Thread by @shreyas

First-time founders, CEOs, and even employees should understand the playbook of the Incompetent Leader (IL).

The IL is savvy & charismatic, and excels at 4 things:
1) Feign competence
2) Create confusion
3) Buy time
4) Fail up

The IL playbook & what to do about it
👇🏾

The IL’s most favorite move is simple: Buy Time

The IL’s 2nd most favorite move is: Buy More Time.

After doing this a few times, the IL’s masterstroke is: Fail Up.

The IL will repeat this a few times over a 20-30 year career to reach “spectacular success”

Here’s how it works:

Once upon a time:

IL joins a new company, with much fanfare from the CEO, who really wants this to work out.

Remember, the IL is incapable of making a significant, singular impact.

IL doesn’t want anyone to know this.

So what does IL do?

IL sets the playbook in motion.

Step 1 -

IL:
“I don’t have the right people. Cannot execute without the right team.”

CEO:
“I guess that’s reasonable. Do what you have to.”

Result:
IL has just bought 6-9 months to go hire org leaders, managers, while hiding incompetence behind charisma & confidence.

[after 6-9 months]

Step 2 -

IL:
“Have a better team now. Look how well I’ve hired! But my org doesn’t have the right structure. Not aligned with new strategy, worried execution will suffer.”

CEO:
“Hmmm… fine, go ahead.”

Result:
IL has just bought 3 months to plan re-org, 3 more to let it settle

[after 6 months]

Step 3 -

IL:
“Okay, that reorg helped & my people are firing on all cylinders. But I don’t have enough cross-functional alignment. We need a company re-org/Need to bring those functions into my org/Need new cross-func leaders”

CEO (pot committed):
“Fine, let’s do X, Y, Z here”

[after 6 more months]

Step 4 -

IL:
“Some of my key people left because of frustration with all of this. I need to replenish the gaps. Btw, look at these amazing results last quarter!”

CEO to IL:
“OK let me think about it”

CEO (thinking):
Those results are due to market tailwinds & not THAT amazing

[Privately, CEO makes a call to an executive search firm to begin finding a replacement for IL]

[At the next CEO/IL 1:1]

CEO:
“It’s time to part ways”

IL (after expressing some incredulity & outrage):
“I understand. I want to do what's best for the company. Let’s work on a comms plan for my departure”

[IL or CEO send an announcement to the company reflecting, thanking, looking onward/upward, etc]

Step 5 -
(most vital move for IL)

IL (in interview with hot company Foobar):
“Here’s everything I built at previous company. Company grew 70% in my 2 yrs there despite all the challenges I faced”

CEO of Foobar:
“When can you start?”

[and THAT is how our IL fails up]

THE END

The details might change, but it isn't uncommon for such stories to play out at many companies at various levels, from line management to executives.

Companies are complex, noisy entities & its hard even for very smart people to cut through that & see what's *really* happening.

Fortunately, there are ways to reduce your odds of hiring ILs. And to cut your losses early, if you've already hired one. They aren't easy, but almost nothing that's important is easy.

I'll leave you with some solutions below.

Do this:
1. Account for tailwinds when assessing a candidate's past impact

2. Probe the candidate & references for the leader's singular impact ("tell me why this wouldn't have been achieved w/o you at the helm")

3. Turn yourself into a person who doesn't get swayed by charisma

Btw, #3 is good to do for general happiness in life.

Everyone likes to think they are impervious to charisma, but few actually are.

This doesn't mean charisma is bad. We should all try to build more. Just don't use it for evil & don't get influenced by others' charisma yourself

Do this (contd):

4. Establish this management philosophy, beyond a certain levels of leadership: Excuses Don't Matter

5. Be sure to clarify to prospective leaders at your startup that they won't be rewarded for "rearranging deck chairs" (this should scare many ILs away)

Do this (contd):

6. For leaders you've already hired, don't fall prey to confirmation bias early on. Remember, you'll want to feel like you made the right choice & that will make you less objective

7. Make sure leaders know they won't get credit for tailwinds & legacy momentum

(lastly, the most important tip)

Don't compare a leader's impact with the state when there was no leader in that function or when you were leading it up on an interim basis.

Compare their actual impact to what you expect the impact to be with a world-class leader in that role.

Back to the top of this thread:

https://twitter.com/shreyas/status/1339997380335128576

Some more thoughts/resources👇🏾

I first started thinking about this topic after listening to The Hard Thing About Hard Things.

In it, @bhorowitz talks about how it's hard to manage executives because they are super-savvy. Generic mgmt advice doesn't work.
smile.amazon.com/Hard-Thing-Abo…

"Stealing the Corner Office" is an interesting read, but not for the reasons its author describes.

It is useful for first-time founders, CEOs, and benevolent executives because it lays out the machiavellian tactics that many ILs tend to employ.

smile.amazon.com/Stealing-Corne…

You'll see ILs at very large companies, but I've at times also seen such issues at startups I've talked to/advised.

In largecos, it can take up to 2 years to identify ILs (i.e. the timeline I shared above).

At startups, 6 months suffice. But 6 mos is a long time for a startup!

If you found this thread useful and are looking for more resources to combat these issues, check out this related thread I wrote in May 2020:

https://twitter.com/shreyas/status/1260601045178216448

This is why Intent is paramount
(more impt than other apparent skills)

https://twitter.com/shreyas/status/1289547795028824064

Related, this stack rank applies to us as individuals & to the teams we lead

https://twitter.com/shreyas/status/1285751991390461953

Beware the "X for Y" Proxy Delusion

https://twitter.com/shreyas/status/1255489241364279299

Some (but not all) Incompetent Leaders swear by the "Fake it till you make it" mantra. The problem is not the mantra itself, but their interpretation of it. This short thread describes the problem with "Fake it till you make it" and how to properly use it

https://twitter.com/shreyas/status/1259165739778404352

Because ILs aren't actually very good with unique insights that will move the business forward, they optimize somewhat blindly towards metrics & incentives. They often use metrics & incentives as a way to defend their actions. My opinion on that approach:

https://twitter.com/shreyas/status/1292324825310978049

The IL as described here has a lot in common with a couple of manager anti-patterns. Check out #4 and #7 in particular, in this thread of 7 manager anti-patterns:

https://twitter.com/shreyas/status/1287142367816908800

While this thread has largely been about what *not* to do as a leader & a manager, you can check out the thread below for a perspective on what *to* do:

https://twitter.com/shreyas/status/1290685921348562948

This short tale is quite relevant, worth a read
(h/t @kedarbmehta)

outsideinlens.blogspot.com/2009/12/story-…