The Startup Way

What struck me most about this book is its insight into the way internal and external performance metrics can lead to unintended consequences such as bureaucracy, inefficiency, inaction, and bad business decisions. The unintended consequences are triggered when metrics are not aligned with the company’s long-term interests yet are being ingrained in the workforce through evaluations and compensation schemes. These metrics were established to bring certainty and parity to career development and compensation. However, they eliminate flexibility and judgment. It frankly doesn’t matter what size a business is. If it has been around long enough to develop bad habits then it will take time, money, and determination to remake the company so that its metrics are aligned with desired outcomes.

Startups are susceptible as well. When we make experienced hires from large enterprises, we must instill our culture from onset and not introduce employees who are married to traditional corporate metrics: formulas for compensation, accrual of vacation, billing of hours, inflexible job descriptions are no-noes.