5 Business Mistakes Technology Companies Make

by Joe Taylor

February 13, 2011 08:31 PM ET

Top 5 Business Mistakes

This article may be a tough pill to swallow for a lot of people because they may fall into some of the categories that I'm about to discuss. If that is in fact the case, perhaps you will get a new perspective and become a better employee, manager or business owner. Take the lid off, have an open mind, and lets dig in.

Mistake #1) Incapable Hiring Managers

Hiring is an art. Here are my top 5 hiring requirements.

Hiring Managers MUST Possess the technical knowledge

This is a big problem in the industry. Keep this saying in mind for later. "Those who can, do. Those who can't, teach." Tweak this saying slightly and you have something.

What if it were "Those who manage, have done it."

How can someone make a skillful decision on a qualified candidate if they have never done the job they are applying for? Without this, a LOT of money can be wasted in a short period of time. I have never, and will never hire a manager, to hire the talent. I hire the real hands on talent first, and either train them for promotion, or let them determine who's most suitable to be their boss.

Ability to see through the resume b.s.

Unless you've been living on the moon for the past 10 years, you know that just about everyone changes their resume for the job they are applying for. Houston we have a problem.

Why would you want someone to tweak their resume so that it fits your job req needs? That's insane. Folks, you need to know everything they have done in the past. This helps you assess what their true capabilities are. If Jesus just had carpenter on his resume, because some hiring manager told him to "only put your carpenter work on there" wouldn't you be a little upset if you later found out that he could turn your water into wine? That brings a new meaning to the phrase, GOOD LORD!

The Formal Interview Process is a Bust

Okay, I won't beat around the bush on this one. Interviewing someone in an environment they are not familiar / comfortable with typically leads to a chameleon affect. They are going to talk, mimic, and act as close as possible to those around them. Wouldn't you say that's going to lead to a misjudgement of character? No wonder people don't stay at companies for more than 2 years anymore. The first date was a dog and pony show for everyone involved. I personally believe that finding good employees should be like making friends. Find a common interest (the job need), pick a spot to hang out (coffee shop), and then start asking more in depth questions (casual interview) after everyone is comfortable.

Nike Got it Right

Before hiring a candidate, Nike has them meet other employees out for a drink before making their decision. This is genius, and common sense, and makes perfect sense. You will get to see what a person is really like in an environment that is not on the company's terms. Conversation and knowledge will be exchanged casually, and it isn't a high pressure situation, like cornering a wild animal with a spear, as you peg them with questions that have little relevance to the job they are applying for.

Regardless of what you think you know based on the answers an interviewer provides you, you're most likely wasting your time with a majority of your questions, and here's why. Ready? They are going to tell you what you want to hear.

Dumb Interview Questions

What are you basing your decisions on? Experience/qualifications, culture fit, stability, likeability, honesty, potential growth factor, affordability? Asking the applicant what the last business book they read is a total waste of time; unless they are applying for a teaching position at a business school. I've compiled a list of some of the dumbest interview questions I've found to date, and I had a little fun with the answers. I mean c'mon, who wouldn't want to give some off the wall answers to some of these questions?

Fun with the Dumbest Interview Questions

  1. What interests you about our company? - Um, you were hiring?
  2. What is your biggest weakness? - Kryptonite, naked people with spears? Yeah.
  3. Where do you see yourself in five years? People hardly know what they are doing next week; Stop asking this.
  4. Tell me about yourself - I like long walks on the beach...
  5. Why did you leave your last job - Something obviously didn't work out. But, I guess I can't speak bad about it...now can I?
  6. Are you applying for other jobs? - Yes, I think we should see other companies. It's not you, it's me.
  7. Are you a team player? - No, I was only child. I throw temper tantrums when someone touches my legos.
  8. How long would you expect to work for us if hired? - See #5
  9. Have you ever had to fire anyone? How did you feel about that? - It was awesome. That guys sucked anyway.
  10. What is your philosophy towards work? - Only work when the boss is looking, and leave early on Friday's. You?
  11. Have you ever been asked to leave a position? - Yeah, but I left that off the resume. We're still cool, right?
  12. Explain how you would be an asset to this organization - I'll always agree with you in meetings, and I won't play on Facebook 1/4 of the day.
  13. Tell me about a suggestion you have made - A co-worker had mustard on his face, and I said "Hey, you better get that mustard off your face" and he really appreciated that.
  14. What irritates you about co-workers? - Stinking up the bathroom.
  15. Tell me about your dream job. - One that doesn't ask me that question in the interview process.
  16. Why do you think you would do well at this job? - Because no one else is hiring.
  17. What are you looking for in a job? - Hmmm...one that pays? Those are good.
  18. What kind of person would you refuse to work with? - Hitler, Stalin, Ivan IV, Madonna?
  19. What is more important to you: the money or the work? - Am I rich in this scenario?
  20. Tell me about a problem you had with a supervisor. - We disagreed on something.
  21. Tell me about your ability to work under pressure. - One time I went scuba diving...
  22. Do your skills match this job or another job more closely? - My skills match whichever pays the most.
  23. Are you willing to work overtime? Nights? Weekends? - Nahhh, not really.
  24. Describe your management style. - I speak, they listen...aannnnnnd Boom goes the dynamite.

Ability to see multiple uses for an employee

Sometimes you can get 2, and 3 employees for the price of one. Find out what else they have mastered during their career. It may make, and save you lots of money in the long run.

Mistake #2) Hiring Top Talent and Micromanaging Them

What's the point in hiring a rock star, who is best in class at what they do, if you're going to just micromanage everything they do? I doubt the Sistine Chapel would have been what it is today, if the Pope called 3 meetings a day, and told Michelangelo which shades of blue to use for the sky.

Tell your crew what your goals are, then define the goals with them, and collaborate on a strategy based on the information their expertise has granted you.

Mistake #3) Managers

The idea or definition of a manager will vary depending on who you ask. Theoretically, they are nothing but managers of time and efficiency. Managers can also be the biggest waste of money in a heavily silo'd organization if not utilized and watched carefully. Often, they can be nothing more than official interrupters of your hard working employees, and add no real value to the company. They love to have meetings, lots of meetings. Rarely, if ever do quality action items become of these meetings. Usually, their only real job, is to "manage people" and participate in meetings and conference calls. Now, this is a person who sits in meetings with his "manager" and they brief each other on all the things they are "managing" for the company (tasks, hirings, firings) etc. At what point, were business teams unable to determine what they should be doing, and need someone to do their thinking and prioritization for them? If you're a manager at a technology company, you need to understand that the more you interrupt your developers, designers, IT folks etc, the more you delay your projects, risk having them make more mistakes on what they're working on, and risk aggrivating the employee to the point of not wanting to work with you anymore. I know this is harsh, but out of the hundreds of technology folks I've met, and worked with over the past 13 years, this is the reality for the vast majority of them. As a manager, you obviously want your team to be as efficient as possible, produce quality work, and participate in creating a great culture in your work environment. To be a better manager, you need to learn how to think like your employees, figure out how to stay out of their way, while keeping them enthusiastic about their work. We know you want to have your meetings, and "see how things are going" but learn to keep that at a minimum. Instead of dragging your entire team into a meeting, why not pull in one person and have a brainstorming session, then send your ideas to the team to look over at the end of the day. Brainstorming with 20 people in a room is not efficient. That's 20x their hourly rate x 1 hour. So in essence you just burned 20 hours of company pay by putting all those people in a room. That's the same as having an employee sit in a room with you for 20 hours a week to brainstorm. How's that for efficiency? With all the emails, chats, taps on the shoulder, and scrums, managers can make it difficult for the producers to "produce". It's extremely tough to blanket all managers as useless, but I'd say the numbers speak for themselves, so lets have a look.

9 out of 10 Managers Waste Time

  1. Frenzied Forty percent of managers are distracted by the many tasks they juggle every day. They are highly energetic but very unfocused and appear to others as frenzied, desperate, and hasty.
  2. Procrastinators Thirty percent of managers procrastinate on doing the work that really matters to the organization because they lack both energy and focus. They often feel insecure and fear failure.
  3. Detached Twenty percent of managers are disengaged from their work altogether. They are focused but lack energy and seem aloof, tense and apathetic.
  4. Purposeful Only 10 percent of managers get the job done. They are highly focused and energetic and come across as reflective and calm amid chaos.

Overcoming the Three Traps Of Non-Action

There are three common traps of non-action that managers must deal with.

  1. Overwhelming Demands Some day-to-day jobs are so demanding that they leave little time for reflection on what really matters. Rather than simply responding to any request that gets thrown at them, purposeful action-takers manage their demands by developing an explicit personal agenda, practicing slow management, structuring contact time, and shaping demands and managing expectations.
  2. Unbearable Constraints Many managers feel discouraged by corporate constraints to pursue goals they consider significant. Rarely are these constraints as absolute as managers make them out to be. To remove themselves from this trap, purposeful action-takers adopt strategies that include: mapping relevant constraints, accepting trade-offs, selectively breaking rules, and tolerating conflicts and ambiguity.
  3. Unexplored Choices Focused on job demands and constraints, most managers develop tunnel vision and concentrate on immediate needs and requirements, and are unable to exploit their freedom to make choices about what they would do and how they would do it. Purposeful action-takers, in contrast, avoid this trap by being aware of their choices; by expanding their opportunities and their freedom to take action on the choices they have; by developing personal competencies that both create choice and enhance their ability to make things happen; and by learning to enjoy both the freedom and the responsibility that choice brings with it.

Mistake #4) Unnecessary, Unproductive Meetings

Great ideas rarely come out of last minute meetings. I have always found it entertaining how managers think they can get great ideas and thoughtful answers to their questions by asking an employee to stop what they are doing (which probably has a deadline attached to it) to come into a meeting, to help them solve a problem they don't have an answer to. Oh, in 30 minutes. Now do that a couple of times per day, and you have a big day full of "not much done." I'll bet the majority of those employees are only thinking about what they have left to do for the day before they go home. How much work actually gets done during the coarse of a day at the office. See the next mistake.

Why the office is the worst place to work

Jason Fried is one of the foremost authorities on this subject. Sine he took the words right out of my mouth, just watch this video.

CNN Article

Mistake #5) The Home Depot Effect

"The Home Depot Effect" is when a company's online business is lead by people with no real online experience. This stemmed from Home Depot completely ignoring their dot com as a major source of revenue up until the housing market crash, when their online channel made over 300 million dollars while being almost completely ignored. Home Depot made a last ditch effort to quickly ramp up homedepot.com to shore up more revenue. This is where Home Depot made costly mistakes. Allegedly, Home Depot copied the Lowes.com website, ironically just as Lowes did a redesign of their own website.

Finally when Home Depot saw the revenue potential of homedepot.com, they started a hiring frenzy. The problem was the people doing the hiring (hiring managers) had no idea what they were doing in the world of online marketing, and had no business or qualifications to make any legitimate decisions as to who was qualified for the jobs they were hiring for.

The Net Result

Managers overselling leadership with goals that can't be met, which leads to managers in failing, high pressure situations, which leads to managers taking it out on employees, either by ingratitude or possibly malevolent relationships, and that leads to a calamitous, and extremely discouraging environment at the Depot.

Recruiters, former employees, even current employees recognize Home Depot (homedepot.com) as one of the worst working environments in the tech industry. This is a company with a churn rate higher than a butter factory.

Hopefully, your company avoids all the costly mistakes Home Depot made, and we hope the Depot gets it together one day.