TLNT: The One Habit You Really Need to Achieve Long-Term Goals

Screen Shot 2013-07-23 at 10.40.07 AMOur Summary: Being very strict on small details in the workplace leads to the establishment of a more disciplined and professional culture when it comes to big issues. Specific examples of where managers ought to step up are late meetings and missed deadlines.

Our Take: The philosophy behind the article is certainly sound; it is vital that an organization be serious about deadlines, meetings, and the like. Such an attitude will lead to more focused and motivated teams, and in the long term, better results. There is, however, such a thing as being too serious. In this article, our author may be guilty of just that.  Continue reading

Results-Only Work Environment (ROWE)

imageI was recently introduced to the concept of ROWE ( – a concept pioneered at Best Buy by Cali Ressler and Jodi Thompson.  The idea is pretty simple – don’t pay people to for the hours they spend, but for the results they produce.  The site is a bit limited on the details, but they did impress the white house enough to get a pilot going and now it looks like it’s seeing a wider adoption.  The idea of ROWE is not new, but there are a lot of different flavors of how it is deployed and the management process that accompanies it.

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"Lazy recruiters” are damaging the standard of the recruitment profession

Our Summary: HR recruiters are losing business due to insufficient engagement with potential candidates and need to evolve their practices to match the times.  Specifically, recruiters need be educated about both the candidate and the employer ultimately increasing the value they provide to both side.

“Recruiters need to have a relationship with people to give them an idea of company culture because passive candidates can become active candidates at the touch of a button.” -Matthew Jeffery, head of EMEA talent acquisition and global talent brand at technology firm Autodesk.

Read the full article here: original post


Established Case 2: Justifying Bonus Compensation

Established Case 2: Justifying Bonus Compensation


At the end of every year, the management team would lock themselves up in a cabin in the woods and managers would fight for their employees to get them into the top-performer percentile.  The company had rank-and-yank workflow/structure, which was anything but transparent.  Almost all employees felt deeply dissatisfied with their bonuses and quickly burned out causing significant churn in the company.


  • 10% of gross profits allocated towards bonus compensation (no change from previous size)
  • 360 FairImpact monthly expectation-based performance evaluation
  • Vesting: 2 years
  • Divesting: 6 months


  • Improved Employee Retention: while the size of bonuses did not improve, transparency and mathematical rigor lead to employees feeling that bonus calculation was fair.
  • Less Management: regular 360 evaluations reduced management load allowing for mid-level managers to get more involved in front-line operations.
  • Light Touch Performance: before performance management involved a “score card” and was done every 6 months.  Switching to monthly single-question evaluations forced improved communication of expectations.  Some started doing bi-weekly evaluations to ensure constant feedback between management and front-line employees.
  • Early Problem Detection: transparency of missed expectations lead to management becoming aware of potential problems early thus giving them a chance to assist before minor issues develop into crises.
  • Improved Morale: because everyone had a voice and felt that management was trying to be transparently fair, culture significantly improved.

Rationale: Why does FairShare make sense?

FairShare is the most advanced form of deployment of the FairSetup model.  Before discussing FairShare, let’s focus on why people work.

While money is the central component of any business, money is generally not the primary motivator.  When do people work best?  When they feel that they are treated fairly – when they feel that, if they put in a lot of effort, they are adequately rewarded for their impact.  Until now, this sort of mindset was reserved for startups.  FairSetup is a new type of compensation: one where a motivated company culture is achieved for by creating a system that fairly rewards all participants for their impact.

What makes people feel like their are being treated fairly?  The ultimate form of fairness is a feeling of ownership.

What is ownership?  It is 1) the ability to make decisions and 2) ownership of future profits. Most, especially late-stage commodity-type, employees are not interested in making strategic-level decisions.  At the same time, they do want to profit from their impact on the company and are willing to take a risk to participate in the upside.

FairShare, the most advanced form of deployment of FairSetup, offers exactly that – if you are an employee who works hard and the company does well, you own some of that tasty future profit.  The goal of FairShare is to give employees a sense of ownership so that they work hard and profit when the company does well and share in company’s plight when it doesn’t.

FairShare is an easy-to-understand transparent profit-sharing model.  Hiring additional people to grow your team becomes easier – no need to dilute, dilution happens naturally as more people become members in the compensation pool.

What’s even better is that FairShare helps address the necessary transience of high quality employees.  For example: let’s say that you need a high quality programmer when building a large system.  After the system is built, their involvement is no longer necessary.  Under FairShare, the programmer will want to build the system as quickly as possible and then move on to other interesting projects, because most compensation comes from success of the system, not the act of building it.

All in all, FairShare brings entrepreneurship into organizations of any size.