How “Repeat engagement” affects cooperation at IT companies..

Recap …

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Achieving cooperation and delivering is a priority for IT companies.

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As part of this blog series, we look at “systematic” concepts that help achieve cooperation. We’ve looked at …

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Today we talk about …

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Repetition

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Why is most food of a poor quality at tourist attractions ?

The food is NOT cheap. In fact, it is sometimes outrageous for the value.

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We purchased from a family grocer for almost 40 years !

Received the best quality products, with the best discounts. All without asking !

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I am sure you’ve already figured it out. Key is – Repetition.

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Let’s say a restaurant serves a poor meal at Jaipur’s Hawa Mahal. ( A famous tourist destination. )

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The opposite is also true. Our family grocer had a big disincentive while cheating. He would’ve lost repeat business.

PS : Repeat business is so important that it is a success metric !

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The prospect of future losses offsets the temptation to cheat now.

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Tech Companies

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The same goes for techies. Continuation of engagement/ employment drives, quality of work.

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In the same breath –

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Litmus Test

Repetition is used as a litmus test, across the industry.

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For an Organization :

If an employee has had a lengthy tenure with an org. Then, he has almost certainly performed above a threshold. In other words, the lengthy tenure proves –

Both valuable.

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The lengthy tenure guy HAD to deliver at some point. Whereas, the fickle one might’ve only hopped from one responsibility to another.

Using tenure as the proof – a less talented but loyal employee is more valuable. This compared to a sharp but unreliable one.

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To employees switching jobs every year :

Your experience does NOT prove your abilities. So – unless you prove talent another way, you are of poor value to an org.

Good orgs will avoid you; despite your talent.

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For an Employee :

If an organization has had a lengthy employee tenures. Then, it has almost certainly done some things right. Therefore, the lengthy tenures prove –

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A reliable but low-paying organization is more desired than a high-paying unreliable one. The good org HAD to deliver quality management at some point. Whereas, the other type orgs might’ve simply churned employees.

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If business at an organization is expected to grow. And if the organization wants to cheat its employees. Chances are that – it will recognize that it stands to lose more in the future due to the collapse of the cooperation. Therefore, it will be hesitant to cheat.

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To orgs churning employees :

Your total number of years does NOT prove your standing. So – unless you prove management abilities another way, you are of poor value to an employee.

Good employees will avoid you; despite your high salaries.

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Other factors – Economy

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Other factors like the economy also impact the repeat engagement.

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During times of economic booms, employees will be tempted to ‘move on’ i.e. end the repeat engagement.

The increased salaries at new organizations give them immediate upside. While the downside hits them only in the future. ( in case their new org terminates the employment )

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The opposite happens during economic downturns. Employees want to keep the engagement, while organizations dictate their salaries/ rewards.

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Review sites

Technology has played a BIG role in creating repetition. Think of review sites – Yelp, Glassdoor, Google reviews, Amazon reviews, Goodreads etc.

They create a memory of past behavior. Thus giving us repetition, where there was none.

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Earlier –

An organization was free to cheat its employees and let them go. The new employees would be a fresh batch of tourists to be cheated again !

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Reviews on Glassdoor create a memory of the cheating. New employees hesitate to join a toxic organization. The organization loses good talent and therefore business.

Essentially – The prospect of a future loss offsets the org’s temptation to make silly decisions now.

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Thus, review sites have increased the cost of stupidity. By introducing repetition.

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Wrap up

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Repetition is the last pillar to achieve cooperation at an IT company. Choices between a long term and a short term game become very different, for the same players.

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.In the spirit of repetition. Once again – these are the 6 pillars of getting cooperation at an IT org:

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Missed timelines, delayed projects, stretching programs, over-budgeted portfolios are common. Equally so within the IT industry.

While systems like – Performance reviews, HR practices, rewards etc help. Any system that misses either of the above pillars becomes dysfunctional.

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Hope the clarity helped. Happy team building !

Excerpts from: The Art of Strategy