Michael Gerber: Don't Organize Around Personalities

On page 167, Gerber says:

Most companies organize around personalities rather than around functions...The result is almost always chaos.

True, but how can you not? Whenever you think of a function for your business, you immediately think of someone you know. Or your mother suggests somebody: "You know your cousin Eddy would be great for that."

Now your mother is your human resources director.

If you are considering hiring people you know, you need to sit down with them and discuss your reservations and expectations. And have a job description for each one. Have them sign it. Put the relationship on a business footing. And you might have to have a rule about no business transacted at family gatherings, etc.

If you don't have clear expectations for everyone in your business, whether you're related to them or not, you're asking for trouble. And if you hire somebody, whether you're related to them or not, you're asking for trouble.

The key is, don't hire anyone just because they're in your circle of family and friends. You can hire them in spite of that if you think they're right for the job. But be businesslike to reduce the risk and uncertainty.

What do you think of this? The goal is to produce more skilled entrepreneurs. Does this help? Tell me. Post a comment. I'd like to know. And follow me on Twitter.com

Entrepreneurship informs all of my professional activities. Entrepreneurial ideas are their life's blood. For my ideas on entrepreneurial real estate go to www.yourstopforrealestate.com/blog and for my ideas on writing and publishing, go to www.kearneymusicschoolmurders.blogspot.com.