I came across an article on Slate this morning bemoaning the “Stack Ranking” employee rating system employed by Microsoft (and apparently pioneered by Jack Welch at GE). I’ve had some experience in companies employing a stack ranking system, or one very close to such a system and so I took to Twitter with a few of my thoughts, reproduced below.
Alas, stack ranking hurt more companies than just MS. Others took inspiration from it; I worked at two. http://t.co/nhedC89scP
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
Stack ranking only makes sense to the lizard brains of HR types — I know this because I had an extended argument with a higher HR type.
— Westminster Doug Show (@zamoose) August 27, 2013
It's a career-killer for the brilliant-but-politically-un-savvy & morale destroyer for everyone else. There is no concept of shared success.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
Someone HAS to get crammed down into the lower portion of the Bell curve or the model breaks down, so you punish success if everyone is good
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
But evaluating everyone against overall company performance is too hard, so you stick with The Model, because It Works At Microsoft.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
Only it DIDN'T actually Work At Microsoft and your midline managers are the furthest thing from Bill Gates as is possible.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
Back to Stack Ranking: it's an insidious productivity killer and is good for little more than causing palace intrigues.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
In an SR-style system, your ranking ends up being based on far too many externalities that are beyond your control.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
You not only have to suck up to YOUR direct manager but all other at their level, as they can effectively execute pocket vetoes.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
Top performer but you ticked off another group's manager? Good luck getting a promotion until the grudge wears off. I've seen it happen.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
If you're not a Top 2 Percenter, things quickly devolve into don't-have-to-outrun-the-bear-just-your-slacker-coworkers equilibrium.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
I suspect the palace intrigue aspect is a feature, not a bug for Peter Principle mid liners, though. Gives 'em a field to compete on.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
Wrapping up, I guess my point is: if you're in a position to advocate or fight against a Stack Ranking environment, fight it tooth & nail.
— Doug, Doug, Gray Doug (@zamoose) August 27, 2013
Anyone else have experience in this sort of a work environment? Thoughts? Am I off base here?
