talent management – Talent Revolution

Contrarian thoughts on PIPs

Lauren Webber and Chip Cutter of the Wall Street Journal wrote about performance improvement plans (PIPs) the other day — click here for the article. What they found is striking: today, nearly 44 out of every 1,000 workers face formal performance procedures. That’s up significantly from just a few years ago. In their article, they trace how PIPs got their start, how managers respond, and how employees respond. No surprises, nobody likes them — except lawyers protecting their clients.

I don’t believe PIPs effectively manage performance. If a manager must resort to a formal measure of performance management, then what has that manager been doing during the lifetime of the employee? The data backs this up – at Cisco, they found that 90% of employees who received a PIP left within a year, whether they survived the process or not. That’s not performance improvement – that’s a slow-motion exit.

Great leaders actively share feedback that helps employees grow and perform better — in real time if possible. Take Michael Pizzorno’s approach at Salient Medical Solutions: address issues through daily conversations that escalate in intensity when needed. No formal documentation, no bureaucratic process – just direct, honest communication.

I don’t believe PIPs are effective for employee experience. Even as a child, I knew of incident reports, academic success reports, JUG (justice under God – a Jesuit thing), I’ve heard of pink slips, and more. These images are symbols that represent danger. A PIP is no different – it’s a symbol that something is wrong; and your employees know it. The numbers tell the story – only 10-25% of employees survive PIPs. That’s not a development tool; that’s a exit ramp.

The alternative is simple — mutually agree on an end date and give a generous severance. This agreement gives employees the dignity to walk out with their head held high and an opportunity to close work relationships. All around, a much more pleasant and supportive experience. As HR veteran Steve Cadigan puts it, when given the choice between a PIP and a generous severance package, 75% of employees choose to leave – proof that even they know PIPs are usually just window dressing.

Some jobs work out, some don’t. It’s a traumatic experience to lose a job. Why make it worse with a device like a PIP? Remove the bureaucracy, and treat your team with dignity. In today’s world of AI pressures and post-COVID workplace adjustments, we need more humanity in our management approaches, not less.

Investing in listening, and executive presence.

Talent: I’d like to speak about how we communicate with each other. I’m hoping we can work out something, I feel we’re not communicating well.

Leader: Is this really a good use of our time?

How confident are you at this conversation is not happening within your org?

At work, humans typically work with other humans to create meaningful and valuable outputs. For that work to happen, communication must happen. And communication is both a beautiful, elegant, and simultaneously messy process.

Humans communicate differently from each other. Some more direct than others; others more indirect. Some people are optimistic, others skeptical. The list goes on, and no one way is better than another way.

Understanding, of any kind, is iterative. We make claims, we test those claims, we are later proven right or wrong. We make Bayesian updates to our worldview and move on.

As systematic and logical as that process sounds, the human element is not always so logical. Enter the paradox of management.

Two people speaking to each other and each with vastly different communication styles and in the process of collaborating with one another towards the same end may experience friction. Friction converts kinetic energy into heat — and heat in this context could be energy, excitement, anger, or abuse.

The management paradox is that human communication is messy and the furthest thing from logical. The talent obsessed manager, like yourself, learns how to convert communication friction into energy, excitement, and joy. Why can’t friction be fun?

Workplaces that are fun are a joy to be in. And if talent is joyfully learning, growing, and iterating upon themselves what incentive might they have to leave?

Underrated

The value of improving your interpersonal communication skills is underrated and therefore undervalued. The returns from becoming a more skilled communicator are great. The Harvard Business Review’s Sylvia Ann Hewlett wrote an article that “listening to learn” is considered the new rule for executive presence replacing “forcefulness” (read the post).

Here’s an excerpt from Sylvia’s post. I removed a paragraph and spaced out the wording to be easier to read. What’s most important to me, and hopefully to you, is how Unilever is cultivating the type of listening I advocate with their leaders. Read on:

“Trait: “Listen to Learn” Orientation.

Although displaying forcefulness was high on the list of most-sought-after communication traits in 2012, it’s less desired today. People now gravitate more toward leaders who listen and learn from others before they make decisions—a trait seen as critical to growing markets and retaining top talent.

Tactic: Go beyond your comfort zone.

Unilever, which makes and markets hundreds of consumer goods in 190 countries, takes listening seriously, asking selected current and future leaders to spend time outside the realm of their normal experiences in a program called GITS (Get Inside the Skin). GITS is designed to teach them how to better empathize with the company’s 3 billion customers, who come from all walks of life…”

One Useful Action

Evolving as a communicator isn’t about metamorphosing into someone else. It’s about having the humility to acknowledge that you can level up your listening skills, get better at seeking clarification, or take that extra beat before jumping to conclusions.

Here’s a simple behavior you can practice now.

Reflect on the question: How might I listen to learn more this week?
Reflect on the question: How might I wait a beat before making a decision?

Final Thought

Job searching is never easy, and there are networks of job seekers discussing their experience with firms and their hiring leaders with other job seekers. Networks give carriage to bad experiences and word travels fast.

Do your firm and your team a favor, and invest the time to not be one of those leaders known for being an awful and exhausting communicator.

Overthinking collaboration

I have a theory that leaders overthink how to create highly collaborative and productive teams. This article from the Harvard Business Review recommends the new rules include a culture statement, a way to measure performance, and continuous improvement systems. What’s novel? And why is there demand for this knowledge?

I respect HBR’s work, and I value that they’re serving a need. Thank you, HBR. And I believe their output is not new, it’s what we do everyday — culture.

Let’s consider culture a system of transmitted behaviors, norms, values, and status markers that shape our society or organizations. It’s everything we see and can’t see. The system, like any organism, evolves in adaptive and maladaptive ways.

If that definition is true, here are my reasons for why we’re overthinking teams.

Life Finds a Way

Critique: Large teams are composed of people likely organized in sub teams. When people are organized together to create work outputs, they’ll create a system of behaviors, norms, values, and status markers that help them create valuable outputs — Robin Hanson calls these developments “cultural gadgets“.

Alternative: Allow sub cultures to form and thrive. Great work cultures can have contagion effects. Enjoy that. In fact, go out of your way to share subcultural practices with other teams so that they can be adopted. You’re creating your own internal and mini culture market.

Robustness vs Performance

Critique: Establishing key performance indicators is critical. No disagreement. However, as initiatives change your team will need to adapt. You’ll want robust culture systems that evolve to meet the shifting demands and pressures.

Alternative: Employ real time performance management dashboards (recommended by the article) and track how well the team adapts to changing priorities. Keep a history of all of the changing demands your team evolved to meet, productivity levels during those changes, and challenges you all overcame along the way. Share that story with your team constantly!

Maximize for Bottom Up

Critique: It’s common to hear that culture starts at the top. I disagree. I believe, based on my experience, that the inverse is true. Organizational culture statements are often feel good statements defining “who we are”; however, those statements aren’t a system — they’re words. Platitudes ≠ outputs.

Alternative: Allow your cultures to pop up and grow. In fact, allow for cultural drift — the process of a culture system evolving and adapting to new demands. As leaders, create selection pressures that favor more effective team cultures — celebrate the groups (collectively) that are making the most valuable outputs. And be wary of rigid company-wide policies that may stifle cultural evolution.

Do My Ideas Work and Scale?

Yes. My ideas are not novel. Scrum teams and creative groups operate in similar ways. The teams I build need to be high executing and creative problem solvers — adopting ideas from software and collaborative arts makes sense.

Scaling is both easy and hard. It’s easy to allow cultures to form. As a leader, it’s hard to let go. I am comfortable letting go and allowing culture to form. It’s my experience that people want to feel trusted, and when they do, they create good work. Your mileage may vary.

Potential Downsides

My ideas may not be suitable for teams that need to run a certain way to be successful. More rigid teams or organizations may find my ideas too radical — and that’s okay. As a leader, you need to assess your own culture and determine what’s best.

Wrapping it Up

This blog is for people who are obsessed about talent — spotting it, cultivating it, retaining it, and successfully exiting it into better roles internally or externally. If you’re going to be that person, it’s critical that you create environments for talent to do their best work. That means, creating space for micro cultures to take root, evolve, and adapt.

10 Questions You Can Ask Talent Before They Decide to Job Hunt

Since 2015, there’s an increase in poaching vacancies — vacancies intended for employed workers. By implication, firms are becoming more competitive by poaching top talent from their competitors. That insight comes from a working paper by Anton Cheremukhin and Paulina Restrepo-Echavarria. I write about the topic here.

Good firms conduct exit interviews when talent leaves. Admired Leadership via their blog, Field Notes, posted 10 Exit Interview Questions admired leaders ask. “Exit interviews are a best practice for an important reason. The best leaders want to know why people really left and what they can possibly do about it.” I think differently.

Customer success managers (CSMs) obsess over why and how customers make decisions. Decisions to adopt an innovation grow, or churn out. They seek to understand when customers make buying decisions and they seek to understand the factors that go into that decision-making process. The goal is to feed insights back via cross-functional channels and help the organization become more intelligent about their customers. Ideally, customer-centric organizations adapt to meet the needs of their customers and growth occurs. Worst case, customers churn. Just like employees.

Skilled managers, like you, are wise to think like a CSM when it comes to retaining their top talent. What if we took the 10 Exit Interview Questions offered by Admired Leadership and reframe them the way we might use them in customer success? They are:

How does the job deliver on your expectations? Are the challenges and growth you expected before starting here being realized?
Is it your intent to start thinking about your next opportunity soon?
What do you like most and least about the work now?
I would love your thoughts. Am I investing in you and supporting your success? How might I be more supportive?
How do you rate the quality of the recognition you receive for your work and contributions?
What makes it difficult to be productive? What gets in your way to achieve high performance?
If you could wave a magic wand and change one thing about our team culture, what would you change and why?
How about the organizational culture? What might you change if you could change one thing?
If we hire in the future, would you recommend a job on our team to a friend or former colleague? Why or why not?
What do you think we need to do to retain our best talent?

Conducting an interview of this kind with an employee is courageous — for you and the employee. Your questions may cause someone to start looking for a new job. You may only receive positive “everything is great” type responses. You may hear some hard truths. There could be other reactions. I’ve been there, here’s how you manage that.

Listen, and be open.
Actively listen – ask clarifying questions, rephrase what you heard, and ask for the employee to check how well you understood them.
Do not debate. Listen to learn.
Thank them for their time.
Commit to following up so that your employee believes their feedback mattered.

Ultimately, the quality of your answers may be a function of your ability to create open and trusting relationships with your team. It’s the same thing with your customers.

If you find that neither your customers nor your employees will be honest with you, you may have a deeper problem.

If anybody can do it, you can

I believe one of the most powerful gifts a leader can give the talent on their team is belief.

Loneliness could be a problem. A Wall Street Journal (WSJ) article reports “58% of Americans are lonely, religion is fading, and work doesn’t love us back.” People are turning to hobbies and the things they love — becoming super fans of the things they love and finding community through fandom. And community might solve for loneliness.

My speculative theory is that community gives us something bigger than ourselves to believe in. Our life begins to take on more meaning — we get a mission. And we get people, fellow community members, to join us.

Great leaders practice fandom towards their teams. They go to their team members and say, “hey, if anybody can do this super hard thing, you can, and I’m here with you the entire way.”

Beyond belief, statements like “if anybody can do it, you can” give talent something more — the sense that you trust them.

Imagine how it might feel to know someone who cares about you believes in your ability to succeed and trusts your judgment. You can be that leader for someone. If anybody can do it, you can.

Teams goals outweighing personal KPIs?

Tyler Cowen’s August 17th Bloomberg column (Bloomberg) highlights a significant shift in how how talent is evaluated and rewarded in modern organizations.

The Question

If the output to be created is a result of team-based functions, how do you determine who to put on the team and how to compensate that person for their inputs?

The Problem

Giving credit where credit is due. Who owns the largest % of meaningful contribution? How does that get measured?
The use of AI. How much was AI leveraged? Do you compensate people for improving the AI database? To reward or not reward for effective prompt engineering?
How do we find the right people to work on the team? Tyler notices that firms are starting to focus on ex ante signals of quality (a degree, signals of status, etc.) vs taking a chance on outsiders that may prove more beneficial.

My Take

Talent Spotters/Hiring Managers: Get better at spotting talent! Talk with other leaders about how they assess and look for talent. Talk with highly talented contributors and learn about their work. Learn about other disciplines and imagine how talent from that discipline may help you in yours. I found that engineering and music professionals are fantastic customer success managers.
Managers: Depending on your business, it’s possible you’ll need to rethink your KPIs. Perhaps team-based KPI and comp plans are best when the ideal outputs are a result of team dynamics.
Talent: Realize that the signals you put up to indicate your availability will need to change. Networks will become more important for people who have and don’t have credentials.
Managers: How do you reward people who improve the use and adoption of AI in the firm? It’s not enough to suggest good prompts. How are people incentivized to use AI as an efficiency and problem solving partner?

One Useful Action

If nothing else, simply ask yourself: do I have the right talent in the right seats? And, how sure am I that I’m not missing out on undervalued talent?

Forming impressions, the scientific method, and feedback

A simple way to share feedback is to invite conversation into forming thoughts.

Here’s an example:

“I’m forming an impression that your work is becoming delayed. I think I’m 80% misunderstanding the situation, and I want to check in with you for your thoughts. Have a few minutes to help me?”

The person you’re talking to will appreciate your humility and the invitation for them to participate.

On the call, here’s how you frame it:

“Thanks for helping me through this. Here’s the impression I’m forming – and I think I’m likely wrong – (layout your impression).

I am forming that impression because I’ve noticed (layout your observations).

Where am I misunderstanding things? Where am I wrong? What are your thoughts?

Caveats:

Communication culture matters. This method works if your team members are direct or indirect communicators. Why? Because we’re using the scientific method to share our feedback. The scientific method starts with a hypothesis based on observations. In science, hypothesis are crafted so that they can be dis-proven, that’s when we learn. As a result, indirect people appreciate that you’re not rushing to judgment and direct people appreciate that you’re being fact-based.
Performance Issues. Don’t use this method when there are clear performance issues or violations of codes of conduct. Those must be addressed head on.

Personal Prerequisites

Perspective Taking. It is imperative that you develop the see the worldview of your employee. You likely already have this skill if you’re skilled at negotiating or as a strategist. Leverage that skill towards your team.
Curiosity Your ability to actively listen, repeat back what you heard, and ask thoughtful questions before rushing to judgment are important. You should be curious and desire to learn as much as you can.
Vulnerable. I observe leaders struggle to demonstrate intellectual humility. The ability to admit you might be wrong and ask to be taught strengthens bonds with team members and gives you insights into how they work.

How do I teach my team to do this?

In your next 1on1 with a manager on your team:

Ask the manager to pick a team member they want to give feedback to and tell you the feedback they want to give.
Be Curious and Challenge the manager: How certain are you that the basis for your feedback is 100% accurate?
Be Curious and Challenge the manager to provide evidence and question the quality of the evidence.
Share with the manager your forming thoughts on their feedback. Invite the manager to give you their thoughts on your forming impression.
Go meta and ask the manager what just happened. “What did we just do and how did I do it?”
Ask the manager “How might you do this with your team members on your next 1on1?”

Doesn’t this make me less decisive?

No. The perceived quality of your decision making is improved by your ability to collect data inputs, analyze that data, and then make a data-driven decision. Your teams will trust you because you are a thoughtful decision maker.

In addition to your improving your leadership brand, you’ll also improve your talent retention. People on my team have declined offers that are 2x their current salary to stay because of the quality of coaching they receive from me. I know this is true because the team member shared the offer letter with me.

The collaborative approach I am pitching to you works. I know it works because I use it; employees tell me that they appreciate my collaborative nature and how it pushes them to grow in their roles and as people. There’s no magic. You can do it.

Cultural Stagnation = f(AI, and Creative Output)? And why team managers should care.

I’m thinking about the connection between AI and human creativity. The question is: what’s the connection creativity stagnation and AI’s transformative potential? And what can managers do about it?

I observe two things.

Scott Buchanan of Economists Writing Every Day writes that investors had high hopes for AI-related investments. The thinking is that AI would revolutionize the world. Recently, analysts wonder if they’ll see an ROI.
Ted Gioia of The Honest Broker writes that the entertainment industry is stagnating creatively. Music preferences are regressing to the past, the New York Times 100 best books of the 21st century contained writers who were mainly known in the 20th century.

Here’s what I think I know.

AI is built on human knowledge.
Human knowledge is an output of humans — largely from some creative/scientific (they can be the same) production function.

Is it possible that we’re realizing that AI is not as revolutionary as we thought because we’re not as revolutionary as we hoped?

This is not the blog for people to learn how to adopt AI into their workflows. Plenty of smarter people are writing about that.

This is the blog for people who obsess about talent and want a (often contrarian) perspective. And because you’re a person who cares about talent, here’s how I believe like us act.

We do all we can to find generative talent. We open our minds to people who are different or don’t have the “perfect” resume and look for people with skills we can use. We increase the breadth and depth of our human capital!
We adopt management styles that promote creativity. We engage in brain storming, ask for talent to give us inputs into decisions, we give inputs, we let people experiment, and we help coach decision-making versus coaching outcomes.
We stop talking and listen more. We let talent give their ideas and we engage with their ideas. We say, “I think you’re trying to accomplish z, and you got outcome y, and and if you take path x your process may get you closer to z.”

Happy generating.

Feedback 101 – Engage vs Tell

Instead of thinking about how to give feedback, what feedback to give, or when to give it; consider engaging in your team’s work.

When team members first join my team, they typically ask how I handle feedback. I typically answer, I don’t give feedback. I get a puzzled look.

Many managers, perhaps you, engage with their teams by sharing their feedback on their work. They will offer balanced critique of what they like and then offer areas for improvement. Skilled managers help their teams grow by engaging in their development. That method works, but it positions the manager (in my opinion) more like a professor vs a fan.

I share that I am their biggest fan. And as their biggest fan I want to engage with them in their work. I want to help them strategize, be a second pair of eyes as they make interpretations of data, and be their negotiating sparring partner. I share that I’m happy to play the role of editor if they need. When they’re ready to pitch, I often ask if I can play the customer so that I can give them ideas at the end that will help them prepare. After their pitch, I’ll ask how it went — what did they expect to happen, what happened, and what learnings can we pull forward for the next pitch.

In that process I shared, where is the feedback? Where is the point where I ask, “may I share feedback?”

People want to tell themselves a story about themselves. In that story, they are doing work that matters. The best way to show someone that their work matters is to engage as a fan.

Who is your vacancy for?

A recent working paper by Anton Cheremukhin and Paulina Restrepo-Echavarria proposes splitting job vacancies into two categories.

Job vacancies that firms intend to fill with unemployed workers; and,
Vacancies firms intend to fill by poaching employees from other companies.

The dual approach, known in the paper as “dual vacancy”, offers a compelling explanation for the puzzling behavior of the Beveridge curve in recent years.

The puzzling behavior:

Historically, when unemployment went down, job vacancies went up, and vice versa.
Recently, the pattern changed. More job vacancies than expect given the unemployment rate.
That means that even with lots of job openings, unemployment isn’t decreasing as much as it used to in similar situations. Hence, some job openings may be for poaching already employed people.

The findings align with point 3 above. There’s been a significant surge in “poaching” vacancies compared to earlier periods.

In a complex job market, what does this mean for us as leaders?

Consider the vacancies you’re creating — who are they for? The poached or the unemployed.
Are we adapting our recruitment strategies accordingly?

The paper finds implications for monetary policy, but I’m more interested in what this means for our day-to-day talent management strategies. Are we clear on which of our openings are aimed at bringing in fresh talent versus attracting experienced hires from competitors? How does this impact our approach to retention?

My personal philosophy: talent is everywhere and there are opportunity costs of hiring employed vs unemployed talent. Consider that the unemployed person may be more generative and more driven than the person currently employed. For the teams I build, drive and generativeness are attractive qualities.

Optimizing employee recognition for the person, not the system

Many questions are asked about how to best recognize talent for their achievements. Questions like:

What are the best ways to recognize employees?
To incentivize or not to incentivize?
To shout out publicly or not?

Every person perceives the ROI of their work in a unique way. For some, it’s money. For others, it’s public recognition. Others may just want to build something other use. The list goes on.

Every organization develops channels to recognize employees. Perhaps it’s a public kudos board. Maybe it’s a company recognition program to award employees for their excellent performance — you see this with sales teams.

The challenge many managers face is: how do I find that happy medium between what a person needs and how my organization operates? Which channel do I optimize?

Principle: Find the equilibrium of personal and organizational culture, and if you have to choose, optimize for the personal.

Every person tells themselves a story about themselves. In that story, they want to be the hero. In that story, the way they become the hero is unique to them. Here’s how you discover that:

Ask: What’s important to you about work?
Ask: What do you want to say you accomplished here 3 years from now? What bullet points do you hope to write on your resume?
Ask: What would be the most cringe-inducing form of recognition you might receive?

You don’t have to ask those exact question — simply be curious about the employee and what matters to them. Listen carefully, make notes, and act in a way that optimizes for their preferences.