The average intellectual capacity of a typical human is grossly overrated, and in my opinion most management books fail to adress this fundamental issue before embarking into smart theories about how corporations can reach higher levels.
Bozosity is so present in our society that we fail to notice it unless we take some time and gain perspective. People are just plain dumb. It's probably why government works so well, it starts from the basic assumption that individuals are not smarter than the toothbrush they use. Most people can easily be led into false assumptions, dubious projects and unprofitable activities.
A group of smart people - which by definition is extremely small - does not need to be managed per se, their intellectual capacities are sufficient by themselves. This is why our founding fathers - Serge and André - were able to jumpstart this company and quickly build the foundation for an IT empire that could last a millennia.
As you want to increase the size of your company and augment revenues, you need to actually hire people to do the work while you sit in your office and sip Canadian Club while scanning your balance sheet. Problem is, the pool of "A" people is so small that you can't go very far before you hit a snag.
You compromise by hiring "B" people who are not so bad but are not as sharp as the First Ones. It's still manageable at this point, the company structure is lean but you spend some time in management activities that you would not spend otherwise if you had a team of aces.
As the company grows, you are faced with the dilemma of refusing potential profitable contracts or hiring lower grade employees. This is a turning point for many corporations. Even B-grade staff is not very common. When you interview C-grade and even lower grade candidates your mind struggles with the idea of accepting such life forms into your company. They require a heavy structure to operate, policies, guidelines, processes, forms, etc. This is a difficult situation to accept, but one night you work out the numbers and it makes financial sense to hire lower-grade staff even though you need to invest in HR and other unbillable personnel. Excel does not lie.
Once you crossed that river, nature takes its course and you can hire all kind of sub-prime people as long as you can bill them to a customer. You'll be amazed how much crap can be sold so easily, especially on the government side. They’ll ask for more! Your company structure can contains all those average and mediocre individuals, much like a bowl can handle solid food or liquid. Put a robust lid on top and you’re good to go.
Next week I'll discuss how to handle a mixed-bag of different people grade when it comes to middle management. Roach out.
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