Topgrading Leads to Record Profits
"Topgrading helped Labsphere’s transformation and success, and contributed to my promotion to head a company 3 times larger. The Topgrading Workshop revolutionized my thinking about how to hire, evaluate and develop our people resources."
- Kevin Chittim, President
Labsphere is an internationally recognized manufacturer of light measurement products, with worldwide dealers; it is one of 42 Halma companies.
After President Kevin Chittim and another manager attended a Topgrading Workshop, Chittim implemented Topgrading at Labsphere. Sherry Moore, head of Human Resources, became a major driver of Topgrading, training 200+ managers and acting as a Tandem Topgrading Interview partner with hiring managers throughout Halma.
All the standard Topgrading methods are used for hiring and promoting people at Labsphere. One notable difference is that Chittim posts his Job Scorecard outside his office door. This innovation lets his team know exactly how he is being measured, and helps hold Chittim accountable for his performance.
The company has improved from hiring and promoting 30% A Players throughout the company to 70%, with a goal to "keep improving."
As a result, the business has seen significant improvements, including three consecutive years of record sales and profits:
- First year after adopting Topgrading: Sales +19%, Profit +73%
- Second year: Sales +47%, Profits +91%
- Third year: Sales +23%, Profits +36%
Labsphere more than doubled sales and quadrupled profits in less than 3 years.
At an annual conference attended by the Presidents of Halma, the 42-company Group, Labsphere was recognized for having the largest sales growth in the Group, and received awards for People Development and Group Company of the Year.
Many Halma portfolio Presidents and Managing Directors embrace Topgrading and regularly share experiences and advice with their peers. At the time of this case study, Halma’s 3-year return is an excellent 19% and its 5-year return is 14%.
Advice from Kevin Chittim
“Dip in or Dive in,” a saying in the Halma Group meaning that with Topgrading it’s essential to embrace all the methods and maintain the disciplines rigorously – “Dive in.” We learned that managers who cut corners (“Dip in”) have more bad hires, which are costly.