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What is a Position Agreement?

A Position Agreement is a document designed to enable managers and workers to work more effectively together. The the idea comes from The E Myth and think it’s a really useful tool for business development.

The agreement has five parts:

  • Position Identification
  • Results Statement
  • Work Listing
  • Standards
  • Signatures

The Position Identification includes the title, the manager’s position and all reporting positions.

The Results Statement is a statement of the result the position is expected to deliver to the organisation. This is a short one or two sentence description that summarises the key result. For example, a Result Statement for a bookkeeper could be “To maintain the company’s financial records”.

The Work Listing section is split into strategic and tactical work items. This list of work will help you identify what systems and processes you need to document.

The Standards section defines what performance is expected and is split into Position Specific and Company Wide standards.

The signatures confirm a mutual understanding between the manager and person holding the Position.

Creating Position Agreements for your business 12, 18 or 24 months down the line can help you figure out the best structure for your business. You can then grow into the structure knowing who you need to recruit or what activities need to be outsourced by passing Position Agreements to them.

It’s important to keep agreements up to date which could be a work item included in the agreement so the Position holder is responsible for the document.

This process is one of the first steps in the GoalDriver business development process. If you are interested in increasing productivity with more effective management get in touch.

Image from Flickr by LEDS GP.

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