The Ripple Effect

The journey I lead with my clients is to help them become at least 80% strong across the six key components of their business: Vision, People, Data, Issues, Process and Traction.

Recently, a client proudly proclaimed themselves to be 80% strong in their People component because they had run the People Analyzer (the tool that assesses whether employees are the “Right People” for the organization, and if they are in the “Right Seat”) and found that over 80% of their people are Right People/Right Seat (RP/RS).

I had to deliver some disappointing news.

Your strength in the People component is NOT in direct relation to the percentage of people who fit your culture (Right People) and who “Get it”, “Want it” and have the “Capacity to do it” (GWC) their role in the company (Right Seat).

That is because of the Ripple Effect. That is, even one person who isn’t RP/RS has an impact far beyond themselves.

For instance, let’s imagine you have an employee who simply doesn’t fit your culture. That person probably knows they don’t fit, and as a result they may be quietly undermining the Leaders’ efforts to get everyone to fit the company’s Core Values (the very definition of the company’s culture). They will be the ones whispering to others that Core Values don’t matter, that it is all fluffy stuff, and predicting the Leadership Team will soon move on to the next “flavor of the month”. Those people are toxic and they bring everyone around them down. Moreover, when Leaders tolerate someone like that within the business, it leads “Right People” employees (who can plainly see who doesn’t fit) to question Leadership’s commitment to their own words.

Likewise, when one person doesn’t fit their seat, it impacts the productivity and morale of the people around them. When “Wrong Seat” people underperform – missing deadlines, producing sub-standard work, needing help from others who have their own work to do – it prevents the “Right Seat” people around them from being as effective as they can be. And when those people are less productive, the people with whom THEY interact feel it, too. Again, the Ripple Effect.

The goal is to get EVERY person in the organization to be RP/RS. If you have 40 people, then 40 out of 40 have to be Right People AND Right Seat. Everybody has to have both.

Now, getting to 100% RP/RS is hard. And because people’s lives change, staying at 100% RP/RS is also hard (one of my clients predicted that as soon as they get to 100% RP/RS, someone’s spouse will be transferred across the country). The point is that you MUST work hard to address all your Wrong Person and Wrong Seat issues.

There is no magic mathematical formula to tell you what percentage of your people must by RP/RS for you to be 80% strong in the People component, but it is a good bit higher than 80% – much closer to 100%. This is why I always stress to my clients how important it is to address their people issues quickly and directly. Because the Ripple Effect will amplify the impact of those who fall short.