Difference between running a business and a clubhouse

Hello, this is Laura Lee Rose.  I am a speaker and author. I am an expert in time and project management.

I help busy professionals and entrepreneurs create effective systems so that they can comfortably delegate to others, be more profitable and have time to enjoy life even if they don’t have time to learn new technology or train their staff.  I have a knack for turning big ideas into on time and profitable projects.

At the end of the day, I give people peace of mind.
Today’s comment came from a busy professional when discussing prioritizing a performance review process for his company.


We’re working through our plan at the moment – it encompasses several projects.  I’m pretty hesitant to put another layer (referring to a performance review process) on at the moment.  I don’t know that we have the bandwidth to do so.

Granted, this is one of my pet peeves. This is much like saying, “I’m using my car too much to take the time to change the oil, check the tires, and do regular maintenance on my car. When I’m not traveling so much, I will think about taking the time for car maintenance.”

I have a longer series on CAReer Maintenance 101 which goes into the Top 10 Tips to Ensure Career Longevity. But today’s focus will be on implementing some type of performance review process.  Why it’s important and how to start one with minimum steps.

Setting performance criteria and reviews is to your company as your car maintenance list is to your car.  Some people go along without maintaining their car – but they pay for it eventually.  Executives that feel their team doesn’t have the bandwidth or time to review business goals, individual development goals and their performance related to those goals are running their business more like a clubhouse than a profit-based business. You may be doing a great job scheduling those projects – but you may not be maintaining the professional skills and health of those people doing the work. I say “may not be” – because without periodic reviews, you don’t really know where you stand.  Your car could give out at any time without any warning.

And asking your employees if they want to implement a performance review process is a waste of time. It’s like asking your children if they want vegetables. A diet of projects without the necessary proteins, vegetables, and exercise to keep your body of employees professionally healthy is like only feeding fast foods to your children.

The clubhouse, informal feel is great for small businesses.  You may feel that you are running faster and leaner.  And that formal performance reviews will only slow you down.  That small, family atmosphere is what got you where you are today. And it has served its purpose amazingly. But – if you now want to grow to that next level; expand beyond what you are doing today; make a bigger impact to the industry – you may have outgrown the clubhouse. If you are struggling to grow and make more money – then you should consider that the clubhouse, informal mentality is probably what is limiting your growth.

If you have the time and money to purchase next generation, bigger, faster and better equipment – then you have time to spend some money and time on your employee’s career development.

Okay – so now you are convinced that you need something in place in order to conduct a performance evaluation. What are the minimum steps?

  • Outline everyone’s roles, responsibilities and expectations. Your employees can do this for you, and then you can review/modify as you see fit
  • Outline your criteria for Average Performance, Above Average Performance and Exceptional Performance. If you want your employees to do their best for you – you need to actually outline what their best means to you. Otherwise, people will be disappointed come performance evaluation time. It is recommended to include metrics that actually increase your business revenue, reduce costs or increase client loyalty, satisfaction and referrals.
  • Setup a SMART goals that achieves those goals and criteria.

If you do the above and define a regular review period, you will have better insight into your employees’ performance, and how to help them improve your company profits. You want your employees to be doing the work that lie in their talents, that makes your company profitable. When employees are working in their genius capacity – your company will expand.

Also – you need to be able to strategically assign tasks that will directly affect company profits. If you find that people are being paid for things that do not align with the company vision and mission, you need to adjust. This is the reason for the performance reviews – to find out where you need to readjust.

NOTE: If you have enough staff to actually have a hierarchy, avoid the lazy man’s method of adding additional responsibilities on top of all the other responsibilities. If you want to add more responsibilities without removing anything then you need to include and adjust the % of time and expectations on all the roles. This actually takes more of your time and thought.

I know your situation is different. Why don’t we schedule an appointment, where I get to know more about your unique situation? And then I will be happy to make recommendations on what your best steps are moving forward. To schedule an appointment, book it HERE.

With enough notice, it would be my honor to guest-speak at no cost to your group organization.

I have a monthly presentation on “how to say YES to everything but on your own terms”. To sign up for the complimentary course, go to www.lauraleerose.com/Say-Yes