Deficiency
The Achieving Superego
Remarkable achievement—whether it be in athletics, on Wall Street, or in Silicon Valley—takes tremendous amounts of hard work and sacrifice. It is not easy and it is often painful. In his book, The Hard Thing About Hard Things, Ben Horowitz has an entire section titled “The Struggle,” about the fundamental connection between entrepreneurship and adversity. [17] Your ability to tolerate pain is adaptive because it allows you to roll with the punches, which there will be many of. But it can also be misleading, disorienting, and maladaptive.
It is misleading because pain is so abundant we acclimate to it. As Nate Silver says, “There’s nothing like pain to build up your pain tolerance.” [18] Because you get used to the unpleasantness of challenge, at some point you’ll start thinking of it as an inevitability, something to just deal with. Steve Magness, who coaches Olympians and writes on the science of performance, puts it well:
“Pain isn’t something to fear or push our way through; it’s a message that needs interpretation.” [19]
It is disorienting because it often causes leaders to look at a situation they’re facing, like the disharmony between executives on their management team, and say, “This is just hard,” when, in fact, it doesn’t have to be that hard. Often, you have decisions and tools to reduce the unpleasantness of a given challenge, many of which turn out to lead to improved outcomes for the business, too. These decisions start with noticing the pain, move through a decision to quit something, and end with a decision to start doing things differently. You notice an executive refuses to send you the data you keep asking for, you decide to quit working with executives who can’t or won’t do what you ask of them, and you start interviewing for people willing to manage up to your standards.
It is maladaptive when you train yourself to stop seeing pain as a signal. When your superego, “the part of the self that congratulates us for doing our best and criticizes us when we fall short of our own standards,” tells you that pain is inevitable and it is a weakness to spend time listening to whispers, you will fail to address real and dangerous problems facing the company. [20] Yes, people can be difficult to work with. But the frustration a CEO feels when an executive refuses to provide them with information they need to make decisions is mission-critical information. Too high of a pain tolerance, though, and you’re not only deaf; you’re blind.
Believing Gut is Enough
Just because you’ve interviewed hundreds of people does not mean you know talent when you see it. The science of intuition shows us that our gut is a great noticer but an awful judge. Gut is like a notification system, but one that is hopelessly vague. Imagine your phone’s notification feed, but made up entirely of messages that read, “Something pleasant happened,” “Something unpleasant happened,” “You have received an email about something.”
Your intuition is only reliable in situations with quick and clear feedback. Think of the firefighter or chess players, not hiring managers. It will take a year for a new hire to accomplish their objectives, and nobody keeps a spreadsheet of how successful all the people they decided not to hire became. You may have interviewed hundreds of people. You don’t have enough structured data about them to call it feedback.
Psychologists Daniel Kahneman and Gary Klein disagreed on just about everything, but in 2009 they published a paper together titled Conditions for Intuitive Expertise: A Failure to Disagree. [21] In it, they conclude that intuitive expertise is indeed real, but you can only develop it if two things are true: an environment regular enough to actually learn from, and an adequate opportunity to practice with feedback. They then quote a list of professions that fail to meet these criteria. One of the professions? Personnel selectors, also known as hiring managers. [21]
So no, your gut is not enough. Gut is the beginning, not the end! It is a part, not the whole. You need to listen to your gut. Notice what it says. Interpret what it says. Name it and write it down. Underneath “something unpleasant happened,” you may discover an insight like “Praise in public; critique in private; especially when you’re a leader.” And that’s something you can teach your team, test candidates against, and hold each other to.
Process Allergy
At a January 1983 retreat in Carmel, CA, Steve Jobs told his team, “It’s better to be a pirate than join the navy.” [22] Steve Capps went on to raise a skull and crossbones flag above the Macintosh building later that year. [22] Today, founders still rally around the idea that they’re rebels, pirates, or disruptors challenging incumbent orthodoxy for both market share and cultural cachet. But the pirates of history were startlingly process-heavy organizations. Ironic, then, how terrified startups act when anyone suggests, not the black spot, but process.
We imagine pirates valued only one thing more than freedom, and that was gold, which was really just a means toward freedom. To get either, the pirates knew they had to follow orders. Every man agreed to a contract—signed and sworn—complete with pay, workers’ compensation (yes, really), a code of conduct, and voting rights. [23] And the quartermaster enforced that contract, and if you violated it they’d simply leave you in the middle of nowhere. [23]
Today’s startups, when they embrace the jolly roger, are all bark and no bite. They are cosplaying their historical peers, failing to adopt things like—gasp—writing things down and strict standards for who to hire and who to fire.
History’s pirates didn’t fail to deliver on their vision for a society of liberated libertines for their lack of process. They failed because their process was so goddamned good they robbed a bunch of powerful people so completely blind in a generational run at larceny that required a royal navy to put it down. Huh.
What founders fear is fuzzy. They know exactly what they don’t want to become: a big, slow-moving, bureaucracy complete with suits from Men’s Wearhouse and McKinseyspeak. But they don’t have a word for the thing they do want to be. This may be because there is not a noun in the English language for a company that runs on written standards without being a bureaucracy. It’s tough to aim at something without a name.
Former Stripe COO Claire Hughes Johnson, in her book Scaling People, wrote, “A good process should subtract from the number of meetings, not add more.” [14] A well-run company, a tight ship, then, is neither process-free nor process-choked, but a “just right” amount.
Confusing Preference for Prejudice
Bias is real. But not all bias is bad. From hungry judges to mean bosses and cigar-smoking fat-cat capitalists, everyone who ever discriminated believed their gut was fair. So what will make your decisions different? What is the difference between preference and prejudice?
What will make your decisions different is simple: writing them down. Prejudice thrives in ambiguity. When interviewers hire on unstructured gut feel, researchers find that “fit” reliably translates to people like me. [24] The interviewers, convinced they’re judging on merit, are doing no such thing. A written standard, on the other hand, is public, arguable, and testable — exactly what the research on hiring bias prescribes. [25]
Bad bias is prejudice: the act of pre-judging an individual based on stories you hold to be true—true or not—about a group before and instead of evaluating the individual on the basis of evidence. Salespeople talk too much, consultants love 2x2s, and ex-Googlers will be obsessed with process and perks. But even when a stereotype is true-ish, it’s still a very blunt instrument compared to actually gathering data about the person you’re interviewing.
As for preference, to hire is to prefer. There’s nothing wrong with preferring concise communicators, or people who show up on time to those who don’t. Preferences describe individuals’ observable behavior, linked to performance.
New leaders—founders or not—all spend years hiring people they don’t work well with because they’re unclear on their preferences. And what separates the ones who build great teams from those who don’t is learning what kind of people they work well with and devoting themselves to finding more of those types of people. Strangely, these people are more intolerant, not more tolerant. But they’re intolerant about the right things.
Excess
Overthinking Every Feeling
If you notice, interpret, and systematize every single whisper, you’re more likely to end up at a Buddhist monastery than ring the bell on the stock market floor. Self-awareness is not an end in and of itself, but a means to building a successful business. Using a Whisper List for capture is free; processing it takes time, and a startup leader’s time is scarce.
Executive coach Ed Batista writes about triage as the skill productivity systems miss. [26] Think of your Whisper List like the waiting room of an emergency room. Everyone there needs attention, but only the most critical cases get brought back to see the doctors. So how do you triage your Whisper List? You have two tools at your disposal: salience and recurrence. Gauge salience by looking at your list and work the one that stands out, feels more important somehow. It’s a whisper about a whisper. Recurrence is simple: if it shows up more than once, often after you’ve forgotten you wrote it down the first time, it needs your attention.
Punishing Every Slip
Once a whisper has become a noticed, named, taught, and systematized standard, what happens when someone violates it? And they will, because people are people, and people are imperfect. Even the most concise communicators ramble sometimes and the most punctual among us are occasionally late.
Some things are one-strike—ethics, dishonesty, sexual harassment—and for those things zero tolerance is entirely appropriate. As Marc Andreessen puts it:
“Priests, rabbis, and ministers should give people a second chance on ethics — not hiring managers at startups.” [27]
But if you treat slip-ups on more benign standards like timeliness as fireable offenses, you’ll drive out great people and people will just get good at hiding things from you.
Conscious Leadership Group, in their book The 15 Commitments of Conscious Leadership, observe that even leaders who are “impeccable” about their agreements to others only keep about 90% of them. And for the other 10%, they renegotiate the minute they know they’ll miss and take responsibility for missing. [9] So someone who’s late one in ten times but tells you before the meeting starts? Fine. But if they’re late half the time and don’t own up to it, show them the exit. They’ve already taken it.