Right Person, Right Seat? The Answer’s Not What You Think

One of the most critical questions middle-market business owners and executives face is, “Do I have the right person in the right seat?” While this question is simple on the surface, it’s often misunderstood, especially compared to smaller businesses. For small businesses, getting the right person in the right seat is a foundational priority, and tools like the Entrepreneurial Operating System (EOS) have proven helpful in defining these roles. However, middle-market organizations operate with much greater complexity. As these businesses grow, the static frameworks used in small businesses become insufficient to manage leadership and talent effectively.

In middle-market companies, leadership roles are not only more specialized but also continually evolving, demanding a more dynamic and results-driven approach. This white paper explores how middle-market companies can adopt a forward-looking talent strategy to align leadership with the company’s growth trajectory and evolving needs.

The Growth Challenge: From Roles to Results

In the early stages of a business, roles are often fluid, with team members wearing multiple hats and contributing to various areas of the business. The focus is on building the foundational structure—essentially, defining who does what. For many small businesses, EOS and similar systems suggest that once these decisions are made, they remain fixed for extended periods. This static approach works in environments where agility and quick decision-making at the operational level are the primary concerns.

However, as a business grows into the middle market, the complexities multiply. The scope of operations broadens, the number of stakeholders increases, and the need for specialization becomes more pronounced. At this point, static RPRS decisions can stifle growth, create inefficiencies, and lead to missed opportunities. Leaders must shift their focus from "who does what" to "how does each role contribute to outcomes." A new framework is needed—one that doesn’t just manage tasks but optimizes performance in alignment with the company's strategic objectives.

The Pitfalls of a Static Approach

Traditional job descriptions and organizational charts emphasize static responsibilities, focusing on activities rather than outcomes. While these may work in smaller settings, in a middle-market context, they can be detrimental. For example, a job description may outline a specific set of tasks an individual is expected to perform, but it often fails to define the results that these tasks should achieve. This focus on activities leads to inefficiencies and a misalignment between roles and company objectives.

The middle market is dynamic by nature. Business models shift, competitive pressures grow, and customer demands evolve. Companies operating with a static mindset in this environment risk falling behind. Performance and results—not merely tasks—must drive the leadership agenda.

A New Paradigm: Dynamic, Results-Focused Performance Leadership

At Teleios, we recognize that performance leadership in middle-market businesses requires a fresh approach. Based on our book Leading Performance, we’ve developed the IMPACT system, a five-step process that ensures role-specific responsibilities are aligned with organizational results. Below you will find a free IMPACT Tool to utilize the system for your own organization.

This process isn't just about defining what someone does; it’s about ensuring their skills, passions, and unique value are fully leveraged to move the business forward and achieve the highest impact.

Here’s how it works:

IMPACT System Overview

1. I - Identify the “Sweet Spot”: Every role should be grounded in an employee's "sweet spot," where three key elements intersect:

o Skills: What is this person excellent at?

o Passion: What do they enjoy doing?

o Unique Value: What distinct contribution can they bring to the organization?

The goal is to have at least 80% of a person's role aligned with their sweet spot, ensuring that their strengths are fully leveraged to drive organizational results.

2. M - Map Out Key Responsibilities: Once the sweet spot is identified, map out the 3-5 key areas of responsibility that will allow the individual to maximize their strengths. These responsibilities should be aligned with both the individual’s skills and the company’s strategic needs. Importantly, they must focus on outcomes, not just activities.

3. P - Pinpoint Quantifiable Annual Goals: Each responsibility must have clear, quantifiable goals. These should be specific, measurable, and directly linked to the company’s overarching objectives. Ambitious but achievable, these goals drive accountability and focus.

4. A - Assign a Weighted Value to Responsibilities: Recognize that not all responsibilities are created equal. Assign a weighted value to each, reflecting its relative importance to the organization. This allows leaders to prioritize efforts and ensure that time and resources are focused on the most critical areas.

5. C - Create a Performance Objective Scale: Each responsibility should be translated into measurable objectives on a 1-5 performance scale. A score of 3 indicates the goal was met, while a score of 4 or 5 signifies that the individual exceeded expectations. This scale ensures clarity and provides a transparent, objective measure of performance.

6. T - Track Results and Progress Continuously: Continuous tracking is vital to ensure ongoing alignment with organizational objectives. The traditional model of annual performance reviews is too static for the dynamic environment of middle-market businesses. Instead, we recommend a cadence of monthly, quarterly, and biannual check-ins to ensure real-time course corrections.

A key part of the IMPACT system is ensuring that performance is tracked continuously and not just at the end of the year. Traditional performance management, which often focuses on annual reviews, is too static for the dynamic needs of middle-market companies. At Teleios, we use a cadence of monthly, quarterly, and biannual check-ins to ensure real-time progress.

Here’s how continuous performance tracking works:

1. Monthly Progress Marker (20 minutes):

A monthly check-in between a manager and their direct report is crucial to reviewing progress on performance objectives. At least 24 hours before the meeting, the direct report self-evaluates and scores their progress. The manager reviews these scores to identify achievements and challenges. Using software tools like Monday.com or Asana to track objectives ensures an efficient meeting focused on assessing progress and identifying necessary adjustments. During the check-in, the manager asks:

o What were your biggest accomplishments this month?

o What challenges did you face?

o How can I support you in the coming month?

2. Quarterly Reflection (60 minutes):

A quarterly check-in broadens the focus to a 90-day trend analysis of performance and progress indicators. This meeting combines an assessment of key performance objectives with employee well-being, development opportunities, and any additional support required. It’s a chance to step back and view the bigger picture.

3. Biannual Evaluation (90 minutes):

This involves a mid-year evaluation that reviews year-to-date performance against objectives, assessing what’s working well and what needs realignment. At the end of the year, a more in-depth assessment examines goal achievement, personal development, and sets new performance objectives for the following year.

By maintaining this structured yet flexible approach to performance tracking, middle-market businesses can ensure their teams stay focused on results, allowing for course corrections when necessary without waiting for the end of the year. This system provides the transparency, accountability, and support that growth-oriented organizations need to succeed.

Example: The COO of a Middle-Market Manufacturing Company

To illustrate the IMPACT system, let’s consider an example of a Chief Operating Officer (COO) in a middle-market manufacturing company.

1. Identify the COO’s sweet-spot: The COO is excellent at operational efficiency (skill), passionate about implementing technology to streamline processes (passion), and brings unique value in managing complex supply chains (unique value).

2. Map Out Key Responsibilities:

o Improve operational efficiency across all manufacturing plants.

o Implement an enterprise resource planning (ERP) system to automate processes.

o Manage and optimize supplier relationships.

3. Pinpoint Quantifiable Annual Goals:

o Achieve a 10% reduction in operational costs by the end of the year.

o Fully implement the ERP system across all plants within 12 months.

o Improve supplier satisfaction scores by 15%.

4. Assign Weighted Responsibilities:

o Operational efficiency: 40%

o ERP system implementation: 35%

o Supplier relationship management: 25%

5. Create a Performance Objective Scale:

A score of 3 for operational efficiency means achieving a 10% cost reduction. A score of 4 could reflect a 12% reduction, while a score of 5 might represent a 15% or greater reduction. A score of 2 or 1 would work in the opposite direction (e.g. 8% for 2 and 5% for a 1).

Once performance objectives are created for all key areas of responsibility, the COO would begin a monthly/quarterly/bi-annual cadence of check-ins with his or her leader (i.e. the CEO). This approach ensures that the COO’s performance is not evaluated based on activities or arbitrary assessments but on clear, measurable outcomes that align with the company’s strategic goals.

In conclusion, middle-market businesses need to shift from static to dynamic leadership approaches. By focusing on results, leveraging talent effectively, and embracing the IMPACT performance leadership system, these businesses can position themselves for sustained success. The right person in the right seat isn’t a static decision—it’s a continuous process that requires constant evaluation and realignment. By following this approach, middle-market companies can unlock their full potential and drive growth in a competitive marketplace.

Use our IMPACT Tool to design an impactful role for your own leaders. Access the Tool by submitting your information below: