NA Sales Culture<br />Sample Format<br />
Culture Defined<br />We define Culture as the combination of values, principles, and behaviors that, taken together, give ...
NA Sales Culture<br />Our Values<br />Our Principles<br />Our Behaviors<br />
NA Sales Culture<br />Our 9 Values<br />Our Principles<br />Our Beliefs<br />
You can see real company values by who gets rewarded, promoted, or let go<br />5<br />
Real values are the behaviors and skills that we value in fellow employees<br />
Respect for People<br />You are open, honest and ethical <br />You assume positive intent in others<br />You are quick to ...
Consistently Innovate and Advance<br />You remove roadblocks<br />You reward intelligent risk taking<br />You create new i...
Inspire Customer Loyalty<br />You are dedicated to outstanding quality<br />You do the right thing for our customers<br />...
Create Amazing Team Spirit<br />You have fun and work hard<br />You deliver on promises<br />You seek what is best for CA,...
You identify root causes, and get beyond treating symptoms<br />You pursue issues to discover practical solutions to hard ...
You listen well, instead of reacting fast, so you can better understand<br />You are concise and articulate in speech and ...
You accomplish amazing amounts of important work<br />You demonstrate consistently strong performance so colleagues can re...
You tactfully say what you think even if it is controversial<br />You make tough decisions without excessive agonizing<br ...
You inspire others with your thirst for excellence<br />You care intensely about CA’s success<br />You celebrate wins<br /...
“You question actions that are inconsistent with our values”<br />Part of the Courage value<br />Akin to the honor code pl...
Values reinforced in hiring, in 360° reviews, at comp reviews, in exits, and in promotions<br />17<br />
NA Sales Culture<br />Our Values<br />Our Principles<br />Our Beliefs<br />
Principle 1. High Performance from Everyone<br />Imagine if every person in CA NA Sales is someone you respect and learn ...
Like every company, <br />we try to hire well<br />
But, unlike many companies, we practice “adequate performance gets a generous severance package.”<br />
We’re a team, not a family<br />We’re like a pro sports team, not a kid’s recreational team<br />Coaches’ job at every lev...
The Keeper Test Managers Use:<br />“Which of my people, if they told me they were leaving in two months for a similar job ...
The other people should get a generous severance now, so we can open a slot to try to find a star for that role<br />The K...
Honesty Always<br />To avoid surprises, you should periodically ask your manager: “If I told you I were leaving, how hard ...
What about Loyalty?<br />What about Hard Workers?<br />What about Brilliant Jerks?<br />26<br />
Loyalty is Good<br />Loyalty is good as a stabilizer<br />People have been stars for us, and hit a bad patch, get a near t...
Hard Work – Not Directly Relevant	<br />It’s about effectiveness – not effort – even though effectiveness is harder to ass...
Brilliant Jerks<br />Some companies tolerate them<br />For us, the cost to teamwork is too high<br />Diverse styles are fi...
Why are we so manic on high performance?<br />In procedural work, the best are 2x better than average<br />In creative wor...
Why are we so manic on high performance?<br />A Great Workplace is made up of<br />Amazing Colleagues<br />31<br />
Principle 2. We are Grounded and Decisive<br />Our strategies are grounded in reality<br />
Principle 2. We are Grounded and Decisive<br />We deal with FACTS not opinions<br />
Principle 2. We are Grounded and Decisive<br />Items discussed can be executed upon<br />They’re not just theoretical<br />
Principle 2. We are Grounded and Decisive<br />We use data effectively<br />We draw conclusions <br />No analysis paraly...
Principle 3. Everything we do is Pass-Fail because…<br />The outcome trumps the task<br />We are Goal Driven<br />
Principle 3. Everything we do is Pass-Fail because…<br />We are fanatical about goals<br />We Keep Our Eye on the Ball<br...
Principle 3. Everything we do is Pass-Fail because…<br />We never let circumstances compromise our commitment to our goal...
Principle 4. We are Fast and Relentless, so<br />We have outrageous urgency<br />The Impossible is Possible<br />
Principle 4. We are Fast and Relentless, so<br />We NEVER quit on a deal <br />The Impossible is Possible<br />
Principle 4. We are Fast and Relentless, so<br />We anticipate obstacles and plan for them<br />The Impossible is Possib...
Principle 4. We are Fast and Relentless, so<br />We prioritize our time to stay proactive<br />Success@30 is our mantra<...
Principle 5. We are Committed<br />We are committed to something bigger than self; to fellow team members, to the team o...
Principle 5. We are Committed<br />Leaders emerge from any position<br />
Principle 5. We are Committed<br />We pull off the impossible<br />
Principle 5. We are Committed<br />We imagine and take on the unconventional<br />
Principle 5. We are Committed<br />We are creative<br />There is always a better way<br />
Principle 6. We are Resilient<br />We don’t require perfect circumstances for success<br />
Principle 6. We are Resilient<br />Problems are opportunities in disguise<br />Problems are opportunities to shine<br />
Principle 6. We are Resilient<br />Change creates energy<br />Resistance to change retards growth<br />
Principle 6. We are Resilient<br />Challenges are motivation<br />
Principle 6. We are Resilient<br />We are undaunted<br />Swagger<br />
Principle 7. We are Winners, who<br />Thoughtfully pick battlegrounds…and then go all-in<br />
Principle 7. We are Winners, who<br />Have high standards for deployment of finite resources<br />
Principle 7. We are Winners, who<br />Set high standards of professionalism and demand compliance<br />
Principle 7. We are Winners, who<br />Discipline to strip-line<br />
Principle 7. We are Winners, who<br />Fanatical about org charts and HVN<br />HVN is a daily HABIT<br />
Principle 7. We are Winners, who<br />Not afraid to ask the tough questions<br />
Principle 8. We are Strategic Partners <br />We have <br />business acumen<br />
Principle 8. We are Strategic Partners <br />Business Alignment templates are way of life<br />
Principle 8. We are Strategic Partners <br />We speak in our customer’s language<br />
Principle 8. We are Strategic Partners <br />We understand our customer’s business<br />
Principle 8. We are Strategic Partners <br />We articulate future end-state and business outcomes<br />
Principle 8. We are Strategic Partners <br />We are not afraid of financials and business metrics<br />ROI is KING<br />
NA Sales Culture<br />Our Values<br />Our Principles<br />Our Beliefs<br />
Responsible People<br />Thrive on Freedom<br />And are Worthy of Freedom<br />66<br />
The Responsible Person is<br />Self motivating<br />Self aware<br />Self disciplined<br />Self improving<br />Acts like a ...
Our desire is to increase employee freedom, rather than limit it, and thereby continue to attract and nourish innovative p...
With the Right People<br />We can expectResponsibility,<br />Innovation and Self-Discipline from each person and therefore...
Is Freedom Absolute?<br />Are all rules and processes bad?<br />70<br />
Freedom is not absolute.<br />Like “free speech” <br />there are some <br />limited expectations to<br />“freedom at work”...
Two Types of Necessary Rules<br />Prevent irrevocable disaster<br />E.g. Financials produced are wrong<br />E.g. Hackers s...
Mostly, Though, Rapid Recovery is the Right Model<br />Just fix problems quickly<br />High performers make very few errors...
Example: CA Vacation Policy <br />and Tracking<br />Until 2004 we had the standard <br />model of N days per year<br />74<...
Meanwhile…<br />We’re all working online some nights and weekends, responding to emails at odd hours, and taking an aftern...
An employee pointed out…<br />We don’t track hours worked per day or per week, so why are we tracking days of vacation per...
We realized…<br />We should focus on what people get done, not how many hours or days worked. Just as we don’t have a 9-5 ...
CA Vacation Policy and Tracking<br />“there is no policy or tracking”<br />78<br />
CA Vacation Policy and Tracking<br />“there is no policy or tracking”<br />“There is also no clothing policy at CA, but no...
Another example of Freedom and Responsibility<br />80<br />
Most companies have complex policies around what you can expense, how you travel, what gifts you can accept, etc.<br />Plu...
CA Policies for Expensing, Entertainment, Gifts and Travel:<br />“Act in CA’s best interests”<br />(5 words long)<br />82<...
“Act in CA’s Best Interests”Generally Means…<br />Expense only what you would otherwise not spend, and is worthwhile for w...
Freedom and Responsibility<br />Many people say one can’t do it and scale<br />But since going public in 2002, which is tr...
Summary of Freedom and Responsibility:<br />Minimize Rules.<br />Inhibit Chaos With Ever More High Performance People.<br ...
“If you want to build a ship, don’t drum up the people to gather wood, divide the work, and give orders. Instead teach the...
The best managers figure out how to get great outcomes by setting the appropriate context, rather than by trying to contro...
Context not ControlProvide the insight and understanding to enable sound decisions<br />Context<br />Strategy<br />Metrics...
Exceptions<br />Control can be important in emergency<br />No time to take long-term capacity-building view<br />Control c...
Managers: When one of your talented people does something dumb, don’t blame them.<br />Instead, ask yourself what context ...
Managers: When you are tempted to “control” your people, ask yourself what context you could set instead.<br />Are you art...
Good Context<br />Link to company/functional goals<br />Relative priority (how important/how time sensitive)<br />Critical...
Why Managing Through Context?<br />High performance people will do better work if they understand the context<br />93<br />
Investing in Context<br />This is why we are so open internally about strategies and results<br />94<br />
Highly Aligned, Loosely Coupled<br />Three Models of Corporate Teamwork<br />Tightly-Coupled Monolith<br />Independent Sil...
Tightly-Coupled Monoliths<br />Senior management reviews and approves nearly all tactics<br />Lots of x-departmental buy-i...
Independent Silos<br />Each group executes on their objectives with little coordination<br />Work that requires coordinati...
The NA Sales Choice<br />Tightly-Coupled Monolith<br />Independent Silos<br />Highly Aligned, Loosely Coupled<br />98<br />
Highly Aligned, Loosely Coupled<br />Highly Aligned<br />Strategy and goals are clear, specific, broadly understood<br />T...
Highly-Aligned Loosely Coupled teamwork effectiveness is dependent on high performance people and good context<br />Goal i...
Pay Top of Market<br />Pay Top of Market is Core to High Performance Culture<br />One outstanding employee gets more done ...
Three Tests for Top of Market for a Person <br />What could person get elsewhere?<br />What would we pay for replacement?<...
Takes Great Judgment<br />Goal is to keep each employee at top of market for that person<br />Pay them more than anyone el...
Titles Not Very Helpful<br />Lots of people have the title “Major League Pitcher” but they are not all equally effective<b...
Annual Comp Review<br />Hiring is market-based at many firms, but at CA we also make the annual comp review market-based<b...
No Fixed Budgets<br />There are no centrally administered “raise pools” each year<br />Instead, each manager aligns their ...
Annual Comp Review<br />Some people will move up in comp very quickly because their value in the marketplace is moving up ...
Compensation Not Dependent on CA Success<br />Whether CA is prospering or floundering we pay at the top of the market<br /...
Bad Ideas<br />Manager sets pay at Nth percentile of title-linked compensation data<br />The “Major League Pitcher” proble...
When Top of Market Comp Done Right…<br />Nearly all ex-employees will take a step down in comp for their next job<br />We ...
Versus Traditional Model<br />Traditional model is good prior year earns a raise, independent of market<br />Problem is em...
Employee Success<br />It’s pretty ingrained in our society that the size of one’s raise is the indicator of how well one d...
Good For Each Employee To Understand Their Market Value<br />It’s a healthy idea, not a traitorous idea, to understand wha...
Efficiency<br />Big salary is the most efficient form of comp<br />Most motivating for any given expense level<br />No bon...
Optional Options<br />Employees can request to trade salary for stock options, if they wish<br />The options are fully ves...
In some time periods, in some groups, there will be lots of opportunity and growth at CA<br />Some people, through both lu...
Baseball Analogy: Minors to Majors<br />Very talented people usually get to move up, but only true for the very talented<b...
CA Doesn’t Have to be For Life<br />In some times, in some groups, there may not be enough growth opportunity for everyone...
Two Necessary Conditions for Promotion<br />Job has to be big enough<br />We might have an incredible manager of something...
Timing<br />If manager would promote employee to keep them if employee were thinking of leaving, manager should promote no...
Development<br />We develop people by giving them the opportunity to develop themselves, by surrounding them with stunning...
Development<br />Formalized development is rarely effective, and we don’t try to do it<br />E.g. Course, mentor assignment...
Individuals should manage their own career paths, and not rely on a corporation for planning their careers<br />Like retir...
Individual’s economic security is based upon their skills and reputation<br />We try hard to consistently provide opportun...
Why is culture important?<br />What is our culture trying to support?<br />125<br />
Culture is How a Firm Operates<br />What practices give CA the best chance of continuous success for many generations of t...
Continuous Success = <br />Continuous growth in revenue, profits and reputation<br />127<br />
Need a culture that supports rapid innovation and excellent execution<br />128<br />Both are required for continuous growt...
Need a culture that supports effective teamwork of <br />high-performance people<br />129<br />High performance people and...
Need a culture that avoids the rigidity, politics, mediocrity, and complacency that infects most organizations as they gro...
This slide deck is our current best thinking about maximizing our likelihood of continuous success<br />131<br />
Our culture is a work in progress<br />Every year we try to refine our culture further as we learn more<br />132<br />
The End<br />133<br />
of 133

NA Sales Culture

Published on: Mar 3, 2016
Published in: Career      Business      Technology      
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Transcripts - NA Sales Culture

  • 1. NA Sales Culture<br />Sample Format<br />
  • 2. Culture Defined<br />We define Culture as the combination of values, principles, and behaviors that, taken together, give the CA North American Sales organization the highest chance of continuous success for many generations of technology and people.<br />
  • 3. NA Sales Culture<br />Our Values<br />Our Principles<br />Our Behaviors<br />
  • 4. NA Sales Culture<br />Our 9 Values<br />Our Principles<br />Our Beliefs<br />
  • 5. You can see real company values by who gets rewarded, promoted, or let go<br />5<br />
  • 6. Real values are the behaviors and skills that we value in fellow employees<br />
  • 7. Respect for People<br />You are open, honest and ethical <br />You assume positive intent in others<br />You are quick to admit mistakes<br />You are non-political when you disagree with others<br />You only say things about fellow employees you will say to their faces<br />
  • 8. Consistently Innovate and Advance<br />You remove roadblocks<br />You reward intelligent risk taking<br />You create new ideas that prove useful<br />You challenge prevailing assumptions when warranted and suggest better approaches<br />You make wise decisions despite ambiguity<br />
  • 9. Inspire Customer Loyalty<br />You are dedicated to outstanding quality<br />You do the right thing for our customers<br />You seek to understand our strategy, market, and customers<br />You are broadly knowledgeable about business, technology and our customer’s needs<br />
  • 10. Create Amazing Team Spirit<br />You have fun and work hard<br />You deliver on promises<br />You seek what is best for CA, rather than best for yourself or your function<br />You make time to help your colleagues<br />You share information openly and proactively<br />
  • 11. You identify root causes, and get beyond treating symptoms<br />You pursue issues to discover practical solutions to hard problems<br />You think strategically, and can articulate what you are, and are not, trying to do<br />You smartly separate what must be done well now, and what can be improved later<br />Judgment<br />11<br />
  • 12. You listen well, instead of reacting fast, so you can better understand<br />You are concise and articulate in speech and writing<br />You are known for candor and directness<br />You treat people with respect independent of their status or disagreement with you<br />You maintain calm poise in stressful situations<br />Communication<br />12<br />
  • 13. You accomplish amazing amounts of important work<br />You demonstrate consistently strong performance so colleagues can rely upon you<br />You learn rapidly and eagerly<br />You focus on great results rather than on process<br />You exhibit bias-to-action, and avoid analysis-paralysis<br />Impact<br />13<br />
  • 14. You tactfully say what you think even if it is controversial<br />You make tough decisions without excessive agonizing<br />You take smartrisks even when the choice not to do so is open<br />You question actions inconsistent with our values<br />Courage<br />14<br />
  • 15. You inspire others with your thirst for excellence<br />You care intensely about CA’s success<br />You celebrate wins<br />You are relentless<br />Passion<br />15<br />
  • 16. “You question actions that are inconsistent with our values”<br />Part of the Courage value<br />Akin to the honor code pledge:<br />“I will not lie, nor cheat, nor steal, nor tolerate those who do.”<br />All of us are responsible for value consistency<br />16<br />
  • 17. Values reinforced in hiring, in 360° reviews, at comp reviews, in exits, and in promotions<br />17<br />
  • 18. NA Sales Culture<br />Our Values<br />Our Principles<br />Our Beliefs<br />
  • 19. Principle 1. High Performance from Everyone<br />Imagine if every person in CA NA Sales is someone you respect and learn from…<br />
  • 20. Like every company, <br />we try to hire well<br />
  • 21. But, unlike many companies, we practice “adequate performance gets a generous severance package.”<br />
  • 22. We’re a team, not a family<br />We’re like a pro sports team, not a kid’s recreational team<br />Coaches’ job at every level of CA to hire, develop and cut smartly, so we have starts in every position<br />22<br />
  • 23. The Keeper Test Managers Use:<br />“Which of my people, if they told me they were leaving in two months for a similar job at a peer company, would I fight hard to keep at CA?”<br />23<br />
  • 24. The other people should get a generous severance now, so we can open a slot to try to find a star for that role<br />The Keeper Test Managers Use:<br />“Which of my people, if they told me they were leaving in two months for a similar job at a peer company, would I fight hard to keep at CA?”<br />24<br />
  • 25. Honesty Always<br />To avoid surprises, you should periodically ask your manager: “If I told you I were leaving, how hard would you work to change my mind to stay at CA?”<br />25<br />
  • 26. What about Loyalty?<br />What about Hard Workers?<br />What about Brilliant Jerks?<br />26<br />
  • 27. Loyalty is Good<br />Loyalty is good as a stabilizer<br />People have been stars for us, and hit a bad patch, get a near term pass because we think they are likely to become stars for us again<br />We want the same: if CA hits a temporary bad patch, we want people to stick with us<br />But unlimited loyalty to a shrinking company or to an ineffective employee, is not what we are about<br />27<br />
  • 28. Hard Work – Not Directly Relevant <br />It’s about effectiveness – not effort – even though effectiveness is harder to assess than effort<br />We don’t measure people by how many evenings or weekends they are in their cube<br />We do try to measure people by how much, how quickly and how well they get work done – especially under deadline<br />28<br />
  • 29. Brilliant Jerks<br />Some companies tolerate them<br />For us, the cost to teamwork is too high<br />Diverse styles are fine – as long as the person embodies the 9 Values<br />29<br />
  • 30. Why are we so manic on high performance?<br />In procedural work, the best are 2x better than average<br />In creative work, the best are 10x better than average, so huge premium on creating effective teams of the best<br />30<br />
  • 31. Why are we so manic on high performance?<br />A Great Workplace is made up of<br />Amazing Colleagues<br />31<br />
  • 32. Principle 2. We are Grounded and Decisive<br />Our strategies are grounded in reality<br />
  • 33. Principle 2. We are Grounded and Decisive<br />We deal with FACTS not opinions<br />
  • 34. Principle 2. We are Grounded and Decisive<br />Items discussed can be executed upon<br />They’re not just theoretical<br />
  • 35. Principle 2. We are Grounded and Decisive<br />We use data effectively<br />We draw conclusions <br />No analysis paralysis<br />
  • 36. Principle 3. Everything we do is Pass-Fail because…<br />The outcome trumps the task<br />We are Goal Driven<br />
  • 37. Principle 3. Everything we do is Pass-Fail because…<br />We are fanatical about goals<br />We Keep Our Eye on the Ball<br />We know how to block and tackle<br />
  • 38. Principle 3. Everything we do is Pass-Fail because…<br />We never let circumstances compromise our commitment to our goals<br />We don’t rationalize mistakes.<br />Can Do!<br />
  • 39. Principle 4. We are Fast and Relentless, so<br />We have outrageous urgency<br />The Impossible is Possible<br />
  • 40. Principle 4. We are Fast and Relentless, so<br />We NEVER quit on a deal <br />The Impossible is Possible<br />
  • 41. Principle 4. We are Fast and Relentless, so<br />We anticipate obstacles and plan for them<br />The Impossible is Possible<br />
  • 42. Principle 4. We are Fast and Relentless, so<br />We prioritize our time to stay proactive<br />Success@30 is our mantra<br />The Impossible is Possible<br />
  • 43. Principle 5. We are Committed<br />We are committed to something bigger than self; to fellow team members, to the team or function or area, to the Areas and the NAs. <br />
  • 44. Principle 5. We are Committed<br />Leaders emerge from any position<br />
  • 45. Principle 5. We are Committed<br />We pull off the impossible<br />
  • 46. Principle 5. We are Committed<br />We imagine and take on the unconventional<br />
  • 47. Principle 5. We are Committed<br />We are creative<br />There is always a better way<br />
  • 48. Principle 6. We are Resilient<br />We don’t require perfect circumstances for success<br />
  • 49. Principle 6. We are Resilient<br />Problems are opportunities in disguise<br />Problems are opportunities to shine<br />
  • 50. Principle 6. We are Resilient<br />Change creates energy<br />Resistance to change retards growth<br />
  • 51. Principle 6. We are Resilient<br />Challenges are motivation<br />
  • 52. Principle 6. We are Resilient<br />We are undaunted<br />Swagger<br />
  • 53. Principle 7. We are Winners, who<br />Thoughtfully pick battlegrounds…and then go all-in<br />
  • 54. Principle 7. We are Winners, who<br />Have high standards for deployment of finite resources<br />
  • 55. Principle 7. We are Winners, who<br />Set high standards of professionalism and demand compliance<br />
  • 56. Principle 7. We are Winners, who<br />Discipline to strip-line<br />
  • 57. Principle 7. We are Winners, who<br />Fanatical about org charts and HVN<br />HVN is a daily HABIT<br />
  • 58. Principle 7. We are Winners, who<br />Not afraid to ask the tough questions<br />
  • 59. Principle 8. We are Strategic Partners <br />We have <br />business acumen<br />
  • 60. Principle 8. We are Strategic Partners <br />Business Alignment templates are way of life<br />
  • 61. Principle 8. We are Strategic Partners <br />We speak in our customer’s language<br />
  • 62. Principle 8. We are Strategic Partners <br />We understand our customer’s business<br />
  • 63. Principle 8. We are Strategic Partners <br />We articulate future end-state and business outcomes<br />
  • 64. Principle 8. We are Strategic Partners <br />We are not afraid of financials and business metrics<br />ROI is KING<br />
  • 65. NA Sales Culture<br />Our Values<br />Our Principles<br />Our Beliefs<br />
  • 66. Responsible People<br />Thrive on Freedom<br />And are Worthy of Freedom<br />66<br />
  • 67. The Responsible Person is<br />Self motivating<br />Self aware<br />Self disciplined<br />Self improving<br />Acts like a leader<br />Doesn’t wait to be told what to do<br />Never feels “that’s not my job”<br />Picks up the trash lying on the floor<br />Behaves like an owner<br />67<br />
  • 68. Our desire is to increase employee freedom, rather than limit it, and thereby continue to attract and nourish innovative people, so we have a better chance of long-term continued success<br />68<br />
  • 69. With the Right People<br />We can expectResponsibility,<br />Innovation and Self-Discipline from each person and therefore provide more Freedom<br />69<br />
  • 70. Is Freedom Absolute?<br />Are all rules and processes bad?<br />70<br />
  • 71. Freedom is not absolute.<br />Like “free speech” <br />there are some <br />limited expectations to<br />“freedom at work”<br />71<br />
  • 72. Two Types of Necessary Rules<br />Prevent irrevocable disaster<br />E.g. Financials produced are wrong<br />E.g. Hackers steal our customers’ information<br />Moral, ethical, legal issues<br />E.g. Dishonesty, harassment are intolerable<br />72<br />
  • 73. Mostly, Though, Rapid Recovery is the Right Model<br />Just fix problems quickly<br />High performers make very few errors<br />We’re in a creative-inventive market, not a safety-critical market like medicine or nuclear power<br />You may have heard preventing error is cheaper than fixing it<br />Yes, in manufacturing or medicine, but…<br />Not so in creative environments<br />73<br />
  • 74. Example: CA Vacation Policy <br />and Tracking<br />Until 2004 we had the standard <br />model of N days per year<br />74<br />
  • 75. Meanwhile…<br />We’re all working online some nights and weekends, responding to emails at odd hours, and taking an afternoon now and then for personal time.<br />75<br />
  • 76. An employee pointed out…<br />We don’t track hours worked per day or per week, so why are we tracking days of vacation per year?<br />76<br />
  • 77. We realized…<br />We should focus on what people get done, not how many hours or days worked. Just as we don’t have a 9-5 day policy, we don’t need a vacation policy.<br />77<br />
  • 78. CA Vacation Policy and Tracking<br />“there is no policy or tracking”<br />78<br />
  • 79. CA Vacation Policy and Tracking<br />“there is no policy or tracking”<br />“There is also no clothing policy at CA, but no one has come to work naked lately.” – Patty McCord, 2004<br />Lesson: you don’t need detailed policies for everything.<br />79<br />
  • 80. Another example of Freedom and Responsibility<br />80<br />
  • 81. Most companies have complex policies around what you can expense, how you travel, what gifts you can accept, etc.<br />Plus they have whole departments to verify compliance with these policies.<br />81<br />
  • 82. CA Policies for Expensing, Entertainment, Gifts and Travel:<br />“Act in CA’s best interests”<br />(5 words long)<br />82<br />
  • 83. “Act in CA’s Best Interests”Generally Means…<br />Expense only what you would otherwise not spend, and is worthwhile for work.<br />Travel as you would if it were your own money.<br />Disclose non-trivial vendor gifts.<br />Take from CA only when it is inefficient to not take, and inconsequential.<br />“taking” means, for example, printing personal documents at work or making personal calls on work phone: inconsequential and inefficient to avoid<br />83<br />
  • 84. Freedom and Responsibility<br />Many people say one can’t do it and scale<br />But since going public in 2002, which is traditionally the beginning of the end for freedom, we’ve increased talent density and employee freedom substantially.<br />84<br />
  • 85. Summary of Freedom and Responsibility:<br />Minimize Rules.<br />Inhibit Chaos With Ever More High Performance People.<br />Flexibility Is More Important Than Efficiency In The Long Term.<br />85<br />
  • 86. “If you want to build a ship, don’t drum up the people to gather wood, divide the work, and give orders. Instead teach them to yearn for the vast and endless sea.”<br />-Antoine De Saint-Exupery,<br />Author of The Little Prince<br />*translation uses ‘people’ instead of ‘men’ to modernize<br />86<br />Context, not Control<br />
  • 87. The best managers figure out how to get great outcomes by setting the appropriate context, rather than by trying to control their people<br />87<br />
  • 88. Context not ControlProvide the insight and understanding to enable sound decisions<br />Context<br />Strategy<br />Metrics<br />Assumptions<br />Objectives<br />Clearly-defined roles<br />Knowledge of the stakes<br />Transparency around decision-making <br />Control<br />Top-down decision-making<br />Management approval<br />Committees<br />Planning and process valued more than results<br />88<br />
  • 89. Exceptions<br />Control can be important in emergency<br />No time to take long-term capacity-building view<br />Control can be important when someone is still learning their area<br />Takes time to pick up the necessary context<br />Control can be important when you have the wrong person in a role<br />Temporarily, no doubt<br />89<br />
  • 90. Managers: When one of your talented people does something dumb, don’t blame them.<br />Instead, ask yourself what context you failed to set.<br />90<br />
  • 91. Managers: When you are tempted to “control” your people, ask yourself what context you could set instead.<br />Are you articulate and inspiring enough about goals and strategies?<br />91<br />
  • 92. Good Context<br />Link to company/functional goals<br />Relative priority (how important/how time sensitive)<br />Critical (needs to happen now), or…<br />Nice to have (when you can get to it)<br />Level of precision and refinement<br />No errors (credit card handling, etc.), or…<br />Pretty good/can correct errors (website), or…<br />Rough (experimental)<br />Key stakeholders<br />Key metrics/definitions of success<br />92<br />
  • 93. Why Managing Through Context?<br />High performance people will do better work if they understand the context<br />93<br />
  • 94. Investing in Context<br />This is why we are so open internally about strategies and results<br />94<br />
  • 95. Highly Aligned, Loosely Coupled<br />Three Models of Corporate Teamwork<br />Tightly-Coupled Monolith<br />Independent Silos<br />Highly Aligned, Loosely Coupled<br />95<br />
  • 96. Tightly-Coupled Monoliths<br />Senior management reviews and approves nearly all tactics<br />Lots of x-departmental buy-in meetings<br />Keeping other groups in agreement has equal priority with pleasing customers<br />Mavericks get exhausted trying to innovate<br />Highly coordinated through centralization, but very slow, and slowness increases with size<br />96<br />
  • 97. Independent Silos<br />Each group executes on their objectives with little coordination<br />Work that requires coordination suffers<br />Alienation and suspicion between departments<br />Only works well when areas are independent<br />E.g. GE: aircraft engines and Universal Studios<br />97<br />
  • 98. The NA Sales Choice<br />Tightly-Coupled Monolith<br />Independent Silos<br />Highly Aligned, Loosely Coupled<br />98<br />
  • 99. Highly Aligned, Loosely Coupled<br />Highly Aligned<br />Strategy and goals are clear, specific, broadly understood<br />Team interactions are on strategy and goals rather than tactics<br />Requires large investment in management time to be transparent and articulate and perceptive and open<br />Loosely Coupled<br />Minimal cross-functional meetings except to get aligned on goals and strategy<br />Trust between groups on tactics without previewing/approving each one – groups can move fast<br />Leaders reaching out proactively for ad-hoc coordination and perspective as appropriate<br />Occasional post-mortems on tactics necessary to increase alignment<br />99<br />
  • 100. Highly-Aligned Loosely Coupled teamwork effectiveness is dependent on high performance people and good context<br />Goal is to be <br />Big and Fast and Flexible<br />100<br />
  • 101. Pay Top of Market<br />Pay Top of Market is Core to High Performance Culture<br />One outstanding employee gets more done and costs less than two adequate employees<br />We endeavor to have only outstanding employees<br />101<br />
  • 102. Three Tests for Top of Market for a Person <br />What could person get elsewhere?<br />What would we pay for replacement?<br />What would we pay to keep person?<br />If they had a bigger offer elsewhere<br />102<br />
  • 103. Takes Great Judgment<br />Goal is to keep each employee at top of market for that person<br />Pay them more than anyone else likely would<br />Pay them as much as a replacement would cost<br />Pay them as much as we would pay to keep them if they had higher offer from elsewhere<br />103<br />
  • 104. Titles Not Very Helpful<br />Lots of people have the title “Major League Pitcher” but they are not all equally effective<br />Similarly, all people with the title “Senior Marketing Manager” or “Director of Engineering” are not equally effective<br />So, the art of compensation is answering the Three Tests for each employee<br />104<br />
  • 105. Annual Comp Review<br />Hiring is market-based at many firms, but at CA we also make the annual comp review market-based<br />Applies same lens as hiring<br />Essentially, rehiring each employee each year, for purposes of comp<br />At annual comp review, manager has to answer the Three Tests for the personal market for each of their employees<br />105<br />
  • 106. No Fixed Budgets<br />There are no centrally administered “raise pools” each year<br />Instead, each manager aligns their people to the market each year – the market will be different in different areas<br />106<br />
  • 107. Annual Comp Review<br />Some people will move up in comp very quickly because their value in the marketplace is moving up quickly, driven by increasing skills and/or great demand for their area<br />Some people will move down or stay flat because their value in the marketplace has moved down or stayed flat<br />Depends in part on inflation and economy<br />Still top of market, though, for that person<br />107<br />
  • 108. Compensation Not Dependent on CA Success<br />Whether CA is prospering or floundering we pay at the top of the market<br />i.e., sports teams with losing records still pay talent the market rate<br />Employees can choose how much they want to link their economic destiny to CA success or failure by deciding how much CA stock or stock options they want to own<br />108<br />
  • 109. Bad Ideas<br />Manager sets pay at Nth percentile of title-linked compensation data<br />The “Major League Pitcher” problem<br />Manager cares about internal parity instead of external market value<br />Fairness in comp is being true to the market<br />Manager gives everyone a 4% raise<br />Very unlikely to reflect the market<br />109<br />
  • 110. When Top of Market Comp Done Right…<br />Nearly all ex-employees will take a step down in comp for their next job<br />We will rarely counter with higher comp when someone is voluntarily leaving because we have already moved comp to our max for that person<br />Employees will feel they are getting paid well relative to their other options in the market<br />110<br />
  • 111. Versus Traditional Model<br />Traditional model is good prior year earns a raise, independent of market<br />Problem is employees can get materially under- or over-paid relative to the market, over time<br />When materially under-paid, employees switch firms to take advantage of market-based pay on hiring<br />When materially over-paid, employees are trapped in current firm<br />Consistent market-based pay is better model<br />111<br />
  • 112. Employee Success<br />It’s pretty ingrained in our society that the size of one’s raise is the indicator of how well one did the prior year – but at CA there are other factors too – namely, the outside market<br />In our model, employee success is big factor in comp because it influences market value<br />In particular, how much we would pay to keep the person<br />But employee success is not the only factor in comp, so the linkage of prior year performance to raise size is weak<br />112<br />
  • 113. Good For Each Employee To Understand Their Market Value<br />It’s a healthy idea, not a traitorous idea, to understand what other firms would pay you, by interviewing and talking to peers at other companies<br />Talk with your manager about what you find<br />Minor exception: interviewing with groups that directly compete with CA, because their motive is in part confidential information <br />113<br />
  • 114. Efficiency<br />Big salary is the most efficient form of comp<br />Most motivating for any given expense level<br />No bonuses – just include in salary – so much simpler<br />No free stock options – just big salary<br />Great health plan options, but high employee co-pay<br />No philanthropic match<br />Instead, put all that expense into big salaries<br />Give people big salaries and the freedom to spend as they think best<br />114<br />
  • 115. Optional Options<br />Employees can request to trade salary for stock options, if they wish<br />The options are fully vested, granted monthly, and cost employees in pre-tax salary approximately half of what such an option would cost in the open market<br />Options ultimately valuable only if CA stock climbs over the next 10 years<br />Investing in CA stock or stock options lets on participate in CA success or failure at whatever level is comfortable for employee<br />115<br />
  • 116. In some time periods, in some groups, there will be lots of opportunity and growth at CA<br />Some people, through both luck and talent, will have extraordinary career growth<br />116<br />Promotions & Development<br />
  • 117. Baseball Analogy: Minors to Majors<br />Very talented people usually get to move up, but only true for the very talented<br />Some luck in terms of what positions open up and what the competition is<br />Some people move to other teams to get the opportunity they want<br />Great teams keep their best talent<br />Some minor league player keep playing even though they don’t move up because they love the game<br />117<br />
  • 118. CA Doesn’t Have to be For Life<br />In some times, in some groups, there may not be enough growth opportunity for everyone<br />In which case we should celebrate someone leaving for a bigger job that we didn’t have available to offer them<br />If that is what the person prefers<br />118<br />
  • 119. Two Necessary Conditions for Promotion<br />Job has to be big enough<br />We might have an incredible manager of something, but we don’t need a director of it because the job isn’t big enough<br />If the incredible manager left, we would replace with manager, not with director<br />Person has to be a superstar in current role<br />Could get the next level job here if applying from outside and we knew their talents well<br />Could get the next level job at peer firm that knew their talents well<br />119<br />
  • 120. Timing<br />If manager would promote employee to keep them if employee were thinking of leaving, manager should promote now, and not wait<br />Both tests still have to be passed<br />Job big enough<br />Superstar in current role<br />120<br />
  • 121. Development<br />We develop people by giving them the opportunity to develop themselves, by surrounding them with stunning colleagues and giving them big challenges to work on<br />Mediocre colleagues or unchallenging work is what kills progress of a person’s skills<br />121<br />
  • 122. Development<br />Formalized development is rarely effective, and we don’t try to do it<br />E.g. Course, mentor assignment, rotation around a firm, multi-year career paths, etc.<br />High performance people are generally self-improving through experience, observation, introspection, reading and discussion<br />As long as they have stunning colleagues and big challenges<br />122<br />
  • 123. Individuals should manage their own career paths, and not rely on a corporation for planning their careers<br />Like retirement planning – safer as individual responsibility<br />123<br />
  • 124. Individual’s economic security is based upon their skills and reputation<br />We try hard to consistently provide opportunity to grow both<br />124<br />
  • 125. Why is culture important?<br />What is our culture trying to support?<br />125<br />
  • 126. Culture is How a Firm Operates<br />What practices give CA the best chance of continuous success for many generations of technology and people?<br />126<br />
  • 127. Continuous Success = <br />Continuous growth in revenue, profits and reputation<br />127<br />
  • 128. Need a culture that supports rapid innovation and excellent execution<br />128<br />Both are required for continuous growth<br />There is tension between these two goals; between creativity and discipline<br />
  • 129. Need a culture that supports effective teamwork of <br />high-performance people<br />129<br />High performance people and effective teamwork can be in tension also – stars have strong opinions<br />
  • 130. Need a culture that avoids the rigidity, politics, mediocrity, and complacency that infects most organizations as they grow<br />130<br />
  • 131. This slide deck is our current best thinking about maximizing our likelihood of continuous success<br />131<br />
  • 132. Our culture is a work in progress<br />Every year we try to refine our culture further as we learn more<br />132<br />
  • 133. The End<br />133<br />
  • 134. Most companies Curtail Freedom as they get Bigger<br />Bigger<br />Employee Freedom<br />134<br />
  • 135. Most Companies Curtail Freedom As They Grow to Avoid Errors<br />(sounds pretty good to avoid errors)<br />135<br />
  • 136. Desire for Bigger Positive Impact <br />Creates Growth<br />Growth<br />136<br />
  • 137. Growth Increases Complexity<br />Complexity<br />137<br />
  • 138. Growth Shrinks Talent Density<br />In Most Firms<br />Complexity<br />% High Performance Employees<br />138<br />
  • 139. Chaos Emerges<br />Chaos and errors spikes here – business has become too complex to run informally with this talent level<br />Complexity<br />% High Performance Employees<br />139<br />
  • 140. Process Emerges to Stop the Chaos<br />Procedures<br />No one loves process, but it feels good compared to the pain of chaos<br />140<br />
  • 141. Process-focus Drives More Talent Out<br />% High Performance Employees<br />141<br />
  • 142. Strong Near-Term Outcome<br />A highly-successful process-driven company<br />With leading share in its market<br />Minimal thinking required<br />Few mistakes made – very efficient<br />Few curious innovator-mavericks remain<br />Very optimized processes for its existing market<br />142<br />
  • 143. Then the Market Shifts…<br />Market shifts due to new technology or new competitors or new business models<br />Company is unable to adapt quickly, because the employees are extremely good at following the existing processes, and process adherence is the value system<br />Company generally grinds painfully into irrelevance, due to inability to respond to the market shift<br />143<br />
  • 144. Seems Like Three Bad Options<br />Stay creative by staying small<br />Try to avoid rules as you grow, suffer chaos<br />Use process as you grow to drive efficient execution of current model, but cripple creativity, innovation, flexibility, and ability to thrive when market inevitably shifts<br />144<br />
  • 145. A Fourth Option<br />Avoid Chaos as you grow with Ever More High Performance People – not with Rules<br />Then you can continue to run informally with self-discipline and avoid chaos<br />The run-informally part is what enables and attracts creativity<br />145<br />
  • 146. The Key: Increase Talent Density faster than Complexity Grows<br />% High Performance Employees<br />Business Complexity<br />146<br />
  • 147. Increase Talent Density<br />% High Performance Employees<br /><ul><li>Top of market compensation
  • 148. Attract hi-value people through freedom to make impact
  • 149. Be demanding about high performance culture</li></ul>147<br />
  • 150. Minimize Complexity Growth<br /><ul><li>Few big products vs. many small ones
  • 151. Eliminate distracting complexity (barnacles)
  • 152. Value simplicity</li></ul>Business Complexity<br />148<br />

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