The Alliance: Managing Talent in the Networked Age
Reid Hoffman,
Ben Casnocha & Chris Yeh
HBR Press
R895
Pp 193
Madan Sabnavis
THE RELATIONSHIP between an employer and employee is typically one of distrust. An employee is always told that there is a career for him when he joins a firm, provided he is good enough. No wonder employees hedge their bets by looking out for better opportunities early in their careers. This builds a unique case of reciprocal deception, as per the authors of the book The Alliance. Reid Hoffman, Ben Casnocha and Chris Yeh build a strong case for forging an alliance between these two parties, which works well for both by eliminating distrust and reposing belief in each other.
The days of keeping a position till retirement in a company are over, and the amount of distrust that has developed has increased over time. Companies do not want to invest in their staff, as they think that employees can leave at any time. On the other hand, employees do not put in their best, as they are always looking for a change. This means that companies do not want to invest in training, as they don’t want to subsidise other firms, which will eventually take their trained staff. An employee has hence become a fungible commodity. And companies feel it is easier to recruit staff with certain desired skills rather than train their own people. This is a corollary of the rise of shareholder capitalism, where managers focus on achieving short-term financial targets to boost stock prices. The best way out is to retrench employees with euphemisms such as right sizing.
In this book, the authors talk of building an alliance similar to sports teams, where there is a clearly defined path for everyone, which then runs on trust. The company tells employees to help make the organisation grow, so that they can benefit in the process, while employees ask the company to let them grow, so that the company can flourish. Hence, it is a two-way relationship, where each party appreciates the need of such an alliance. The employer has to engage the employee on a continuous conversation, so that the relationship is cemented.
Some of the questions that have to be addressed while building this alliance are: first, how does a company get the trust of an employee without guaranteeing employment, as this appears to be a pre-condition? Second, what kinds of alliances have to be built with different levels of employees? Third, how does one build a relationship when the ultimate goals and values may differ for both the sides? Fourth, what kind of networking and personal brand-building should be allowed in the workplace, as prima facie it helps both the partners? Last, how does one run effective corporate alumni, as this can be a major winner for both the company and employees?
They speak of something they call a ‘tour of duty’, which essentially is a journey that an employee and employer embark on for a specific mission. There are three kinds of tours: the first one is called ‘rotational’, where employees are allowed to try out varied roles within a certain time span—something done by LinkedIn (which is the inspiration for the book) and Facebook. This is the route offered to an employee to find the perfect fit for his or her own aspirations in the company. The other kind of tour is ‘transformational’, where it is personalised and is linked to a fixed mission. This can last for two-five years and helps the employee transform his own career, as well as that of the company. In a way, it is a tryst for finding a niche.
The third is a ‘foundational’ tour, where there is an exceptional alignment of the employer and employee. In this, an employee wants to remain in the job till the end and the firm too wants him to stay till retirement. Typically, the top executives should be on foundational tours, while entry-level ones would be on rotational or transformational tours. The authors believe that rotational tours provide scalability, transformation tours provide adaptability and foundational tours provide continuity. All three are required in the right blend for a successful organisation.
There is interesting discussion on how alignments can be built between the employer and employee. Essentially, the company needs to disseminate the values and core mission to all the employees. And this should be something that appeals to the staff. Therefore, Walmart’s motto of “saving people money so they can live better” works. However, Exxon Mobil’s “commitment to being the world’s premier petroleum company” does not sound that good. Also, the company needs to personally understand what every employee hopes to accomplish in the company in terms of goals and aspirations. Again, LinkedIn goes the additional step to bring about this kind of an alignment.
The book also talks of constant dialogue between the two protagonists, so that all the tours they talk of lead to positive results. While it will not be possible to provide plum jobs and promotions to all, one can bring about small transformations called ‘small t’. This will include gaining marketable experience, learning new skills, earning the endorsement or recommendation of others in the industry and so on. In fact, they carry this engagement to the next stage, where they argue that companies should encourage their employees to build their own brands and create a standing in the industry. Even in case they do leave, they will part on good terms and become so-called brand ambassadors for the firm. Participation in discussions and seminars is what companies should strive for, as both the company and individual profit from it.
Here, they speak of networking with others in the fraternity, which often helps the individual source advice from outsiders. The company benefits, as it can automatically use these networks for information and hints that can be used internally. Companies like HubSpot encourage their staff to have luncheon meetings with various associates of other companies and build networks, which can finally be used by both parties. A Seattle-based marketing company, Moz, also covers travel and accommodation of employees who get called to speak at any forum.
Last, the alumni network is very useful for both the partners. The employee, of course, can change jobs and move ahead on the career path, while the employer, too, can have nice words said about them and use them for furthering business relations. A happy employee who leaves a company is more likely to recommend it to others looking for employment or business partnership with the firm. Therefore, often companies keep alumni in their books and offer incentives like referral bonus or hosting events for them, so that they are constantly in touch.
The Alliance is a must-read for all CEOs, as it actually teaches one the value of an employee. Today, all companies say their employees are their strength, but rarely pay attention to them. Getting rid of mistrust and forging a meaningful partnership with an employee not only creates goodwill, but is a win-win situation for everyone.
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