The Managers' Guide 93

The Managers' Guide 93
Riva del Garda
The mind of the beginner is empty, free of the habits of the expert, ready to accept, to doubt, and open to all the possibilities. - Shunryu Suzuki
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Wait… something has changed, right? Well, yes. I've decided to leave Substack. I'm now using the Ghost platform, but the rest is unchanged — the same old newsletter.

Eng org seniority-mix model

  • 🧩 The article explores a systems model for managing engineering seniority mix — balancing junior and senior engineers to control costs while maintaining organizational health.
  • 📊 Without deliberate policies, engineering organizations naturally become top-heavy — more senior engineers accumulate over time if departed employees are replaced at the same level.
  • 💰 This top-heaviness presents a financial challenge — senior engineers cost significantly more, impacting a company's ability to maintain free cash flow growth expected by investors.
  • ⚖️ Simply implementing a “backfill at N-1” policy (hiring one level down when someone leaves) isn't enough — it slows but doesn't prevent the organization from becoming senior-heavy.
  • 🛑 The most effective approach combines three policies — “backfill at N-1” + stopping external hiring at senior levels + capping the maximum number of people at the senior-most level.
  • 🔄 The author uses systems modeling with stocks and flows to demonstrate how different policies affect the organization's composition over time.
  • 📈 The modeling shows that without intervention, the ratio of senior to junior engineers becomes financially unsustainable — ideally there should be about five junior engineers for each senior one.

Decision-Making Pitfalls for Technical Leaders

🚀 Tech has a habit of promoting programmers into leadership roles with “zero transition coaching” — leaving them unprepared for the different decision-making requirements of leadership.

  • ❓ Pitfall #1: Assuming Context — blindly following “best practices” without understanding why they exist or if they apply to your specific situation.
  • ⚖️ Pitfall #2: Treating Everything as an Optimizing Metric — creating long lists of characteristics that all must be maximized, making decisions impossible since most choices involve tradeoffs.
  • 🔥 Pitfall #3: Manufacturing Emergencies — creating artificial time pressure through poor planning or exaggerating consequences, burning out teams and degrading code quality.
  • 🧠 To avoid Pitfall #1, leaders should “know what specific cases benefit from a candidate solution” — and be able to justify choices based on specific context and tradeoffs.
  • 🎯 For Pitfall #2, separate metrics into “optimizing” (where more is always better) and “satisficing” (where good enough is good enough) — focus on maximizing just 1-2 key metrics.
  • 🛡️ With Pitfall #3, recognize that “almost every urgent situation that a technical contributor has ever faced... is manufactured” — aim to shield your team from unnecessary pressure.

🧑‍🍳 The author contrasts two head chefs: one who runs a calm kitchen where staff can learn, and another who creates constant stress — tech leaders who “cosplay freakout chefs see much worse results.”

The Measurement Trap

  • 📊 The popular saying “If you can't measure it, you can't manage it” is often misattributed to Peter Drucker — who actually warned about measurement's dangers: “What gets measured gets managed — even when it's pointless to measure and manage it.”
  • 🏢 Nike provides a cautionary tale — under CEO John Donahoe, the company prioritized measurable outcomes (DTC sales, digital metrics) over harder-to-quantify elements like brand loyalty and product innovation.
    • 💰 The results were disastrous — Nike lost $25 billion in market cap in a single day as their strategy of eliminating product categories, shifting to DTC, and focusing on data-driven marketing backfired.
  • ⚠️ This problem has been recognized for decades — as early as 1956, V.F. Ridgway warned about the “dysfunctional consequences of performance measurements” when used indiscriminately.
  • 🧠 Both Drucker and quality expert Deming understood the limits of measurement — Deming noted that “the most important figures that one needs for management are unknown or unknowable.”
  • ⏱️ Short-term metrics often overshadow long-term value — metrics like conversion rates are easier to track than customer lifetime value, but may not capture what truly matters.
  • 🔬 The author values “experiment velocity” — tracking how many experiments teams run and their outcomes, while acknowledging this doesn't capture everything they're learning.

🧩 Great leadership requires balance — metrics are valuable tools but shouldn't be the sole driver of decisions, as they often miss intangible elements like team morale, creativity, and quality of decision-making.

Solving staffing challenges with concentric circles

🔄 Engineering leaders with hundreds of team members face constant staffing challenges — never having enough people with the right skills in the right places.

⚖️ When teams request more people, the obvious solution might seem to be prioritizing work through “stack ranking” — but this becomes incredibly complex at scale.

🏢 Most large organizations operate on a “pool of investments” approach — maintaining a balance of resources across products, rather than simply allocating everyone to the highest priority projects.

🎯 The author proposes solving staffing requests using “concentric circles” — starting from the innermost circle (the requesting team) and working outward.

⭕ Circle 1: Work with the requesting team to see what can be stopped, delayed or de-prioritized to free up capacity without adding people.

⭕ Circle 2: Look to the team's immediate neighbors (with shared manager) to see if people can temporarily move between sibling teams.

⭕ Circle 3: Explore moving people between teams in your broader organization (the traditional approach most managers jump to first).

⭕ Circle 4: As a last resort, work with peers to move people between organizations — the most disruptive option.

📚 This approach often solves problems by the second circle — making solutions faster and less disruptive while teaching managers to solve staffing problems with peers before escalating.

Lead By Example, Especially When No One’s Watching.

  • 📊 Leaders operate under a “persistent delusion” that some actions go unseen — when in reality, teams maintain a constant “invisible scorecard” of your behavior.
  • 🧠 Your team “doesn't hear what you say nearly as clearly as they see what you do” — the gap between preached values and actual practice creates a “credibility tax” on everything you say.
  • ⏰ The “After-Hours Test” reveals your true leadership principles — examining what you do when no one would know if you took shortcuts or when integrity is inconvenient.
  • 🔄 Great leaders don't have separate public and private behaviors — they follow the same standards alone as they do with the team, not as performance but as habit.
  • 💸 Leaders pay a “leadership tax” that individual contributors don't — following rules more rigorously and upholding values even when inconvenient.
  • 🌱 Leadership character is built through small, often invisible decisions — admitting ignorance, giving credit to absent team members, and upholding quality under pressure.

🔍 “The true measurement of leadership isn't what happens when you're in the room. It's what happens when you're not” — your principles should become embedded in the team's DNA.

Why startups should hire recruiters much sooner than they think

  • 💼 Startups should hire a recruiter among their first 10 employees — this may seem counterintuitive, but is critical for early-stage growth.
  • ⏱️ A dedicated recruiter saves founders substantial time — managing 50-100 outreach messages and 60–150 interviews for just two engineering hires would otherwise consume a founder's limited bandwidth.
  • 💰 While hiring a recruiter seems expensive upfront, it saves money long-term — product delays due to slow hiring can cost 6–8 months of momentum and allow competitors to “eat your lunch.”
  • 🌟 The founder remains a “talent magnet” but in a more strategic way — focusing on creating compelling content about the company's technical challenges rather than managing every recruiting email.
  • 🔍 Great recruiters demonstrate hustle, organization, and passion for the mission — they're proactive with sourcing strategies, meet candidates after hours if needed, and have impeccable follow-through.
  • 🛠️ Look for recruiters with experience in competitive environments — such as sales, recruiting agencies, or customer support roles with high talent bars.
  • 📈 Between hiring waves, recruiters can handle other HR functions — including onboarding, cultural initiatives, performance reviews, and organizing team offsites.

That’s all for this week’s edition

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See y’all next week 👋