes additional pressure on us to determine how we can minimize attrition of our best people.

I interviewed CEO's of successful small to medium-sized companies to find out how they are addressing this trend. They had to meet two criteria: First, they had to report consistent profitable growth for the last 3-5 years, and second, they had to demonstrate a serious passion for attracting and retaining good people.

Rod Walker, President and CEO of Knightsbridge Technology, a consulting firm based in Chicago, meets the criteria. According to Walker, "recruiting the best talent is my number one priority. As we experience 41% CAGR, we've been challenging ourselves to attract premium people quickly while maintaining our culture." It's no wonder that Knightsbridge boasts a 15% voluntary turnover rate, much lower than today's services industry average of 25%.

I also spoke with Janet Amirault, President of Software Consortium in Towson, MD. This firm provides strategic IT consulting services to clients such as Black& Decker, Sylvan Learning, and Marriott Corporation. They have delivered 15+% annual growth in the last 9 out of 10 years. Of the two good performers who resigned in the last year, both became corporate clients.

These leaders shared common strategies:

1. Design the position first, then recruit. Amirault suggests, "Document the key knowledge, skills and behaviors that you need for every position." In my experience, many firms still rely on job descriptions to attract good people and skip this critical step. Some positions will always require certain credentials and education. What's often missing are the key behaviors you'll need to rapidly align this person with your company's culture, processes, and values.

You'll also need to review your interview questions. For example, if you want to ensure this person has a commitment to lifelong learning (a behavior), how would you know? Amirault recommends that you "Ask very specific questions, such as 'what were the last two courses you enrolled in while you worked at ABC Company?"

2. Implement multiple candidate data collection methods. Consider personality surveys (such as PDP/Dynapro and Myers-Briggs) and external background checks (such as Kroll America). Most of these programs require less than 30 minutes of your time and may cumulatively cost less than $500. The investment is a fraction of the cost of one bad hire, which ranges from $100K in IT to millions for mortgage brokers.

3. Beef up your systems and enabling technology. According to John Walsh, President of Del Mar Database in San Diego, "Growing your own leaders can be a very effective strategy, but it requires very good business processes and technology. Internally promoted teams need better tools because of their lack of experience." The Mortgage Bankers Association projects a 47% IT capital budget increase in 2004--two thirds of which is slated to streamline processes for loan origination professionals.

4. Increase your commitment to consistently providing professional development. Knightsbridge invests over $1M annually in training and pays special attention to new hire and junior consultant development. That's nearly 3% of revenues. Software Consortium have shifted a solid percentage of their training budget from standard technical skills to leadership and sales disciplines.

These great examples prove that if you treat your hiring system like gold, and your hedgehog is strong, you just may 'outfox' your competitors!

Lisa Nirell is President of Nirell & Associates in Del Mar, CA. (http://www.nirell.com). She helps services leaders who create outstanding client experiences by attracting great employees. She recently completed a 10-month study of top performing services CEOs. For a free subscription to NirellNews and a Special Report on this study, call 858-481-8787, visit http://www.nirell.com, or email marketing@nirell.com. Please mention "ezinearticles.com" in your response and you may qualify for a free audio CD ($37 value) on profitable growth strategies.

RELATED ARTICLES

Why Do Interviews Die: That Sinking Feeling and How to Prevent it!
Interviews die because a mistake occurred. Sometimes, you've made a mistake; sometimes they die because someone who screened a resume did.

Job Search Lessons From The Super Bowl
The Super Bowl is a game but, like sports in general, it offers useful life lessons that we can take with us . . . if we only look below the surface. As I watched the game, I saw a number of things. How many did you see?

Resurgence of the Time Sheet: Why You Should Write Down Your Workday Activities
One day I walked into my boss's office and said, " I think all staff should do a time sheet, including you, from now on." I definitely surprised her but the results of this request certainly got the attention of all of our staff.

How to Overcome Being Overqualified
Have you ever gone through the interview process, felt confident that you'd performed extremely well, and then heard these dreadful words: "I'm sorry, but we feel you're overqualified for this position."

Top 10 Resume Writing Tips to Get You the Interview
There are many reasons why you could be in the market for a new job right now. Perhaps...

Your Cover Letter MUST Ask This Question
Imagine receiving a letter from a salesman who wants to sell you an exciting new widget. The letter focuses on all the reasons why this is such a great item. But nowhere does the man ASK for the purchase! You are not as likely to buy it.

Create A Rappin? Resume
(Percussion sounds emanating from who knows where while you listen to the cadence of the words below.)

Surprise! Accounting is the Hot New Major
There was a time when accounting was the boring college major that many people regretted signing up for. A constant barrage of numbers, statistics and spreadsheets was none too interesting.

Youre Bright And Talented -- TooT Your Own Horn --
Obviously, there are RIGHT ways to move UP the ladder. Being in the right place certainly has tremendous benefits. YOU have to "kinda" find ways to be at the right place at the opportune time.

Nuts and Bolts of Effective Cover Letters
As a job seeker, you shouldn't overlook the importance of a cover letter. If written strategically, a cover letter increases your chances for consideration, and provides an opportunity to highlight your individuality.

Effective Resume and Cover Letter Writing - Part One
To begin, make a decision to discard any former knowledge learned about the "rules" of resume and cover letter writing. People commonly become stuck in "bad" writing habits from a time gone by.

Six Sure-Fire Ways to Get Yourself a Pay Rise
Many employees do not care too much for their bosses or supervisors. It is an all too common trait. Most feel as though the boss knows nothing, has a superiority complex, is arrogant, is unapproachable, expects too much and pays too little. Are you nodding your head?

Interview Skills That Attract Offers
An interviewer's mission is to assess your qualifications compared to the other candidates interviewed. Asking you questions is their way of accomplishing that mission. Preparing meaningful responses in advance is your way of impressing the interviewer.

What Every Employee Should Know About How to Overcome Boredom
Do you find yourself easily becoming bored or tired at work for no apparent reason? If that's the case, then pay close attention. Research has shown that fatigue and a worn-out feeling are often caused by unproductive mental attitudes. If this describes your case, read on to learn six ways you can overcome boredom.

Resume 101
Whether you've been downsized, are looking for a career change or are just starting out, your resume speaks volumes about you. If your resume doesn't make it past the first cut, you're doomed; no matter how qualified you are. Below are ten common mistakes to avoid when putting your resume together. Remember, you only get one chance to make a good first impression.

The 10 Biggest Career Change Mistakes - And How to Avoid Them
Career change is no walk in the park.

Supplement Your Skills and Improve Your Work Position
It is often said that the majority of people are but a few checks away from homelessness. Without a consistent income, this may be a true statement. Some ability to multi-task can get you through a temporary employment down-spell.

Counter-Offers: Do They Merit Consideration?
You are one of the fortunate few who have not been downsized. However, your current job isn't exactly fulfilling. Perhaps it isn't what you enjoy doing. Maybe the hours are too long. Perhaps you are having some conflicts with your supervisor. Your salary may not be on par with average job salaries for the same type and level of position, or not come close to what you feel you are worth. Whatever the reason(s), you have decided to enter into a job search.

Diplomats and Spies
"The Baratarian pirates also offered their services. Even though an American naval force had destroyed their base on Grand Terre Island in September, the Baratarians rejected British overtures to side with them. (6) {Other accounts make it clear the men were willing to go it alone or against the Americans and yet Lafitte convinced them to support the American cause. I see this as part of the French Masonic or Merovingian/Priory plan that included Napoleon. Lafitte and Joseph Napoleon later tried to break Napoleon out of St. Helena. I think Lafitte was their agent and played any role or side to support their cause first and foremost. They wanted the US to become a real force in the world. Their counterparts in England had declared French Masonry was without a soul. They had formally declared them to be any number of silly things. It continues to some extent to the present. I shall address this more as I proceed but suffice it to say that at some level we have an inner sanctum of people who are playing both sides for fools.} Instead they pleaded with American officials to accept their services. According to one observer, 'this transition from piracy to Patriotism' was due to the influence of Edward Livingston. The pirates had promised Livingston $20,000 if he could secure their acquittal on charges of violating the trade laws,?" (7)

Finding a Job Under Tough Circumstances
Anyone can find a job. That's right, I said "anyone". And I meant it. But the caveat is: I didn't say what kind of job. You can go out and start flipping burgers, and whine about the tough breaks life handed you when your company down-sized, or you can reach higher, and go for that job you really want, and know you have the experience and enthusiasm for.