So, we got something from a fan and we just had to share this.
So a colleague of mine told me about this “new automated performance management system”.
I was not very excited…
Now I had the usual problems. Like people being very busy.
Our 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
FairSetup works very well for groups of interns. Put together a team, set up goals, allocate bonus pools linked to outcomes, run the team using FairSetup, and, once outcome thresholds are reached, release payment according to everyone’s impact. But one question that we get from companies is: can interns work for free?
I guess it was only a question of time before we found out that we are, in fact, an agile appraisal system. Saw the term used one a blog here. Continue reading
I was recently introduced to the concept of ROWE (www.gorowe.com) – 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.
“This is an exciting product!”
– John Alberg, CoFounder of Employease (Sold to ADP for $160 million).
“I love your idea of FairSetup.”
–Derek Sivers, author of Anything You Want, founder of CD Baby, speaker at TED.
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
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.
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.