Scaling traditional businesses requires replication and duplication
Too many business owners live and die on being key-person dependent in their organizations. On the surface, this strategy seems to make sense. You have a talented, driven person who is great in their role. Your clients love them and their peers respect them. They are dependable and accountable. You can’t imagine the organization without them . . . and therein lies your problem.
Not only does the person working in this capacity put your organization in jeopardy, but they’re probably getting bored. All that potential, just dying on the vine.
What should you be doing instead? Replicating their mastery across the rest of the organization while presenting them new challenges for professional growth.
Your employees are bored. The Rule of 3 keeps them engaged.
Your ability to transfer detailed processes and precise organizational information to your entire team on how to replicate your organization’s most impactful conversion points has a direct correlation to your ability to profitably grow the business. The better your organization can be at this, the more quickly and effectively you’ll be able to onboard new team members and further grow your business.
Don’t believe me? Consider this Gallup statistic: two thirds of all employees in the U.S. are either disengaged or actively disengaged. Two thirds. That’s 66% percent of your staff on autopilot, at best.
At Cardone Ventures, our goal is to 10X everything and everyone — our business, our teams, our clients’ business, all of it. And we make that happen by creating active engagement through the rule of 3s. Here’s how it works:
Rule 1: Define each process in your business
When I say “each process” I literally mean every granular thing your business does. There are required actions for everything you do. Nothing should be left in anyone’s head. Collaborate closely with key stakeholders across the business in order to identify your business’s processes. Pay close attention to who is and who is not providing valuable information. This will tell you more than you realize.
Rule 2: Document each process
It’s one thing to know that you have a set of processes, it’s altogether another matter of having all of them documented. Prioritize documenting those processes first which have the highest impact in the business. Pay close attention to the precise elements that matter most to achieving success, then drill, practice, and rehearse with three other teammates until optimal results are achieved.
These documents and videos should be as simple but as detailed as possible. New employees can use these operating procedures as training guides, hitting the ground running with the information that is vital to their (and to your company’s) success.
Store these documents and videos in a centrally accessible location, organized by department or by process systems Oh, and those folks who were most valuable in the process identification phase? Put them in charge of documentation, storage, and upkeep of these documents until the time is right to make them someone else’s responsibility. Speaking of…
Rule 3: Develop your people, then hire more people
The rule of three states that once you perfect something and document a process for it, perfect that process three more times through others. When your team is able to replicate those results, then have each team member train three more people, and use your personal efforts working with each of them to dial in the process. That system will take your organization to 12 doers with you ensuring each person understands how to train, what data to pay attention to, and how to react and respond at the highest level, creating the best results.
The rule of three forces you to create processes, track and analyze data, develop leadership skills, and understand what drives the business at a granular level. This prepares you as a leader and reinforces with your team the importance of process, discipline and accountability. Using the Rule of 3 ultimately sets up you and your business for maximizing long term impact for you, your team and to 10x scale.
The Rule of 3 grows your people, your business, and you
When applied correctly and consistently, the Rule of 3 fosters new leaders in the organization, those who can take on more of your day-to-day responsibilities, which will allow you to focus more of your energy on working on the business vs. in the business.
Your time is better spent on pushing the business toward your long-term vision goals vs. executing day-to-day tasks. Leverage the power and insight of those leaders you’ve developed. They, too, should be developing new leadership on their teams so that everyone is learning new skills, taking on new responsibilities, and staying actively engaged in their role and the business as a whole. This is how you 10X!
It’s time to 10X your business, and your life, and we can show you exactly where to start. Visit Cardone Ventures to register right now for our next impactful 10X event!