Position Agreements:

Empowering your people to own it

Position Agreements: Empowering your people to own it.

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E-Myth’s Business Development Model

The Seven Centers of Management Attention™

Elements of Organizational Strategy

Strategic ObjectiveOrganizational ChartResults Statements

Brand PromiseSystems StrategyOperations Manual

Company Values

Position Agreements

Company Mission and Individual Primary Aim

What is a “Position Agreement”?

A written agreement between a manger and an

employee that makes explicit the result the employee is

accountable for in that position and the work standardsnecessary to produce that result.

VS.

A job description – the unsatisfactory but common

alternative – that is often just a glorified “to do” list that

is more of an organizational formality than a document

which service a greater purpose.

What is the Greater Purpose?

Accountability and Results

In the busy, “doin’ it, doin’ it,

doin’ it” of our daily lives,

we can often forget that

each person in the

business is there to do one

thing: to produce a result!

~ E-Myth Mastery

The Position Agreement is the roadmap that the company gives each employee

so that everyone can do the right work and get the

right results.

A Roadmap for Success

Why Results Statements?

The Result Statement

tells an employee why

that position exists in

the company.

Links every

person/position to the

Strategic Objective.

Why Standards?

The Standards

describe how the

work should be

performed.

The Work Listing

Specifies exactly

what work is

required to

produce the

result.

There are two types of work: Strategic and Tactical

Elements of the Position Agreement

�Position Identification

�Results Statement

�Work Listing

• Strategic

• Tactical

�Standards

�Signature Page

Two Types of Position Agreements

Managerial

Non-Managerial

Position Identification and Result Statement

Managerial Position Agreement

Even the Owner/President needs a Position

Agreement!

Work Listing

Sample Work Listing for Managerial Agreement

Strategic and Tactical Work

Strategic = Defining the Results

Tactical = Producing the Results

Standards

ExampleLet’s walk

through a

Non-Managerial

sample.

Key Points to Remember

• The Position Agreement is shaped by the owner’s vision for the

business and by the systems the business operates as it serves its

customers.

• It cannot be the result of a give-and-take negotiations between a

manager and employees based on personal needs or preferences.

• It defines a position based on the needs of the business to produce

results that contribute to the greater purpose.

• As a business grows and develops Position Agreements may need to

change to incorporate innovation and adapt to changes in the

marketplace.

• It is not uncommon for employees of smaller companies to have one

or more Position Agreements based on cross-functional roles.

Implementation Checklist

� Review Organizational Chart and Results Statements

� Plan Your Approach for Developing Position Agreements

� Draft the Position Agreements (each manager)

� Meet With Employees and Sign Their Agreements

� Review and Revise Position Agreements Periodically

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