Let The Leader Beware - 3 Thoughts on Due Diligence
"I'm a very cerebral person,” says Emmanuelle Chriqui, “and I like to do my homework and break it down. I like to feel like I did my due diligence."
Proper due diligence is vital when hiring for any position, especially leadership positions since everything rises and falls on leadership.
It’s been said that the closest anyone comes to perfection is their resume. Applicants history and references may look impressive until the reference verifications come in. Hirer beware!
"Caveat emptor" is Latin for "let the buyer beware,” which places the responsibility on buyers for doing due diligence prior to making a purchase. How much more does "Caveat emptor" apply to starting a business, or hiring personnel etc.…
Like many purchasing a home over budget against their better judgment, we can bypass red flags starting a business and staffing positions only to have “hire’s remorse” later on.
Dealing with chronic issues and the frustrations that come with faulty start-ups and/or bad hires can be avoided by performing some thorough due diligence such as
Verifying alignment with your purpose, vision, and values
Exercising patience by examining the pros and cons
Following your initial instincts
Acquiring feedback from others
It is amazing how many leaders neglect necessary due diligence and move forward with plans, acquisitions, promotions, and many other objectives that directly conflict with their organization's purpose, vision, values, giftedness, and strategy.
Even a company's language should reflect the original intent of the organization's purpose, vision, and values.
3 Thoughts on Due Diligence
Successful leaders like satisfied buyers always perform thorough due diligence, from the "foundation" to the "on boarding process" to "choosing protégés," monitoring alignment and researching potential is priority one.
1. Foundational - Due Diligence
Foundational due diligence requires working through your purpose, vision, values, giftedness, and strategy. You can trace the internal problems in any organization to misalignment to its original business model. (1)
The foundational principle for any business is alignment to its original purpose.
Business Alignment begins with purpose.
Purpose answers the "Why" question
Purpose gives life meaning
Purpose is the source of passion
Purpose determines giftedness
Purpose determines potential
2. Onboarding - Due Diligence
"Without proper due diligence, an organization's onboarding process becomes the flood gate of systemic problems instead of the door of opportunity."
Lack of due diligence in the onboarding process costs businesses millions of dollars. On average, hiring the wrong person will cost the company up to 30% of the employees' first-year earnings.(2) This makes "who" and not "what" our most important question.
Geoff Smart and Randy Street aptly comment that "Who" is where the magic begins, and the problem starts." (3) Identifying who we're looking for ensures the new hire is the right fit.
3. Choosing Protégés – Due Diligence
Mark Cole says, "Everyone has value, and everyone has the potential to offer value to others." Confirming their commitment to your organizational culture is where you begin.
You can recognize potential leaders because they
Place others before themselves
Are active listeners providing valuable feedback
Lifelong learners who ask good questions
Connects with other valuable team players
Choosing Protégés is a Level 4 leadership lifestyle. Identifying and developing leaders is investing in the future of your organization. So, let the leader beware!
(1) For more information on Business Alignment https://bit.ly/3tu9gkU
(2) Source: Department of Labor
(3) "Who -The A method for hiring" by Geoff Smart and Randy Street
*** This article was authored by John Picarello, Chief Leadership Officer at Lions Pride Leadership Co. ***