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Scaling Management Michael Rembetsy 
without Sacrificing Culture 
Velocity Barcelona – November 19, 2014 
@mrembetsy 
Patrick McDonnell 
@mcdonnps
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 borders 
• $1.35 billion in GMS 2013
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 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.’”
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 
• Career path 
• IC / management path 
• Formalized recruiting and 
sourcing 
• Formalized feedback loops 
or reviews
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
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
What did we start with? 
Michael 
Rembetsy @mrembetsy 
Skills matrix 
Salary bands 
1:1s 
Reviews 
Patrick 
McDonnell @mcdonnps 
15
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
What did we start with? 
Michael 
Rembetsy @mrembetsy 
Skills matrix 
Salary bands 
1:1s 
Reviews 
Patrick 
McDonnell @mcdonnps 
17
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 @mcdonnps 
19
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 @mcdonnps 
22
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 
• Clarity 
• Feedback 
• Perceived happiness 
29
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
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
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
number of managers as in 2008 
Michael 
Rembetsy @mrembetsy 
6x 
number of engineers 
as in 2008 
8x 
Patrick 
McDonnell @mcdonnps 33 
177 
employees
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 years 
39
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) 
• IC dens and manager dens are separate 
• Foster empathy across departments 
• Build long-lasting support networks for managers 
outside of the dens 
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
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 Labs
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 wasn’t the right fit 
• Dens and workshops are major components to this 
day 
• L&D rock band 
51
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 
• New manager dens and roundtables 
• Meeting with Paloma to customize your L&D 
experience 
Michael 
Rembetsy @mrembetsy 
Patrick 
McDonnell @mcdonnps 
53
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 
• Hard conversations 
• Intervention sessions 
57
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 reviews 
• Decision 
59
Break Time: 
5 Minutes
Scaling Management without Sacrificing Culture - Velocity Europe 2014

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Scaling Management without Sacrificing Culture - Velocity Europe 2014

  • 1. Scaling Management Michael Rembetsy without Sacrificing Culture Velocity Barcelona – November 19, 2014 @mrembetsy Patrick McDonnell @mcdonnps
  • 2. Agenda Presentation: 40 minutes Break: 5 minutes Decision roundtable: 45 minutes
  • 3.
  • 4.
  • 5. 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
  • 7. employees at end of 2008 Michael Rembetsy @mrembetsy 49 Patrick McDonnell @mcdonnps 7
  • 8. Michael Rembetsy @mrembetsy Chad Dickerson Patrick McDonnell @mcdonnps 8
  • 9. “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.’”
  • 10. Phase I: Organizational Infancy (2008-2011)
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. What did we start with? Michael Rembetsy @mrembetsy Skills matrix Salary bands 1:1s Reviews Patrick McDonnell @mcdonnps 15
  • 16. 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
  • 17. What did we start with? Michael Rembetsy @mrembetsy Skills matrix Salary bands 1:1s Reviews Patrick McDonnell @mcdonnps 17
  • 18. Salary Band Example A B C D E F G Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 18
  • 19. What did we start with? Michael Rembetsy @mrembetsy Skills matrix Salary bands 1:1s Reviews Patrick McDonnell @mcdonnps 19
  • 20. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 20
  • 21. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 21
  • 22. What did we start with? Michael Rembetsy @mrembetsy Skills matrix Salary bands 1:1s Reviews Patrick McDonnell @mcdonnps 22
  • 23. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 23
  • 29. Results of first management initiatives Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps • Direction • Clarity • Feedback • Perceived happiness 29
  • 30. 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
  • 31. 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
  • 32. 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
  • 33. number of managers as in 2008 Michael Rembetsy @mrembetsy 6x number of engineers as in 2008 8x Patrick McDonnell @mcdonnps 33 177 employees
  • 34. Michael Rembetsy @mrembetsy Bobby Gormsen Patrick McDonnell @mcdonnps 34
  • 35. Michael Rembetsy @mrembetsy Rasmus Lerdorf Patrick McDonnell @mcdonnps 35
  • 36. Phase II: Supported Growth (2011-present)
  • 37. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps Manager magic pixie dust
  • 38. Michael Rembetsy @mrembetsy Marc Hedlund Patrick McDonnell @mcdonnps 38
  • 39. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 381 employees near end of 2011 8x headcount growth over 3 years 39
  • 40. Learning & Development Launches Michael Rembetsy @mrembetsy Paloma Medina Patrick McDonnell @mcdonnps 40
  • 41. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 41
  • 42. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 41 Dens
  • 43. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 42
  • 44. 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
  • 45. 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
  • 46. 2013 2014 Michael Rembetsy @mrembetsy 91 Patrick McDonnell @mcdonnps 45 31 3 13 Dens Participants
  • 47. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 46 Dens
  • 48. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 46 Dens Workshops
  • 49. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps
  • 50. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 48 Dens Workshops
  • 51. Reflect Acquire Insight Practice Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 48 Dens Workshops Practice Labs
  • 52. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps
  • 54. 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
  • 55. L&D works, let’s grow it! Jenn Coombs Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 52 Romy Weisfelt
  • 56. 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
  • 57. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 54
  • 58. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps 55
  • 59. Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps
  • 60. Conflict resolution Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps • Are you triggered? • Negotiation • Hard conversations • Intervention sessions 57
  • 61. Roundtables get serious Michael Rembetsy @mrembetsy John Goulah Patrick McDonnell @mcdonnps 58
  • 62. Types of roundtables Michael Rembetsy @mrembetsy Patrick McDonnell @mcdonnps • Best practices • Council • Systems reviews • Decision 59
  • 63. Break Time: 5 Minutes