The Alliance

Reid Hoffman, Founder and Chairman Linked In

This is a book about the employer –employee relationship. The author suggests that the relationship should be one of ‘allies’.

The employer-employee relationship today is based on a dishonest conversation

The old model of life time employment for loyalty was relevant in an era of stability

Trust in a business and trust in senior management is at an all time low.

The business world needs a new framework that builds mutual trust, mutual investment and mutual benefit between employer and employee

Employment now is an alliance-with mutual benefits and explicit terms.

Employees need to tell their bosses- help me grow and flourish and I will help the company grow.

Organizations are like professional sports teams. The members come together to accomplish something significant.

Teams win when individual members trust each other to prioritize team success ahead of individual glory.

Paradoxically, winning as a team is the best way for the team members to achieve individual success.

Each employee must have a tour of duty, borrowed from the military which is a specific assignment for a specific time with specific results. Doing one tour of duty right entitles you to the next one.

Acknowledging that an employee might leave a company is the best way of building trust. This enables great people to stay.

If you hire good people, then it is the role of the employer to create an environment where people decide to stay and invest their time.

Most managers spend their time ‘managing their people’ as opposed to having a set of honest conversations and defining expectations.

‘Alignment’ today is to seek commonality between the company’s purpose and the employees career purpose and values.

Having honest conversations

• Define values in a group

• Define personal values one on one

• Build trust by opening up

• Be sensitive to power imbalances

• Choose metrics that are leading indicators

In the old economy, success meant keeping your manager happy. This forced both to look inward. Inward focus over time becomes a self defeating exercise.

Growing their professional networks helps employees transform their careers. Employers should encourage this.

There are more smart people outside your company versus within your company. Hence, it is always important to talk to the eco system.

Managers tend to be inward looking. Despite the benefit of an outward focus, managers tend to focus inward on resources they personally control. That is a weak manager

Employees who are thought leaders outside the company improve the company’s brand and image.

Build an effective alumni network, this will help company image and also be a key source for recruiting good people.