In every organization, particularly in a finance and accounting department headed by a CFO, there may be a need to identify the performers from the underperformers or replace or retain someone. This is not an easy task. In fact, the task could prove herculian. But we need to do it so ultimately we do not waste time reviewing, correcting, or closely supervising people, such that we do not have time anymore for the primary tasks that we have.
This need for the “right people in the right seats,” which is a popular phrase among financial executives to create an effective team, will certainly need the support of the human-resource (HR) team. For small businessmen or small and medium enterprises, the task is more difficult to execute for the burden is also placed on the owner/s.
But even with a good HR department, the task of evaluating the performance of the existing staff and evaluating the capability of applicants falls squarely on the shoulder of CFOs. Sometimes a performance review could prove inaccurate or ineffective and the full measure only come through a direct observation of the talent.
For small businesses, the challenge is harder because they do not always have the luxury of choice and if they do, there is the problem of retention since the big companies can always acquire their talent via more competitive compensation packages.
There are ways to spot a good talent from the bad apples. According to Dr. Ajit Kambil in his article in Deloitte’s CFO Journal in the Wall Street Journal, the need to directly observe talent helps you keep the right ones. You should be able to identify, for example, those technically competent, but ineffective, managers; those whom you are confident can deliver in terms of competence; those whose judgment in critical situations have sharp executive abilities; those who can give your team or business positive energy, instead of draining you out; those who can be a good ambassador and technically competent enough to enhance the reputation of the business; etc.
And I think one other very important factor your employees should have is integrity. Without integrity your business is at risk. According to Kambil, one has three options when dealing with different types of people in your organization. One, you replace problematic team members. Two, you reassign staff. Three, you remediate performance gaps through training or coaching.
Hiring the right people for the right position gives you more time for the more important tasks. One should quickly take action although this is easier said than done, especially because there is a scarcity of real talent. But having the right HR person or HR head is the first step in that right direction.
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Wilma Miranda is the Chairperson of the Media Affairs Committee of FINEX, Managing Partner of Inventor, Miranda & Associates, CPAs and Treasurer of KPS Outsourcing, Inc. The opinions expressed herein are the views of the writer and do not necessarily reflect the views and opinions of these institutions.