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Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

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Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#21
post #3
post #2

So what's a better way to do it? You need a documented system. If you don't have a documented system then there will be an undocumented system which is the same problem with less documentation.

I think michaelochurch advocated open allocation.

How does open allocation address performance evaluation/compensation? Doesn't Valve have both open allocation and stack ranking?

Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#22
post #6

The evil, destructive, part of stack ranking is when you need to apply the 20%/70%/10% breakdowns to all teams equally, meaning that even a team of 5 people needs to have one and only one "exceeds expectation" person and one person who "needs improvement", regardless of overall team level. It's not clear from this writeup that Amazon and Facebook are applying curves at such a micro level.

I wonder if you could fix that by exempting employees from individual ranking if they work in groups smaller than n , and then rank those groups as if they were individual contributors. That way, a mid-level manager with five groups of five people would have to cut the least promising group loose. ... Nah, still sounds like a stupid idea. Any ranking system where an individual's outcome depends on their number of col…

> Any ranking system where an individual's outcome depends on their number of colleagues is bafflingly broken.

From the perspective of the company, it's not as clear how this approach is broken. Assumably promotions, hirings, and firings should be based on the current needs of the company, not what's fair to the employees or some ideological vision. I'm pretty sure attempting to apply any one method for evaluating so many different employees in so many different roles will fail in some manner.

Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#23

Isn't there a fundamental difference between the FB rule of restricting the top rating to just 2% of employees and the Microsoft rule of decreeing that there must be a bottom 10% of "poor quality , less talented, undesirable elements" in the workforce. The FB system doesn't make the non 2% feel rejected and unhappy - it just makes it very hard to be crowned the superstar which I think most people find perfectly accep…

> Its almost like Microsoft technologies are a moat around its castle that keeps talent from leaving.

This is not unique to MS and MS tech, sadly.

Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#24

Isn't there a fundamental difference between the FB rule of restricting the top rating to just 2% of employees and the Microsoft rule of decreeing that there must be a bottom 10% of "poor quality , less talented, undesirable elements" in the workforce. The FB system doesn't make the non 2% feel rejected and unhappy - it just makes it very hard to be crowned the superstar which I think most people find perfectly accep…

There are lots of companies that love hiring former Microsoft employees because they use the same stacks. Its only when moving to a new tech like google or some startups that there would be a problem, but then again google and facebook opened offices in Kirkland/Bellevue for some reason....the moat ain't that deep.

Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#25
post #2

So what's a better way to do it? You need a documented system. If you don't have a documented system then there will be an undocumented system which is the same problem with less documentation.

You need a documented system. If you don't have a documented system then there will be an undocumented system which is the same problem with less documentation. So don't complain when your kid gets expelled from the second grade for pointing his finger like a gun and saying "Bang."

That's not a problem with documentation, that's a problem with what is documented.

Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#26
post #6

The evil, destructive, part of stack ranking is when you need to apply the 20%/70%/10% breakdowns to all teams equally, meaning that even a team of 5 people needs to have one and only one "exceeds expectation" person and one person who "needs improvement", regardless of overall team level. It's not clear from this writeup that Amazon and Facebook are applying curves at such a micro level.

Stack ranking at Microsoft has a min populaton size (x) - you generally walk up the org chart until the number of employees >= x, and then apply stack ranking to that group.

Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#27
post #2

So what's a better way to do it? You need a documented system. If you don't have a documented system then there will be an undocumented system which is the same problem with less documentation.

How about approaching managers in the same way we always like companies to approach developers, i.e., hire good ones and empower them do their job in the best way they know how?

Using a system that is enforced from the top down is a perfect way to guarantee you'll only get the kind of below mediocre managers we love to bitch about.

All of these systems are based on the assumption that companies can't trust the people they hire to delegate responsibility to. They're basically methods of maintaining a toxic environment instead of dealing with the root causes.

And it's a self-fulfilling prophecy, because it attracts the wrong people. What good manager you ever worked for would want to function in that kind of a system?

Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#28
"one person cannot be evaluated and paid in isolation of budgets" - SteveSi is just wrong on this. This is only true if you have a policy of highly differentiated pay for short term performance and/or have an "up or out policy". ... both of which are in effect at MS.

You can argue it's a bad idea not to have one or both of those policies, but it is certainly possible to have a review system based on what one did, rather than based on the necessary political fight over cutting up the budget pie.

Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#29

My impression that these types of systems are more for culling than accurate performance review. Perhaps they need to drop a certain percentage of employees by some target date, and this is the most blame-free way to do it on a large scale.

That's not an accurate impression. Microsoft has grown their staff steadily while employing this policy.

Re: Why are Amazon, Facebook and Yahoo copying Microsoft's stack ranking system?

#30
post #6

The evil, destructive, part of stack ranking is when you need to apply the 20%/70%/10% breakdowns to all teams equally, meaning that even a team of 5 people needs to have one and only one "exceeds expectation" person and one person who "needs improvement", regardless of overall team level. It's not clear from this writeup that Amazon and Facebook are applying curves at such a micro level.

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