Saturday, October 13, 2018

Work Rules

As part of an SPS Commerce book club, I found the following notes and quotes interesting from Work Rules:

Why:
Page 13: “a manager focuses not on punishments and reward but on clearing roadblocks and inspiring”
Page 14: “Performance improved only when companies implemented programs to empower employees, provided learning opportunities that were outside what people needed to do their jobs, increased their reliance on teamwork”

Chapter 1: Becoming a Founder
Page 22: “We believe it is easy to be to pennywise and pound foolish with respect to benefits that can save employees considerable time and improve their health and productivity”
Page 34: “moral rather than business goal”

Chapter 2: “Culture Eats Strategy for Breakfast”
Page 39: 5 minutes with customer increased productivity 400%
Page 46: “Openness demonstrates to your employees that you believe they are trustworthy”

Chapter 3: “Lake Wobegon, Where all the New Hires Are Above Average”
Page 59: “Some experts go so far as to say that 90 percent of training doesn’t cause a sustained improvement in performance or change in behavior because it’s neither well designed nor well delivered.”
“There are examples of people who were mediocre performers and went on to greatness, though most of those successes are a result of changing the context and type of work, rather than the benefit of training.”
Page 60: “Companies continue to invest substantially more in training than in hiring”
“The presence of a huge training budget is not evidence that you’re investing in your people It’s evidence that you failed to hire the right people to begin with.”
Page 65: Only hirer people who are better than you in some meaningful way
“But even the best-intentioned managers compromise their standards as searches drags on.”
Page 66: “The pedigree of your college education matters far less than what you have accomplished.”
Page 67: “looking for a wide variety of attributes, among the most important of which are humility and conscientiousness.”

Chapter 4: Searching for the Best
Page 72: Hiring committee composed of people familiar with the job but didn’t have a direct stake.
Page 74: Puzzle billboard made 0 hires.
Page 75: analysis “revealed that academic performance didn’t predict job performance beyond the first two to three years after college.”
Page 77: “sixteen years later, about one-third of the original hundred hires are still at Google”
Page 80: "Googler is provided with weekly updates on the status of their candidates." Asked for best person for X that they know.
Page 81 "The very best people aren't out there looking for work."

Chapter 5: Don’t Trust Your Gut
Page 88:"For 9 of the 11 variables, thin-slice judgments correlated significantly with the final evaluation of the actual interviews."
Page 90:
Explain employee performance:
14% unstructured interview
10% conscientious
7% reference checks
3% years of work experience
29% (best) work sample test
26% general cognitive ability (but tests skew for gender, race, etc)
26% consistent set of questions with clear criteria - behavior and situation - perceived to be most fair. Veterans Affairs has samples
Page 96: "score the interview with a consistent rubric"
Page 98: survey every interviewee to refine process
Page 99: emergent leadership ignores formal designation and recedes back into team when not needed.
Page 100: intellectual humility, comfort with ambiguity, evidence of taking courageous and interesting paths
Role related knowledge is least important because it reduces fresh perspective
Page 101: Need mix of generalists and specialists.
Two interviewers must address each attribute. Written feedback must include attribute, question, answer, assessment. Allows evaluating interviewers
Page 103: 4 interviews give 86% confidence. Each additional only adds 1%.
Re-evaluate rejected applicants against employees.
Page 105: How much does each level of review help?
Page 106: assessment led by recruiters and they are familiar with many jobs to correctly place candidates.
Dis-interested interviewer and review
Page 113: Average Googler spends 1.5 hours/week on hiring

Chapter 6: Let the Inmates Run the Asylum
Page 118: "could you promote yourself"
Page 121: If senior person sits in the middle, that seat will be left open
Page 122: break the rules when it makes sense. "Always, always make room for a truly exceptional person"
Page 124: Take away management power to free team to innovate.
Page 125: Choose your own title
Page 126: President cleaned up after his own dog
Page 128: "Don't politick. Use data."
Page 132: "A promotion packet that has no constructive feedback is actually a warning sign" Publish promotion stats to show that there aren't biases.
Page 137: Engineers given anonymous performance and pay data and to shape how bonuses would be allocated. Bonus basis changed to median salary
Page 141:  annual survey focused on innovation, execution, and retention

Chapter 7: Why Everyone Hates Performance Management, and What We Decided to Do About It
Page 154: performance systems tend to give generic positive feedback that isn't actionable
Page 164: calibrate ratings across managers
Page 165: start meetings with handout on biases
Page 165: use benchmark people known by multiple managers
Page 170: split annual review from salary discussion so review gets enough focus
make development a constant back-and-forth ... Rather than a year-end surprise

Chapter 8: The Two Tails
Page 184: help worst performers (across company) perform better (separate from performance evaluation) instead of firing them
Page 193: "manager quality was the single best predictor of whether employees would stay or leave"
Page 198: feedback must focus on development rather than rewards and punishments, so the system isn't gamed.

Chapter 9: Building a Learning Institution
Page 206: shard activities into tiny actions and repeat endlessly -- each time experiment, observe, adjust
Page 210: "exceptional success rarely follows and individual from company to company" -- use internal best to train more specifically
Page 216: create training offering page -- list your name and what you are willing to teach.
Tech advisors
Page 221: check behavior change of training - wait, ask trainee and their team.
Page 222: check results

Chapter 10: Pay Unfairly
Page 249: gifts are better for celebrating special than cash.
Page 250: Public kudos
Page 252: $175 peer bonus
Page 255: reward smart failures so people take risks
Page 256: People who haven't experienced failures don't learn how to grow and pass them.
Share bad news as openly as good news to avoid blindness and learn from mistakes.
Page 262: many on-site services don't cost anything and just require permission.
Page 263: Take your parent to work day
Page 271: "innovation tends to occur in the structural holes between social groups."

Chapter 11: The Best Things in Life are Free (Or Almost Free)

Chapter 12: Nudge … a Lot
Page 292: Nudges must be thoughtful but not forceful.
Page 294: Data + human nature -> fix dysfunctional team
Half of senior hires fail in 18 months. Have of hourly leave in 120 days.
Page 296: Checklist must be timely
Page 312: Simply providing information didn’t change behavior.
Page 315: Making unhealthy food less visible than healthy food dropped unhealthy food consumption – but must have unhealthy choice
Page 316: Offering attic insulation with attic cleaning tripled rate of attic insulation.

Chapter 13: It’s Not All Rainbows and Unicorns
Page 321: 1 major leak/year. Even accidental leaks get people fired.
Page 323: Expose entitlement (without exposing source)
Page 324: Change benefits when reason doesn’t apply anymore.
Page 326: Deal with objections to plans right away and be open to changing the plans.
Page 329: Review services and cull those that don’t make sense anymore – even if they have vocal supporters. Need to focus on services with the most need. Be transparent with rationale.
Page 333: “Nothing was resolved.”

Chapter 14: What You Can Do Starting Tomorrow
Page: 337: “If people are good, they should be free”
Page 343: Performance conversation should be entirely about outcomes – not about process
Study best all-around and specialists
Page 344: “Save your biggest checks for the times when your people are most in need”

Afterword for HR Geeks Only: Building the World’s First People Operations Team
Page 353: Senior management cheat sheets that aren’t shared with senior management.
Page 354: “you must constantly ask yourself whether the principle underpinning each rule is relevant to the case at hand, and fearlessly abandon practice and policy when the situation merits it.”
Page 355: Anticipate needs
Page 356: “You rarely get praised for avoiding a problem.”
Page 358: “Someone [in sales?] who is not promoted after 16 quarters is all but guaranteed to quit.”
Reach out to people who were almost promoted and tell them how to continue growing
Page 359: Experiment. Test on small group or for short time (and tell that it is a test)
Page 361: Hire 1/3 of HR from HR background, 1/3 from consulting strategy, and 1/3 analytic and then mix.
Page 363: Everyone has the opportunity to work in every job, regardless of background.
Page 364: Hired some people without a college degree

Page 375: 2 “Inspired by” photo credits.

Thursday, July 12, 2018

The Hard Thing about Hard Things

As part of an SPS Commerce book club, I found the following notes and quotes interesting from The Hard Thing about Hard Things:
Chapter 1:
Page 3: “being scared didn’t mean I was gutless. What I did mattered …”
Page 5: “diverse perspective utterly changed the meaning of every significant event in the world”
Chapter 2:
Page 29: Don’t sugar coat bad news
Page 37: People before announcement celebrations
Chapter 3:
Page 52: “What am I not doing?”
Chapter 4:
Page 65: “If we lost a big prospect, the whole organization needed to understand why, so that we could fix the things that were broken in our products, marketing, and sales process”
Page 66: Communication Trust!
Page 67: “A healthy company culture encourages people to share bad news.” “Don’t bring me a problem without bringing me a solution.” -> hiding problems
Page 87: “Only took action on the positive leading indicator”
Page 89: Address problems head on
Page 92: “Spend zero time on what you could have done, and devote all of your time on what you might do.”
Chapter 5:
Hire for strength rather than a lack of weaknesses
Page 105: “Would you want to use software written by an engineer who was never told how the rest of the code worked”?
Page 106: “How many fully productive employees have they added?”
Page 107: When you fired a person, how did you know with certainty that the employee both understood the expectations of the job and was still missing them?”
Page 110: "no investment that you can make that will do more to improve productivity [than training]"
Page 117: Respect friends and business partners
Page 120: Big business executives are interrupt driven but startup executives drive initiatives
Page 122: "What do you do in your first month on the job?" "How does your new job differ from your current job?"
Page 123: "Force them to create"  "require a report from them on what they learned from each person"
Page 127: "Write down the strengths you want and the weaknesses you are willing to tolerate"
Chapter 6:
Page: 171: "A weak definition of what you are looking for will lead to a bad outcome."
Page 182: Culture can be widely defined by one narrow, unusual rule.
Page 187: When getting a new employee up to speed takes more work than doing the work yourself, you need to specialize.
Page 188: "The first rule of organizational design is that all organizational designs are bad."
Page 193: "Evaluating people against the future needs of the company based on a theoretical view of how they will perform is counterproductive"
Chapter 7:
Page 200: Investing in courage and determination. "Focus on what I needed to get right and stop worrying about all the things that I did wrong or might do wrong"
Page 202: mean CEO grade is 22%. The larger the organization, the bigger mistakes and worse behavior.
Page 204: Separate importance of issues from how you feel about them.
Page 207: "Focus on where you are going rather than on what you hope to avoid."
Page 211: "the team supported the decision they thought the CEO wanted"
Page 214: "Knowledge of technology, prior decisions, culture, personnel, and more tends to be far more difficult to acquire than the skills required to manage a larger organization."
Page 232: "Watered-down feedback can be worse than no feedback"
Page 233: "Encourage people to challenge your judgement and argue the point to conclusion." "As a CEO, you should have an opinion on absolutely everything."
Chapter 8:
Page 247: Don't argue about the unchangeable situation – deal with it.
Page 255: "As CEO, you can do very little employee development"
Page 256: Loyalty to employees to give them great executives is more important than loyalty to executives that did well in the past.
Page 259: Can sell unless market will grow by order of magnitude and your company will be number 1.
Page 260: "(big enterprise can't generally succeed with small acquisitions, because too much of the important intellectual property is sales methodology, and big companies can't build that)"
Page 262: "once the company starts to become a company rather than an idea it makes sense to pay the CEO at market" ... "so that the decision to keep or sell the company isn't a direct response to the CEO's personal financial situation"
Chapter 9:
Just because all the other companies are run a certain way, doesn't mean there isn't a better way to run that will take over the market.