Meta VPs Getting Squeezed Out Amid 'Permanent' Efficiency Mode
What specific changes is Mark Zuckerberg implementing to streamline Meta's reporting structure?
Mark Zuckerberg is working to streamline Meta's reporting structure by reducing the number of vice presidents within the company. Previously, the number of VPs peaked at around 300, and Zuckerberg aims to get the total number closer to 250. This is part of his effort to have fewer people in the middle and top layers of management and increase the number of people at the bottom. The changes are being implemented through half-year "calibrations" and the formal performance review process. Meta VPs are subject to "stack ranking," a process where peers are evaluated against each other to determine who has performed better. Additionally, a company-wide mandate for performance reviews requires managers to place between 10% and 12.5% of their teams into lower performance categories, which often leads to being laid off or having positions eliminated.
What is the significance of the "lagged promos" system at Meta, and how did it contribute to the growth in management ranks?
The "lagged promos" system at Meta refers to the practice of allowing employees who are up for a promotion to work in their new role for a year before their title officially changes. This system led to growth in management ranks, as individuals were working at higher levels but not yet designated as such. As a result, their contributions were not always accounted for in the company's organizational structure, leading to a somewhat inflated number of management positions. This growth in management ranks was not entirely planned under the new era of increased efficiency that Meta was aiming for. The company has since been working to streamline its reporting structure and reduce the number of middle and top-level positions, including vice presidents, in an effort to become leaner and more efficient.
How does the concept of "stack ranking" work within Meta, and how is it affecting the vice presidents?
Stack ranking is a performance evaluation system where employees are ranked against each other rather than against established performance standards. In the case of Meta, the company's vice presidents are subject to stack ranking, where they are evaluated against their peers to determine who has performed better. This process has intensified as Meta aims to become a more efficient organization.
As a result of stack ranking and stricter performance reviews, Meta's vice presidents are experiencing increased pressure and scrutiny. Their work and impact are being closely examined, and they must now navigate a companywide mandate for performance reviews that requires managers to place between 10% and 12.5% of their teams into lower performance categories. This often leads to vice presidents being put on performance improvement plans (PIPs) or being told that their positions are being eliminated.
This shift toward stack ranking and heightened performance expectations is part of Meta's broader effort to streamline its reporting structure and reduce the number of middle and upper-level managers. The ultimate goal is to increase efficiency and create a more agile organization by having fewer layers of management.