How I Manage A $100M Team (3 Part Formula)

Summary

In this insightful transcript, Layla shares her proven 'Accountability Formula' for managing high-performing teams. She highlights the critical role of accountability in bridging actions and results, and how a lack of it can hinder business growth. Layla provides a clear framework that includes setting expectations, measuring performance, and delivering constructive feedback to ensure team members are held accountable and drive the company towards its goals.

Takeaways

• 📈 The 'Accountability Formula' is essential for managing large teams effectively and achieving desired business results.
• 🔍 A lack of accountability is often the root cause of business pain, where tasks are assigned but results are not achieved.
• 🤝 Accountability is the bridge between action and result; it's critical for driving company growth and success.
• 💡 The speaker emphasizes the importance of hard conversations, coaching, and feedback to foster a culture of accountability.
• 👥 Holding individuals accountable is crucial, as team performance is often a reflection of the leader's commitment to accountability.
• 📊 The Accountability Formula is composed of Expectations, Measurement, and Feedback, with Feedback being the most impactful and amplifiable component.
• 🎯 Expectations should clearly define what 'good' looks like in a role, including both organizational and role-specific expectations.
• 🏢 Organizational expectations include the company's mission, values, and brand promise, which set the behavioral and performance standards for the business.
• 📝 Role expectations should be detailed in job descriptions, outlining the specific outcomes and behaviors expected from an employee in their position.
• 📉 Measurement involves identifying key performance indicators (KPIs) that quantify how well expectations are being met, including both push and pull metrics.
• 🗣️ Feedback is continuous and should be normalized within the company culture, providing employees with clear insights into their performance and areas for improvement.
• 🔄 Regular one-on-ones and timely messages can be effective methods for delivering feedback and enhancing accountability.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is the 'accountability formula' for managing large teams effectively and addressing the issues that arise when accountability is lacking in an organization.

What does the speaker suggest is the root cause of business pain?

The speaker suggests that the root cause of business pain is often a lack of accountability within the organization, which is the glue between an action and a result.

What is the accountability formula mentioned in the script?

The accountability formula mentioned in the script is 'Expectations + Measurement * Feedback', which is a framework for ensuring that team members are held accountable for their actions and results.

Why is feedback an important part of the accountability formula?

Feedback is an important part of the accountability formula because it is the only element that can be amplified to improve accountability. It helps individuals understand how well they are meeting expectations and where they need to improve.

What are the two levels of expectations that need to be set according to the script?

The two levels of expectations that need to be set are organizational expectations, which include mission, vision, values, and brand promise, and role expectations, which are specific to an individual's job within the organization.

Why is it important to reset expectations for new team members?

It is important to reset expectations for new team members because what 'good' looks like can vary greatly between different companies and roles. Resetting expectations ensures that everyone is on the same page regarding what is expected of them.

What are the two types of metrics typically used to measure performance in a role?

The two types of metrics typically used to measure performance in a role are a push metric and a pull metric, which represent different aspects of performance that contribute to the overall success of the role.

How does the speaker suggest using job descriptions to improve accountability?

The speaker suggests using job descriptions as a living document that outlines the expectations and KPIs for a role. By regularly updating and reviewing these with team members, it helps to clarify expectations and measure performance effectively.

What is the role of the company's founder in setting organizational expectations?

The founder of a company is responsible for setting the mission, vision, values, and brand promise, which collectively form the organizational expectations that guide the behavior and goals of the entire company.

How can a company measure the effectiveness of its sales team according to the script?

According to the script, a company can measure the effectiveness of its sales team by using a push metric, such as the number of sales closed or the close rate, and a pull metric, such as client retention rate, to understand the long-term impact of the sales approach.

What is the speaker's advice on giving feedback to team members?

The speaker advises giving feedback regularly, ideally during weekly one-on-ones, and making it a normal part of company culture. Feedback should be constructive, specific, and aimed at helping team members improve and meet expectations.

Outlines

00:00

🛠️ Accountability in Business Management

The speaker introduces a formula for managing large teams effectively, addressing common issues such as lack of results and the need for accountability. Accountability is described as the link between actions and results, and its absence is identified as a common pain point in businesses. The speaker emphasizes the importance of hard conversations, coaching, and feedback in maintaining accountability. A real-world example is shared where a company's revenue increased by 30 percent after implementing the speaker's framework. The Accountability Formula is introduced as a combination of expectations, measurement, and feedback, with a focus on the importance of setting clear expectations for organizational and role-specific goals.

05:01

📊 Setting Expectations and Measuring Performance

This paragraph delves deeper into the Accountability Formula, starting with setting expectations for both the organization and individual roles. The speaker explains the importance of aligning job descriptions with company values, mission, and brand promise to ensure a shared understanding of what 'good' looks like within the company. The concept of having both organizational and role expectations is discussed, with the former shaping the latter. The speaker also touches on the need for context when transitioning from one company culture to another, emphasizing the importance of resetting expectations. The paragraph concludes with the importance of measurement in defining success, suggesting that each role should have at least two metrics: a push metric and a pull metric, to provide a balanced view of performance.

Keywords

💡Accountability

Accountability is the concept of being responsible for one's actions and decisions. In the context of the video, it is described as the 'glue between an action and a result.' It is central to the theme of managing teams effectively. The speaker emphasizes that a lack of accountability can lead to poor business results, and the importance of holding team members accountable to drive the company's growth.

💡Systems and Processes

Systems and processes refer to the established procedures and mechanisms within an organization that facilitate its operations. The script mentions that people often seek advice on these systems and processes to alleviate 'pain' or challenges they face in their business. These are foundational to the speaker's 'accountability formula' and are crucial for achieving desired business outcomes.

💡Expectations

Expectations, in this video, are the standards or what is anticipated from individuals within their roles. The speaker distinguishes between organizational and role expectations, emphasizing the need to clearly define and communicate these to ensure everyone is aligned with the company's goals. For instance, the script mentions that a job description should outline expectations and be regularly updated to reflect the evolving needs of the role.

💡Measurement

Measurement is the method of quantifying performance or results within a role or organization. The speaker suggests that there should be at least two metrics for each role, a 'push' and a 'pull' metric, to accurately gauge performance. Measurement is integral to the accountability formula, as it provides a tangible way to assess whether expectations are being met.

💡Feedback

Feedback is the process of providing information or evaluations to individuals about their performance. The video highlights the importance of feedback in enhancing accountability. The speaker suggests that feedback should be frequent and constructive, using it to inform individuals of their performance level and how they can improve, as illustrated by the example of giving a score out of ten for accountability.

💡Mission and Vision

Mission and vision are strategic elements of an organization that define its purpose and long-term goals, respectively. The script explains that the mission is the expectation of what the company aims to achieve, while the vision is the overarching future state it aspires to reach. These set the tone for the company's culture and operations and are part of the organizational expectations.

💡Values

Values represent the principles and beliefs that guide an organization's behavior and decision-making. In the video, values are described as expectations for how individuals within the company should act to fulfill the mission. They are a critical component of the organizational expectations that shape the company's culture and the behavior of its employees.

💡Brand Promise

A brand promise is a commitment made by a company to its customers about the experience or benefits they can expect. The script uses the example of Geico's '15 minutes or less' to illustrate how a brand promise sets customer expectations and is a reflection of the company's internal values turned outward for customer interaction.

💡Job Description

A job description is a document outlining the roles, responsibilities, and requirements of a job. The video script discusses the importance of job descriptions in setting role expectations and as a tool for ongoing performance evaluation. It suggests that job descriptions should be dynamic and regularly updated to reflect the current expectations of a role.

💡KPIs (Key Performance Indicators)

KPIs are quantifiable measures used to track performance against goals. In the video, KPIs are presented as essential for measuring the success of meeting role expectations. The speaker recommends having one push and one pull KPI for each role, such as sales closures and client retention rates, to provide a comprehensive view of performance.

💡One-on-Ones

One-on-Ones refer to private meetings between a manager and an individual team member. The script highlights the importance of these meetings as a platform for providing personalized feedback. The speaker prefers to let the team member lead the meeting, using the last few minutes to offer feedback, which fosters a culture of open communication and accountability.

Highlights

The speaker introduces the 'accountability formula' as a key to managing large teams effectively.

Accountability is identified as the missing link between actions and results in many businesses.

The importance of hard conversations and feedback for maintaining team performance is emphasized.

The speaker shares a real-life example of how implementing the accountability formula increased revenue by 30%.

The formula for accountability is presented as a combination of expectations, measurement, and feedback.

Expectations are defined as the vision of what good looks like in a role or for the company.

Organizational and role expectations are differentiated, with examples provided for clarity.

The necessity of resetting expectations for new team members, regardless of their experience, is discussed.

Job descriptions are reframed as living documents that should be updated to reflect role expectations.

Measurement is introduced as a critical component for assessing whether expectations are met.

The concept of push and pull metrics is introduced to provide a balanced view of performance.

Feedback is highlighted as the most powerful tool for increasing accountability within a team.

The speaker suggests using weekly one-on-ones as an opportunity for providing feedback.

The importance of normalizing feedback to foster a culture of accountability is discussed.

The speaker emphasizes that feedback should be specific and action-oriented to drive improvement.

The transcript concludes with the assertion that attention to the 'boring stuff' of expectations, measurement, and feedback is what truly moves businesses forward.

Lack of accountability is identified as a common barrier preventing businesses from reaching their goals.

Transcripts

my formula for managing 100 million

dollar teams most people come to me

they're like Layla can you tell me like

the systems the processes that makes

this all work and people are usually

asking that because there's some sort of

pain it's an art and a science if you

feel like you can't get the results you

want your business and you feel like

things are kind of painful if you feel

like you're needed for most things I

want to share with you my formula behind

how I actually get things done with the

team so the formula I want to share with

you is called the accountability formula

and I'm going to get to that in a second

but what I first want to explain is how

I know a company's lacking

accountability if you have people in

your organization and they have jobs and

you have assigned them things to do but

you're not getting the result you lack

accountability accountability is

essentially the glue between an action

and a result and so if you feel that way

and you feel like you're not getting the

results you want your business it's

probably because you are lacking that

accountability more marketing more sales

that's how you need more of you need

more accountability and the reason

people don't like to do that is because

it requires hard conversations being

someone that's constantly encouraging

your team coaching your team giving your

team feedback like I am the reason why

my team does or does not execute am I

holding them accountable because if I'm

not people are always going to fall to

the standard I set and if the

standardized set is I don't hold people

accountable then why would they be held

accountable they wouldn't we in a

portfolio company that came to us and

they were super successful in terms of

Revenue but the operator of that

business basically came and he was like

Layla I feel like nobody is getting

anything done this whole business is

thrown off my brain and this one other

person's brain which was the co-founder

every time he brought me an issue with a

co-worker or an employee he basically

pointed to that person was like they're

not doing their job I should probably

fire them I think before you fire them

we should walk through this framework to

understand if you've done everything

properly to hold people accountable that

particular operator has just implemented

having accountability in the team and

his team has brought their revenue up by

almost 30 percent you know people

sitting in your company but they're not

actually doing the job that you're

paying them to do because you lack

accountability they're not going to

drive the results for the company and

the company's not going to grow so the

formula for accountability expectations

plus measurement times feedback

expectation so telling people how

something should be done plus a

measurement how are we going to measure

if the expectation is met times feedback

letting them know how they could better

meet the expectation or that measurement

next time and so feedback is an

important piece because the only piece

of this that can be Amplified and so I

Want to Break these down one by one so

you can look at your company and say

what am I missing right now and then how

can I fix it expectations are tell me

what good looks like and I could get

fancy with it but that's really what it

means if you bring someone into the team

and you put them in a role and you give

them a job description that job

description at a different company means

something completely different and also

that boss that they had in another

company wants something completely

different than you want and so you have

to reset expectations for them it

doesn't matter how experienced this

person is maybe they're older than you

they have more experience than you it

doesn't matter what do you think good

looks like in the role how do we set

expectations there's really two levels

of expectations that we want to set

there's organizational expectations

which then shape the role expectations

organizational level expectations you've

got the mission or the vision the value

You've Got a Brand promise what those

all Encompass are the expectations of

the business those are expectations that

you as the founder should be setting for

the whole company the mission is

basically the expectation of the company

what does good look like for the company

the values are the expectation of how we

will behave in order to meet that

mission and then a brand of Promise is

taking the internal pieces of the

company and facing them externally the

customers now know what good looks like

Geico it's like you know in 15 minutes

or less or you know your car insurance

back to you I don't even remember what

it was that's an expectation that now

they're giving as a brand promise for

that customer and so I want you to think

about your organization do you have a

clear mission do you know what good

looks like for the whole company do you

have clear values does everyone

understand what good looks like in terms

of how we behave to reach that mission

and then the brand promise is the same

as the values except for it's in terms

of how we deliver to the customer you

can deliver to the customer fast you can

deliver good the question is which one

is fit for this company so if you have

those organizational expectations then

it's really easy to go and look at role

expectations the expectations you have a

singular role are always going to stem

from the Department or from the company

what does good look like in customer

service for a company where fast is the

priority say like McDonald's good looks

like we get them their hamburgers in two

minutes or less whereas if you look at

Disney they might say that good looks

like we always exceed the expectation of

the customers it might be quality that's

what a role expectation looks like on an

Enterprise sales team it might be that

that sale is going to take five to 11

months to close the deal and the whole

point of the sale is to help someone

make a decision it's not transaction

based there's no speed and they're not

measuring timelines what they're

measuring is the experience of the

person going through the process and

then maybe the deal size that you're

able to land say a B2B SAS company what

they're measuring is how fast what's

your time to close because for them

speed is more important than quality

because they're not servicing an

Enterprise customer who's paying 250 000

a year they're servicing someone who's

paying maybe two to three thousand

dollars a year if you're saying thinking

of what does good look like well if you

take someone who's a sales rep at an

Enterprise company and you put them in a

transactional company for a small SMB do

you think they're going to succeed

probably not if they still have the

habits of serving Enterprise they're

probably not going to be meeting your

expectations and so you have to

understand that that person always needs

context and so the best way if you feel

like right now you're listening to this

and you're like Layla I don't think I

have good role expectations within my

company that's totally fine and it's

super normal a job description is

essentially a third-party agreement it

is what you look at and your employee

look at and then you look at it and is

agreed upon terms of what is expected by

them and so if you think about it more

like that than you think about it like

as this piece of paper that you have to

have to get somebody to join your

company you're constantly updating that

think about how many times you would

update a job description if it wasn't a

job description it was a set of

expectations for somebody in the role I

think that often people think job

descriptions aren't important because

they don't understand what they're for

it's so that at the end of a quarter I

can go over your job description with

you and say have you met the

expectations outlined here and if you

think about it like that you're going to

write them a lot differently so the next

piece of the equation is measurement how

do we measure what good looks like what

numbers tell me this is good typically

with any role you want a minimum of two

ways to measure so a good way to frame

this is you have a push metric and a

pull metric onboarding and activation

and then churn sales and then refunds or

chargebacks there's always two measures

the same goes for a roll so if you think

about someone say you have a sales rep

that's doing upsells the first measure

might be the number of sales closed so

maybe like percentage close rate the

second measure that you're going to base

their performance off of might be

something like retention rate of client

Soul because what you have to understand

is that the way that a client is sold is

going to be determine how long they're

going to stay with the company I would

say it's good to incentivize of how many

sales they make as long as those clients

stay and so a lot of people like to say

well Layla they don't have a complete

control over this number the reality is

that nobody has complete control over

any number in the business but what they

need to learn how to do is to be a

teammate that cross collaborates with

other departments so they can get other

people on board with hitting those

numbers that holistically grow the

business not just their one role or

their commission check so if you're

looking how you can tactically Implement

measurement into a role what I like to

do is I like to on their job description

at the bottom have their kpis so

essentially it's saying what results are

you responsible for what kpis are you

measured upon in order to meet my

expectations that have been outlined in

this role realistically today if you

feel like you don't have accountability

in your company you could redo their job

description with all the expectations

you have of that role and then redo

their kpis make sure you have one push

and one pull and you're already halfway

there the third piece to the equation

and the last piece and arguably the most

important piece is feedback you always

need expectations you need measurement

but more expectations and more

measurement isn't going to do much

incrementally for the amount of

accountability you have with that role

but feedback will because the more

feedback you give someone the more

accountable you are holding them you can

almost never have too much of this

feedback because feedback if you look at

the definition when it comes to

accountability again we're gonna get

stupid simple here it's how far or close

are you too good that's it so if you've

got a scale of one to ten in terms of

accountability you'd be like hey Sally I

just want to let you know in terms of

accountability in terms of expectation

in this role I feel like you're around

like 8.5 right now and here's what you

could do to get to a tent so you're

constantly telling people where they're

sitting in their role if someone's doing

really well we don't say anything

because we're not thinking about it

because they're not a problem but on the

other side if someone isn't doing really

well we also tend not to say anything

because we're avoiding a problem

oftentimes employees don't know the

difference they don't know why you're

not talking to them so you need to be

the one that expresses that narrative

and tells them why well where do I get

feedback honestly you can get feedback

everywhere I think the best utilization

is weekly one-on-ones having one-on-ones

with people that's the opportunity that

you have to tell them this is how good

you're doing what I like to do is I like

to let people run the whole one-on-one

and in the last few minutes because I

like to let them own that time I get to

give them the feedback another way you

can do this is honestly if you have

slack or you have click or you have

messenger or something like that is you

can just quick shoot them a message hey

you did fantastic on this hey I love

this but if you could do this

differently next time that would be

awesome if you can normalize feedback in

your company they're gonna have a much

higher amount of accountability if

you're not getting the results you want

which piece are you missing if you can

put all those things together that's how

you can run a really effective team it's

the boring stuff that's going to move

you forward and that's often why people

aren't able to reach their goals people

ask them all time they're like Layla why

can't I get to 10 or 15 million like you

have no accountability