In this episode of the Changing Minds podcast, I sit down with my friend and leadership coach Mike Goldman, author of The Strength of Talent. Together, we explore why people growth, not strategy or technology, is the true driver of profit growth. Mike shares powerful insights on how leaders can build extraordinary teams by focusing on both productivity and culture fit, and why investing in high performers is the key to creating organizations that thrive. This conversation is packed with practical tools and fresh perspectives that every leader can use to transform their team and business.
Performance Management is Broken
- Traditional performance reviews are ineffective: only 2% of leaders believe they deliver value.
- Metrics often harm morale instead of helping.
- Leaders frequently claim “people are our greatest asset,” but cut investment in people during tough times.
People Growth as Profit Growth
- Profit growth is driven by people growth, not new strategy or tech.
- Leaders rarely measure people growth, unlike profit, which is precisely tracked.
- Without measurement, leaders often fall back on poor proxies, such as long hours.
Defining People Growth
- Not “more people” but better people.
- Measured through two dimensions:
- Productivity – measurable results (lagging and leading indicators).
- Culture Fit – living non-negotiable core values daily.
Core Values & Culture Fit
- Core values should be defined as behaviors, not vague aspirations.
- They must pass three tests:
- Fireable offense if violated.
- Worth taking a financial hit to uphold.
- Already alive and well in the organization.
- Example: “We lift each other up” is specific, behavioral, and enforceable.
Coaching & Hiring
- Hire for core values first, not just skills.
- Difficult conversations are essential for culture coaching.
- If misalignment persists, leaders must “coach out” rather than tolerate poor fit.
Talent Density Indicator (TDI)
- Combines productivity and culture fit into measurable scores.
- Helps identify high performers, low performers, and track progress quarter by quarter.
- Requires open, transparent team evaluation to avoid leader bias.
Coaching High Performers
- Most leaders over-invest in low performers.
- Real leverage comes from developing high performers (math and morale benefits).
- Leaders often neglect them because they don’t know “what to do.”
The Law of Positive Intent
- Assume people are doing their best with the resources they have.
- Doesn’t mean being naïve or soft — it means approaching issues with curiosity, not anger.
- Encourages better coaching conversations and solutions.
Impact of Implementation
- Builds great companies that grow financially and culturally.
- Creates teams that leaders love working with.
- Frees leaders to step back and trust their teams.
- Example: A CEO could go to Iceland for two weeks and return to an even stronger business.
Book & Resources
The Strength of Talent – out Oct 14!
Pre-order at http://strengthoftalent.com/
Check out the Bonuses available when you pre-order!
More about Mike Goldman at https://www.mike-goldman.com/
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