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