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Opening Salvo
Buyouts have been around forever, so what holds my attention is the timing. Somebody designed an exit ramp at day fourteen and built it into the standard process, which says more about the fourteen days before it than about the ramp. What has selection been producing, and what has onboarding been doing with them?
A culture is the behaviors that happen and the ones that don’t, and an exit ramp at day fourteen is one of them.
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The Fact Pattern
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Talent Management 101 (TM101)
Sorting Effects: You Select On Whatever The Offer Measures
Personnel economics separates what an incentive does to effort from what it does to composition. The first is the incentive effect, the second the sorting effect, and an offer to exit is pure sorting, which is only as good as the trait the offer reads.
That offer reads liquidity, outside options and tolerance for risk, which travel with tenure, savings and how easily someone believes they’d be hired again. Commitment tracks them loosely, so the organization selects on a trait it never intended and reads the result as character.
Why It Happens
Sorting returns an answer and measuring returns a project: The offer resolves in two weeks, and a record supporting the same decision takes a cycle.
The response becomes the definition: Whoever stays counts as committed because they stayed, which makes the instrument its own validation.
The measurement has no owner: The program owner has take rate, managers have the people, and the missing measurement belongs to whoever sets how performance gets assessed.
The counterfactual leaves with the person: Anyone who takes it might have performed under different expectations, and nothing holds the information that would say.
The Question Organizations Avoid
If you named the three people you’d pay to leave, then produced the record you named them from, what would you be holding?
The Plug
This newsletter is brought to you by AstutEdge, a performance improvement consultancy. We help organizations close the gap between what leadership intends and what actually gets executed by fixing the misalignment in people, systems, and structure that stalls results.
We work through consulting engagements and coaching. If your organization is producing effort without outcomes, let's talk.
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