| TREAT EVERYONE FAIRLY—NOT NECESSARILY | | | | BUILD TEAMWORK WITH GROUP GOALS & |
| THE SAME | | | | INCENTIVES |
| | | | |
| One of the areas I think managers often make | | | | Just as it's important to tie everyone to |
| a mistake, is to have a firm set of rules | | | | your long term goal for the company, it's |
| that apply to all equally, at all times. I | | | | also important to tie people to each other. |
| believe that to optimize an organization's | | | | I've seen many cultures which are very |
| performance, you must manage people as | | | | collaborative, where everyone is pulling in |
| individuals. Different people respond in a | | | | the same direction. There are organizations |
| dramatically different manner to the same | | | | which have the greatest chance of |
| stimuli. An employee with one type of | | | | success—the whole ends up being bigger |
| personality may respond to an independent | | | | than the individual parts. But all too often, |
| assignment with pride that you've showed such | | | | even in early stage tech companies, I see |
| confidence in them. Their colleague, with a | | | | companies where the employees seem to be |
| different personality, may treat the same | | | | fighting each other in an attempt to get |
| assignment as a sign of neglect and lack of | | | | ahead. They are expending energy fighting |
| caring about them. Each of these people may | | | | over the biggest piece of a still small pie, |
| be equally capable, but how you manage them | | | | rather than using that same energy to expand |
| will greatly affect their ultimate | | | | the pie for everyone. Cutting everyone in |
| performance. This area is where managers | | | | with stock options helps. But I also |
| really earn their money, in my opinion. | | | | recommend that part of each employee's |
| Figure out how to get the most out of every | | | | incentive compensation be based upon their |
| single employee, while maintaining an overall | | | | internal team reaching its |
| environment that still appears equitable, and | | | | objectives—not just the achievement of |
| fair to everyone as a whole. | | | | individual goals. I find this really helps |
| | | | create greater teamwork, and ultimately a |
| TIE COMPENSATION TO THE LONG TERM SUCCESS OF | | | | higher value company. |
| THE COMPANY | | | | |
| | | | HOLD EMPLOYEES ACCOUNTABLE—BUT WITH |
| I want all of my employees to think like | | | | COMPASSION |
| owners. So give everyone stock | | | | |
| options—that's my strong advice. If | | | | Finally, the sum of it all is that I don't |
| that isn't desirable or practical for some | | | | recommend a country club environment, where |
| reason, figure out a reasonable proxy, to try | | | | no one is responsible for their actions. On |
| to get the same results. Utilize Profit | | | | the contrary, I recommend that you do your |
| sharing programs based not only on short term | | | | best to attract high performers, give them |
| results, but long term as well. It's | | | | the tools to do their jobs, and hold them |
| important to get everyone to share your | | | | accountable for their actions. But do it with |
| goal—which is building the long term | | | | respect, helping them in every way that you |
| value of the company. If your compensation | | | | can. And above all, treat them with |
| looks like that of a King, and theirs looks | | | | compassion. |
| like that of a serf—it won't happen. | | | | |
| Cut everyone in on a piece of the pie, and | | | | That's my take on hiring and retaining |
| your slice will end up much bigger in the | | | | employees for high tech |
| end. | | | | companies—what's yours? |
| | | | |