FORWARD BASE B

"Pay my troops no mind; they're just on a fact-finding mission."

The Power of Great People (why “good enough” won’t cut it)

Great people are five times as valuable as good people. This especially applies to engineers. You cannot just throw bodies at a problem (see the classic Mythical Man Month for more info). Sometimes less people can actually accomplish more.

In fact, it’s pretty much impossible to tell from a resume if someone is great. It’s easy to look at a resume and say “this person is at least good” or “they’re not bad.” But great people are rare and very hard to spot on paper and it takes a long time to find them.

But great people are worth it. In markets characterized by winner takes-all – increasingly true in a globalized world – you need the very best; “good enough” will no longer cut it when against intense competition. These are the people that build great and lasting companies. Companies that are lucky are built on the backs of good people.

But determining a great software developer is not impossible either. To me it is amazing how some start-ups choose who they hire – many seem to hire anyone that went to MIT. That means they are outsourcing their hiring to the $40k/year admissions officer at the college who evaluated the person when they were 17! Do you really want to entrust your hiring to a bureaucrat? This is an extremely bad strategy. Of course, many people who went to MIT are real rock-stars and people who went to MIT might be more likely to be rock-stars than people who went to a lesser-known school, but most are only good … you need to work to find the great people.

By asking pointed questions and giving tough exercises, you can determine with high accuracy if someone is really amazing. In fact, I make it a point not to ask questions like “what do you like to do outside of work?” It’s better to ask them to solve tough problems and get to understand their thought-process. Great people have interests that often converge with what they do at work. At Rapleaf we do at least four rounds of interviews and we take our time. This means we occasionally lose some great people, but we err on not having false positives.

If you are Google or Microsoft today, you can afford to hire good people. Great people are of course preferred, but 90% of their hires today are just good people. You have lots of processes, product requirement documents (PRDs), and you need people to just code to spec and follow instructions. In fact, you might even want to outsource, because creativity isn’t always required. It isn’t always needed … and with respect to a big company, creativity sometimes gets in the way.

But if you are Google or Microsoft, back when the company was under 50 people, you couldn’t afford to hire anyone but someone that was great. Anyone good would just have to wait a few years until the processes were developed enough to support those types of people. If you’re a start-up who’s goal it is to be the next Google, then you’ll have to attract, hire, and retain great people. And so if you’re looking to go from good to great, throw out your Jim Collin’s book and just focus on hiring great people.

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