The #1 Reason Why Managers Fail

Please note, this post, and subsequent posts, are my own personal views and do not represent my employer.

In 8+ years working at data.ai (formerly App Annie), I have been given an amazing opportunity to lead various teams in the GTM (Go To Market) organization. In my current role, as leader of the entire Revenue team, when I take a moment to reflect on this incredible journey, there are so many things I wish I knew from the start. I could have prevented many mistakes and made the experience so much better for myself and my colleagues. Most importantly, applying the knowledge I now possess would have definitely helped our company to grow faster. It is with this in mind, it’s time for me to give back and share my key learnings to help those who may be on a similar journey.?

In 2014, when I joined App Annie, my first role was leading the America’s sales team, which was 1 out of the 3 sales regions. Looking back, one of the most important things I wish I knew was how much of a priority recruiting should be for any leader. Having spent 7 prior years at Microsoft, we always had a long list of highly qualified candidates that were willing to join at a moment's notice. Recruiting at a startup, however, was very different. We had no brand recognition and it was a completely different ball game. It was much harder to convince talented individuals to join.

During my first few years, we took advantage of mobile devices becoming the dominant digital platform and began to rapidly add marquee customers. To better serve a growing business, we needed a bigger team, forcing us to hire and promote more managers. It is during this period of aggressive scaling I personally learned how recruiting would become the Achilles heel for so many aspiring managers. In fact, the ability to recruit was the #1 reason why a manager consistently succeeded or failed.

At first, this realization was not always obvious. However, after discussing this topic with more experienced leaders and thoughtful reflection, it became evident that poor recruiting was consistently one of the primary reasons for underperformance. What was fascinating was to see how this hard truth manifested itself in the workplace.

HARD TRUTH #1: Managers who struggle with recruiting rarely have a fully staffed team.

I was very surprised to learn that managers who struggle with recruiting consistently had more attrition on their team than their counterparts. Initially, I thought a struggling manager would simply take a bit longer to fill open roles and then go on to perform on par with their peers. What I did not realize was the strong correlation that existed between hiring and retaining talent. This really got me thinking and I tried to unpack this new revelation, which eventually led me to a simple conclusion.

Those who follow football (aka soccer in the US), understand this all too well. If a team receives a red card and is forced to play 10 vs. 11, their chances of winning go down significantly. I looked up some stats online and came across this interesting article, ‘How Does A Red Card Affect A Football Match’. Statistically, when a team receives a red card, their chances of winning decreases to 18.5%. In other words, in the world of sports, if you don’t have your full team, you end up losing a lot. In the world of business, there is no difference. Without a fully staffed team, you also lose a lot; or whatever your version of losing is. Unfortunately, consistent losing always leads to retention problems and the manager is left, again, struggling with an understaffed team.?

HARD TRUTH #2: The entire team suffers when a manager struggles to recruit.

Being on an understaffed team that keeps losing is not the only reason why people resign. When a manager is dealing with vacant roles, s/he will commonly ask existing team members to be a “team player” and pitch in. This is essentially asking for overtime. Now, instead of helping to remove obstacles, the manager, and his/her lack of ability to recruit, has become a frustrating obstacle for individuals to succeed.

To avoid overburdening the team, some managers try to do it all and carry the additional load by themselves. This never works. In addition to risking burnout, the manager is so busy s/he inevitably neglects the team and misses critical coaching opportunities. Ultimately, the performance of the team suffers, individuals are frustrated and the manager has to deal with the risk of more resignations. Unfortunately, everyone suffers when a manager struggles to recruit.

HARD TRUTH #3: Managers who struggle with recruiting also struggle with culture.?

Having a good culture (respect, collaboration, bias for action, etc.) is required for sustained success in any organization. Without it, people don’t identify with their organization and end up operating more like individual contractors. But, culture should not be viewed solely as an important ingredient for a team's success. In reality, there is a symbiotic relationship that exists between culture and success. The better the culture, the more a team succeeds. The more a team succeeds, the better the culture.?

Those of you who have played or watched sports know when a team keeps losing, the culture becomes toxic and the players turn on each other. You can even see this on national television, especially when a team is losing badly. The players, and sometimes even the coaches, are caught screaming at each other on the sidelines and have to be physically restrained. In contrast, teams that are winning are all smiles, high-fiving each other. During post game interviews, they praise one another. You can tell they are enjoying their experience.

The bottom line: poor recruiting leads to losing and losing kills culture. Because of the symbiotic relationship between success and culture, managers who struggle to recruit inevitably lose a lot and struggle with culture.?

THE SOLUTION

If some of these cold hard truths are hitting a sore spot and you recognize that recruiting is not a strength of yours, there is no need to panic. All of us who have enough management experience under our belt have made some of these mistakes along the way. Recruiting, like any other muscle, is a discipline that can be developed with consistent focus and effort. So, if you want eliminate the #1 reason why managers consistently fail, here are my recommendations:

BECOME A RECRUITER. It all starts with your mindset. I have seen so many hiring managers solely rely on their recruiter to hand deliver amazing candidates on a whim. This is ineffective and totally unrealistic. Nobody knows your business better than you. Your recruiting partner should be viewed as a recruiting supplement, not a miracle worker to solve your talent management problems. Change your mindset and take direct ownership of building the most important asset of the company - people.?

RECRUIT BEFORE YOU HAVE TO. I have seen so many managers scramble in desperation after getting a resignation notice. This behavior shows a lack of experience and limited understanding of how long and complex the hiring process is. Typically, it requires:?

• 1-2 weeks to request and review new resumes;
• 1-2 weeks to complete first round interviews;
• 2-3 weeks to complete additional interview rounds and/or case studies;
• 1-2 weeks to negotiate compensation;
• 2 weeks - 3 months notice period, depending on location/country; and
• 1-2 weeks (occasionally) for the candidate to decompress and prepare for a new job.

If your recruiting process starts only after receiving a resignation notice, you would be lucky to consistently backfill within 1 quarter because the process rarely goes smoothly. Most of the time, we encounter setbacks along the way:

• the first batch of resumes may not be a great fit;
• the candidates in the first round of interviews underwhelm;
• promising candidates select other companies;
• candidates use your offer to negotiate with other employers;
• non-compete clauses disqualify great candidates; or
• background checks don’t pan out.

Because of the complexity of the hiring process and the potential for so many setbacks, it frequently takes 2 quarters to backfill a role from the time someone gives a resignation notice. If you also add the typical new hire ramp period (1 quarter), most managers are looking at 3 quarters of lost productivity, which nobody can afford. To minimize this impact you must start recruiting before you have to. Start the process way in advance of getting a resignation notice.

ENGAGE YOUR RECRUITER. Most managers have a transactional relationship with their recruiter. They reach out only when there is an immediate need. This is a big mistake. Recruiters should join team meetings, at least monthly, to get a good feel for the team’s cadence and culture. This will help the recruiter hunt for the best candidates on your behalf. Invite your recruiter to your team meeting.

Next, schedule regular 1:1s with your recruiter to discuss strategies, industry trends and KPIs such as:

• # of outreaches (LinkedIn, Email, etc.);
• Candidate response rate;
• % moving to 2nd stage interviews;
• Case study success rate;
• Salary trends; and?
• Close rate.

Also, although it is uncomfortable, DO NOT forget to deep dive on hiring mistakes. We all learn the most when we drop the ball. Discuss and implement guardrails to prevent repeating the same mistakes. Whether you are reviewing KPIs, discussing strategy or inviting them to your team meetings, make sure to proactively engage your recruiter. Doing so will motivate your partner and make the collaboration more enjoyable while benefiting from better results.?

COMMIT 10-25% OF YOUR TIME. If you have an open role on your team, 25% of your calendar must be dedicated to recruiting activities. THERE ARE NO EXCEPTIONS. Your open role will tempt you to myopically focus on preventing a short term drop-off in results. Whatever you do, DO NOT compromise your commitment to recruiting and suffer long term underperformance. These are some of the meetings that should fill your calendar:

• Internal/External recruiters;
• Candidate interviews;
• Interview postmortems;
• Reference checks;
• Time blocks to review resumes and LinkedIn profiles; and
• Networking - lunches/dinners/coffee/calls.

If you don’t have an open role on your team, you must still consistently commit 10% of your time to the same recruiting activities. This takes tremendous willpower because there’s no immediate need; however, this is what differentiates run-of-the-mill managers vs. the cream of the crop. You never know when someone on your team will go on extended leave, try to transfer internally or resign. You also never know when you’ll be in another role needing to build a new team. Whatever it is, be prepared. Commit 10% of your calendar every week.

CONCLUSION

Over the years, I have worked with talented individuals unable to fulfill their potential as a manager because they could not effectively recruit. They were always running uphill, juggling multiple jobs and never in full command of their business. They never lasted. On the other hand, I have worked with struggling managers who put in the time and effort to develop a strong recruiting discipline. These managers had different outcomes. They delivered results and ran successful teams. You could tell their team culture was healthy and the team really enjoyed working with each other. Of course, there is much more to being a successful manager than just recruiting. But, in my experience, successful recruiting is the #1 common denominator that consistently determines success or failure.?

As I reflect on my own journey to this point, I’m very grateful for everything I have learned and experienced. What’s exciting is that I’m not done growing and I can become a more valuable asset for my organization. It is my hope that you benefit from my key learnings and recommendations as you go through your own journey. You will have your ups and downs but your career will grow faster if you minimize the downs by learning from other people’s mistakes. Good luck!

Lastly, I will be sharing more posts on other key lessons that I wish I knew years ago. There are a lot of topics that fascinate me so feel free to DM me if you have any recommendations or feedback. Thank you!

Sam