Many leaders work to avoid higher comp for more experienced people, or tolerate low performers for too long.
I’ve seen high performing teams complete in days what others take weeks or months to perform. Often, the implementation is much, much better.
This applies to everything from a marketing web page to a funnel analysis to delivering new products.
I’m not exaggerating.
What’s the cost of this wasted time? Here’s a rough method for calculating both the operational costs and the opportunity costs…
A. Operational costs
Your monthly expense load
x
The number of months wasted
B. Opportunity cost
The revenue and scale lost from shipping late
+
The window of opportunity given to competitors to get a foothold against you
+
Loss of moral and momentum on your team
+
Loss of A players who leave because they won’t tolerate working with B and C players.
—
In short, the costs are astronomical. Often, they are catastrophic.
Hire slow. Pay high performers well. Fire low performers fast.