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    Why People Matter Most When Making Business Decisions

    Manager
    • 22 Dec 2016
    Patrick Mullane Author Executive Insights
    tag
    • Business Essentials
    • Leadership
    • Management

    The best business decisions are never ones of strategy, sales, or marketing—at least not directly. They are always people decisions. Who we hire, how we manage, and who we fire have far greater impacts on results than the things we usually think of as driving success.

    This should be obvious to all of us; after all, decisions don’t just materialize from the ether, ready to be executed upon by managers sitting in a conference room primed to act. People make decisions. It’s probably not surprising we forget this. Headlines in the business sections of newspapers rarely read like this: Jane Doe Hires Well, Stock Price Soars. Instead, Jane’s successes are attributed to things like product decisions: Release of New Phone Drives Sales at Doe Industries.

    My best business decisions have always been around people. Two in particular come to mind. One had to do with hiring; the other had to do with a termination. Let’s start with the latter.

    I became the CEO of a manufacturing company in 2010 after a completing management buyout with some outside investors. When I took on the leadership role, one of the original founders was still in the business; the people I bought the company from had acquired the firm from him and had allowed him to stay in a very prominent role in the organization. In fact, he occupied the corner office in our brand new manufacturing plant.

    The founder was a great man. He was exceptionally smart and very good at what he did; he couldn’t have built a firm of the size he did without some skills. But he also (not surprisingly) had very strong views of how things should be done. Early on, I saw this as a problem. While having somebody who reports to you not buy into your own vision is a problem in general, it’s even more of a problem when that person is the previous owner and hired many of the men and women who still worked in the firm.

    Pretty quickly, issues arose around consistency of message, priorities, and the sharing (or lack thereof) of information. It was time for the founder to go. Over the course of six months, we worked together to organize a “soft” exit, essentially reducing the amount of time he spent at the office each month.

    Upon his departure, things started to click. For example, he had been of the opinion that anybody we hired had to have fifteen years of experience in the type of manufacturing we were doing. The problem was that we were a highly specialize, niche business. And we were located in central Massachusetts, unable to draw talent from major metropolitan areas that were too far away for the average commuter. He also was subtly hostile to those with college degrees.

    He didn’t have one, so why did our engineers need to? I used to tell him that anybody that met his hiring criteria already worked in the company! With his departure, I was more easily able to get hiring managers behind a new hiring philosophy and in short order we had added some very good personnel who significantly raised our talent bar. These new team members also more easily bought into the recently revised vision for our company, one centered on engineering excellence, not widget-making.

    One of my other “best decisions” was around hiring. I ran a for-profit education location for a large multinational. When I arrived, the location had suffered some tough years, coming in annually as one of the worst performing sites. This location was in a major city and hosted students who were studying to prepare for the GRE, LSAT, GMAT and other standardized tests.

    Your Guide to Online Learning Success | Download Your Free E-Book

    When I got there, it became obvious what was driving the poor performance: much of the staff didn’t view themselves as customer service people but, rather, as academic administrators. While there’s nothing wrong with academic administrators, there is something wrong with putting them in a customer service role instead of an administrator role. We needed people who would provide service with a smile. A former waiter or retail delivery person fit the bill much better than an education bureaucrat. Within a year, the center I managed was in the top 5% based on several performance metrics. People matter that much.

    While there are many decisions that can move the needle, nothing does it more than people decisions. Do that right, and the needle moves in the right direction. Do it wrong, and the needle will start trending toward “empty” … as will your company’s bank account.

    About the Author

    Patrick Mullane is the Executive Director of Harvard Business School Online and is responsible for managing HBS Online’s growth and long-term success. A military veteran and alumnus of Harvard Business School, Patrick is passionate about finding ways to use technology to enhance the mission of the School—to educate leaders who make a difference in the world.
     
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    We offer self-paced programs (with weekly deadlines) on the HBS Online course platform.

    Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community.

    Are HBS Online programs available in languages other than English?

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    We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English.

    All course content is delivered in written English. Closed captioning in English is available for all videos. There are no live interactions during the course that requires the learner to speak English. Coursework must be completed in English.

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    How do I enroll in a course?

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    HBS Online welcomes committed learners wherever they are—in the world and their careers—irrespective of their professional experience or academic background. To extend the reach of HBS Online, we no longer require an application for our certificate programs. (Applications are still required for our credential programs: CORe and CLIMB.) You can now immediately enroll and start taking the next step in your career.

    All programs require the completion of a brief online enrollment form before payment. If you are new to HBS Online, you will be required to set up an account before enrolling in the program of your choice.

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    Credential Programs

    HBS Online's CORe and CLIMB programs require the completion of a brief application. The applications vary slightly, but all ask for some personal background information. You can apply for and enroll in programs here. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.

    Our easy online application is free, and no special documentation is required. All participants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

    Updates to your application and enrollment status will be shown on your account page. We confirm enrollment eligibility within one week of your application for CORe and three weeks for CLIMB. HBS Online does not use race, gender, ethnicity, or any protected class as criteria for admissions for any HBS Online program.

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    No, Harvard Business School Online offers business certificate programs.

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    You may split your payment across two credit card transactions or send a payment link to another individual to complete payment on your behalf. A minimum payment of $350 is required for the first transaction.

    Some learners may also qualify for scholarships or financial aid, which will be credited against the program fee once eligibility is determined. Please refer to the Payment & Financial Aid page for more information.

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    After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ.

     

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