However, it’s not just engineer driven companies that are experiencing this transition. A survey by Virtuali found that 83% of millennials want fewer layers of management. This means they want managers who are easily approachable and willing to take their opinions into account. This is evident in today’s millennial led organizations that favor open work spaces where CEOs, managers and employees work alongside each other.
Leading gaming company Valve took it so far as to abolish the management level entirely, instead relying on a completely flat organizational structure. Avant garde shoe company Zappos has become well known for being the first large company to introduce holacracy, an organizational structure that focuses less on traditional management roles and more on autonomy. Google itself experimented with a flat structure in 2002 but had to revert back a few months later. Project Oxygen came about in 2008 as a means to address the management crisis.
In an environment where the conventional is always challenged, Google’s People Innovation Lab started Project Oxygen trying to prove that manager quality does not have an impact on performance. To prove this point they hired a group of statisticians to evaluate the differences between the highest and lowest rated managers. Data was collected using past performance appraisals, employee surveys, interviews and other sources of employee feedback.
However, instead they proved that good management actually makes a difference. To better define what makes a good manager they came up with a list of 8 qualities based on the data received.
Google’s Project Oxygen findings
- Is a good coach
- Empowers the team and does not micromanage
- Expresses interest in and concern for team members’ success and personal well-being
- Is productive and results-oriented
- Is a good communicator—listens and shares information
- Helps with career development
- Has a clear vision and strategy for the team
- Has key technical skills that help him or her advise the team
While this list seems obvious there were three reasons why it had such a big impact on management at Google. First, it was based on people analytics. At Google scientific evidence is key, therefore using people analytics gave the project greater credibility. The fact that it was based on employee feedback encouraged wider employee buy in and trust. Similarly, the hard data helped to convince managers why they needed to improve their management style.
Second, the interesting thing is that technical skills came in last. While it’s important that managers have the needed technical level to guide employees, soft skills such as coaching and communication are absolutely essential. This proves that being a great developer doesn’t necessarily make you a great manager.
Third, it provided a checklist of management qualities. As Bock explains in his book, whether or not your manager is well versed in management 101 and every training course your company offers, having a checklist makes a big difference as it actually reminds managers to remember and implement these skills on a daily basis.
As a result, Google changed its feedback surveys to mirror these qualities. Instead of simply measuring how much output a manager achieves, the surveys now focus on how much time they spend coaching their team, whether or not they communicate a clear vision, etc. They also developed new management training programs centered around these skills.
Donovan explained that, “Having a good manager is essential, like breathing. And if we make managers better it would be like a breath of fresh air.” As Google takes its No. 1 spot for the sixth year in a row in Fortune’s ‘100 Best Companies to Work For’ list, isn’t it time to try a new strategy for developing your managers?
How this applies to your company
Great employees don’t always make great managers
Though it may be common sense that a company of engineers would value technical knowledge and ability in a manager, it is telling that this skill came in last place on Google’s list.
Great employees don’t always make the best managers - some engineers may prefer to focus on their work. You have to have patience, great communication skills, the ability to see the big picture and create long term goals.
The problem is that the traditional company is based on linking promotions with higher levels of managerial responsibilities. It’s time for your company to rethink this strategy. Instead of putting people with great technical skills in management positions, put people with great leadership skills. Some companies have instituted dual tracks so that not everyone has to take the management path.
Become a great coach
Becoming a great coach, especially in the tech world, is essential. What engineers, developers and everyone under the sun really want is a manager who knows how to distinguish the line between coaching and micromanaging. To learn where this line lies, think about your employee. Are they an engineer with +5 years of experience? Then what they probably need most is a manager who will help them to set goals and then stand back and allow them to execute them in their own way (as long as this gets results). As a manager one of your most important responsibilities is to guide your employees towards goals that fall in line with your company’s objectives and and long term goals.
That being said, also allow some space for creativity. Google’s 20% time resulted in popular products such as Gmail and AdSense. While there are rumors that this is not an official policy of Google anymore, as a manager, encouraging employees to take some time to work on an innovative new project they’ve pitched can bring you great products and loyalty from motivated employees.
New engineers on the other hand may need more coaching. Here the line may become thinner but the best way to provide guidance while not encroaching on your employee's freedom is through feedback.
Being able to give feedback the right way is the strongest tool in your management utility belt (think more Batman than Home Depot). Two-thirds of millennials believe it’s their manager's responsibility to provide them with development opportunities. Despite this many managers are often hesitant to give constructive feedback to their employees, fearing their reaction. However, this is a major part of the development process, if your employees don’t know what they need to do to improve, their professional development could become stagnant.
Delivering well balanced actionable feedback is the answer. When you have to deliver constructive feedback, some managers balance it out by first explaining to their employee what they’re doing well. Always make sure your feedback places emphasis on actions and completely avoids personality traits. For example, “I noticed you talked over Mark in the meeting yesterday” rather than “You’re overbearing in meetings.” Always provide advice on how they can fix the situation and discuss the best solution. For more in depth background, check out this article on how to give feedback.
In return, it’s also important to millennials that managers are open to their feedback. This generation does not like to see hierarchal barriers that prevent their ideas from being heard. This means that managers also have to be good at not only receiving feedback, but acting upon it as well.
Finally don’t forget that positive feedback is also needed. When your employee reaches an achievement a great coach always remembers to recognize them for their efforts.
Get to know your employees
This is important both at a professional and personal level. Getting to know your employees’ strengths will help you give better feedback and show them you have a genuine interest in their career. Managers who know their employees’ strengths are 71% more likely to have people who are engaged and energized. Showing them you’re taking an interest in their career and professional goals will help you gain a loyal workforce.
Give your managers the tools they need to lead the modern workforce
Just like your employees, offering regular trainings on key skills will keep managers engaged and motivated to improve their management strategies. A few topics that every management training program should include:
Providing your managers with helpful tools will allow them to stay on top of feedback, keeping employees motivated. Using the data rich reports generated by systems like this enable your managers to gain deeper insights into their employees’ strengths and recognize when more coaching is needed. Other features, like 360 degree reviews means that managers can also receive feedback from reports, breaking down hierarchies and providing them with valuable information.
Depending on the system you select, the data can be used to instantly generate analytics reports that can be used by HR to identify top performing managers who would make great peer coaches or managers who might need extra training in certain areas.
Whatever your approach or the tools you choose to use, you will always need to provide development opportunities for your managers. To learn more about how to do this, download our White Paper on How to Develop Your Managers, below.