It’s not about having so much money that you can buy anything you want. It’s about having enough money to buy everything you need.

The hybrid stategy: Stock and Flow

There are two kinds of quantities in the world. Stock is a static value: money in the bank or trees in the forest. Flow is a rate of change: fifteen dollars an hour or three thousand toothpicks a day. Easy. Too easy.

But I actually think stock and flow is a useful metaphor for media in the 21st century. Here’s what I mean:

Flow is the feed. It’s the posts and the tweets. It’s the stream of daily and sub-daily updates that reminds people you exist.

Stock is the durable stuff. It’s the content you produce that’s as interesting in two months (or two years) as it is today. It’s what people discover via search. It’s what spreads slowly but surely, building fans over time.

Flow is ascendant these days, for obvious reasons—but I think we neglect stock at our peril. I mean that both in terms of the health of an audience and, like, the health of a soul. Flow is a treadmill, and you can’t spend all of your time running on the treadmill. Well, you can. But then one day you’ll get off and look around and go: oh man. I’ve got nothing here.

I’m not saying you should ignore flow! This is no time to hole up and work in isolation, emerging after years with your work in hand. Everybody will go: huh? Who are you? And even if they don’t—even if your exquisite opus is the talk of the tumblrs for two whole days—if you don’t have flow to plug your new fans into, you’re suffering a huge (get ready for it!) opportunity cost. You’ll have to find those fans all over again next time you emerge from your cave.

(…)

And the real magic trick is to put them both together. To keep the ball bouncing with your flow—to maintain that open channel of communication—while you work on some kick-ass stock in the background. Sacrifice neither. The hybrid strategy.

More here.

The strength of weak ties

Perhaps you do this already with your team: you take the first few minutes of a meeting to check in, sometimes as a group and sometimes in random pairs or trios in breakout rooms. Just a few minutes to chitchat – about anything but work, like what would happen randomly at the office.

Well, Zapier, a company that helps its clients create automation workflows, is doing something similar but company-wide. They

try to make serendipitous, face-to-face interaction happen on a routine basis. We use a Slack app called Donut, which pairs everyone who signs up with a random coworker and helps schedule a video call. There are no rules to these conversations—people talk about where they live, their hobbies, or (if they want) work. These interactions don’t replace the serendipity of an office, but they can go a long way.

The topic of work is going to come up when you’re talking with random coworkers, because it’s the one thing you for sure have in common.

And there are benefits: these random conversations can lead to solutions, they connect people who might otherwise never talk, and it allows for what Mark Granovetter calls “the strength of weak ties”.

The content of this post was originally posted in the September 2020 issue of my newsletter. “On management and strategy” is a free, monthly newsletter in which I share my own writing as well as links to articles and research on management, leadership, and strategy. It’s easy to subscribe… and unsubscribe.

The job candidate selection process is a fail. Try this.

The job candidate selection process does not work. Even Google has taken back their famed clever interview questions. There is just no data to support that the job candidate selection process is effective at screening for success or at predicting that candidates will remain with the company.

A few years ago I worked with a large, successful engineering firm (it might have been the largest in the country at the time) that had a unique way of selecting and hiring candidates.

The owner of the company told me that their approach was based on two observations:

There is no telling from a job interview, or a series of interviews, whether a candidate will be good at the job, be happy in the company, and will remain for longer than x years. And, if as a company these three criteria (or any other you identify) are important to you, then job interviews are useless and a random process is just as good.
Nor can you tell whether we will want a a person to remain in the company once we get to know the person and the person gets to know us.

The process

So the process they established was as follows:

Identify a series of criteria that any candidate should meet. Because no criterion has proven to be predictive then pick the ones you think/feel might work;
Once you have received applications, pick out the ones that meet all criteria;
From those who meet all criteria, pick one randomly.

The interview

Then the owner would invite the candidate for a chat in which he would explain to the candidate what type of work they do at the firm, how they work, and what type of values they try and uphold. The owner would then ask the candidate if they can see themselves working in such an environment. If the answer is yes, the person was hired under the following terms: You are hired for six months with full benefits.

After six months

At the end of the six months you and I will meet again and you will tell us whether

What we told about the type of work they do at the firm, how they work, and what type of values they try and uphold is true; and
You can see yourself working here permanently.

And we will tell you

How well you did during the six months: your work, how you work, and how you understood and embodied the values we try and uphold based on surveys and interviews with your manager, the co-workers on your team, the peers you interface with, and (when applicable) the customers you interface with;
Whether we want you to stay and, if yes,
- We will be discussing the type of projects you would like to work on in the future; and
- Offer you a permanent position.

The added benefit

Imperfect and incomplete as it is, based on its premise of nothing being predictive of anything in matters of hiring, it is as good as any other process I am familiar with.

And I just read in the FT that it also a great way to boost diversity.

See also: How IBM does it, Writing a good (emotionally-intelligent) job posting helps, and there’s always the Monthy Python way.

How should I react when an employee is not performing well or makes a mistake?

Frustration is of course the natural response — and one we all can identify with. Especially if the mistake hurts an important project or reflects badly upon us.

The traditional approach is to reprimand the employee in some way. The hope is that some form of punishment will be beneficial: it will teach the employee a lesson. However, some managers choose a different response when confronted by an underperforming employee: compassion and curiosity. Not that a part of them isn’t frustrated or exasperated but they are able to suspend judgment and may even be able to use the moment to do a bit of coaching.

What does research say is best? The more compassionate response will get you more powerful results. The more employees look up to their leaders and are moved by their compassion or kindness, the more loyal they become to them. Conversely, responding with anger or frustration erodes loyalty. (Harvard Business Review)

There is probably something in your personal experience that confirms this. I know there were plenty of instances in mine.

From the September 2020 issue of my newsletter. “On management and strategy” is a free, monthly newsletter in which I share my own writing as well as links to articles and research on management, leadership, and strategy. It’s easy to subscribe… and unsubscribe.

Creativity: it’s about exploration v. exploitation

Meta-analysis of the research on creativity by Francesca Gino in the Harvard Business Review. The whole three-article series is good. Here’s a sample: Five ways in which managers can bolster creativity:

Hire for curiosity;
Model inquisitiveness;
Emphasize learning goals;
Let employees explore and broaden their interests; and
Have “Why?” “What if…?” and “How might we…?” days.

Not convinced?

She identifies two tendencies that restrain managers from encouraging curiosity:

They have the wrong mindset about exploration, often thinking that letting employees follow their curiosity will lead to a costly mess; and
They seek efficiency to the detriment of exploration.

It’s the old exploitation-exploration dilemma. James March’s paper is a classic on this. Knut Haanaes provides great examples in this TEDtalk.

How do I know my people won’t watch Netflix all day?

I don’t follow my newsletter’s¹ stats. I put out what I think is useful information for my readers and they comment on what works and what doesn’t. Also, I often post links to articles that readers themselves send me (keep ’em coming!).

I don’t follow my newsletter’s stats but I received an email from the platform that one link in particular in last month’s newsletter was clicked a lot more than others. It is to an article in Fortune by Laura Vanderkam² titled “Working from home poses serious dangers for employers and employees alike.” It seems to have hit a nerve, what with people working from home³…

Here’s Laura’s answer:

Netflix isn’t the real danger. The real danger is that without a physical separation between work and the rest of life, people won’t ever stop working—risking burnout, which has huge costs for employees and their organizations. Wise managers address this, rather than worrying that people will slack the second they aren’t being watched.

Asking employees how they are –how they really are– goes a long way in building rapport and establishing credibility.

Keep track of what really matters

I am a fan of keeping a journal. I keep one myself and I encourage the leaders I work with to do the same.

The format does not really matter (what you thought, what you did, what you said, how you felt, etc.) as long as you record it. By recording it you’re acknowledging that it mattered at the time and you’re making it matter now.

You don’t keep a journal to revisit it. You keep a journal to make a record, to state that your day mattered.

I’m reminded of this by a recent post I read on keeping a Good Times list:

to notice and record the moments and experiences in life that bring you joy, or that energise and fulfil you. This one thing will help you appreciate what really matters, and to do more of them. It’s simple to do, and you need nothing more than a pen and paper.

It’s another form of “counting your blessings”. And it will help you keep track of what really matters.

[photo by Dina Spencer]

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