Tag: company culture

  • Hiring for Cultural Fit

    I definitely don’t keep the count but I believe that throughout my career I run more than a thousand interviews and hired way more than a hundred people. I have a confession to make: vast majority of these interviews were run poorly and many of those hires, even the right ones, were made on wrong premises.

    I started hiring when I worked in a 150+ big company. Not much later we were absorbed by our big brother – a 3000 big organization. The hiring model I’ve seen there is something that you would have easily guessed. A set of questions aimed to verify technical skills, occasionally augmented by a couple of puzzles to show how the candidate thinks. That’s exactly the pattern I followed when I started running interviews myself.

    I think it took me a couple of completely wrong hiring decisions till I started paying much more attention to non-technical traits. I mean, stuff like communication skills seem obvious. The question is how much weight you attach to the fact that a candidate is a good or a poor communicator. And of course communication is only one of a numerous so called soft skills.

    Experimentation with the interview process made me focusing on tech skills less and less over time. I could still name hires, who eventually didn’t fit.

    It took more than ten years and a bunch of people who I considered good fit in one organization but not in another to realize one crucial thing. There is such a thing as fit between an individual and an organization. The easier part of this equation is the former. We all can be described by our traits. At the same time, which is less intuitive, a company can be described in a similar manner. So what would we get it we written down all the company traits?

    A company culture.

    If there’s a mismatch between individual’s traits and a company culture there will be friction. You can tell that verifying past hiring decisions. You can tell that looking at people already functioning within the company as well.

    OK, so again, what are we typically focusing on when recruiting? Technical skills. Does it help to figure out whether a candidate would cohabit well with the rest of a team / a company? Would “very little if at all” be a good guess?

    It may be easier with a couple of examples. Imagine a small company where people are pretty open in front of others, rather outgoing, ready to help each other on the slightest signal that such help is needed. Imagine that an extremely skilled developer joins such a group. The guy is closed, not very sociable and feels that his contributions are best when he’s left to work alone without interruptions. Is the company well-suited to leverage the guy’s technical skills?

    Imagine a team working on a kind of a death march project. No matter how miserable the future looks like the whole team feels they are in it together. They work after hours to save as much of the project as possible. Well, almost. There’s one guy who isn’t that much into this whole engagement thing and basically just punches his clock every day. He may even be the most skilled person in the team. Would he be valued by other team members? Would his contributions be really worth that much as his skills would suggest?

    If we looked for a root cause of the problems in either case we wouldn’t discuss the guys’ technical skills. It’s the fact they’re misfits. What makes them misfits though? It isn’t a comparison to any single person. It is about how the whole group behaves, what values they share and how they interact with each other. It is about how the guys are perceived on this background.

    These are parts you should focus on if you care about how the whole group performs. In fact there’s more into this. Hiring a misfit cripples performance of both the misfit and the group.

    Unsurprisingly hiring for technical skills and technical skills only is a good way to hire a misfit.

    My challenge for you here is to answer the question how you actually verify traits that go beyond technical skills. Feel free to share them in a comment.

    There’s one thing I hear very frequently when I talk on this subject. It goes along the line: yeah, sure, go hire people who fit your company culture and know nothing about coding whatsoever and good luck with that. Of course I don’t advice hiring lumberjacks as software developers because of a simple fact of a cultural fit. I simply point how much we overestimate value of pure technical skills.

    Most of the time there is some sort of a base technical skill set that makes a candidate acceptable. I also believe that the bar is significantly lower than we think. In other words there is a good enough level beyond which a hiring decision should be made basing on very different premises.

    I don’t try to discredit tech skills here. Actually, I value them highly. I simply believe that it is way easier to develop one’s programming skills that to change their attitude. That’s why the latter is so important during recruitment.

    That’s why I see so much value in hiring for cultural fit.

    An interesting side discussion is how the existing culture influences individual’s behavior and attitude and how the individual affects the culture. This is something company leaders can use to steer (to some point) culture changes or to form (to some point) new hires. It works though only as far as the mismatch isn’t too big. Anyway, it’s a side discussion worth its own post.

  • On Transparency

    One of things I’ve learned throughout my career is to assume very little and expect to learn very much whenever changing a job. In terms of learning, there always is a great lesson waiting there for you, no matter what kind of an organization you’re joining. If you happen to join a crappy org this is the least you can salvage; If you join a great one, it’s like a cherry on a cake. Either way, you should always aim to learn this lesson.

    But why am I telling you this? Well, I have joined Lunar Logic very recently. From what I could say before, the company was a kick-ass Ruby on Rails development shop with a very open and straightforward culture. I didn’t even try to assume much more.

    One thing hasn’t been a surprise; We really are a kick-ass Rails development shop. The other has been a surprise though. I mean, I expected transparency within Lunar Logic, but its level is just stunning. In a positive way of course.

    An open discussion about monthly financials, which obviously are public? Fair enough. Questioning the value of running a specific project? Perfectly OK. Sharing critical opinions on a leader’s decisions? Encouraged. Regular lean coffees where every employee can come up with any subject, even one that would be considered embarrassing in almost any organization I can think of? You’re welcome. I can hardly come up with an example of a taboo topic. In all this, and let me stress this, everyone gets honest and straightforward answers.

    Does it mean that the company is easier to lead? Um, no. One needs to think about each and every decision because it will be shared with everyone. Each piece of information should be handled as it was public. After all, it is public. So basically your goal, as a leader of such an organization, is to be fair, whatever you do. There’s no place for deception, trickery or lies.

    One could think that, assuming goodwill, it is a default mode of running a company. It’s not. It’s very unusual to hear about, let alone work at, such an org. There are a number of implications of this approach.

    • It is challenging for leaders. You can’t hide behind “that’s not for you to know” answer or meaningless blah blah. People won’t buy it. This is, by the way probably, the number one reason why this approach is so uncommon.
    • It helps to build trust between people. Dramatically. I don’t say you get trust for free, because it never happens, but it is way easier.
    • It eliminates us versus them mentality. Sure, not everyone is equal and not everyone has the same role in the company, but transparency makes everyone understand better everyone else’s contributions, thus eliminates many sources of potential conflicts.
    • It heavily influences relationships with customers. It’s much easier to be open and honest with clients if this is exactly what you do every day internally. I know companies that wouldn’t treat this one as a plus, but being a client, well, ask yourself what kind of a vendor you’d like to work with.

    All in all, transparency is like a health-meter of an organizational culture. I don’t say that it automatically means that the org is successful, too. You can have a great culture and still go out of business. I just say that if you’re looking for a great place to work, transparency should be very, very high on a list of qualities you value. Possibly on the very top of the list, like it is in my case.

    By the way, if you are a manager or a company leader, ask yourself: how many things wouldn’t you reveal to your team?

    This post wouldn’t be complete without giving credits to Paul Klipp, who is the creator of this unusual organizational culture. I can say that during first few weeks I’ve already learned more about building great teams and exceptional organizations from Paul than from any leader I worked with throughout my career. It goes way beyond just a transparency bit but that’s a completely different story. Or rather a few of them. Do expect me to share them soon.

  • Feedback Culture

    This is a rant. I’m sorry.

    We have our mouths full of feedback. We are eager to get feedback on our work. We consider sharing feedback as a crucial part of the work of any leader. Feedback this. Feedback that.

    Yeah, that’s all true. Except we’re missing one part.

    When it comes to leaving our comfort zones, we instantly start sucking at sharing feedback. We suck big time. You don’t like how our folks from PR team dealt with a recent initiative, right? After all you are just telling me that. So why won’t you just go and tell them? Brilliant, isn’t it?

    It’s pretty easy, you know. You use your mouth to construct these things called words and you build sentences out of words. And then the magic happens – you can transmit the message using sentences. Voila!

    That’s easy. Really. Just remember to be honest. Share the message in a straightforward way. Don’t judge. You will manage. I believe in you.

    Don’t get me wrong. I’m not freaking out over a single situation. I see this as a pattern. Actually, whenever I see any questions regarding feedback my default answer is “honest and straightforward.” The problem is this answer doesn’t seem to very popular. Actually beating around the bush or simply “don’t tell anything” types of answers seems to be the standard behavior for many.

    So why, oh why, are you surprised that you don’t get much quality feedback? After all you too are contributing to building this sick organization that is just afraid to share any. It’s simple – if no one shares feedback no one receives it either. It doesn’t populate like freaking lemmings or something.

    And while we are on this topic, well, it’s not only how you (don’t) share feedback; it’s also how you receive it. Next time someone wants to share something critical about you or your work, try this: STFU and listen. The other person has just moved their butt out of their comfort zone to tell you something they think is important. The least you shall do is to let them do their part. But you should do better – listen and try to learn something from it. A simple “thank you” seems proper too.

    You may even disagree with the merits of the feedback but it isn’t some kind of odd negotiation or something. No one is trying to win this discussion with you. No one is attacking you. So spare me the drama and don’t get all defensive. It neither helps you nor the other guy.

    Most of all, it definitely does nothing good to the feedback culture you may try to introduce into your organization. Not to mention building trust.

    If you really want to build an open feedback culture in your company, start sharing and stop being a jerk, I mean defensive, when you receive feedback. If your organization doesn’t appreciate this, think again whether it is the right organization to be with.

    Now that you asked, yes, such an attitude means that you become vulnerable in front of your superiors, peers and colleagues. And yes, it is a crucial part of building trust. I don’t know how it is in your case but I wouldn’t like to work for an organization that is incapable of building trust. Would you?

  • It’s the Transparency, Stupid!

    A boss came to a worker:
    Would you come to work on weekend to rescue project?
    And what would be the reward? – asked poor little worker.
    And there was no answer.

    Actually the unspoken answer was “I don’t really know” or “I don’t want to say” or “Don’t mess with me, kid.” Either way it was wrong.

    The worker’s question isn’t a very nice one – personally I prefer working with people who don’t ask for reward before job is done. On the other hand it isn’t unexpected either. As far as you’ve done some extra job and haven’t been rewarded in any way or your so called reward could be interpreted only as an insult you learn to ask before, not after. Every manager should be prepared to hear the question.

    Being prepared here means having an answer and having the one which actually says something specific. Let it be “You’ll get this and that amount of bonus money” or “You’ll have higher engagement rating during next performance review” or “I can do completely nothing for you because I’m a crappy manager but I still ask you to come.” It’s still better than nothing.

    A reason why these are better than those above is simple. They are transparent. You show how things look like. You don’t hide your magic algorithm which is a number of overtime hours multiplied by standard rate multiplied by secret factor of 1,25. This by the way becomes perfectly clear for everyone once they do the basic math. Basically if you as a manager hide something it’s either wrong or it shouldn’t be a concern of a team. Actually the former most of the time. Even when you don’t hide you suck being a manager while you’re trying to be transparent it’s better than trying to play kick-ass boss. Everyone would know you suck anyway but you’d avoid a label of hypocrite at least.

    If something is interesting for the team or a person in the team – say it. An algorithm you use to tell how much bonus money people are going to get? Say it. Rules you use to decide on a promotion? Well, say it. New facts about this huge project you’re trying to get? Guess what. Say it. Unexpected issues with company cash flow which will bring some inconveniences for the team? How about saying it? Be transparent. People will appreciate this even if they won’t say that out loud.

    Being transparent cuts off gossips, increase team’s trust to their manager and helps to spread information among the team. It is good. Do the opposite and you won’t keep your alleged secrets and you won’t control information (and gossip) flow in any way either. Not to mention you’ll be considered as a poor manager by your team. And well, they’ll probably be right this time.

  • Role of Leaders in Startups

    Who should be a leader of a startup? An easy question. One of founders. Or even better each of them. They are naturally predestined to leading role. They got the idea. They own the company. They keep all things running.

    Now the more important question: what kind of leaders are they?

    Why is it so important you ask? Well, having a great idea, being a CEO of a company and managing it on a daily basis tells you nothing about leadership. You can end up working either for a great leader or for a sick asshole. No matter which one is true as far as the startup has money leaders won’t change anytime soon.

    Because of a small size of the startup role of leaders is defined a bit differently. Not only they motivate their teams and set up a strategy of the company but they’re also personally responsible for building company culture and enabling company growth.

    In a big organization one asshole doesn’t make much difference – you either work for dozens of them or he’s going to be the only low-performer among great leaders. In a big organizations company culture is already set and it takes a lot of effort and a lot of people to change it (for better or worse). In a big organization one person won’t hamper growth even if that’s CEO who believes leadership is all about yelling at people.

    In a startup one person makes a difference if he leads the company. If he’s a sick weirdo don’t expect healthy atmosphere all over the place. If he makes working for him a hell you won’t see many long-runners in the team as everyone comes and goes as soon as they realize things just won’t change with that kind of boss. In small organizations poor leaders are the main reason why companies suck.

    If you worked for a person who is physically unable to build anything bigger than a couple dozens of people or creating healthy atmosphere at work you exactly know what I’m talking about. Big corporations can be filled with these types and they’ll manage. Startups don’t have luxury to be lead be them.

    That’s a final post of Entreprenurs Time series. I hope you’ve enjoyed it. Please leave your feedback and let me know whether I should post this kind of series in the future.