September 2024

  • Mercenary

    I’ve come across an employee a few times that I deem to be a “mercenary”. This is an individual who produces good work but takes an entirely transactional view of their role. Likely, they are misaligned or uncaring about the organization’s broader vision and exclusively care about achieving goals for their own purposes as opposed to accomplishments for the benefit of their team or the company. Importantly, this person may be entirely likeable and easy to work with; this is not the prototypical ‘brilliant jerk’, which is routinely discussed.

    Reconciling what to do about the Mercenary can be extremely challenging. Not only are they seemingly producing high-quality work and accomplishing goals, but they get along well with others. So, what’s the problem? Inevitably, once they no longer perceive sufficient benefit in the transaction, they will leave, and when they do, they will leave behind a Beverly Hills sized walk-in closet of skeletons. If someone is entirely self-interested, they will take every single shortcut to achieve their goals as quickly as possible, often at the expense of longer-term considerations. Over a brief period, this can be misleadingly positive. Many of these minor short-cuts and trade-offs will be hidden, but unfortunately, they will compound over time. And once they are gone, the effort required to clean up the unintentional negative consequences can be material.

    Here is a practical and well-known example:

    • You have a Sales person or executive who realizes that committing to unrealistic deliverables, or embellishing (but not lying) will help her win more. So she does it regularly and closes many deals. Awesome. Fast forward six months, and those customers are now disappointed in what they purchased and end up leaving for a competitor shortly thereafter. And of course, by the time those unhappy customers start surfacing, she’s on to her next gig. It can be tempting to turn a blind eye to the behavior even when you’re aware of it because of the results, but the long-term negative repercussions will certainly come back to bite you.

    Usually, it’s fairly apparent when you have this type of employee on your team. As hard as it can be to reconcile, it’s important to either engage with and develop alignment with them or cut your losses.  

  • Partnership

    Next week, after six and a half years, I will become the sole CEO at Avanti and Amin will transition into a Chair role. I am incredibly fortunate to have the type of partnership, in the truest sense, where we can complete a role transition of this nature and continue to want to work closely together.

    About 9 months ago, my friend launched his own investment firm. In the investment memo, he had a sentence that stuck out to me: “[investment firm] is the only place [partner] and I intend to work for the rest of our careers”. I imagine there’s something satisfying about knowing with certainty you’ve found the last job you want to have in your career. I’m not sure I can say the same. I love working at Avanti and hope to be here for many years, but having only just turned 35, I can’t say with certainty it will be the last role in my career.

    One thing I am certain of is I want to work closely with Amin in some capacity for the rest of my career. I’m grateful for that. It’s not easy to find someone you share a common set of values with and can enjoy working with after many years, including through many highs and lows.

    In many ways, a business partnership resembles a marriage. Aside from Julia, I have spoken with Amin more than anyone else over the past 6.5 years, including family and close friends. Making it a successful partnership has required intention and effort, like all meaningful partnerships.

    I first met Amin in 2011 when we both moved to San Francisco for work. Our respective roommates were mutually connected from school and we became fast friends. I believe the fact that the initial connection was social and we enjoyed spending time together has been important in making the professional partnership work well. If you’re going to spend countless hours working closely together, you must enjoy one another, and you must have a more complete understanding of the person you’re partnered with than the professional picture alone provides. Throughout our time running Avanti, we’ve continued to spend time together socially, which has had compounding benefits to the partnership. And it doesn’t hurt that Amin ended up marrying someone much cooler than he, that Julia and I both very much enjoy as well!

    There are two distinct factors that stick out in terms of making the partnership a success.

    The first factor was investing significant upfront time in preparing for how we would work together. We began the partnership by discussing a set of realistic scenarios that could lead to future conflicts. Some more mundane (e.g., what if I want to hire someone and you don’t like them?) and others more imaginative (e.g., what if the business does ok; not great but not terrible and one of us wants to sell the business and one of us wants to raise growth capital and keep going?). Working through those scenarios when they were hypotheticals enhanced our ability to navigate them when they became a reality. It also provided an understanding of how we might respectively approach and react to situations during times of conflict, and helped elucidate what matters most. Most of the scenarios never surfaced and I’m glad we discussed them, regardless.

    The second is vulnerability-based mutual trust and humility. We both have egos and take pride in our work. And we’re also willing to accept when we’re wrong and receive feedback with an open mind. That is much easier when a deep mutual trust exists. When you know someone is challenging your thinking with the desire to get to a mutually positive outcome, even the most difficult conversations become possible.

    While our roles are changing, I look forward to continuing to work closely with Amin and value the multi-faceted role he will continue to play as a friend, colleague, therapist, mentor, and advisor.

  • Objective performance measures

    One trend I’ve observed over time is high performing employees are particularly drawn to quantifiable and objective measures of performance. That seems intuitive. You sort of expect those who take pride in their work and want to excel at it to want measurable proof as validation. I initially assumed this to be driven by external forces: those who are great want to be able to show they are great and receive the external recognition and validation that comes with that. While there’s probably some truth to that, the desire for objective performance measures goes far beyond. Below are additional reasons I’ve noticed.

    1. Clarifies expectations and accountability. When targets are clear and measurable, there’s less room for misinterpretation between an employee and boss. Great employees want to know what is required to be excellent.

    2. Validation of improvement. Using a measurable performance metric over time can validate you’re consistently getting better. The same way it’s satisfying to set a new best personal best half-marathon time, it’s satisfying to validate you are consistently improving your output at work. That is for intrinsic reasons.

    3. Relative performance. Using consistent, objective measurement ensures a manager is aware of who is performing on a team and who is not. From my experience, it’s extremely frustrating when you have a colleague, or worse a boss, who is performing really poorly and you aren’t sure if anyone else realizes. Having more objective measures provides some relief that poor performance will be surfaced and hopefully addressed.

    4. Facts over feelings. When performance is being measured objectively, there’s less concern that favouritism or feelings are strongly influencing performance outcomes on a team.

    It’s not always possible to quantify success measures in every role. In those cases, the more objective you can make the qualitative measure (e.g., think “SMART” goals), the better.