Dedicated to helping Companies improve hiring success and avoid costly mistakes.
Topgrading is too Dangerous to Try
Our phone has been ringing a lot recently with CEO’s of companies who are reaching out to me with questions about how to do a better job of implementing Topgrading – both to analyze their existing team to make it lean as well as to prepare for new talent acquisition as the economy is heating up and they’re ready to begin scaling again.
In nearly every situation, when I ask them why it is that they’re calling, they tell me, “Well, we tried Topgrading and it it was too hard or it took too long.”
It reminded me of an email I got the other day (I wish I could give credit but I entirely forget where I got it) that I thought I’d share in this blog:
Let’s conduct an experiment.
In the next paragraph, I’ll ask you to try to stop reading, close your eyes and count to 10. After which, you can open your eyes and continue reading.
Ready?
Close your eyes and count to 10. Give it a good try.
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Did you stop reading, close your eyes and count to 10?
If you did, you didn’t try: you actually did stop reading.
If you didn’t stop reading, you didn’t try.
Confused?
Here’s the point, there is no “try.” You either do something or you don’t.
“Try” is a slippery word. At best, it communicates an intention; not a commitment.
I’ll try to make some call some people that should be on my “virtual bench” today.
I’ll try to get back to that compelling candidate this week.
I’ll try to get a firm plan from my management team around our talent needs for the next 12 months before the end of the month.
I’ll try to work with my HR Leader to help them understand the significance of Topgrading and why they need to learn about it.
You either schedule the time to complete the activity…or you won’t do it.
There is no in between.
Take a look at these two examples:
I’ll try to stop for the red traffic light.
I’ll try to love my children.
When the outcome is important, we leave “TRY” out of the equation.
The next time you’re about to say that you’ll “try to do” something, reconsider.
If the outcome of the activity is important, don’t try. Because if the activity (like Hiring the Right People) isn’t important, then why even try?
Tags: A-Players, american workforce, chris mursau, hire better, if outcome is important, recruit don't absorb, Recruiting, Scorecard, strategic HR, talent acquisition, Topgrading, topgrading methodology, try, virtual bench
Thoughts on the new book by Jim Collins: How the Mighty Fall
Jim Collins has been taking quite a beating in the news recently for a lot of what he wrote about in Good to Great and Built to Last. As it turns out, much of what he praised companies like Fannie Mae and Circuit City for has been emulated by thousands of companies around the globe. The problem: well, if you’ve had a pulse and watched the news for more than 10 minutes in the past year you’ll know that both of those companies aren’t in the best shape any more.
In response, Jim Collins has written a follow-up book called “How the Mighty Fall“. Fortunately for you, you can skip buying it at the book store and, instead, read this summary to capture what he’s trying to get across. Unfortunately, the book reminded me a lot of the scene a couple of years ago where Mark McGwire (one of my favorite baseball players of all time) sat in front of Congress and kept repeating over and over again, “I don’t want to talk about the past”. If you missed it, I found the video on YouTube.
Mark McGwire in front of Congress
The book was hastily put together, is a shorter read than Parade Magazine on Sunday (it’s only 123 pages), and feels more like Jim trying to save his reputation than actually get any point across.
That being said, here are the TWO nuggets that I was able to capture (and hopefully they’ll save you the pain of reading his short story):
PEOPLE NEED RESPONSIBILITIES (Page 57) “One notable distinction between wrong people and right people (in key seats) is that the former see themselves as having ‘jobs,’ while the latter see themselves as having ‘responsibilities.”
Verne Harnish suggests, “Every person in a key seat should be able to respond to the question “What do you do?” not with a job title, but with a statement of personal responsibility. “I’m the one person ultimately responsible for x and y.” Think columns two and three on our Accountability Worksheet. In fact, Collins, when he’s hosting executive teams at his research lab often challenges executives to introduce themselves not with titles, but by articulating their responsibilities.”
MANAGE WITH DISCIPLINE (Page 119) ”If you’ve fallen into decline, get back to solid management disciplines — now!” ”In fact, our research shows that if you’ve been practicing the principles of greatness all the way along, you should get down on your knees and pray for severe turbulence, for that’s when you can pull even further ahead of those who lack your relentless intensity.”
Tags: A-Players, built to last, circuit city, congress, fannie mae, flywheel, good to great, hedgehog, hire better, how the mighty fall, jim collins, management discipline, mark mcgwire, testimony, verne harnish
Why People Ask for References
If you’ve been reading this blog with any regularity you ‘ll know that I’m a big fan of Dave Kurlan. His blog and much of his company’s focus is on how to do a better job assessing sales talent before you hire them. What he also focuses a lot of his time on is making people better salespeople.
On June 3, Dave wrote a blog post entitled, “Salespeople and Requests for References“. He wrote the blog because a prospect he was hoping to sell his wares to asked him for references before they would agree to complete the transaction. It caused him to step back and analyze why someone would ask for references.
I read the post and gathered something entirely different from what he was hoping to get across. That was: this absolutely explains why a potential employer would ask for references as well! Geoffrey Smart, in the book WHO, suggests that 25% of what you’ll learn about someone will happen during the reference process. Even knowing that, when I surveyed a room of Entrepreneurs last week that I was talking with, nearly all of them admitted to hiring someone without ever asking for references and a full 100% of them said that they had, at least once, asked for references and then never called them.
Here are some of Dave’s points from that Blog Post. Do any of these apply to you as a hiring manager (in the context of the interviewing and selection process)?
Why would people ask for References?
- they are skeptical of your claims or promises;
- they weren’t referred to you by someone they know and trust;
- they haven’t previously bought from your company;
- they don’t understand what you sell;
- it’s their nature to ask (they always do that);
- they must invest more money than they had planned or feel comfortable with;
- they want to learn what it’s like to do business with you;
- they want to learn if there is anything to beware of;
- they prefer to be sold by your references, not you;
- they are simply using the reference request to put you off.
Tags: ask for references, Baseline Selling, Dave Kurlan, geoff smart, hire better, Interview, Objective Management Group, recruit don't absorb, Reference Check, talent acquisition, Topgrading, TORC, who the book
Questions to ask when Assessing your Company Culture
The Austin Technology Council held a CEO Roundtable on May 18th about “How Healthy is your Organization’s Culture”? The featured speaker was Dr. Carol Kallendorf, the Founding Partner of The Delta Associates. I made a commitment to Tweet more often and so I maintained a Twitter Stream throughout the whole event. If you’re not following me on Twitter, why not?
The event wasn’t an exceptional one as the featured guest has been in business of telling companies what they do wrong for over 27 years. Further, no matter how pointedly people asked her questions she had a political answer that wasn’t based on experience and instead, sounded like rhetoric. At the end of the event we all got handed a piece of paper (how very Baby Boomer) of the 10 questions you can ask to assess your organizational culture. While the document wouldn’t surprise you even if you were from Mars and didn’t even know what culture was, there were a couple on there that at least bore repeating:
- What are the issues that tend to align your Executive Team? What about fractionalize it?
- To what extent do the people in your organization have shared goals, vision or fate?
- Could your employees explain to their family members what it is that they do within the company that contribute to its success?
- Do people at all levels in your organization know what business you are in, how you make money and who your customers are?
- What’s your culture for handling mistakes and failure? What would your employees say is the culture for handling failure or mistakes?
- Do people like to come to work?
- How big a priority is culture?
Again, nothing earth shaking or really insightful but they ARE thought provoking. Can you make any changes today inside of your company that could represent a baby step in the right direction?
Tags: alisha ring, amwf, Austin, austin technology council, brian wong, carol kallendorf, change management, culture, delta associates, drive culture, Fame, Family, Fortune, Fun, hire better, talent acquisition, tweets, Twitter
In Defense of our Culture at American Workforce
Earlier this week I found myself on the phone with one of our service providers at American Workforce. The company: Monster.com. We’ve used their service with average satisfaction for about 5 years. Every year we step back and evaluate it but ultimately, we’ve chosen to invest the $10,000-$15,000 that they want to charge for access to a huge database of largely uninteresting people – many of whom need work Visas to make career moves.
Our account comes up for renewal at the end of May. We haven’t heard from anyone in their company since last September when our account was nearly cancelled FOR FRAUDULENT ACTIVITY.
A little bit of history – Last year an interesting thing happened: their Compliance Department caught wind of a report that the “seats” that we paid for were being used by IP addresses that weren’t in Austin, TX. This set off all kinds of alarms at Monster.com and I received a disturbing voicemail from a woman who more than suggested that we were guilty of fraud because of our usage and that the legal team was looking into canceling our account without a refund – essentially a loss of $10,000 for us.
Why were they accusing us of Fraud? Because our Corporate Address is in Austin, TX. ”If your address is in Austin, why would you have anyone with an IP address in Iowa, Kansas or Arkansas?” they asked. How very 1993 of them. I challenged that same Legal Team and their Compliance Team by asking,
“Have any of our seats EVER been logged into by more than one person simultaneously and in different geographic regions?”
“No, never once.” they responded.
“And is our usage on any of these accounts outside of our terms of use or so heavy that it would make you think that we were trying to be fraudulent or mis-represent ourselves in any way?”
“No, not at all.” was their answer.
It took me a week and about 20 hours of our senior team’s time to explain to their Legal Department that we’re a Virtual Company that’s built around team members who work from their homes because of the Balance that it provides to each and every one of us. We finally settled on an agreement with their team that we could give each and every one of our employees their own usernames and passwords and split up the usage of each “seat” into what was the equivalent of 50% of a traditional license. This satisfied their Legal team and it allowed us to avoid a $10,000 loss. My Account Representative at the time was a gentlemen named Chris Shaw. He stuck up for us, was the internal champion for our cause and put his reputation on the line with that same Compliance Department to vouch for us and insist that there wasn’t any fraudulent intent or activity.
Fast forward to this week: my new Account Representative called me 4 times over the course of a week – only bothering to leave a voicemail once (a hint: while we’re virtual we do have “real” phones that have caller ID). When Cortney, my Assistant, finally reached him to book our phone meeting, we were les than a week from our renewal. Here’s the breakdown of the conversation:
9:15 AM Central Time comes and goes (our agreed upon call time)
9:21 My phone finally rings. It’s my new representative. It’s clear he doesn’t understand how OCD I can be about the timing on phone calls. He starts the call with, “So how’s your business doing these days?” with an artificially chipper tonality. I politely asked if he had turned on the news in the last 9 months and then reminded him that we had 15 minutes booked for the call and we were down to 7.5 minutes left because of his tardiness.
9:32 I’ve had to explain, at length, what the entire situation was that had happened during the previous September. Apparently, the CRM system at Monster.com isn’t equipped to keep track of week-long legal boondoggles with clients that have paid them nearly $75,000 over 5 years. If you’ll remember, I mentioned earlier that Chris Shaw, our representative at the time, was a great advocate for us. Our new representative made it a point to remind me, at least 3 times during these 11 minutes, “Well, based on all of these exceptions that you benefitted from in the past year, you’ll clearly understand why Chris isn’t with our company any more.”
9:34 I’m now 4 minutes late for a commitment I made to call a prospective candidate for one of our biggest clients. As politely as I can muster, I shared with our representative, “Look, I appreciate that you’re not a fan of Chris. I also respect that you have a precious “rate card” that you’re allowed to discount from by 75% (side note, if a sales rep can discount by 75% off of a rate card, what’s the point of even having a rate card?), but unless you can wrap your brain around the fact that I’m VERY familiar with your legal contract and that I’m not willing to buy ONE seat (as he suggested) and pass around the username to everyone (which is in violation of their agreement) or 9 full, individual seats for our employees who spend about 1 hour per week each on your website, we don’t have much more to talk about. And I’m late for my next call. I need to go.”
9:36 It’s starting to get ridiculous. Every effort that I’ve made to be polite so that I can move on to my next commitment has been ignored. It’s as if I’m speaking an entirely different language. My representative has shared with me things like, “You know, 2 years ago we were only permitted to discount by 15%” and “What you received last September was clearly a one time thing and there’s no way I could get that approved again.” His arguments were as pertinent to our conversation as the amount of snow they received in the Napa Valley last year. ”I know we’ve gone a bit over our alloted time this morning Jonathan. Why don’t you let me go back to my managers and that Compliance Team from last September and see if I can work something out for you.”
3:10 Central Time – My representative called me back to share the news with me. ”Jonathan, what I’ve gotten approval for is to sell you 9 individual seats at 75% off of our rate card. This is a great deal. Can I send over the agreement?”
If you’ve hung with me and read all the way down to this part of this blog post I hope you’ll let me clarify something: My intent of this post was NOT to air the dirty laundry of my discussions with Monster.com. However, sharing that level of detail was critically important because this is what I want every company who acts as a service provider for us to understand:
- Our Core Values are NOT something that we just hung on a wall for everyone to ignore. Balance, Earning Trust and Adding Value play a significant part in every decision that we make every day.
- I (and We) will never apologize for or alter our decision to have hired the team that we have in place that just happen to work from their homes all around the country. Because we have Balance in our lives, the quality of the work that we do for our clients is TOP NOTCH. When we work, we work hard. And then we stop and spend time with our families. We don’t waste time commuting, attending pointless meetings or waiting in line for lunch in the same 15 minute period that everyone else has to run to the local fast food joint.
- We may need a concession or two from you, as a service provider, because we ARE different. Here are some of the companies who have acknowledged that and will be Partners of ours for a long time:
- Pioneer Bank in Dripping Springs, TX
- 8×8: the providers of Packet 8 Phones
- Apple
- Otherinbox
- 37Signals
- Jintech
- Clutch Creative
- Spross & Associates
And one final note to Monster.com: it’s 2009. It might be time for you to take a good hard look at services like LinkedIn, ZoomInfo, Recruiter’s Earth, Door64, Google, Craig’s List and a host of other websites that passed you by a long time ago. For me, I’ll take the $13,000 I just saved by not renewing with your service and I’ll spend it on training our employees on AIRS. After all, our commitment to our clients is that they’ll HIRE BETTER. Your website simply doesn’t help us do that any more.
Tags: 8x8, A-Players, AIRS, american workforce, amwf, bad hires, career history, clutch creative, hire better, hiring, LinkedIn, Monster, monster.com, OtherInbox, pioneer bank, proactive recruiting, purchasing decisions, recruit don't absorb, Recruiting, research, talent acquisition, talent vault, Topgrading, tweets, Twitter, unemployment, unemployment rate, virtual bench, zoominfo
Build It Right – Right from the Start
Hanging out with Early Stage Entrepreneurs is about my favorite thing in the world to do. For the past 18 months I’ve been actively involved in EO’s Accelerator Program which is dedicated to helping companies between $250k-$1mm grow faster and more efficiently through peer to peer learning, introductions to advisors and facilitated learning opportunities.
This morning I got the chance to share some of our best practices with the Portfolio Companies of Austin’s newest Incubator: Capital Factory. (If you’re interested, you can follow them on Twitter: @capitalfactory). I find it exhilarating to spend time with new companies and brilliant minds and I’m proud to have American Workforce be a supporter of this organization. This morning we focused on how each and every one of their companies has a chance to do things right – right from the start. None of them have started to hire employees yet but each of them has the plan to in the very near future. We talked about a number of strategies and the ways that they can make their companies attractive to top talent without having to spend a lot of money. But what I really challenged each of them to do was to analyze their Virtual Bench, build a repeatable screening process that gets to the point of what they need to find out about someone before hiring them, and thinking about the candidates’ perspectives when they are considering joining these new companies.
There were FOUR main questions that I asked them to really think about as we were wrapping up. If you’re a Business Owner, aspiring Entrepreneur or Manager, you should be thinking about these questions too:
- What is the first impression we provide to prospective A-Players when they come on-site to meet us?
- If we’re interviewing an A-Player and everyone knows it, are we willing to make our decision on the spot? If not, what else needed to happen during screening to make us comfortable and confident?
- Have we acknowledged the spouse or significant other and included them during the recruiting process? How could we?
- Are we ready to have new A-Players on our team? Can our management style challenge them so that they’ll stay and thrive in our company?
And the BONUS Question: Are we comfortable hiring people that have the potential to take our position?
Sure, Topgrading is tough to implement. But in the 2 years that I’ve been involved with it, I’ve found that it’s the questions above that impair companies and limit the effectiveness of the process more than conducting 4 hour interviews or executing on TORC. What are you doing in your company to Hire Better?
Tags: @capitalfactory, @joshuabaer, A-Player, A-Players, american workforce, amwf, aspiring entrepreneur, Austin, capital factory, chris mursau, emerging entrepreneur, EO, EO Accelerator, Fame, Family, Fortune, Fun, hire better, hiring, Interview, job description, josh baer, recruit don't absorb, Recruiting, Scorecard, talent acquisition, Topgrading, topgrading methodology, TORC, Twitter, virtual bench, who the book
What does your Careers Page say about your Company?
Just about every company’s website has a careers page where you can glean an awful lot of information about the kinds of people that a company is hiring and how much commitment they’ve put into wanting to attract (and land) the best talent. I’d like to encourage you to spend a little time today on each of the websites that I’ll list below to understand the amount of time that they’ve dedicated, the message they’re trying to portray and the people that they are hoping will be interested in their company. Each of these companies has done an exceptional job and they continue to update their content and portray their culture through this page on their site to their advantage. Enjoy!
OtherInbox: focused on giving the very best developers all the information that they need to realize how badly they want to go work there.
PricewaterhouseCoopers: the understanding that a Campus candidate is VERY different from an experienced candidate.
Boeing: catering to professionals who might otherwise be intimidated by the complexity of sorting through all of the geographic locations.
And a listing of some of the companies that, at one time, were the VERY BEST at recruiting but who have clearly shown that they don’t care about it much any more:
Trilogy: there was a time when they were able to hire anyone they wanted from the very best universities in America
GM: they’re in the news every day and even if they declare bankruptcy they won’t disappear but their Careers Page doesn’t reflect that.
Tags: A-Players, attract the best talent, Boeing, careers page, Fame, Family, Fortune, Fun, GM, hire better, hiring, job description, OtherInbox, PWC, recruit don't absorb, Recruiting, talent acquisition, Trilogy
CEO Twitter Weekly Updates for 2009-05-09
- The EOers who are improving the world for Emerging Entrepreneurs: @lead_by_change, @andreazdril, @strategista, @sweetriot. #EOGLC #
- @sweetriot love the energy, passion & insight you brought to Accelerator’s Global Cmtee meeting this morning. Welcome aboard! #EOGLC in reply to sweetriot #
- When Facilitation goes right: identifying Dangers get people engaged, reviewing Opportunities gets them inspired! #EOGLC #
- The benefits of EO continue to amaze me. I simply can’t imagine trying to be an Entrepreneur without it. #EOGLC #
- #EO member just shared with me: Topgrading looks great! I read all 600 pages. How do I do it? #EOGLC (via @Topgrading) #
- Stunned! Sitting with Remington Green in NoLa. His company employs all WAHMs in a virtual company. I’ve met my soulmate. #EOGLC #
- EO staffers backstage with the most incredible Mardi Gras Floats. Once in a lifetime! #EOGLC http://yfrog.com/0espgxj #
- Jindal flw-up: if you want new biz in LA we need access to talent. If the Ritz is example, the gene pool is shallow #EOGLC (via @HireBetter) #
- #followfriday Anyone at #eoglc – @sjagger @jmb3883 @amwf @matthewweiss @sweetriot @govindh @dhassell (via @JeremyBrandt & @HireBetter) #
- I’ve proudly accepted my new Global Committee role for #EO under the Leadership of @andreazdril. I call it: Head Whackamole-er. #EOGLC #
- Tried to scare 6 new Accelerator Site Champions away w/ the daunting work it takes to launch. All 6 said, “Bring it on!” #EOGLC #
- Developing your Human Resources in a downturn. Compelling point: it isn’t coming from the HR Dept http://bit.ly/kYc8O (via @HireBetter) #
- Results.com’s @stephenlynch provides great insight on Mgmnt By Walking Around in The Economist http://bit.ly/bR1er #
- If the growth & improvements of EO’s Accel Pgm are indicators, Entrepreneurs ARE the most qualified to lead us out of Recession #EOGLC #
- Hey GLC, thanks for the invite to your awards, I had a blast!!! Congrats to all the winners!! #EOGLC (via @ace_frehley) #
- RT @jmb3883: EO’s Managing Director Bob is cracking up the staff office at #EOGLC. Best. Managing. Director. Ever. (AMWF: I concur) #
- Enjoying the innovation & energy of 30+ EO member-leaders that will shape Accelerator in 09-10 #EOGLC http://yfrog.com/5323176772j #
- Jindal gave best “entrepreneurs are welcome here” pitch I’ve seen & he meant it. His policies prove it (via @adrobins) #EOGLC #
- The hosts for tonight’s Rock Star awards. #EOGLC http://yfrog.com/0hiu9j #
- Ace Freeley from KISS attempts to compare Emtrepreneurs to Musicians: “we all wear blue nail polish, right?!”. #EOGLC #
- Jackie Berry (@jmb3883) named #EO Employee of the year in front of 600 members at #EOGLC. That drives culture! (via @HireBetter) #
- Don’t know where in Louisiana I could live that’s as cool as #Austin but if there was, I’d pack up the family. Jindahl’s impressive! #EOGLC #
- LAGov Bobby Jindahl is giving entrepreneurs incentives to move their companies.. #EOGLC. (via @dhassell) #
- Jindahl: “Why are unemployed insured & lose health insrnce when they get jobs? People behave if you incentivize. #EOGLC (via @HireBetter) #
- Bobby Jindahl live! So wise & eloquent. Awesome to hear an Indian American with a sweet Southern accent. #eoglc (via @sweetriot) #
- RT@adrobins: B Jindahl: As long as who you know is more important than what you know, businesses are going to hold back investment. #GLC09 #
- Your 2012 Republican Nominee for POTUS: Bobby Jindal. #EOGLC. http://yfrog.com/0gmoeuj #
- Getting the chance to hear Bobby Jindal at #EOGLC. Only state in US to lose more population than it gained for 15 straight years. #
- Very cool: 09-10 Incoming Austin Prez for EO gives each Board Member a Texas Football Jersey. #EOGLC. Look out NoLa. #
- @sweetriot #envy. in reply to sweetriot #
- @JeremyBrandt is #EOGLC our official tag for the weekend? in reply to JeremyBrandt #
- The 3 Defining Moments of GenerationY (born 1977-1995): Challenger, Gulf War on TV, 9/11. #
- GenYGuy: Boomers consider this GenerationY group “lazy” but they are the 1st generation that will work for more than 60 years! #
- GenYGuy: whole room moans when he shares falling home values, dropping retirement accounts but their 28 yr old w/ a Masters just moved home #
- Listening to the GenYGuy in #Austin explain to the Baby Boomers why GenY isn’t remotely affected by the Recession #
- Single greatest challenge of a globally distributed team: meetings that start at 11 PM get you fired up and you can’t sleep. Sigh… #
- My reading of history convinces me that most bad government results from too much government. Thomas Jefferson #optea (via @dcjc) #
- @Coachjimbo Not unless the company doing the interviews is strong enough to “land” an A-Player. If not, they’ll get frustrated fast! #
- @snasta I believe Corey Bell at TriFusion would be a good place to start. in reply to snasta #
Tags: A-Players, american workforce, amwf, capitalism, capitalist, hire better, Recruiting, Topgrading, tweets, Twitter




