The key insight is that in management, 10% of employees contribute 120% of the value, while the job of the remaining 90% is to not damage the company significantly. It's challenging to scale a company solely with top performers (A players) as they demand considerable equity and often aim to start their ventures. Instead, the focus shifts to identifying and rewarding the solid contributors (B players) who are crucial to the company's success. The speaker highlights three attributes common among top-performing employees: being predominantly women with mature prefrontal cortex, having a background in competitive sports like diving or gymnastics, and originating from elite universities. This hiring strategy, although controversial, had proven successful in identifying exceptional talent in their firm.
Claire Hughes Johnson, the former COO of Stripe and author of “Scaling People: Tactics for Management and Company Building,” joins Scott to discuss team management, the role of DEI, and how to identify top talent. Claire is an all-star operator — follow her on X, @chughesjohnson.
Scott opens by telling us about his new book, The Algebra of Wealth, which is out now!
Algebra of Happiness: what do you want to tell your friends and family?
Follow our podcast across socials @profgpod:
Learn more about your ad choices. Visit podcastchoices.com/adchoices