This discussion explores the controversial management practices at Amazon, specifically focusing on stack ranking, unregretted attrition quotas, and the true nature of Performance Improvement Plans (PIPs). A former manager sheds light on why these systems exist, how they are manipulated, and the stark reality for employees who find themselves on the wrong side of a performance review.

The Mechanics of Unregretted Attrition

Amazon utilizes a system often referred to as "stack ranking," which includes a goal for "unregretted attrition." This requires managers to identify a certain percentage of their workforce (typically 4-7%) to manage out of the company annually.

• The "Nice" Problem: Amazon once experimented with removing this quota. The result was that managers stopped addressing poor performance, preferring to avoid conflict with likable but ineffective employees.
• Forced Conversations: The quota was reinstated to force managers to have difficult performance conversations, ensuring that underperformers are not ignored simply because they are socially popular.

The Futility of Performance Improvement Plans (PIPs)

While a PIP is theoretically designed to help an employee improve, the transcript argues that they are often "dishonest" or "psychologically unrealistic."

• The Decision is Already Made: By the time a manager drafts a PIP, they have usually already decided they want the employee gone to meet their quota.
• Confirmation Bias: Once an employee is labeled a problem, managers subconsciously view all actions through a negative lens. Recovery is nearly impossible.
• Advice for Employees: If placed on a PIP, the recommendation is to spend that time looking for a new job rather than trying to beat the impossible odds of the plan.

The Power of Narrative Over Data

A significant takeaway is the subjectivity of performance data. Managers possess the power to spin the same set of facts in two completely different ways.

• Subjective Interpretation: For example, a software engineer with high code review numbers could be framed as a "helpful force multiplier" or a "nitpicker who doesn’t write enough code."
• HR’s Role: Human Resources is not a safety net. Because HR frequently hears employees claim their managers hate them, legitimate complaints often get lost in the noise.

Conclusion

The system is stacked in favor of the manager. While managers cannot fire everyone, they have the discretion to end the career of almost any single individual by controlling the narrative before the employee is even aware of the issue. The ultimate advice for employees dealing with a vindictive boss is not to fight a losing battle, but to move teams or leave the company entirely.

Mentoring question

Reflecting on your current role, how susceptible are your performance metrics to subjective interpretation, and what steps are you taking to proactively manage the narrative of your contributions?

Source: https://youtube.com/watch?v=2GM1NfF_kHA&is=8E5iJgn9Fg-lGEef