Monthly Archives: May 2007

The Chaos of Orgs and How it Hurts Employees: Management by Influence Hurts When Clarity is Absent

Two weeks ago I met with someone who just left Yahoo!. We commiserated about our experiences at Yahoo! and I asked about this person’s experiences and why they left the company.
It was a familiar tale from many of those recently leaving Yahoo!, and also one that was just beginning to manifest itself when I left in 2004.
As Yahoo! attempts to reinvent itself, a lot of chaos and reorganization is happening under the hood. This person related to me how they had, over a period of only a year, several managers and being passed around to many groups. As this person attempted to do their job, direction was confused in the parties this person supported. As these parties’s ALSO underwent many reorgs and change in management, it caused confusion and a lack of ability to approve anything or willing to make a decision, or even figure out who it was who could really authorize a decision.
That doesn’t mean nothing gets done at Yahoo!. In fact there is (was?) a huge cadre of people who, having grown up with the organization, knew exactly how to get something done. This was accomplished through personal relationships, keeping up with who really supported what technology, and what levers to push in the organization. I call this “management by influence”. The problem is that a huge percentage of the old timers at Yahoo! have or are leaving the company. This leaves a huge void in the company.
So as the people who can really get things done leave, people find it harder to get things done outside their own sphere of knowledge and influence. Add that to a org who may give firm responsibility to people AND announce that publicly and thoroughly enough so that everyone knows who to go to for what they have to get done, and confusion and chaos grow. The funny thing about this is, if you ask any upper level manager if there is clarity in the org, I bet they will say there is total clarity. The problem is that they announce something, but the message nevers get into the lower orgs, or is detailed enough to be clear as to exactly who they should go to for what. Now let’s add communication problems issues to an org too busy to formalize communication. More chaos ensues.
The scorecard now is:
+ Reorganization causes chaos. Too many managers has a negative impact on the employees.
+ Management by influence works for the old timers but they’re all leaving. New timers used to go to the old timers/management by influence experts but now they’re all gone.
+ Communication problems exacerbate the problem.
Employees need stability to perform the best job. They need clarity in their jobs and know that they have a stable manager who cares about them and can direct them effectively. Part of this is because of the dependence on what I call management by influence versus clarity which I argue has obscured the lack of clarity of the organization. By clarity, I mean there is a person you go to for this and everyone knows this. This division does this and does not do that. And on and on.
In small orgs, this is easily achievable. You know someone does something and it easily fits into your mental map of how things work in that company. In large orgs, you have to institutionalize communication and clearly delineate lines of responsibility to the entire company. If you’ve ever worked at IBM, there are huge documents, memos, and directories which document these lines of responsibility. Is it heavy and unwieldy? Yes, probably. But it is definitely clear and removes the need for management by influence alone. People can remove themselves from the org but the position is always there, even if the person is not.
The other part of creating a stable environment for employees is to stop shuffling them around like chess pieces. They are not pawns; they are humans. They need to stop dealing with the chaos and turn that energy on what they got hired for. Those of us in upper management would do well to create these stable environments where employees can flourish, feel needed and valued, and are clear on who to go to to get something done. If you don’t, you’ll get the exodus which ultimately drove this person, and tons of others, to leave.

Hotlists from

Interesting new widget from my buddy James at

I can put the persons, places, and things that resonate with me in this widget which denote what’s cool, influential, and important in my life from brands to people and anything. Pretty nifty. I think a way to express this is actually kind of interesting. No other way exists that I know of to do this.
We always express ourselves by the things we wear, or who we talk about or idolize. But we have primitive tools to make this known. We cut out pictures and paste them to our wall. We buy clothes and wear them. At least with this widget, we have an easy way to pick out those things that influence our lives and let others see them.
Something interesting to watch….

Corporate DoubleSpeak is Alive and Well

Thanks to IBM, corporate doublespeak is alive and well. In fact, they are so good at all those corporate buzzword techniques that they put it all in an ad at JFK Airport:

I suppose if you want to help at getting better at whatever these buzzwords actually mean, you should hire IBM and they’ll “chain optimize” the hell out of those buzzwords into your psyche so that you’ll “process transform” your business for the better.
I once tried to learn corporate doublespeak. At one point, I thought it would make me more successful. But then I read Dilbert. And it was all over.
Corporate buzzword books plague the bookshelves and make you want to buy that book out of sheer curiosity of wanting to find out what the hell that term means. Thankfully, I’ve “re-engineered” my tendency to buy these types of books and now avoid them by at least “six sigma” distance.

Voxpop Moves to Pier 9

Voxpop just moved from their high rise offices in the financial district to a space much more cooler and startup-chic:

Pier 9 is owned by the city. The rent and view are AMAZING. Looking forward to beer parties on the pier overlooking the Bay Bridge this summer!

Are You Startup Material?

It all started with my recruiting woes. I dutifully plowed through my contacts every time one of my startups was looking for new hires. I talked to many of them but almost all of them refused to leave where they were to go take the leap to a startup. After many conversations, I figured out that startups aren’t for everyone. It was a frustrating but interesting learning experience into the changing lives and minds of our workforce, and what was appropriate for one person would be inappropriate for another, and that which could change over time.
Are YOU startup material? Looking now at who you are, what motivates you, and where your life is – would you want to make the leap to join a startup? Some questions to ask yourself (and some discussion on each):
How young/old are you?
Startup people are typically young. At least from a physiological standpoint.
Young people have lots of energy and stamina to stay up late for nights on end. They still have the ability built up from pulling constant all-nighters from college so they still retain this ability even after they graduate. Their youthful bodies still have strong hearts bolstered by endless, sleepless nights partying on beer and chicken wings. Their brains are quick and agile and not dulled by age. The older you get, the more your body has reduced stamina to stay up all night and hack. Old brains just don’t work so fast without proper sleep.
And it really sucks that as you grow older, your chances of entering a startup diminish greatly. This is a shame because the most experienced people you want tend to be older.
Can you go for a long time with a reduced salary? With no salary?
Once you enter a startup, you’re entering a place where reward is typically bound to options and stock, not weekly salary. This reward can be long in coming, ranging from months to years. How long can you survive with reduced salary, given your dependents and lifestyle? Are you willing to risk that? Do you have enough saved up to last for a long amount of time, say months or even years?
Startups can’t pay market salaries. If you need immediate cash, startups aren’t for you. Go find a job at a stable, growing company.
After a startup raises money, they can pay you more, but it can still be reduced from market levels. After all, the money is a great motivator for you to work long hours for the big win; if you get it all upfront, then where’s the motivation? You’re not hungry.
How many attachments do you have? Are you married and have family or dependents? Do you have a lifestyle that requires attention and/or capital?
As for age, young people have little or no attachments like spouses or children or possessions, which is another reason why you find young people in startups. Starting from almost nothing, they have nothing to worry about except themselves. It is very easy to throw your life into a startup when your life is not occupied already.
But perhaps you have other interests which take time. You may like to volunteer at a non-profit and gain lots of satisfaction from that, or train for Ironman. You like these so much that you are unwilling to give them up for something else which will undoubtedly be all-consuming.
Owning expensive things like houses and boats take up resources. You need immediate cash to pay for mortgages and bills. Do you race cars for a hobby?
Are you married? A spouse and family will put demands on your energy and time. Are they willing to give up their time so that you can pursue your interests in a startup? Are they truly OK with not seeing you at home for dinner many nights? Be warned: those that have not experienced the startup world may think they know what it’s like time-wise, but I will guarantee you that they may have zero concept of what it’s REALLY like. Make sure you sit down with them and talk it through in excruciating detail and get their support and buy-in. More than one family has been wrecked because of too much time spent at a startup. Make sure YOU know you’re joining the startup for the right reasons and with the right familial support.
Are you comfortable where you are in life, job, family, etc. or are you hungry?
If you’re comfortable, you may not be willing to give up your current job with nice high salary and which supports your current lifestyle. You may not want to stay up all night working for little pay and for a risky return some unknown time in the future.
If you’re hungry, then perhaps you could be right for a startup. You may want more out of life, more money, more fame. Whatever it is, it’s more than now and you want it fast and not wait decades. The only way you can get this faster is if you take more risk at a startup which could vault you to whatever it is you’re lacking.
Which leads to the next point….
Are you conservative or a risk taker?
If you are a conservative person, STAY AWAY FROM STARTUPS. If you cannot risk your entire career, fortune, whatever, at all, you shouldn’t consider a startup. You’ll drive yourself nuts and everyone else around you.
Can you deal with ambiguity, adapt well to change, be ok with constant chaos?
A startup is not known for stability. Things don’t work as smoothly as you want and you have to be OK when things aren’t perfect, or forgotten, or done in haphazard ways. If you require order in the way you do things and need that around you, a startup is probably not for you.
Do you like to learn and do everything? Do you not mind taking up tasks outside your areas of expertise?
Startups are typically short staffed. Everyone typically pitches in and does a little of everything. Marketing people code HTML pages, Business Development folks take out the trash, Engineers open up photoshop and crank out graphics for the site. If you like to learn and either want to become or are a jack of all trades, startups are the perfect environment to grow your ADD.
If you just like to do your thing and pass the buck on everything else, I am certain you will be shunned by everyone on the team.
Lastly, are you passionate about the startup you may join?
Passion drives humans to do amazing things. If the startup you’re joining seems cool but your heart really isn’t in it, I would highly recommend not joining it. Wait until you find something that you can really get behind. Passion will give you strength and stamina to work long hours, to really resonate with what you’re working on, and give you extra motivation to keep working even when you’ve been not sleeping for days.
Startups can give you the experience of a lifetime. I would not have given up my experience at Yahoo! for anything and it taught me a lot about passion, the thrill of working together with a whole bunch of smart, motivated folks, and a lot about myself and what I am made of. But like it or not, we’re not all startup material. It’s something we need to be realistic about, and also, for us on the other side trying to recruit for startups, it’s frustrating but we understand.