Expensify's firing strategy
blog.expensify.com
blog.expensify.com
This trope is unadulterated bullshit. The whole article sometimes seems to border on a parody of the worst premises and shallowest-possible way of assembling and managing a (software) team.
There is certainly a feeling, especially when you're a manager or an unhappy team member, that there are 0.1X employees out there - perhaps even a great many. By all means, these people should be made aware of the problem and if necessary fired (heck, I had to do that a few times). But the most self-destructive assumption you can make as a manager is to unilaterally declare yourself an "A players only" team.
The performance of people depends on many factors, including working conditions, personal situation, management style, motivation to work on a certain project. The idea that somewhere there is a pool of global "A players" and you just need to find them is not only unrealistic and ignorant, it actively harms your company by turning it into a locker room popularity pageant. The people who thrive in such an environment of arrogance and self-promotion might be the ones you want (because they project a vacuous aura of success) but they're probably not the ones you actually need.
Furthermore, you don't really need to fill your company with "rockstars", if all you're doing is building another interchangeable ad-driven mobile app. It's perfectly acceptable, probably even preferrable, to have a base group of decently-performing "grunts" who can actually work on your app without feeling depressed after a month. People who aren't exactly highly motivated visionaries but have a stable 9-5 work output are more important than many people seem to think.
Thanks for beating me to the punch. If they want to run a company on the basis of snappy, feel-good slogans ("We're all 10x-ers here!"), that's one thing.
But the thing that gets me about the 10x-er line is that it isn't even in agreement with the original research (whatever you may choose to make of that research -- there was at least some research done on this, and its basic findings don't seem out of line with subjective, day-to-day observation).
Unfortunately, those findings never said that top performers were "10x better than average." Rather, that they were 10x better than the worst performers, on the very bottom of the scale. So if there's anything all to the quantitative side of their findings -- it's that the "best" formers are merely... 3.16x better than average. Which, sadly, doesn't make for a catch slogan that you can use to emotionally manipulate people with.
And if you ever brought up this inconvenient fact at an Expensify meeting -- next time you heard that it's time to go on the warpath, and root out all the lowly 8x-ers and 7x-ers -- I'm sure you'd be pegged as a disruptive, miserable, self-hating narcissist bent on bringing others down to your own level.
And of course, immediately be put on PIP.
In fact, I think these people are often mistaken for 10x-ers, especially in their own mind.
What makes the (far more common) negative outliers most vexing to deal with is not just that they're +10x-ers in their own minds -- but that they're mistaken for such in the minds of upper managers (and/or their investors) -- for a great, great while, in many cases.
And having to explain to someone that they need to "flip" their +/- 10x bit on one of their "star performers" can be a really, really awkward situation to be in.
1) How does this not degenerate a zero-sum game where the people who can subtly undermine their peers relatives to themselves succeed?
2) Why does expensify need 10X programmers? Here are some questions to help define where a 10X programmer might benefit them
Q: Are they doing something that is pushing the boundaries of computer science? A: No, they make it easier to submit expense reports.
Q: Are they trying to extract the last drop of performance from a computer system - for example games, HPC, HFT? A: No, they make it easier to submit expense reports.
Q: Do they need to create massive systems that can serve a billion people and thus even "simple" programming problems can be difficult due to scale. A: No, they make it easier to submit expense reports.
Q: Are they creating tools such as new languages, libraries, operating systems / environments to massively increase the productivity of computer programmers. A: No, they make it easier to submit expense reports.
Q: Are they trying to tackle hard problems like making secure computing ubiquitous? A: No, they make it easier to submit expense reports.
Q: Do they support other companies and help other companies solve difficult problems by providing expert consultation. A: No, they make it easier to submit expense reports.
Before a company decides it needs 10X programmers, they should answer the Jeff Dean question: "If Jeff Dean came to work at my company, what current project do I have that I would put him on, and would he be bored?"
Too many companies it seems decide they want 10X programmers (without paying 10X salaries) and then use this to justify poor treatment of their current workers.
I had the same thoughts as I read the blog post. The extremely pompous arrogance of proclaiming you fire people who aren't 10x'ers, when all you do is create some bullshit expense app that isn't all that great and which few people find joy or real utility in, is priceless.
Silicon Valley practically writes itself...
Reminds me of South Park's PC principle and how our society forms cliques so naturally.. in reality the division is an entirely arbitrary printed label from a $1 label printer.
> did so when they found their peers increasingly unwilling to tolerate to their disruptive attitudes, and thus less fun to work with — misery loves company, and if your peers aren’t as miserable as you, you leave to find others who are.
He's basically saying that if you're less than entirely happy with Expensify (or your particular corner of it), then it's obviously because you're a flaming asshole -- and are just starting to realize it.
Q.E.D.
I'm not at all pleased to discover today that we (and many like us) are now being painted as "disruptive," "miserable," and ultimately crappy employees. Expensify has just taken themselves from "Not what I ultimately wanted, but a good experience that I'd recommend to most folks who fit their model" to "company I'll actively steer people away from if they asked me."
I struggle and fail to understand the point of this blog post; did someone think this would be well received? Do they think it makes them look better than the average company? Is there now an internal sense of "achievement unlocked" that thrills them when the rest of the industry sees this as abhorrent? Their GlassDoor reviews are starting to seem a lot more ominous lately as well.
If you take a look at NetFlix, another company whose culture speaks to "top performers or get out," there's always been a sense that people who've left are still great people / employees. When someone leaves (voluntarily or not), the consensus and messaging becomes that it just wasn't a good fit, and they stand behind their former employees as being fantastic hires elsewhere.
This entire blog series / ad campaign just comes across as either profoundly deluded, or a desperate cry for attention.
I worked at a fortune 500 company that measured productivity via a ticketing system. "Write a device driver" was measured the same as "Change 'OK' to 'Accept' on a button." Guess what the 10x'ers did all day and what got assiged to consultants like me?
I worked at another fortune 500 company that measured programmer productivity via a ticketing system, and they focused on issues. I finished my work 6 months early with no bugs or issues, but the outsourced labor continiously generated as many issues as they fixed to the tune of roughly 80% reopen rate.
They told me I they weren't going to extend my contract and I laughed and told the lead -- I finished my work six months early with no bugs, and you are going to let me go and keep the guys to write as many bugs as fixes. They kept me and let six other overseas contractors go.
I could give dozens of other examples how people are smart enough to game the system.
Or some clever lead in to the next script for "Silicon Valley"?
As I read it I was envisaging a background advertisement for working at Expensify with upbeat music, groovy offices, quick cut shots, smiling faces, people enthusing at a whiteboard over some software diagram, snap the camera to screens full of code and concentrating people, and then a big Donald Trump at the end pointing down the barrel of the camera "YOU'RE FIRED!" Then a sad person leaving the office with their head hung low because they were only 8X
The truth about software development is that you absolutely need to fire problem team members ASAP, but this is not something to build into your hiring strategy as a positive. In fact if you need to do that then your hiring strategy is not working in the first place.
This sounds alot like stack ranking which was popular at places like Microsoft and has been shown to be a disaster.
Usually hiring and :-) FIRING! strategies like this have been concocted by non technical or less technical people.
Expensify would be well advised to take down this post and rethink.
And have a guess what link every staff member at Expensify is emailing to each other right now?
The author does say in his LinkedIn profile[1] he is "making the world a better place, one expense report at a time"... so maybe you are on to something.
Seriously creating a fictional company that is precisely like this would be a great way to promote Silicon Valley.
Trouble is there are so many companies and people who are part of the self parody without knowing it.
Where does exponential come from? The naïve model (which is obviously worse than reality at the extremes, since it would at some point imply that each person is spending > 100% of their time distracting) would seem to be quadratic -- O(n^2) [0] -- not exponential -- O(k^n), which not only is clearly worse than reality for the same reason that the quadratic model is, but doesn't seem to have any coherent basis at all.
This really sounds like "lets throw some mathy-sounding words, made up numbers, and pretty-looking charts out to try to rationalize an approach we decided on based on intuition" rather than explanation of actual coherent, quantitative reasoning.
[0] proportional to the number of dyads (n(n-1))/2
That said, this nonsense is pretty divorced from reality.
It's like someone read the Netflix HR presentation and took the message a bit too seriously.
> We don’t negotiate during the hiring process. Our first offer is our last and best offer. If it’s basically in the right ballpark, then we encourage you to take it and we’ll adjust it later if we were off. But if we’re so far off that we’re not in the right ballpark, then clearly this isn’t going to work anyway. There’s no need to fight over a few percent: let’s just get started and adjust later.
Apparently they'd like to hire "10x engineers" (lol), but not quite enough to actually talk with them to determine a mutually beneficial compensation scheme. Their offer is the fair one, and a counter-offer is the engineer quibbling over a couple percent. If that's the case, why can't that few percent go the engineer's way? Nice to see that they've resolved the problem in their favor.
If a prospective employer gave me a non-negotiable offer and refused to countenance alternatives, I'd run far, far away from that paternalistic prison, no matter the offer or company.
"Why we don’t hire .NET programmers"
https://news.ycombinator.com/item?id=2370022
"Programming with .NET is like cooking in a McDonalds kitchen. It is full of amazing tools that automate absolutely everything. Just press the right button and follow the beeping lights, and you can churn out flawless 1.6 oz burgers faster than anybody else on the planet.
However, if you need to make a 1.7 oz burger, you simply can’t. There’s no button for it."
Sticking with the self inflicted strawman I see it this way; There are constraints on where you can eat (vegans, paleo, vegetarians, low gluten, etc.) When you have good leadership they understand the various constraints that individual team members bring to the problem. So in the "place to eat" question, the leader starts with places that already meet the constraints, and then surface any concerns about the available choices, shares the concerns with the team and solicit rankings, and then tells everyone where they are going to eat that day. If they are consistent, and they rotate through equivalent alternates over time, everyone is ok with the outcome and nobody feels left out.
A 100 people walk into a room and are told to pick a place to eat and it doesn't work because there isn't a shared understanding of resolution. Is my preference stronger than yours? Is my dietary restriction something I can impose on others? on and on. Teams are most productive when they trust their leadership and least productive when they do not.
If you want to have a high performance team, establish trust, listen to concerns, and communicate clearly respect and understanding.
Everybody has heard the common trope: great programmers are 10x more productive than average programmers.
Then everybody heard wrong.
A 2nd edition of Peopleware summarises it; the 10x programmer is not a myth, but it's comparing the best to the worst; NOT best to median. It's also not about programming specifically; it's simply a common distribution in many metrics of performance.
The rule of thumb Peopleware states is that you can rely on the best outperforming the worst by a factor of 10, and you can rely on the best outperforming the median by a factor of 2.5.
This of course indicates that a median developer, middle of the pack, is a 4x developer.
Obviously, this is a statistical rule, and if you've got a tiny sample size or some kind of singular outlier or other such; well, we're all adults and we understand how statistics and distributions work.
Peopleware uses Boehn (1981), Sackman (1968), Augustine (1979) and Lawrence (1981) as its sources.
[ "Peopleware", DeMarco and Lister, 1987, p45 ]
That all said, if anyone's got some more recent source materials (a bit more solid than Mr Expensify's source of some guy telling him in college some time), let's have them.
Addendum: "Performance Improvement Plans" are a papertrail. If you ever get put on one, the trigger has been pulled already. Even if it seems to go well and performance targets are reached and the threat of firing is off the table, your cards are marked and your days numbered. Know that, and start looking for your next job.
Building a 10x Team
At Expensify, we’re betting it is possible, and that it can be accomplished with two main tactics. The first tactic involves identifying superstars * early in their career, and then backing them to the hilt.
Probably because a small startup working on boring things (eg, expense reports) isn't likely to attract the relative handful of exceptional geniuses who actually exist.
Now a really neat system would be one that looked at your messaging, location, and credit card data, figured out why you were expensing something, and annotated the expenses with "why", with zero user involvement.
In other words, "Going through a $LIFEISSUE? We don't tolerate that here!"
What an awful sounding fear based culture...
Poe's law is in full effect - I can't tell if this is honest or exquisitely written satire.
Certainly a fitting double meaning for a company which apparently had such a weak founder team that they had to replace hierarchy with anarchy - also known as "survival of the loud and smarmy".
I'm really missing an opportunity to short private companies lately...
That sounds like one bitter CEO. I mean who would ever quit a company where one develops expense reports all day.
Sounds like a dream job...
Candidate: That's actually and old resume, it should say that I 10x-ed it from 2013 to present
Manager: So are we to understand that you did not 10x it in 2012?
Candidate: There was a mental situation preventing me from X-ing it to my usual standards so I had to take some time off until I was able to X it at 10x
"I'll tell you what you have to do, you have to fire people, and when you have fired enough of them so that employees see that it's no longer in their best interest to stay with the company, then that's when you will have destroyed your company"
I think that tells us everything we need to know.