Michelle LaVallee, Founder and Partner at Management Success China, talks about Topgrading, a method for hiring the best team possible
Interview by Jennifer Thomé

Tell us a little bit about yourself.

I became fascinated with China in college. In 1997, the Microsoft Corporation hired me to help build the first global technical support center in Shanghai; from there, I went on to direct their Asia Pacific Customer Service and Support organization. After eight years in a large enterprise, I became eager to apply my experience in an entrepreneurial environment. In 2006, I joined the Blue Horizon Hospitality Group, which operates Blue Frog Bar and Grill and KABB Bistro Bar. As COO, I led the group’s expansion across Shanghai, Beijing and Macao. I first heard about Topgrading from Bob Boyce, CEO and Founder; we began Topgrading the company together in 2007 and had phenomenal success with the program. Five exciting years later, I launched my own company, Management Success China, a consulting service that specializes in the development and implementation of Topgrading, talent management, and succession planning frameworks.

What exactly is Topgrading, and why is it important?

Topgrading is a comprehensive solution to hiring, promoting and retaining 90 percent “A Players” or “High Performers” across an organization. Topgrading provides a simple structure and set of tools to complete the talent management cycle of recruiting, interviewing, coaching, and succession planning. Brad and Geoff Smart created Topgrading after they conducted over 10,000 indepth assessments of CEOs, managers, and entrepreneurs in every major industry. Today, with 65,000 case studies, Topgrading confirms that the average cost of mis-hiring a person ranges between eight and 15 times the position’s base salary, due to lost time, lost opportunity, wasted compensation, unnecessary expense, and disruption to the company.Non-Topgrading companies have a 25 percent success rate hiring, managing, and promoting High Performers, as opposed to Topgrading companies, where that rate reaches 90 percent. Given the management shortage in China, companies must start early to develop their talent in-house. Having practiced the Topgrading methodology for years, I find it to be the ultimate solution to talent management not only in China, but also around the world.

The Top Six Hiring Mistakes Companies Make

1. Basing hiring decisions primarily on resume content

and short, behavioral based or hypothetical interviews

2. Using vague and incomplete job descriptions to explain the position

3. Not investing in interview training for hiring managers

4. Not conducting thorough reference checks

5. Failing to look carefully within the organization for promotable talent

6. Not measuring hiring and promoting success

What’s your advice for hiring?

Measure hiring and promotion success every six months and hold discussions about progress. Anything important in business is worth measuring; take time to review the quality of the most important decisions in your business. Identify the A Players or High Performers in your company and make sure you’re taking great care of them! On a regular basis, discuss across the leadership team what the company is doing to provide opportunity and growth for top talent in the company. Create a simple job scorecard that accurately captures what must happen on the job in order to be a High Performer. Most job descriptions are outdated and useless; they are written in a hurry to get recruiting going and then tossed aside once a position has been filled. A job scorecard includes a brief description of the job’s purpose and five to
seven yearly priorities that can be measured.Invest in interview skill training for all hiring managers. The most important decisions regarding hire and promotion of “talent” are too often based on poorly conducted interviews. Use Tandem (two person) interviews. Two heads are better than one – tandem interviews supports better note-taking, candidate assessment, and allows interviewers to give each other feedback on interview skills. Rate the candidate against the job scorecard and minimal requirements for the position, based on specific examples provided during the interview.
Before making a promotion decision always conducta thorough interview and job match assessment. When a hiring mistake is made, measure the cost of mis-hire. Create a habit with hiring managers of openly discussing the disruption
to the company and ways in which to improve hiring decisions going forward. Build an A Player Network. Encourage employees and managers to refer high performers to the company and reward teams when A Players are hired. When in doubt, do not hire, especially out of desperation. It’s better to cover the position and adjust priorities than to hire the wrong person.

Do you have any other business books you recommend?

Absolutely! First of all, you can download a free copy of the Topgrading eBook, “Avoid Costly Mis-Hires!” that explains the basics at www.smarttopgrading.com. Other books I recommend are Who: The A Method for Hiring by Geoff Smart and Randy Street, which is available both in English and Chinese,  The Dream Manager by Matthew Kelly, The Great Game of Business by Jack Stack, and The Monk Who Sold His Ferrari: A Fable About Fulfilling Your Dreams and Reaching Your Destiny by Robin Sharma.

Learn about Topgrading at the Entrepreneur’s Organization event on November 19th at 4:45. Registration is required: billy@eobeijing.com. RMB 200. UCCA Dashanzi 798 Art District, 4 Jiuxianqiao Lu, Chaoyang District (8459 9269) 尤伦斯当代艺术中心, 朝阳区酒仙桥 路4号798艺术区

For more information about Management Success China please visit www.management-success-china.com.