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How Adobe Got Rid of Traditional Stack-Ranking Performance Reviews

Hugh Pickens DOT Com writes "Bob Sutton reports that in 2012 Adobe moved from yearly performance rankings to frequent "check-ins" where managers provide employees targeted coaching and advice. There is no prescribed format or frequency for these conversations, and managers don't complete any forms or use any technologies to guide or document what happens during such conversations. They are simply expected to have regular check-ins to convey what is expected of employees, give and get feedback, and help employees with their growth and development plans. 'The aim is to give people information when they need it rather than months after teachable moments have passed,' writes Sutton. Donna Morris, Adobe's senior vice president for People and Places, says her team calculated that annual reviews required 80,000 hours of time from the 2000 managers at Adobe each year, the equivalent of 40 full-time employees. After all that effort, internal surveys revealed that employees felt less inspired and motivated afterwards—and turnover increased. According to Sutton, Adobe's bold move seems to be working. Surveys indicates that most Adobe managers and employees find the new system to be less cumbersome and more effective than the old stack-ranking system where managers must divide employees into groups — for example, maybe 15 percent of people can be assigned the highest rating. 'That goes against our core value of being genuine,' says Ellie Gates, director of management effectiveness at Adobe. 'Our goal should be to inspire people to do their best work.' Since the new system was implemented, voluntary attrition has decreased substantially, while involuntary departures have increased by 50% because the new system requires executives and managers to have regular 'tough discussions' with employees who are struggling with performance issues—rather than putting them off until the next performance review cycle comes around. 'It is reducing unnecessary cognitive load, while at the same time, nudging managers to engage more often and more candidly with direct reports to help them develop their skills and plan their careers,' concludes Sutton. 'It also bolsters accountability because managers have far more responsibility for setting employee compensation than under the old system.'"

27 of 175 comments (clear)

  1. I'll keep saying by BigDaveyL · · Score: 5, Insightful

    Stack Ranking only works on a short term basis where you want to trim the fat.

    If you do it for too long, two things happen (a) you start cutting into good performers (b) people will not collaborate to make others look good

    1. Re:I'll keep saying by cellocgw · · Score: 2, Informative

      Absolutely. There are ways around the problem that top management claims exists, i.e. that every manager will claim his group is better than the other groups (which is why they believe in small-group stack ranking). It takes a lot of effort, and a dedication to cross-team performance evaluations, root-cause analysis as to why one team may have had better schedule or cost performance than another, but it could be done. But given that most corporations consider it a workplace violation for peons to exchange salary information, don't hold yr breath.

      --
      https://app.box.com/WitthoftResume Code: https://github.com/cellocgw
    2. Re:I'll keep saying by fuzzyfuzzyfungus · · Score: 2

      Stack Ranking only works on a short term basis where you want to trim the fat.

      If you do it for too long, two things happen (a) you start cutting into good performers (b) people will not collaborate to make others look good

      Plus, this is Adobe. They probably had to give up after HR was the victim of 15 stack-smashing attacks in a row.

    3. Re:I'll keep saying by DickBreath · · Score: 2

      Stack Ranking works forever. Just like Downsizing. It's like printing money. It's infinitely scalable. Furthermore Stack Ranking is sustainable -- indefinitely. Any MBA could have told you that.

      And as for your talk of "good performers" those are just the creative people who upset the apple cart and don't fit into the mold properly. The worker units are all supposed to be interchangeable like spark plugs. You run them until you burn them out, then throw them away. Geez, have you even been to business school?

      --

      I'll see your senator, and I'll raise you two judges.
    4. Re:I'll keep saying by eulernet · · Score: 4, Insightful

      If you do it for too long, two things happen (a) you start cutting into good performers (b) people will not collaborate to make others look good

      You are wrong.
      As soon as stack-ranking is used (and not after "too long"), it shows that the individual performance is more important than the group's performance, so collaborating goes against your own interest.
      Once everybody is focused on his own agenda, the best performers are getting tired by the competition and thus quit their job to a better living place.

      Basically, stack-ranking encourages selfishness.

    5. Re:I'll keep saying by bobbied · · Score: 2, Insightful

      Stack Ranking only works on a short term basis where you want to trim the fat.

      If you do it for too long, two things happen (a) you start cutting into good performers (b) people will not collaborate to make others look good

      I'm not so sure those are the only two options. Like any system that ranks employees performance, it's all about what you are actually measuring in the ranking system. If you consider "collaboration" important and have a way to measure it that works, then I can assure you that employees will respond with more of it.

      The issue is that most companies don't want to take the time to design performance rating systems where they are actually measuring what they really want. So they resort to using short cuts or stupid metrics and then get what they deserve.

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    6. Re:I'll keep saying by MarcoAtWork · · Score: 2

      it is still really shortsighted anyways, because you might end up with a top performer that's going through a temporary rough patch (divorce, health issues, ...) and they could get caught and let go when if the company stuck with them a bit longer they would reap the benefits. I remember some time ago reading a comment here on a previous discussion on reviews where the manager stuck for this employee (who was going through a divorce iirc) and a year later and for many years afterwards they ended up being extremely, extremely, extremely high performers (as well as loyal, showing gratitude for what the company did for them).

      When I read this article and read that 'involuntary departures went up by 50% because there are more frequent "tough discussions"' it makes me feel like this could easily degenerate in a climate-of-fear where if you have an off month you might end up being let go, a yearly review is not optimal but short-term dips are obviously more easily counterbalanced by good productivity the rest of the year when the issue was resolved, not to mention if you have yearly reviews on record for several years it becomes it more obvious when dips are temporary or there is an underperforming situation (which might not be the employee's fault, could simply be an issue of not having the right person in the right job or vice-versa).

      As an addition I do think companies should decouple raises from performance reviews, in general the budgets tend to be fixed and low, so if you have a good team you can't really give people the raises they merit, because say if you give the right amount to three people they'll be happy and the rest will get nothing (even if they did well) while if you give a little to everybody nobody's happy (since they'll feel they just got a cost-of-living adjustment for a really good solid year of effort).

      --
      -- the cake is a lie
  2. Immature by The+Cat · · Score: 5, Insightful

    Stack ranking is for managers who are not grown-ups.

    Train your people. Teach them to improve. Defend them while they learn. Make them better and they will make the company better.

    If you are in charge and something goes wrong, it's your responsibility. It's your fault. And if it isn't your fault, it's still your fault because you're the manager.

    You are responsible. 100% of the time. No exceptions.

    Take responsibility for your job and do your job. Train your people. Take care of your people. Grow up.

    1. Re:Immature by UnknownSoldier · · Score: 2

      Agreed.

      Also, Stack Ranking sends the wrong message to employees.

      It tells employees that they are an liability instead of an investment. Oh, gee, we forgot to include the cost & time of training their replacement. /Sarcasm Nah, that can't be a valid factor to consider. Talk about the cliche "Cut off your nose, to spite your face".

  3. When did stack ranking start? by 0123456 · · Score: 2

    Because this could explain why the Adobe software I used in the 90s and early 2000s (e.g. Premiere) was such a crash-ridden heap of bugs.

  4. Reviews by djupedal · · Score: 3, Interesting

    In Japan, the Manager is responsible if an employee screws up. If an individual does something merit worthy, the entire team takes credit. As well, the freshman hires have no say in their job assignment - higher ups work all that out and take any heat...they sort it later as skills and relationships mature.

  5. storm drain by epine · · Score: 3, Interesting

    The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function. — F. Scott Fitzgerald

    Stack ranking, meet regression to the mean.

    Yes, p accomplishes 1-p (for some p, always) but it's not necessarily the same people in the p pie slice year over year. The Pareto does not state that 20% of the people with account for 80% of the output and will continue to do so, because as we all know 100% of what drives performance is whether you have it, or you don't, end of story.

    Sapolsky on Heights And Lengths And Areas Of Rectangles:

    The problem with "a" gene-environment interaction is that there is no gene that does something. It only has a particular effect in a particular environment, and to say that a gene has a consistent effect in every environment is really only to say that it has a consistent effect in all the environments in which it has been studied to date. This has become ever more clear in studies of the genetics of behavior, as there has been increasing appreciation of environmental regulation of epigenetics, transcription factors, splicing factors, and so on. And this is most dramatically pertinent to humans, given the extraordinary range of environments—both natural and culturally constructed—in which we live.

    What does stack-ranking achieve as a long-term evolutionary pressure? It helps the company accumulate the people who are best at concealing their dips, no matter how the chill winds blow.

    Just what you want cultivate, a whole cadre of engineers specializing in meteorology.

    There was a different passage about genetics I was trying to find. A population will only retain multiple genetic phenotypes if each of those phenotypes is advantageous in some circumstance or environment. Any phenotype that dominates across the board, in nearly every circumstance, soon extinguishes the competition.

    That we have so many phenotypes indicates that human circumstance is extremely fluid.

  6. There is a lesson here for slashdot by Arker · · Score: 5, Insightful

    " 'The aim is to give people information when they need it rather than months after teachable moments have passed,' "

    This is a very important thing, and it's kind of sad that it IS something that people in business sometimes realize, rather than being something we could assume everyone capable of forming complete sentences understands.

    And that's why it is really important that Timothy, who thinks we form a passive 'audience' here, who somehow imagines that occasionally pushing the button to publish a user submission under his name, without even fixing the obvious typos first, qualifies him as the creator of the site, really needs to feel some backlash today. Not in 6 months when the whole site goes, today.

    It's also why each and every member of the staff that encouraged the delusion that this 'beta' was a reasonable, workable idea needs to be gone now. Not in 6 months when the whole site goes, today.

    Because those teachable moments are short, and these are not minor little mistakes anyone could make. These are possibly the biggest mistakes anyone in their position could make, in regards to their work. They are mistakes that you would expect from someone who was just recruited from a business school last week and had spent no more than 20 minutes lurking before deciding to change everything.

    --
    =-=-=-=-=-=-=-=-=-=-=-=-=-=-
    Friends don't let friends enable ecmascript.
    1. Re:There is a lesson here for slashdot by AmiMoJo · · Score: 2, Interesting

      Can you imagine what the Beta site dev team's reviews will be like?

      "Well, everyone hated it so much they threatened to leave the site. A few went off and set up alternatives, some organized a boycot, others just bitched about it in every single story. The entire project seems to be a complete disaster and everyone wants to keep the old site. On the plus side you managed to get a personal best 27 buzzwords per paragraph into the requirements spec, so well done and here's your bonus."

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  7. Re:For great justice! by mwehle · · Score: 3, Funny

    Nobody buys Playboy for the articles. They do it for the hot, nude women (sadly, sans grits). It just so happens that /. is exactly the same. No one reads /. for the articles. The articles were news two days ago. And no one reads /. for the summaries. The summaries are almost always wrong.

    Everyone reads /. for the comments.

    Well no, I for one read /. for the hot, nude women.

    --
    Wir sind geboren, um frei zu sein - Rio Reiser
  8. Yep, that makes sense by neminem · · Score: 5, Insightful

    Since one of the things that drives me the MOST crazy about my current job, and MOST makes me think about quitting, is in fact the near-constant requests for writing various self-assessments, goal documents, and other such things that are not actually related to my job, and which don't actually seem to be used for anything other than making the people responsible for requiring all of those documents look like they're doing useful things. Drives me crazy. After all that, our performance reviews tend to basically say "yep, you're doing fine. Have a raise that is exactly in line with inflation, just like everyone else is getting."

    1. Re:Yep, that makes sense by sydbarrett74 · · Score: 4, Insightful

      That self-assessment stuff is mostly wankery. I want my boss to be candid about what I'm doing right, and what I'm doing wrong. And tell me then and there, not six months later.

      --
      'He who has to break a thing to find out what it is, has left the path of wisdom.' -- Gandalf to Saruman
    2. Re:Yep, that makes sense by swb · · Score: 4, Interesting

      This.

      I hate the annual kabuki theater of the performance review, with it's empty and meaningless self-assessments and the usual empty criticism ladled on top to make sure the review is 'balanced' (and mostly to be just intimidating enough to dampen any expectation of a salary increase).

      The once a year part is annoying as well, since anything good you've done that wasn't last week has been pushed off the stack. It'd be much better to have more often candid discussions, whether they were regular or based around projects or project milestones where some good could come of them.

  9. fuck beta! by Anonymous Coward · · Score: 2, Insightful

    Dice made it perfectly clear that, even after all the backlash, Classic will soon be gone:
    "Most importantly, we want you to know that Classic Slashdot isn't going away until we're confident that the new site is ready."
    Dice ignores our complaints, while pretending to listen. Ruining every single discussion is the only option we have left.
    Beta delenda est!

  10. involuntary departures have increased by 50% by fredness · · Score: 2

    Sounds kind of intimidating.

    1. Re:involuntary departures have increased by 50% by Moof123 · · Score: 2

      Yeah, that caught my eye too.

      Dead wood needs to be cleared out, and I am curious if that is what is going on, or if it is just creating a climate of fear. Dead wood generally doesn't up and leave because of a bad review, good talent with other options does. Think Wally vs. Dilbert. Wally learns to burrow in year after year, Dilbert pulls his hair our over the failures he didn't cause but gets blamed for. So in the common stack system, dead wood tends to accumulate despite poor reviews, and good guys who just had a rough year end up motivated to leave.

  11. Re:For great justice! by DickBreath · · Score: 4, Insightful

    Calling us the Audience is like the Bee Keeper calling the Bees the audience.

    Bees make honey. You can set up bee boxes and have bees live in the boxes and make honey that you can harvest. But the bees are free to leave at any time. The only reason the bees stay is because the boxes are less trouble than building a beehive. Try making the bee box unusable and the bees will just go build a beehive elsewhere. Don't believe it? They've been building beehives for a lot longer (*cough* Usenet *cough*) than bee boxes (*cough* Slashdot *cough*) have been around.

    --

    I'll see your senator, and I'll raise you two judges.
  12. Re:Slashdot, make Beta permanent NOW! by Arith · · Score: 2, Insightful

    I for one am half with you, yet not.
    I'm getting sick of seeing "down with beta" etc. Versus the discussion I like seeing.
    At the same time this 'handful of crotchety people' seems to have made quite a loud noise, and seem to make up quite a few people.... and they have a point. Beta is not ready. To say that they(slashdot) were going to make beta mandatory in the near future, in a similar state it's in now. THAT is a joke.

    We might be sick of seeing it, but I think it's a necessary evil. Now if we could get this kind of response to truly important matters *cough*NSA*cough* then we might have some hope for humanity.

  13. Amazing! by sootman · · Score: 2

    "There is no prescribed format or frequency for these conversations, and managers don't complete any forms or use any technologies to guide or document what happens during such conversations. They are simply expected to have regular check-ins to convey what is expected of employees, give and get feedback, and help employees with their growth and development plans."

    So instead of having some ridiculous regimented (10-question, 2 page form weekly! monthly! quarterly!) bullshit, they're going to let their managers be humans, and let them manage their employees? What a ground-breaking idea. Let me jot that down somewhere.

    --
    Dear Slashdot: next time you want to mess with the site, add a rich-text editor for comments.
  14. Ender's Game by DarthVain · · Score: 2

    Look to the left of you... Look to the right of you...

    These are not your friends. They are your competition.

    My workplace seems to be devolving to this base level (not that we have these kinds of reviews). Why would I contribute anything positive to your project when I may be competing against you on a continuous basis? In fact why wouldn't I try my best to torpedo anything you do in hopes of increasing my own position.

    Not that I do that, which is probably why I am still a peon, but it is the sense I have been getting lately.

    It also means those that might find better employment elsewhere probably will, leaving you with...

  15. Re:And yet, Flash still sucks by dysmal · · Score: 2

    You could try overriding those update settings. It means you're no longer on the bleeding edge of the Flash updates but it makes your life significantly less irritating. http://helpx.adobe.com/flash-p... I 100% agree that Flash is a pain no matter what you do to customize it and think it should be roasted over the burning hulk that used to be known as Beta.

  16. Re: Let me be the first to say... by tbuddy · · Score: 3, Insightful

    That's absolutely where I am with it also. I've had no fewer than 5 calls from Adobe before and after the CC business and I've told them each time I'm never buying another one of their products until they sell perpetual licenses. They insist they won't buckle on the issue, but I believe they will have to eventually.

    It would be harder to resist CC if they put in a single compelling feature in a product since CS6, but that simply hasn't been the case.