Many companies use the Boston Consulting Group’s Growth-Share Matrix to determine which resources should be allocated to each of their business units. As a manager or owner, you can use this model to assess the strengths, weaknesses, and value of your employees.
Recently one of our clients was forced to layoff employees in every area of his business. We used this model as a starting point, and the conversation that took place during the assessment process drastically changed his initial views. Whether you are considering pay raises, promotions, or layoffs, separating employees in to one of the four quadrants will bring you a new level of clarity.
Cash Cows — High Productivity/ Low Growth Potential
These are your rock star employees! They bring in lots of revenue for your business with their high levels of productivity, and they are settled into the organization. You have taken the time to invest in them through training courses and continued learning, and as a result they are your top producers.
Strategy: Simply put – Keep these employees, harvest your Cash Cows.
Stars — High Productivity/ High Growth Potential
People who fall in to this category are generally new to the organization. You have hired a great employee who is highly productive and now is the time to grow this person.
Strategy: Invest in these employees – give them the training and tools necessary to become a Cash Cow.
Question Marks — Low Productivity/ High Growth Potential
View this group as your problem children. These are the employees who are slacking at work – they show up late, they aren’t focused; they’re setting a bad example. However, they also have high potential. While their productivity levels are low, you hired them because of their raw talent or high skill set. These employees have either not been given the tools necessary to become successful, or they’ve simply become complacent and lazy over time.
Strategy: Figure out if you need to invest in the person to make them a Star, or if improvement will not work, then divest them from your company.
Dogs — Low Productivity/ Low Growth Potential
Not every employee you hire will be the right fit. At the point that you realize there is no value in your employee, it is time to let them go.
Strategy: Divest these employees and hire a Star!
Each of your employees is somewhere on this scale of productivity and growth potential. By taking the time to evaluate each employee’s current standing, you’ll be able to decipher the best strategy to reach your organization’s optimum productivity level.