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