Mission Given? Build the Team.

A principle often attributed to Brazilian investor Jorge Paulo Lemann says: “My business is not companies. My business is people.”

For those unfamiliar with him, Lemann is a Brazilian entrepreneur and co-founder of 3G Capital, known for its involvement with businesses such as Anheuser-Busch InBev and Restaurant Brands International.

The statement sounds simple. Implementing it is not.

Many companies hire people merely to fill positions. Others believe that recruiting an expensive executive will compensate for weaknesses in leadership, culture or management. It rarely does.

I have seen intelligent and highly educated managers hire excellent professionals—and still lose money, employees and clients. The problem was not always the talent. It was the absence of:

• clear responsibilities and authority;
• training, support and honest feedback;
• measurable goals and accountability;
• recognition based on contribution;
• leaders humble enough to admit mistakes.

When managers constantly search for someone to blame, the best employees gradually disengage. The strongest usually leave first. The weakest learn how to survive inside the dysfunction.

The result eventually appears in delays, rework, customer losses, declining productivity and negative cash flow. This is especially dangerous in real estate development.

Land, capital and architectural plans do not execute projects. People do.

Developers need trustworthy project managers, contractors, consultants and suppliers who report problems early, respect the schedule and say what leadership needs to hear—not simply what leadership wants to hear.

Leadership is not only authority. It is support. A good manager serves the team by providing direction, resources, standards and accountability. That requires humility—but also the courage to demand results.

Profit is often the consequence of good management. Losses are, too.