Dave Ramsey doesn’t hide his dislike for corporate bureaucracy. In an episode of his “EntreLeadership” podcast earlier this year, the personal finance expert said he’s spent years building a company that avoids what he calls the worst parts of corporate America.
“I hate things that feel like corporate America,” Ramsey said. “And I’ve tried to keep them out of my business as an entrepreneur.”
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Why Traditional Job Descriptions Don't Work
One of those things he rejects? Standard job descriptions.
Ramsey argued that they can easily encourage a mentality of dodging responsibility, where employees ignore tasks outside their listed duties. “Job descriptions set people up to say, ‘Well, that’s not my job. That’s so and so’s job,'” he said. In his view, that mentality blocks great customer service and damages team momentum.
At Ramsey Solutions, they take a different approach. Every employee is expected to take ownership, no matter what their title is. “If you see a customer wandering around looking lost, I don’t care what your job is, help them,” he said. “That’s your job because you’re one of the owners emotionally of this place.”
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What Ramsey Uses Instead
Rather than job descriptions, Ramsey introduced something called a Key Results Area nearly 25 years ago. It’s a simple but specific way to define success in a role.
A KRA outlines what winning looks like for each employee–not in vague terms, but with transparent, measurable expectations. Ramsey gave the example of an accounting role: “If I want the books closed by the 15th of the month… and they’re not done by the 15th, you’re not doing your job.”
Each employee has their KRA in writing, signed by both them and their leader. It includes two to four main goals and a few bullet points under each, showing how to succeed. This structure, Ramsey said, is what brings “role clarity,” something he believes is essential to avoid confusion, eliminate friction, and keep teams moving fast.
“Everyone on the team knows what they should work on and what’s expected of them and how their work fits into the big picture,” he said. “That’s role clarity.”
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Why It Matters
Ramsey compared a well-aligned team to a football squad where everyone knows their role. “The guy who’s the defensive end, his job is not running back. That’s not his job. The running back’s job is to be the running back,” he said.
With role clarity, problems get solved faster, blockers get removed more easily, and teams work more like a unit. “It moves at the speed of trust,” Ramsey added.
Though Ramsey still acknowledges the utility of job descriptions for things like hiring or listing skills, he believes they fall short unless paired with KRAs. “[A job description] doesn’t require ownership. You check a box. A KRA is what you do as part of the team.”
“Until you guys get all this written down, you’re not aligned. You think you’re aligned, but you’re not aligned,” he said. “Get aligned on what winning looks like.”
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