Posted: by HRNasty in Climbing Career Ladder, Company Culture

stack ranking

Bust out the champagne, no more stack ranking! Or so you thought.

Microsoft does away with Stack Ranking

As an HR Hack, I think that the change of heart at Microsoft on the stack ranking management review and compensation system is great for their culture and as well as for all of HR.  Stack ranking at MSFT gives all HR practitioners a bad name regardless of where they work. The HR side of me is glad MSFT pulled the trigger and the recruiter side of me is a little pissed. Working in a start up, I don’t have the fancy benefits program, I don’t have the fancy cafeteria, and I don’t have the world class brand to help me recruit passive candidates.  (Candidates not actively looking for a job)  The one thing I knew I could count on was that I could use the stack ranking management practice as a tool to recruit “A” players out of Microsoft. 

I live in the shadow of the Microsoft campus and work on the West Syieeede AKA Seattle.  I am a HUGE fan of what Bill Gates has done for the world and specifically the culture of philanthropy in the Pacific Northwest.  MSFT has created more gajillionairs and millionaires that have a sense of philanthropy than most companies out there and Bill Gates, I thank you for that.  In an age where most have an attitude of “me – me – me” your sense of giving is a breath of fresh air. The scale at which you execute this attitude toward giving is ludicrous, and I say that in a good way.  

As a recruiter and an HR person, I never cared for the stack ranking system.  

I have always been a proponent of the following hiring theory: 

If you have a single opening and Leonardo Da Vinci and Einstein are interested in the position, you pick em’ both up.  You find a way, you make room and you do not let one of them go to the competition 

The flip side of this is that if you have a DiVinci, Einstein, Malcom Gladwell, and Stephen Hawking on your team, how do you stack rank these guys? An outlier case to be sure, but you see where I am coming from.  Tough to build a team atmosphere and a culture of long-term relationships when someone is going to be destined to the short bus. It can be easy to chase an “A” player to the competition. 

The day the news came out that MSFT was abandoning the stack ranking practice, I received a couple of emails from employee friends that work at MSFT. These are senior employees.  Stupid smart and making crazy money, employees.  Some of these employees are making professional ball player money. One email rang loud and clear, and I quote:  

“I should probably start drinking champagne now.  This is the best news in the world. 🙂 

Not so much that this employee was worried about her position or her ranking, she was at the top of her heap.  Stack ranking just doesn’t build a culture conducive to the Pacific Northwest where we wave cars to cross an intersection ahead of us and we volunteer our directions when we see lost tourists trying to decipher maps of the local area.    

My gut reaction was that MSFT just made my job a lot harder as a recruiter.  My initial thought was that the stack ranking was exactly one of the things that most of the folks I recruited were trying to escape and now that MSFT eliminated this “best practice”, one of my most potent weapons was off the table.  I was coming to a gun fight with the preverbal knife.  

But the more I thought about it, the more I realized that I don’t really have to worry.  Although the practice of stack ranking may no longer be on the books at MSFT, there are many senior managers that have been practicing stack ranking for a lot of years. These folks don’t know any other way. To land a senior position, generally speaking you will have been with the company for a lot of years. The practice of stack ranking is now inbred into the culture of the company. This mentality isn’t going to dis appear over night. I don’t see managers really changing their view towards middle tier players and bottom tier players.  They may not say it out loud, they may not have to write the name down at the bottom of the list, but the mentality will still exist. You don’t kill something like this over night.     

Maybe it takes a minority to see this, but I wonder what kind of training that MSFT may be implementing to de-program it’s managers mindset around stack ranking. Just because an idea becomes a law, doesn’t mean that anything will change. Just because someone sends out an email, doesn’t mean everyone is going to play nice. My gut tells me that there will still be a glass ceiling that A players in a pool of A players will need to bust through, and it will be very difficult.      

I applaud MSFT for updating it’s review process. All change takes time, and we need to start somewhere. The journey of 100 miles begins with a single step and this is MSFT first, single step.  That being said, I believe it will be awhile before the idea of stack ranking disappears from the culture.  

In the mean time, I will still be looking for A players out of MSFT who are tired of seeing other A players get the shaft. 

See you at the after party, 

HRNasty

nasty:  an unreal maneuver of incredible technique, something that is ridiculously good, tricky and manipulative but with a result that can’t help but be admired, a phrase used to describe someone that is good at something. E.G.  “He has a nasty fork ball”.

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  • MSFTguest

    3 years later and the stack ranking still exists. managers are budgeted less then the employee bonus potential, so are forced to allocate funds between employees. Satya has good intentions, but it will take a l-o-n-g time for the cut throat and internal competition to dissipate.

    • MSFT Guest, I agree with you, Satya had good intentions, but the saying is true, it is hard to teach an old dog new tricks. If someone has been a manager for 10 – 20 years, grew up with a specific mentality, even with permission, I think it can be challenging for some folks to adapt. All I can suggest is that you reinforce what you are doing to your manager on a monthly basis via email and spell out the results of your efforts. If you are top of mind with your manager, your efforts won’t be forgotten. Thanks for the support of the blog, HRN

  • Human Capital

    Thanks admin for your kind information with us ..This website is very informative for me and I can bookmarks this for future , Kindly keep in touch ..

    • Human Capital, thanks for stopping by and the support. Yes, absolutely, lets keep in touch. Looking forward to hearing from you in 2014!