The following is a good article on what a CEO should do to attempt to minimize corporate politics, and it provides some good hypothetical situations to bring up to see if a potential employer is actually doing anything to effectively combat such political machinations.
Source:
http://www.bhorowitz.com/how_to_minimize_politics_in_your_company
Political behavior almost always starts with the CEO. Now you may be
thinking: “I hate politics, I’m not political, but my organization is
very political. I clearly didn’t cause this.” Sadly, you needn’t be
political to create extreme political behavior in your organization. In
fact, it’s often the least political CEOs who run the most ferociously
political organizations. Apolitical CEOs frequently accidentally
encourage intense political behavior.
What do I mean by
politics?
I mean people advancing their careers or agendas by means other than merit and contribution. There may be other types of politics, but politics of this form seem to be the ones that really bother people.
How it happens
A CEO creates politics by encouraging and sometimes incenting
political behavior—often accidentally. For a very simple example, let’s
consider executive compensation. As CEO, senior employees will come to
you from time to time and ask for an increase in compensation. They may
suggest that you are paying them far less than their current market
value. They may even have a competitive offer in hand. Faced with this
confrontation, if the request is reasonable, you might investigate the
situation. You might even give the employee a raise. This may sound
innocent, but you have just created a strong incentive for political
behavior.
Specifically, you will be rewarding behavior that has
nothing to do with advancing your business. The employee will earn a
raise by asking for one rather than you automatically rewarding them for
outstanding performance. Why is this bad? Let me count the ways:
- The other ambitious members of your staff will immediately agitate
for raises as well. Note that neither this campaign nor the prior one
need be correlated with actual performance. You will now spend time
dealing with the political issues rather than actual performance issues.
Importantly, if you have a competent board, you will not be able to
give them all out-of-cycle raises, so your company executive raises will
occur on a first-come, first-serve basis.
- The less aggressive (but perhaps more competent) members of your
team will be denied off-cycle raises simply by being apolitical.
- The object lesson for your staff and the company will be the squeaky wheel gets the grease and the political employee gets the raise. Get ready for a whole lot of squeaky wheels.
Now let’s move on to a more complicated example. Your CFO
comes to you and says that he wants to continue developing as a manager.
He says that he would like to eventually become a COO and would like to
know what skills he must demonstrate in order to earn that position in
your
company. Being a positive leader, you would like to encourage him to
pursue his dream. You tell him that you think that he’d be a fine COO
some day and that he should work to develop a few more skills. In
addition, you tell him that he’ll need to be a strong enough leader,
such that other executives in the company will want to work for him. A
week later, one of your other executives comes to you in a panic. She
says that the CFO just asked her if she’d work for him. She says that he
said that you are grooming him to be the COO and that’s his final step.
Did that just happen? Welcome to the big time.
How to minimize politics
Professionals vs. Amateurs
Minimizing politics often feels totally unnatural. It’s counter to
excellent management practices such as being open minded and encouraging
employee development.
The difference between managing executives
and managing more junior employees can be thought of as the difference
between being in a fight with someone with no training and being in a
ring with a professional boxer. If you are in a fight with a regular
person, then you can do natural things and they won’t get you into much
trouble. For example, if you want to take a step backwards, you can pick
your front foot up first. If you do this against a professional boxer,
you will get your block knocked off. Professional boxers train for years
to take advantage of small errors in technique. Lifting your front foot
first to take a step backwards will take you slightly off balance for a
split second and that’s all your opponent will need.
Similarly,
if you manage a junior employee and they ask you about their career
development, you can say what comes naturally and generally get away
with it. As we saw above, things change when you deal with highly
ambitious, seasoned professionals. In order to keep from getting knocked
out by corporate politics, you need to refine your technique.
The Technique
As I developed as a CEO, I found three key techniques to be extremely useful in minimizing politics.
1. Hire people with the right kind of ambition—The
cases that I described above might involve people who are ambitious,
but not necessarily inherently political. All cases are not like this.
The surest way to turn your company into the political equivalent of the
US Senate is to hire people with the wrong kind of ambition. As defined
by Andy Grove, the right kind of ambition is ambition for the company’s
success with the executive’s own success only coming as a by-product of
the company’s victory. The wrong kind of ambition is ambition for the
executive’s personal success regardless of the company’s outcome.
2. Build strict processes for potentially political issues and do not deviate—Certain activities attract political behavior. These activities include:
- Performance evaluation and compensation
- Organizational design and territory
Let’s examine each case and how you might build and execute
a process that insulates the company from bad behavior and politically
motivated outcomes.
Performance and compensation—Often
companies defer putting performance management and compensation
processes in place. This doesn’t mean that they don’t evaluate employees
or give pay raises; it just means they do so in an ad hoc manner that’s
highly vulnerable to political machinations. By conducting
well-structured, regular performance and compensation reviews, you will
ensure that pay and stock increases are as fair as possible. This is
especially important for executive compensation as doing so will also
serve to minimize politics. In the example above, the CEO should have
had an airtight performance and compensation policy and simply told the
executive that his compensation would be evaluated with everyone else’s.
Ideally, the executive compensation process should involve the board of
directors. This will a) help ensure good governance and b) make
exceptions even more difficult.
Organizational design and territory—If
you manage ambitious people, from time to time, they will want to
expand their scope of responsibility. In the example above, the CFO
wanted to become the COO. In other situations, the head of marketing
might want to run sales and marketing or the head of engineering may
want to run engineering and product management. When someone raises an
issue like this with you, you must be very careful about what you say,
because everything that you say can be turned into political cannon
fodder. Generally, it’s best to say nothing at all. At most, you might
ask “why?”, but if you do so be sure not to react to the reasons. If you
indicate what you are thinking, that information will leak, rumors will
spread and you plant the seeds for all kinds of unproductive
discussions. You should evaluate your organizational design on a regular
basis and gather the information that you need to decide without
tipping people to what you plan to do. Once you decide, you should
immediately execute the re-org: don’t leave time for leaks and lobbying.
Promotions—Every
time your company gives someone a promotion, everyone else at that
person’s level evaluates the promotion and judges whether merit or
political favors yielded the promotion. If the latter, then the other
employees generally react in one of three ways:
- They sulk and feel undervalued
- They outwardly disagree, campaign against the person, and undermine them in their new position
- They attempt to copy the political behavior that generated the unwarranted promotion
Clearly, you don’t want any of these behaviors in your
company. Therefore, you must have a formal, visible, defensible
promotion process that governs every employee promotion. Often this
process must be different for people on your own staff (the general
process may involve various managers who are familiar with the
employee’s work, the executive process should include the board of
directors). The purpose of the process is twofold. First, it will give
the organization confidence that the company at least attempted to base
the promotion on merit and second, the result of the process will be the
information necessary for your team to explain the promotion decisions
that you made.
3. Be careful with “he said, she said”—Once
your organization grows to a significant size, members of your team
will, from time to time, complain about each other. Sometimes this
criticism will be extremely aggressive. Be very careful about how you
listen and the message that it sends. Simply by hearing them out without
defending the employee in question, you will send the message that you
agree. If people in the company think that you agree that one of your
executives is less than stellar, that information will spread quickly
and without qualification. As a result, people will stop listening to
the executive in question and they will soon become ineffective.
There are two distinct types of complaints that you will receive:
- Complaints about an executive’s behavior
- Complaints about an executive’s competency or performance
Generally, the best way to handle complaints of type 1 is
to get the complaining executive and the targeted executive in the room
together and have them explain themselves. Usually, simply having this
meeting will resolve the conflict and correct the behavior (if it was
actually broken). Do not attempt to address behavioral issues without
both executives in the room. Doing so will invite manipulation and
politics.
Complaints of type 2 are both more rare and more
complex. If one of your executives summons the courage to complain about
the competency of one of their peers, then there is a good chance that
either the complainer or the targeted executive has a major problem. If
you receive a type 2 complaint, you will generally have one of two
reactions: a) they will be telling you something that you already know
or b) they’ll be telling you shocking news.
If they are telling
you something that you already know, then the big news is that you have
let the situation go too far. Whatever your reasons for attempting to
rehabilitate the wayward executive, you have taken too long and now your
organization has turned on the executive in question. You must resolve
the situation quickly. Almost always, this means firing the executive.
While I’ve seen executives improve their performance and skill sets,
I’ve never seen one lose the support of the organization then regain it.
On
the other hand, if the complaint is new news, then you must immediately
stop the conversation and make clear to the complaining executive that
you in no way agree with their assessment. You do not want to cripple
the other executive before you re-evaluate their performance. You do not
want the complaint to become a self-fulfilling prophecy. Once you’ve
shut down the conversation, you must quickly re-assess the employee in
question. If you find that they are doing an excellent job, then you
must figure out the complaining executive’s motivations and resolve
them. Do not let an accusation of this magnitude fester. If you find
that the employee is doing a poor job, there will be time to go back and
get the complaining employee’s input, but you should be on a track to
remove the poor performer at that point.