Financial advisors often state the disclaimer that Past performance does not guarantee future results. As a small business entrepreneur this is also something you should consider when hiring employees and independent contractors. Unfortunately past performance is usually the determining factor within hiring practices. Many interviewers start with: Tell me about a time when you handled this type of project or in the case of government contracting they ask to list similar contract jobs that are in the same size and scope. The problem with the responses is the fact that every business and department may have the same problem but the internal and external factors surrounding the root of the problem will be different.
Past performance does show how the employee or contractor approached a past project that produced a positive result but as they say, the devil is in the details. To determine future results would be difficult because at any given time the strengths, weaknesses, opportunities, threats (SWOT) for the business may change. The SWOT takes into account the internal and external factors of the industry and the business.
The Rhodes Porter PPP method used in business case studies analyze projects at any given time that take the SWOT into account.
- Problem
- Process
- Performance
Discover the Problem
In the discovery process the employee or contractor should be able to ask the questions surrounding the current business environment including what solutions have been used in the past to try to solve the problem.
Develop a Process
The methodology used to handle the root problem is where the hiring business should pay close attention to details. The process is how the employee contractor will stand out. What resource tools they plan to use, what team they plan to gather and what timeline they will give to see results, can tell whether or not the employee contractor understands the Problem and if they seem to be a valuable asset.
Execute Performance
There are many contractor employees who can tell you how they have and plan to execute a solution. Talk is cheap, but hiring the wrong personnel gets expensive. So, how do you determine performance before you hire? They must perform. The amount of time given to see actual results is based on the new employee contractor’s ability to use past resource tools, process methods and a most importantly their ability to execute and adapt to the new business environment.
Even though past performance can not guarantee future results it does give insight as to whether or not the small business entrepreneur has the knowledge and resources necessary to add valuable solutions to the projected problem which hopefully results in an increase in overall business profitability.
Need a SWOT analysis or need to develop a new business department strategy? Rhodes Porter has associates ready to assist your small business or government project.