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Scaling Management Michael Rembetsy 
without Sacrificing Culture 
Velocity Barcelona – November 19, 2014 
@mrembetsy 
Patr...
Agenda 
Presentation: 40 minutes 
Break: 5 minutes 
Decision roundtable: 45 minutes
About Etsy 
• 40 million members 
• 26 million active listings 
• 1 million active sellers 
• Over 25% of orders cross bor...
The early days 
6
employees at end of 2008 
Michael 
Rembetsy @mrembetsy 
49 
Patrick 
McDonnell @mcdonnps 
7
Michael 
Rembetsy @mrembetsy 
Chad Dickerson 
Patrick 
McDonnell @mcdonnps 
8
“This quote from Emerson really inspires me: 
‘Finish each day and be done with it. You have 
done what you could. Some bl...
Phase I: 
Organizational Infancy 
(2008-2011)
What did managers do? 
11
What did we lack? 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
12 
• Salary bands 
• Skills matrix 
• 1:1s...
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
Culture is action 
• Started creating action items around idea...
Culture isn’t forced 
• Culture is fostered when entire organizations are on 
board with change 
Michael 
Rembetsy @mrembe...
What did we start with? 
Michael 
Rembetsy @mrembetsy 
Skills matrix 
Salary bands 
1:1s 
Reviews 
Patrick 
McDonnell @mcd...
Etsy’s Skills Matrix 
Individual Contributor Job Levels (Salaried) to include levels 3-6 for Member Ops 
Level LEVEL 1 LEV...
What did we start with? 
Michael 
Rembetsy @mrembetsy 
Skills matrix 
Salary bands 
1:1s 
Reviews 
Patrick 
McDonnell @mcd...
Salary Band Example 
A B C D E F G 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 18
What did we start with? 
Michael 
Rembetsy @mrembetsy 
Skills matrix 
Salary bands 
1:1s 
Reviews 
Patrick 
McDonnell @mcd...
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 20
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 21
What did we start with? 
Michael 
Rembetsy @mrembetsy 
Skills matrix 
Salary bands 
1:1s 
Reviews 
Patrick 
McDonnell @mcd...
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 23
Landing page
Self-evaluation
Peer feedback
Upward feedback
Feedback for reports
Results of first management initiatives 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
• Direction 
• Clarit...
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
Early Managers 
• ICs with additional responsibilities 
• Peop...
Increased knowledge sharing 
• Started offsites (both teams and managers) 
• Rock climbing, bowling, “escape the room” 
• ...
Knowledge is power 
• Solidified standards and direction 
• More collaboration between managers 
• Focus on the company ra...
number of managers as in 2008 
Michael 
Rembetsy @mrembetsy 
6x 
number of engineers 
as in 2008 
8x 
Patrick 
McDonnell @...
Michael 
Rembetsy @mrembetsy 
Bobby Gormsen 
Patrick 
McDonnell @mcdonnps 
34
Michael 
Rembetsy @mrembetsy 
Rasmus Lerdorf 
Patrick 
McDonnell @mcdonnps 35
Phase II: 
Supported Growth 
(2011-present)
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
Manager 
magic 
pixie dust
Michael 
Rembetsy @mrembetsy 
Marc Hedlund 
Patrick 
McDonnell @mcdonnps 
38
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
381 
employees 
near end of 2011 
8x 
headcount growth 
over 3...
Learning & Development Launches 
Michael 
Rembetsy @mrembetsy 
Paloma Medina 
Patrick 
McDonnell @mcdonnps 
40
Reflect Acquire Insight Practice 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
41
Reflect Acquire Insight Practice 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
41 
Dens
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 42
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
Den sessions 
• 8 people to a den is ideal (5 for remote dens)...
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
Den Rules 
• Safe confidential place to share stories and best...
2013 2014 
Michael 
Rembetsy @mrembetsy 
91 
Patrick 
McDonnell @mcdonnps 45 
31 
3 13 
Dens Participants
Reflect Acquire Insight Practice 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
46 
Dens
Reflect Acquire Insight Practice 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
46 
Dens Workshops
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps
Reflect Acquire Insight Practice 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
48 
Dens Workshops
Reflect Acquire Insight Practice 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
48 
Dens Workshops Practice ...
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps
Were we successful? 
50
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
Retooling 
• Some things worked, some didn’t 
• Design Gym was...
L&D works, let’s grow it! 
Jenn Coombs 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
52 
Romy Weisfelt
Manager Onboarding System (MOS) 
• Care package with helpful hints 
• First HR business partner session with manager 
• Ne...
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 54
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 55
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps
Conflict resolution 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
• Are you triggered? 
• Negotiation 
• Ha...
Roundtables get serious 
Michael 
Rembetsy @mrembetsy 
John Goulah 
Patrick 
McDonnell @mcdonnps 
58
Types of roundtables 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
• Best practices 
• Council 
• Systems r...
Break Time: 
5 Minutes
Scaling Management without Sacrificing Culture - Velocity Europe 2014
Scaling Management without Sacrificing Culture - Velocity Europe 2014
Scaling Management without Sacrificing Culture - Velocity Europe 2014
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Scaling Management without Sacrificing Culture - Velocity Europe 2014

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How can your organization scale management without sacrificing the culture you have worked hard to build? Grow your own managers! This talk will focus on the steps Etsy has taken to overcome the pitfalls that lie in the path of transitioning from individual contributor to manager and how to encourage those who want to become managers for the right reasons.

Veröffentlicht in: Leadership & Management
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Scaling Management without Sacrificing Culture - Velocity Europe 2014

  1. 1. Scaling Management Michael Rembetsy without Sacrificing Culture Velocity Barcelona – November 19, 2014 @mrembetsy Patrick McDonnell @mcdonnps
  2. 2. Agenda Presentation: 40 minutes Break: 5 minutes Decision roundtable: 45 minutes
  3. 3. About Etsy • 40 million members • 26 million active listings • 1 million active sellers • Over 25% of orders cross borders • $1.35 billion in GMS 2013
  4. 4. The early days 6
  5. 5. employees at end of 2008 Michael Rembetsy @mrembetsy 49 Patrick McDonnell @mcdonnps 7
  6. 6. Michael Rembetsy @mrembetsy Chad Dickerson Patrick McDonnell @mcdonnps 8
  7. 7. “This quote from Emerson really inspires me: ‘Finish each day and be done with it. You have done what you could. Some blunders and absurdities no doubt crept in; forget them as soon as you can. Tomorrow is a new day; begin it well and serenely and with too high a spirit to be encumbered with your old nonsense.’”
  8. 8. Phase I: Organizational Infancy (2008-2011)
  9. 9. What did managers do? 11
  10. 10. What did we lack? Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 12 • Salary bands • Skills matrix • 1:1s • Career path • IC / management path • Formalized recruiting and sourcing • Formalized feedback loops or reviews
  11. 11. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps Culture is action • Started creating action items around ideas • Beta testing processes around organization • How can engineering improve other departments? 13
  12. 12. Culture isn’t forced • Culture is fostered when entire organizations are on board with change Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps • Culture is behavior • Dictatorships fail, leadership works 14
  13. 13. What did we start with? Michael Rembetsy @mrembetsy Skills matrix Salary bands 1:1s Reviews Patrick McDonnell @mcdonnps 15
  14. 14. Etsy’s Skills Matrix Individual Contributor Job Levels (Salaried) to include levels 3-6 for Member Ops Level LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL Description GAINING EXPERIENCE DEVELOPING CAREER ADVANCED EXPERT Analogy Knows about rope; learns a lot more about rope Can tie basic knots; Shown complex knots Calculates rope strength; Knows a lot about knots Understands rope making Knows will Knowledge Learns to use professional concepts. Applies company/technical practices, policies and procedures to resolve routine issues. Developing professional expertise, applies company/sound technical practices, policies and procedures to resolve a variety of issues. A seasoned, experienced professional with a full understanding of area of specialization; resolves a wide range of issues in creative ways. This job is the fully qualified, career-oriented, journey-level position. Having wide-ranging experience, uses professional concepts and company objectives to resolve complex is-sues in creative and effective ways. Some barriers to entry exist at this level (e.g., dept/peer review). Level at which career may plateau. Having knowledge, development and creative to entry review Job Complexity Works on problems of limited scope. Follows standard practices and proce-dures in analyzing situations or data from which answers can be readily obtained. Builds stable working rela-tionships internally. Works on problems of moderate scope where analysis of situations or data requires a review of a variety of factors. Exercises judgment within defined procedures and practices to determine appropriate action. Builds productive internal/external working relationships. Works on problems of diverse scope where analysis of data requires evalu-ation of identifiable factors. Demon-strates good judgment in selecting methods and techniques for obtaining solutions. Networks with senior inter-nal and external personnel in own area of expertise. Works on complex issues where analysis of situations or data requires an in-depth evaluation of variable fac-tors. Exercises judgment in selecting methods, techniques and evaluation criteria for obtaining results. Networks with key contacts outside own area of expertise. Works data in methods, criteria formal Supervision Normally receives detailed instruc-tions on most work. Normally receives general instructions on routine work, detailed instructions on new projects or assignments. Normally receives little instruction on day-to-day work, general instructions on new assignments. Determines methods and procedures on new assignments and may coor-dinate activities of other employees (Team Lead). Acts methods special the Management Job Levels Level LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL Example Title N/A SUPERVISOR MANAGER SENIOR MANAGER DIRECTOR Analogy Guides team while rock climbing Leads extended alpine mountain-climbing trips Pilots expedition through unexpected snow storm Controls hikers
  15. 15. What did we start with? Michael Rembetsy @mrembetsy Skills matrix Salary bands 1:1s Reviews Patrick McDonnell @mcdonnps 17
  16. 16. Salary Band Example A B C D E F G Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 18
  17. 17. What did we start with? Michael Rembetsy @mrembetsy Skills matrix Salary bands 1:1s Reviews Patrick McDonnell @mcdonnps 19
  18. 18. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 20
  19. 19. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 21
  20. 20. What did we start with? Michael Rembetsy @mrembetsy Skills matrix Salary bands 1:1s Reviews Patrick McDonnell @mcdonnps 22
  21. 21. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 23
  22. 22. Landing page
  23. 23. Self-evaluation
  24. 24. Peer feedback
  25. 25. Upward feedback
  26. 26. Feedback for reports
  27. 27. Results of first management initiatives Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps • Direction • Clarity • Feedback • Perceived happiness 29
  28. 28. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps Early Managers • ICs with additional responsibilities • People, direction, salaries • Hired guns from outside • We had to hire management talent instead of growing it because we didn’t know how 30
  29. 29. Increased knowledge sharing • Started offsites (both teams and managers) • Rock climbing, bowling, “escape the room” • Concentrated tech leadership meetings • Centralized project management and workflow collaboration Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 31
  30. 30. Knowledge is power • Solidified standards and direction • More collaboration between managers • Focus on the company rather than the team • Engineering “generosity of spirit” Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 32
  31. 31. number of managers as in 2008 Michael Rembetsy @mrembetsy 6x number of engineers as in 2008 8x Patrick McDonnell @mcdonnps 33 177 employees
  32. 32. Michael Rembetsy @mrembetsy Bobby Gormsen Patrick McDonnell @mcdonnps 34
  33. 33. Michael Rembetsy @mrembetsy Rasmus Lerdorf Patrick McDonnell @mcdonnps 35
  34. 34. Phase II: Supported Growth (2011-present)
  35. 35. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps Manager magic pixie dust
  36. 36. Michael Rembetsy @mrembetsy Marc Hedlund Patrick McDonnell @mcdonnps 38
  37. 37. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 381 employees near end of 2011 8x headcount growth over 3 years 39
  38. 38. Learning & Development Launches Michael Rembetsy @mrembetsy Paloma Medina Patrick McDonnell @mcdonnps 40
  39. 39. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 41
  40. 40. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 41 Dens
  41. 41. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 42
  42. 42. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps Den sessions • 8 people to a den is ideal (5 for remote dens) • IC dens and manager dens are separate • Foster empathy across departments • Build long-lasting support networks for managers outside of the dens 43
  43. 43. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps Den Rules • Safe confidential place to share stories and best practices • What happens in the den stays in the den • Facilitator required 44
  44. 44. 2013 2014 Michael Rembetsy @mrembetsy 91 Patrick McDonnell @mcdonnps 45 31 3 13 Dens Participants
  45. 45. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 46 Dens
  46. 46. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 46 Dens Workshops
  47. 47. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps
  48. 48. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 48 Dens Workshops
  49. 49. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 48 Dens Workshops Practice Labs
  50. 50. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps
  51. 51. Were we successful? 50
  52. 52. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps Retooling • Some things worked, some didn’t • Design Gym wasn’t the right fit • Dens and workshops are major components to this day • L&D rock band 51
  53. 53. L&D works, let’s grow it! Jenn Coombs Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 52 Romy Weisfelt
  54. 54. Manager Onboarding System (MOS) • Care package with helpful hints • First HR business partner session with manager • New manager dens and roundtables • Meeting with Paloma to customize your L&D experience Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 53
  55. 55. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 54
  56. 56. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 55
  57. 57. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps
  58. 58. Conflict resolution Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps • Are you triggered? • Negotiation • Hard conversations • Intervention sessions 57
  59. 59. Roundtables get serious Michael Rembetsy @mrembetsy John Goulah Patrick McDonnell @mcdonnps 58
  60. 60. Types of roundtables Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps • Best practices • Council • Systems reviews • Decision 59
  61. 61. Break Time: 5 Minutes

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