Feb 24, 2020
People analytics is a data-driven approach to managing people at work. For the first time in history, business leaders can make decisions about their people based on deep analysis of data rather than the traditional methods of personal relationships, decision making based on experience, and risk avoidance. People Analytics is using behavioral data to understand how people work and change how companies are managed.
People analytics is also known as workforce analytics, HR analytics, talent analytics, people insights, talent insights, colleague insights, human capital analytics, and HRIS analytics. HR analytics is the application of analytics to help companies manage human resources. Additionally, HR analytics has become a strategic tool in analyzing and forecasting Human related trends in the changing labor markets, using Career Analytics tools. The aim is to discern which employees to hire, which to reward or promote, what responsibilities to assign, and similar human resource problems. HR analytics is becoming increasingly important to understand what kind of behavioral profiles would succeed and fail. For example, an analysis may find that individuals that fit a certain type of profile are those most likely to succeed at a particular role, making them the best employees to hire.
However, there are key differences between people analytics and HR analytics. “People Analytics solves business problems. HR Analytics solves HR problems. People Analytics looks at the work and its social organization. HR Analytics measures and integrates data about HR administrative processes,” says Ben Waber, MIT Media Lab Ph.D. and CEO of Humanyze. Josh Bersin, founder and principal at Bersin by Deloitte agrees that people analytics is a larger industry than HR Analytics, explaining, “… over time, I believe it doesn’t even belong within HR. While it may reside in HR to begin with, over time this team takes responsibility for analysis of sales productivity, turnover, retention, accidents, fraud, and even the people-issues that drive customer retention and customer satisfaction… These are all real-world business problems, not HR problems.”
People analytics, also known as talent analytics, refers to the method of analytics that can help managers and executives make decisions about their employees or workforce. People analytics applies statistics, technology and expertise to large sets of talent data, which results in making better management and business decisions for an organization. People analytics is a new domain for most HR departments. Companies are looking to better drive the return on their investments in people. The old approaches of gut feel is no longer sufficient.
What Are the Benefits of People Analytics?
People analytics helps organizations to make smarter, more strategic and more informed talent decisions. With people analytics, organizations can find better applicants, make smarter hiring decisions, and increase employee performance and retention.
Examiz tools for people analytics products apply sophisticated data science and machine learning to help organizations more efficiently and effectively manage their talents. Examiz’s analytics suite give organizations options for viewing, understanding and acting on talent data across the entire employee lifecycle. This includes Examiz TEAMS, an intuitive workforce and organizational analytics tool set that helps organizations easily create, manage and execute accurate hiring plans over multiple time horizons, plus gives business leaders deeper intelligence about their people, as well as Examiz MATCH, our predictive and prescriptive analytics solution that equips business leaders with the intelligence to better recruit, train, manage and develop their people.
Partially cited from Wikipedia: https://en.wikipedia.org/wiki/Analytics#People_analytics
Feb 24, 2020
“People leave managers, not companies.”
We’ve all heard it. Many of us have experienced it. But what makes people want to leave a manager in the first place? And if you happen to lead a team, what qualities can make you better?
Those are the types of questions Google set out to answer. In 2008, they began research into what makes a good manager, code-named Project Oxygen. They originally identified eight behaviors that were common among their highest performing managers, and began training all managers to develop those behaviors. Over time, Google saw a marked improvement in key metrics such as employee turnover, satisfaction, and performance.
But as the company grew, the demands on managers also increased. Google continued their research. They refined it. They learned more.
“We found that, over time, the qualities of a great manager at Google had grown and evolved with along with the company,” wrote Melissa Harrell and Lauren Barbato earlier this year.Harrell works as a staffing services manager and Barbato as a people analyst.
After taking a second look at its research, Google then “refreshed [its] behaviors according to internal research and Google and [employee] feedback, and put them to the test.”
This resulted in a new list, identifying two completely new behaviors (Nos. 9 and 10) and updating two others (Nos. 3 and 6).
Here are the 10 behaviors of Google’s best managers, along with some practical tips on how to develop these behaviors. (You can find more detailed advice on developing your management skills in my new book, EQ Applied: The Real-World Guide to Emotional Intelligence.)
1. Is a good coach
A good coach avoids the trap of solving every problem for their team as soon as it arises.
Rather they use these problems as teaching moments. They guide and share insights at the right time, letting their team gain valuable experience along the way.
2. Empowers team and does not micromanage
Everybody hates a micromanager. In contrast, a good team lead gives their people enough freedom–to explore new ideas, to experiment, and to develop (and adapt) their own working style.
In addition, great managers make sure their people have the tools and flexibility they need to do their jobs.
3. Creates an inclusive team environment, showing concern for success and well-being
Great managers make it a priority to build trust in their teams.
As Google puts it:
In a team with high psychological safety, teammates feel safe to take risks around their team members. They feel confident that no one on the team will embarrass or punish anyone else for admitting a mistake, asking a question, or offering a new idea.
(More on how to build this type of environment here.)
4. Is productive and results-oriented
The best managers make those around them better.
They realize what their teams are capable of, and they use emotional intelligence to motivate their people and help them realize their potential.
5. Is a good communicator–listens and shares information
Great managers are great listeners–this enables understanding. They also share what they can, realizing transparency is beneficial for the team as a whole.
They share sincere and specific praise, early and often. But they also don’t hold back from giving necessary (negative) feedback–making sure to frame it in a way that is constructive and easy to learn from.
6. Supports career development and discusses performance
Great managers are invested in their people. They provide career path options, realizing not everyone wants to follow the same road.
They also don’t hold their people back for personal gain. Rather, they support team members and help them to reach their goals.
7. Has a clear vision/strategy for the team
Great managers know where they’re going, but they make sure the whole team knows, too–rather than keeping them in the dark.
They are also careful to communicate “scope,” realistic expectations as to what specific actions are needed to execute a strategy, and each team member’s role in delivering.
8. Has key technical skills to help advise the team
Great bosses understand a job well and are skilled at the work they oversee.
If an effective manager is brought into a new department, they take time in the beginning to familiarize themselves with their people’s everyday work and challenges. This earns them the respect of their team.
9. Collaborates across [the company]
Some managers create silos, running their teams with an “us versus them” mentality, competing against other teams within the company.
Great managers have the ability to see the big picture, and work for the good of a company as a whole.
10. Is a strong decision maker
Great managers take the lead. They make the tough decisions, and make sure everyone understands the reasons behind those decisions.
Then, they commit to following through.
Of course, the first step–identifying effective manager behaviors (and tips for developing them)–is easy. Execution is the hard part.
But it’s managers like these that will help your people–and your company–accomplish great things.
First published on Inc.com by Justin Bariso
https://www.inc.com/justin-bariso/google-spent-a-decade-researching-what-makes-a-great-boss-they-came-up-with-these-10-things.html
Feb 24, 2020
When it comes to selecting and assessing CEOs, other C-suite level executives or board members, the most important criteria for boards to consider are competencies, commitment and character. This article focuses on the most difficult of these criteria to assess – leadership character – and suggests the eleven key dimensions of character that directors should consider in their governance roles.
Corporate directors look – or should look – for three things in the C-suite level executives they hire, assess and occasionally have to fire: competencies, commitment and character (see Figure 1).
Competencies, commitment and character
Competencies matter. They define what a person is capable of doing; in our assessments of leaders we look for intellect as well as organizational, business, people and strategic competencies. Commitment is critical. It reflects the extent to which individuals aspire to the hard work of leadership, how engaged they are in the role, and how prepared they are to make the sacrifices necessary to succeed. But above all, character counts. It determines how leaders perceive and analyze the contexts in which they operate. Character determines how they use the competencies they have. It shapes the decisions they make, and how these decisions are implemented and evaluated.
While specific competencies may differ with the role, we believe that these same criteria should also be considered in director recruitment, selection, evaluation and turnover.
Focus on character
Our research has focused on leadership character because it’s the least understood of these three criteria and the most difficult to talk about. Character is foundational for effective decision-making. It influences what information executives seek out and consider, how they interpret it, how they report the information, how they implement board directives, and many other facets of governance.
Within a board, directors require open, robust, and critical but respectful discussions with other directors who have integrity, as well as a willingness to collaborate and the courage to dissent. They must also take the long view while focusing on the shorter-range results, and exercise excellent judgment. All of these behaviors hinge on character.
Our research team at Ivey was made very conscious of the role of character in business leadership and governance when we conducted exploratory and qualitative research on the causes of the 2008 financial meltdown and the subsequent recession.[1] In focus groups and conference-based discussions, where we met with over 300 business leaders on three continents, participants identified character weaknesses or defects as being at the epicenter of the build-up in financial-system leverage over the preceding decade, and the ensuing meltdown. Additionally, the participants identified leadership character strengths as key factors that distinguished the companies that survived or even prospered during the meltdown from those that failed or were badly damaged.
Participants in this research project identified issues with character in both leadership and governance. Among them were:
- Overconfidence bordering on arrogance that led to reckless or excessive risk-taking behaviors
- Lack of transparency and in some cases lack of integrity
- Sheer inattention to critical issues
- Lack of accountability for the huge risks associated with astronomical individual rewards
- Intemperate and injudicious decision-making
- A lack of respect for individuals that actually got in the way of effective team functioning
- Hyper-competitiveness among leaders of major financial institutions
- Irresponsibility toward shareholders and the societies within which these organizations operated.
These character elements and many others were identified as root or contributory causes of the excessive buildup of leverage in financial markets and the subsequent meltdown.
But the comments from the business leaders in our research also raise important questions about leadership character. Among them:
- What is character? It’s a term that we use quite often: “He’s a bad character”; “A person of good character”; “A character reference.” But what do we really mean by leadership “character”?
- Why is it so difficult to talk about someone’s character? Why do we find it difficult to assess someone’s character with the same degree of comfort we seem to have in assessing their competencies and commitment?
- Can character be learned, developed, shaped and molded, or is it something that must be present from birth – or at least from childhood or adolescence? Can it change? What, if anything, can leaders do to help develop good character among their followers and a culture of good character in their organizations?
Leadership character dimensions
We define character as an amalgam of traits, values and virtues. Traits, such as open-mindedness or extroversion, may be either inherited or acquired; they predispose people to behave in certain ways, if not overridden by other forces such as values, or situational variables such as organizational culture and rewards. Values, such as loyalty and honesty, are deep-seated beliefs that people hold about what is morally right or wrong or, alternatively, what makes the most sense to do, or not do, in running a business. Virtues, such as courage or accountability, refer to patterns of situationally appropriate behaviors that are generally considered to be emblematic of “good” leaders.[2]
In Figure 2, we posit character as consisting of 11 dimensions: integrity, humility, courage, humanity, drive, accountability, temperance, justice, collaboration, transcendence and judgment. If we were to take just one of these dimensions – accountability, for example – we could say that it is defined by traits such as self-confidence and internal locus of control, values such as a deeply-held belief that good leaders should take ownership for their actions, and the near-universal view that good leaders readily hold themselves accountable for results. Each of these 11 dimensions has a similar underlying structure of traits-values-virtues, and each could be extensively deconstructed and discussed in greater depth.
The following set of dimensions, together with an illustrative set of elements that describe each dimension, is unique in that it attempts to integrate age-old concepts from philosophy with more contemporary thinking from the fields of psychology, sociology, anthropology, evolutionary biology, management and leadership. The wording of these dimensions is heavily influenced by the language used by the executive- and board-level participants in our “Leadership on Trial” research, subsequent qualitative and quantitative work with leaders, managers and students to ensure that we had identified relevant dimensions, as well as endless debate within our own research group.[3] This analysis differs from many other discussions of character in that it extends the definition of character to embrace other aspects of personality traits, values and virtues, rather than focusing exclusively or primarily on its moral dimensions.
Talking about character
In our original “Leadership On Trial” research, participants had little difficulty talking about the role that character appears to have played leading up to the financial crisis. Yet those we have interviewed over the years almost always wondered why such issues were seldom addressed prior to the crisis. They noted the absence of ongoing meaningful discussions about character in their own organizations, even in critical issues such as talent recruitment, selection, development and retention and succession management.
We think there are several reasons for this inconsistency:
- Decades of time and many millions of dollars have been spent by private- and public-sector organizations developing ways of measuring competencies. No such effort has been placed on character. However, we are confident that this is changing. Whether it does or not is largely in the hands of the governance community itself, and we sense that it is ready for the challenge.
- Competencies are manifested in behaviors and we can actually measure them, however imperfectly. Character, on the other hand, addresses a capability in individuals that may not yet have been tested and the evidence for which is frequently vague. Here again, work is underway to develop better assessments and measures. Our discussions with members of the global governance community suggest that directors would welcome this development.
- Character is a loaded word. We tend to avoid talking about character in the workplace because it seems such a subjective construct. It does not have to be so – especially if we are able to describe the good and bad behaviors associated with these character dimensions in the appropriate business contexts. This is the focus of our ongoing research.
- Too often, discussions of character have required people to buy into some particular school of philosophical, ethical, psychological or managerial thought. We have tried to minimize this problem through balance, transparency, careful wording, and clear definitions.
- To date, the language of character has been complicated and inaccessible to those unversed in philosophy, ethics, and advanced psychological terminology. It is often viewed as a “soft” and certainly a non-quantifiable construct in a world that looks for hard data. However, we don’t think that it has to be this way. We believe some adept translation of arcane terminology into contemporary managerial language, which we have tried to do in our framework, is a starting point to making the discussion of character easier and ultimately more valuable.
Where character comes from
Some elements of character, especially basic personality traits, are inherited, while others are acquired through early childhood development, education, experiences in both work-related and socially-related organizational settings, as well as later-in-life experiences that mold character. People cite such life-changing experiences as being hired and fired; working with “good” or “bad” bosses; marriage and divorce; success and failure; illness and recovery. These crucible events only contribute to character formation if individuals have the degree of humility and self-awareness that allows and motivates them to seize the opportunity for self-improvement. Other “character-forming” experiences include working in different international, industry or corporate cultures, as well as having great critics and mentors who are prepared to have the tough discussions that also shape character development.
Assessing character strengths
Character is revealed by how people behave in situations. For example, we don’t know whether individuals have courage until they’ve faced a major challenge or danger and done the right thing. Similarly, we don’t know if they have humility unless they’ve experienced failure, acknowledged it and learned from it. Whether or not they have integrity can only be assessed by how they have responded to situations that tested that integrity under pressure.
While it is standard for directors to establish selection criteria for competencies, we believe it’s rare for them to discuss the character dimensions they expect in qualified candidates. Nor is it common to address character dimensions when reviewing executive performance or doing peer reviews of other directors. Most of us lack the vocabulary to have these discussions behind closed doors, let alone in face-to-face discussions.
Regrettably, systematic and thorough character assessment is seldom done well, often relying on an “absence of negatives” rather than focusing on positive character dimensions. A full character assessment requires a deep and wide-ranging examination of a person’s life and work history over an extensive period of time, through the investigating of the highs and lows of a business cycle, and the asking of very specific, pointed and often intrusive questions in both the interviewing and reference-checking processes. We all know how difficult this is to do – especially when the candidate has achieved positions of leadership prominence, possesses a sterling reputation, and may even be a personal friend. It’s even harder when the candidates clearly possess the competencies that you urgently need, or have a track record of success.
We look to character to attempt to predict how someone will behave in future circumstances. It is much better to ask well-constructed, probing questions about how candidates have behaved in similar situations in the past, or how they believe they would behave in specific situations in the future, than to settle for impressions formed from loosely-structured interviews, or basing hiring decisions on individuals’ reputations. This focus on behavioral interviewing is not a new idea, but emphasizing character assessment underscores its value and importance.
Building character
There are several ways that directors can influence character development in the organizations they govern. They can talk about these dimensions, especially in their formal processes of CEO appraisal and succession management. They can press management to develop formal leadership profiles that address competencies, character and commitment. They can also introduce character-focused discussion into their own board assessments. Since CEOs are almost always board members, such discussions should start to rub off on their own internal talent reviews.
Boards are in a pivotal position to alter the way businesses are run. If boards put character on the corporate agenda, organizations will have to respond. Boards can begin the process by ensuring that the senior leaders of the organization are selected, evaluated and promoted based on character as well as commitment and competencies.
We are encouraged by the number of business leaders who feel that they themselves must surmount these obstacles to talking about character, and who believe that boards should focus more on it – just as we are sometimes discouraged by stories of character-related scandals, from bribery and corruption to money laundering and near-insane risk-taking in capital markets, that are emerging on a regular basis. We are conscious that we must guard against the cynical assumption that there is, somehow, a natural cycle of wrongdoing (recognition, learning, improvement and relapse) as we go through business cycles and forget the last crisis and why it happened.
There is a lot we don’t know about the role that character plays in governance and effective leadership in organizations. We would like to get a better sense of how boards actually address character-related issues. We also need to improve how we assess character dimensions and measure them more accurately. The holy grail of this line of leadership research is an empirical assessment of whether or not the character of an organization’s leadership is significant in determining its success or failure; there is much work to be done before we can pronounce on that. We are committed to engaging members of the global governance community in this future research.
We recognize that we must be careful and responsible in asking busy directors and executives to master new language and new methods of assessment. But we believe it will pay off in better leadership. In short, while competencies matter, while commitment is critical, character really counts; it must be embraced as a major concern by boards and the governance community.
This is a shortend version of an article originally published by Ivey Business Journal, Issue: May / June 2013
Author(s): Jeffrey Gandz, Mary Crossan, Gerard Seijts, Mark Reno, Mary Crossan, Gerard Seijts, Mark Reno
Feb 24, 2020
At the intersection between a leader’s personality and decision making, there is a pressure point where personality style will be the ultimate influence on business judgment.
“Leaders with higher learning orientation are more likely to embrace ambiguity, complexity and paradigm shifts and to positively engage in both the practical and intellectual challenges.”
Business Judgment: Who You Are Affects What You Decide
Personality is a vital factor in leadership success. The intersection of a leader’s personality and performance is most consequential when the leader needs to perform under pressure within the pervasive VUCA business context. Most leaders are required to navigate the complexity of unfamiliar situations with fluid, unpredictable outcomes. Too often, though, highly experienced leaders fail due to their dysfunctional personality tendencies.
We studied whether particular personality styles were more related to the decision-making skills that underlie business judgment than others. We were particularly interested in the strong relationships between the business decision-making leadership competencies (i.e., business savvy, entrepreneurship, establishing strategic direction, and operational decision making) and certain personality styles, specifically ambition and learning orientation, as well as any strong negative relationships with argumentative, avoidant, and risk aversion.
Evidence
Notable personality-judgment links are shown in the “Personality Factors” graphic. Ambition measures the degree to which a person is socially self-confident, resilient, competitive, motivated to lead, and energetic. To be effective when making business decisions, leaders need high energy, a positive and aspirational mind-set, and a preparedness to subordinate other life options to pursue goals. Ambition is difficult to develop and should not be underestimated in considering leadership potential or selecting leaders.
The strong positive relationship between learning orientation and business decision competencies reinforces the importance of learning capacity and versatility for being successful as a leader in a VUCA world. Leaders with higher learning orientation are more likely to embrace ambiguity, complexity, and paradigm shifts and to positively engage in both practical and intellectual challenges.
Leaders scoring high in argumentative, avoidant, and risk aversion performed poorly in the business decision leadership skills. Under pressure, leaders with these dysfunctional tendencies can disproportionality fear failure, become insecure, and become myopically focused. Further, their interrogative styles of questioning can cripple trust-building outcomes.
Leaders who do not learn to manage these tendencies can develop highly short-term, conservative decision styles that lead to distorted perceptions of higher risk. This disconnects them from anticipating opportunities and inspiring people toward a better future.
Action
- Clearly discuss the tangible impact of personality patterns on key aspects of business judgment. For example, if your business has an urgent need to identify cost controls or to find innovative ways to generate sales, consider the impact of a leader with an unmanaged risk aversion tendency, and how the person’s overly constrained consideration of options could lead to actions that would be too conservative and slow to realize results. Or, consider a leader with an argumentative tendency whose interrogative approach tends to dominate discussions and prevent others’ good ideas from surfacing—this would become a serious barrier to generating effective solutions.
- Heighten self-awareness and sustain improvement in managing personality implications on business judgment by creating an open environment and ensuring that leaders have feedback skills. A leadership team that has an understanding of each other’s tendencies and the skills and receptivity to provide feedback will be more successful avoiding situations that trigger these potentially destructive behaviors and their associated business execution problems.
- Ensure that leaders have a 100-day action plan that identifies their personality tendencies linked to business judgment and specifies the actions needed to manage these behaviors. This plan should be reinforced by processes such as time frames, required support (e.g., coaches), and measures to indicate improvement. Implement stronger governance and accountability processes to manage the heightened risk that, in stressful environments, allows individual personality tendencies to get in the way of execution.
First published at https://www.ddiworld.com/
Feb 24, 2020
After spending nearly a decade helping Fortune 500 companies with organization development,
Matt Hoffman decided he’d rather work on a smaller scale where he could have an even bigger impact. He’s since helped numerous startups and small businesses to scale their teams, and today supports the growth of venture capital firms in his role as partner and head of talent at M13.
Over the years, he’s observed that most barriers to success are not caused by a company’s actions, but by its inaction in the areas that matter most — like failing to build a healthy culture in the early stages.
“I think the biggest thing is the things that they don’t do,” Matt says.
Matt realized the importance of addressing these gaps early when he was working with his very first startup team at a software company called Return Path. Luckily, the company’s leaders were willing to look ahead rather than thinking short-term, because in many cases, these missed opportunities don’t become apparent until years later.
“I wasn’t just solving immediate problems,” Matt explains. “It was more saying how can we get better regardless of whether things are working fine. And they were working fine.”
As we all know, it’s often harder to fix something that’s broken than it is to do it right from the very beginning. To learn more about the things many companies wish they’d known when hiring their first 100 employees, I caught up with Matt for an episode of my 21st Century HR podcast series. Here are some of the key steps he says companies often neglect to take until it’s too late.
1. Not developing a people strategy early enough
One of the most fundamental mistakes growing companies make when it comes to their people strategy is not really having one at all.
“Many early companies don’t think thoughtfully or as thoughtfully as I would argue they should around people strategy,” Matt says. “Because it just seems like something you can figure out, and there are more pressing things, and we’ll get around to hiring a head of talent when we’re 75 or 100 people.”
By viewing their people strategy as something that can be pushed off their plate for now, companies ultimately makes their own lives harder. By the time they get round to it, they often find that bad practices have become ingrained, and gaps that could have easily been plugged in the early days are now much harder to fix. And for every day these issues go unaddressed, the company may not be working as well as it should.
This doesn’t mean that Matt thinks you should rush to hire a highly experienced head of talent as one of your first handful of employees. But he does believe companies need to start thinking about their people strategy much earlier in their lifespan — like outlining what kind of people they want to hire and why, how this will help the business meet its goals, and what types of behavior won’t be tolerated. After all, most companies are aware they need a fleshed out go-to-market strategy to secure future success, so why don’t they have the same mindset about who they hire and what those people will need to succeed?
“It doesn’t necessarily seem intuitive yet that you would want to have that on the people side,” Matt says, “which is strange to me.”
The longer you neglect your people strategy, the more bad practices will become systemic within your organization. And the more you grow, the more those practices will hold you back, so it pays to sit down with your stakeholders and start talking about what your people will need to succeed — even if you and your stakeholders are the only people at that point.
“Almost any decision can be undone, right?” Matt says. “But the question is, what is the cost of undoing it versus the cost of doing it right in the first place?”
2. Not being thoughtful about culture from the very beginning
Similarly, Matt argues that many growing companies are not nearly mindful and intentional enough about culture from the beginning. For some, it doesn’t even cross their minds — but it should.
“Once you get beyond… your first non-founding employee,” Matt says, “you’re starting to create a culture whether you want to or not. So you may as well start thinking about it.”
By neglecting to ask themselves big, introspective questions like who they want to be, what they believe in, and what their guiding principles and core values are, companies let their culture just kind of follow its own path. And all too often, they later struggle to course-correct when they realize it’s heading in entirely the wrong direction.
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Related: “I Like You Just the Way You Are”: 4 Lessons from Mister Rogers About Building a Strong Company Culture
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“[Ask yourself] what are the types of behaviors we want to encourage?” Matt says. “What are the behaviors we want to discourage? What values do we care about? Those things are just as important in the early stage as the more tactical strategy around go-to-market product — in some ways more, because companies pivot all the time in terms of product and go-to-market. But the foundation that you lay in your earliest stage around culture is really, really hard to undo if it’s bad, and that stuff will make you go slower.”
While your founder might have a very strong vision, this alone is not strong enough to create a scalable culture. If you’re leaving employees to interpret and act upon that vision without clear guidance, 20 or 30 people in, it may be utterly unrecognizable.
“By definition, every time you hire another person, the founder’s influence gets diminished,” Matt says. “How do you make sure that you’re hiring people that are going to be consistent with the founder’s vision, and add to it, and create better scalability rather than worse? Those are things we [need to be] thinking about.”
3. Not focusing on team performance over individual contributions
Another blindspot that Matt sees among many growing companies is in recognizing the importance of team performance. Too many organizations, he says, are obsessed with hiring “A-players” and ranking individual performance — but this doesn’t make sense in terms of how they operate.
“Unless you’re in one of these rare organizations where everyone is just completely siloed in a box,” Matt says, “you shouldn’t be interested in how they do individually. You should be focused on how do they perform as a team, because that’s the vast majority of the time that they’re going to be spending.”
This doesn’t mean that some people aren’t more skilled at what they do than others. But context matters — and by putting people on teams where their strengths are complemented, you can make everyone more effective.
“If you’re doing a really good job of recruiting,” Matt says, “and you’ve created a compelling employee experience… most people should be high performers. So figuring out gradations between all or most strong performers is not as useful as figuring out, to my mind, what are the conditions in which we can set them up for success, and how do teams work really well together.”
While he was working with Return Path, Matt and his team examined the traits that high-performing teams shared. Their findings were consistent with other research in this area — namely, that these teams focus on trust, collaboration, cohesion, a shared commitment, and alignment around accountability. So rather than fixating on how to improve individual employees, Matt recommends that all companies focus on trying to create optimum working conditions for their teams, like encouraging employees to give regular, candid feedback to one another.
It’s also important to recognize that team dynamics will shift as your company grows. Every employee you hire should play an intrinsic role in their team’s success — but the type of person that is able to do that won’t always remain the same.
“I think that is actually the number one role of a chief people officer or chief HR officer,” Matt says. “To help organizations really understand that and not just hire ‘A’ talent, but hire the right talent for the right roles — and recognize when organizations change and how that shifts.”
Build a strong framework early or be prepared to make repairs further down the line
Your earliest hires can fundamentally shape your company’s future. And it pays to recognize that as soon as possible.
“It makes a difference when you see the companies that are really thoughtful, how much better they’re able to perform,” Matt says. “Having that framework for how we think about people and how we think about culture and how you think about talent is time well spent by an early stage team.”
For Matt, that’s what 21st Century HR is all about: building strong foundations instead of racing to put up walls.
“Rather than focus on personnel and processes,” he says, “it’s focused on building the culture around creating healthy foundations where you can trust employees, scale, get manager and leadership behaviors that drive that in the future — and then find ways to unleash people’s potential.”
First published at LinkedIn Talent Blog 2020 by Lars Schmidt
