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Applying the insight of the

Book
Goals
As a employee, I want to have a clear understanding of: As as company , I want a fair system promoting:
My employee journey in the company Company growth
What is expected from me at my level Low turnover
How to progress in my career (what is expected Employee happiness
from me to reach the next level). Learning and mentoring.

As a employee, I want a fair compensation that: Promoting employee should not reduce our margins.
Reflects my value on the market and the value I
bring to PALO IT
Does not depend on my negotiation skills.
Insight of the book in Nutshell
Measurement is almost always part of an effort to achieve some
goal.
You cant always measure all aspects of progress against the goal,
so you settle for some proxy parameter, one that seems to
represent the goal closely and is simple enough to measure.
example,
If the goal is to build a team to win a football league, then you may seek to
achieve that goal by measuring the number of goals player is scoring while
scouting for talent.
if the goal is long-term profitability, you may seek to achieve that goal by
measuring and tracking productivity.
Dysfunction occurs when the value of proxy parameter goes
up, but the values of your goal get worse.
Economic Theory + Company Example = Transfer insights
of the book

?
Economist lens
1 - Measuring efficiency of Value chain of the company
2 Measuring alignment of Incentives of all the User in the value chain

Career path presentation


Inventors Paradox
A solution to a general problem is often simpler than a solution to a
specific problem.

In summary, the Inventors Paradox is as follows:


Solve a specific problem by solving a more general problem.
The general problem paradoxically has simpler solution.
But you have to invent an appropriate general problem which covers your
specific problem
Try to extract patterns that can be generalized!!!
Making the PIE bigger
How to reframe the problem of performance management/Career
Path, the economists way
Make the pie bigger so
that everyone's share
becomes bigger
How to make Pie bigger, economist way?
Example Impact of this change in behavior increasing the PIE:
1. Guest asset increases by earning reputation point
2. Host asset increases earning reputation point
3. AIRBNB booking per night grows

Emergent Complex self-organizing system needs


two kinds of feedback loop:

1 -Positive feedback loop . encourages to


continue a behavior infinitely thereby destabilizing
the system)
check out behavior check out behavior
2 - Negative feedback loop encourages to
reduce the behavior there by stabilizes the system
Social Trust

Design Social trust: social trust is a property not of individuals but


of social systems.

Social Trust -( working definition) the belief that others will not, at
worst, knowingly or willingly do you harm, and will, at best, act in
your interests.
Two pre-condition to design the system with
Social Trust
1. Positive & negative feedback loop designed to monitor Social Trust
in the pursuit of increasing the pie
2. Knowledge of the cooperators belief on what can harm/benefit
them.
1. When cooperation involves coordinating behavior. The problem people
must solve is a knowledge problem rather than a motivation problem: i.e. What do
cooperators need to know about each others beliefs to coordinate their
behavior?
1. Host beliefs- guest's cleanliness, clear communication, following the rules
2. Guest beliefs - is asked to give a star rating for his experience
Social Trust Design to increase the PIE
Parameters based on the Social Trust design to increase the PIE Proposed by
the Career
Path
committee
1 Measuring the PIE & key process area Yes
2 No. Behavior Consultant to put effort on Yes (100) 5
3 No. of behavior System needs to put effort on Could not find 6
4 Gradual step to increase the Cognition in problem solving skills Could not find Yes
5 Empowers Employee in co-evolving the system & the same time provides levers to the Could not find Yes
CEO to get leading indicator for the healthiness of system
6 Balance of power Could not find 2
Does HR have independent mechanism to measure the motivating potential of each
Jobs done by employee
7 Traceability between Goal of the system -> User Stories (forces) -> the Behaviors from Could not find Yes
every users
8 Provides the leading indicator Could not find Yes
User Story that increase the PIE Behavior/Leading indicator to increase the Pie

Consult Investing my time and energy 1. Nominate self to demonstrate the Problem solving skills based on Skill Demand Trend
in acquiring skills that will 2. Evaluate others on the same problem solving skill
ant 3. Improve on the feedback by expert on the Problem solving skill
increase my pay-off in the fast
4. Evaluate the Motivating potential Score of the JOB assigned
changing tech economy 5. Contribute in defining Drefyus Model (cognitive) on the Skills for which he/she has
expertise
System Build an engine that accelerate 1. Publish market demand Trend of Problem Solving Skills (Market Salary, Vacancies, %
the Skills acquisition based on Demand, Company Vision )
the market demand trend 2. Publish 5 step Dreyfus for each problem solving skills
3. Arrange monthly events for people to demonstrate the problem solving skills
4. Evaluate based on pre-published Dreyfus criteria
5. Scheduling the opportunity in trustful manner
6. Design Job that increase the motivating potential score
HR Means to measure the 1. Conduct survey every 3 months for each JOB in company to measure the Motivating
motivating potential of the jobs Potential Score:
done by any employee 1. Meaningfulness of work,
2. Responsibility for outcomes,
3. Knowledge of result of job
2. Provide feedback to the respective Hive Master to improve the Score
Stan Access to leading indicator on 1. Every 3 months all hands meeting to Steer the company direction based on
healthiness of the system that 1. Motivating Potential Score
will increase the PIE 2. Gap in the Skill Demand Trend Vs current consultant Skills
3. Throughput of proposal/Operating Cost reduction/Reduce wait time
Value Chain

Company Market

I have problem X1, X2, X3


Consultants Company Customer
optimal allocation of Sales team
internal Consultant Proposal,
availability with matching
X1, X2, X3 problem
solving skills

How to measure the PIE is growing bigger - $ = no. of man days sold
per month * per day billing
Key Areas to put effort on to increase the PIE
1. Reduce Wait Time across the value chain (to reduce the Cycle Time for each
Customer request)
2. Increase Throughput of proposal /Month
3. Reduce operating Cost (reduce the number of people on bench)
Skill Trend demands
Value Chain
Company
Market

Consultants
Use this information to
decide what new skills
to acquire
Regularly updates skill
demand trends from
market

I have problem X1, X2, X3


Sales team Customer
optimal allocation of
internal Consultant Proposal
availability with matching
X1, X2, X3 problem
solving skills
HR
Key Areas to put effort to increase the chances of
completing sales
1. Reduce Wait Time across the value chain (to reduce the Cycle
Problem solving skills inventory Time for each Customer request)
2. Increase Throughput of proposal /Month
3. Reduce operating Cost (if one consultant has more than one marketable
skills, provides flexibility in fulfilling client request)
How to accelerate Skills acquisition
1. Clear defined problem solving skill. (Format of design pattern - Context, Problem,
Forces & solution)

2. Immediate Feedback (from experts)


3. Challenge-Skill ratio

The expert in a particular skills designs 1-3


For 1 & 3 - recommend Dreyfus Skill acquisition model
For 2 recommend Toastmaster model
Dreyfus Model of Skills Acquistion
Knows when to break
rules,
High degree of
confidence
Operates on auto-
pilot

Follow rules,
Low degree of
confidence,
High degree of
concentration
Key Behaviors in Dreyfus Skills Acquisition model

1 Novice
1. Follows specific rules for specific situations
4 Proficient
2. Rules, are not conditional
1. Uses pattern recognition to assets what to do.
3. Only capable of following the rules Uses rule to determine how to do it.
2 Adv. beginner 2. Intuitions aides in identifying the situation;
1. Begins to create and identify conditional rules. 3. The actions are governed by the principles
2. All decisions still follow rules
3. Rules have nuance and become conditional in nature 5 Expert
3 Competent 1. No analysis or planning pattern recognition extends
to plan as well as action
1. Learns organizations principals information
sorting by relevance begins 2. Just does what works

2. Higher order rules shape context and


conditions
Community of Experts approves
Community of experts organize Bi-monthly events. Dreyfus level Translate Translate Translate
the the the
guidelines guideline guidelines
Get feedback to Ux Skills s to Full to Product
Stack Owner
Develop Skills
er

Demonstrate Community of expert


Novice -
problem solving approve addition of context-free rule,
skill line In BIo independent of
specific cases,
and applied
universally

Adv. Beginner

Competent

Problem Solving Update the Bio


Proficient
Skill inventory
Based on demand trend
Expert

Positively impacting the throughput, cycle time &


operational cost
Measuring the Motivating Potential of the Job

Prerequisite from employee -


Growth mindset
Premise - The model is based on
the premise that jobs can be
designed not only to help
workers get enjoyment from
their jobs but also to help
employee feel that they are
doing meaningful and valuable
work.
Qualifying the Motivating Potential of job
All the current jobs done by the employee needs to evaluated by the performer of the job at every 3 months interval.
MSP Survey Question
1 I have almost complete responsibility for assessing the risk, estimating volume and planning of the work assigned to me.
2 I have a chance to do a number of different tasks, using a wide variety of different skills and talents.
3 I do a complete task from start to finish. The results of my efforts are clearly visible and identifiable.
4 I understand how the value-chain of the company works & able to figure out where in the value chain I can contribute.
5 What I do affects the well-being of other people in very important ways.
6 My manager provides me with constant feedback about how I am doing.
7. The work itself (without the need for human feedback ) provides me with information about how well I am doing.
8. I make insignificant contributions to the final product or service of company, client
9 I make insignificant contributions to the final product or service of Company
10. I get to use a number of complex skills on this job.
11. I have very little freedom in deciding how the work is to be done. ______
12. Just doing the work provides me with opportunities to figure out how well I am doing. ______
MSP Survey Question
13. The job is quite simple and repetitive. ______
14. My supervisors or coworkers rarely give me feedback on how well I am doing the job. ______
15. What I do is of little consequence to anyone else. ______
16. My job involves doing a number of different tasks. ______
17. Hive master let us know how well they think we are doing. ______
18. My job is arranged so that I do not have a chance to do an entire piece of work from beginning to end.
______
19. My job does not allow me an opportunity to use discretion or participate in decision making. ______
20. The demands of my job are highly routine and predictable. ______
21. My job provides few clues about whether Im performing adequately. ______
22. My job is not very important to the companys survival. ______
23. My job gives me considerable freedom in doing the work. ______
24. My job provides me with the chance to finish completely any work I start. ______
25. Many people are affected by the job I do.
Nick Shapiro is the Global Head of Trust and Risk Management at
Airbnb. He was previously the CIAs Deputy Chief of Staff and Senior
Advisor to former CIA Director John Brennan. Shapiro has served on
the National Security Council staff and was a White House spokesman
for President Obama. Follow him @nick_shapiro.