There are tons of rules that “go without saying”. The unwritten rules of owning a company an sometimes make the different between winning over a client and losing one. However, sometimes an organization will “miss the memo” and will suffer because they’re not following a specific unwritten rule. This can cause absolute chaos and sometimes can kill a business before it even has a chance to flourish. Here is a pair of rules that you should avoid.
Promoting Employees that are Doing Well in Their Current Roles
You hired a sales representative a few months ago, and they have been nothing but useful. They are outperforming the rest of the department without even lifting a finger, and you’re nothing but impressed. You decide that they’re doing such a good job, they should be in a position to teach the rest of the department how to do their jobs more efficiently, so you promote them to a manager.
Nothing could be less encouraging. A good sales rep does not necessarily make the perfect manager. Both jobs require a different set of skills completely. You may find yourself facing a situation where your best sales rep makes the worst manager and your company starts to lose money. Instead, give your sales rep a raise and let them work in the position they’re best at fulfilling.
It’s All about Cash
For many years, business owners figured out their year’s success based on financial statements. They ignored the number of clients, customer satisfaction, and employee performance. How much money did the company make defined whether the business as a success or a failure.
While money is important and you should be focusing some effort on maintaining steady revenue, it alone does not fill in the large shoes of success. If you have high customer satisfaction ratings, that is something you can use to your advantage. Measure success based on the overall picture, not just the bottom line.