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HIRE with your HEAD

11 min

Using Performance-based Hiring to Build Great Teams

Introduction

Narrator: Imagine being told to drop everything—a critical, last-minute presentation for the company president—to drive an hour away and help interview a few recent graduates. This is precisely what happened to a young financial manager named Lou Adler in 1972. His boss, Chuck Jacob, called with an urgent, non-negotiable demand: "There is nothing more important to your success than hiring great people! Nothing. We’ll somehow get the work done. Get your over here now." That day, they sacrificed a polished presentation for the chance to hire three of the top MBA students in their class. Their president, upon seeing the handwritten slides the next day, agreed they had made the right choice. This single event formed the bedrock of a revolutionary hiring philosophy.

In his book, HIRE with your HEAD, author Lou Adler argues that this moment reveals a fundamental truth most companies ignore: hiring is not an administrative task to be delegated or rushed; it is the single most important strategic activity a manager can perform. The book provides a systematic process to transform hiring from a game of chance based on gut feelings into an evidence-based discipline designed to attract and retain top-tier talent.

Hire Smart, or Manage Tough

Key Insight 1

Narrator: At the heart of Adler's philosophy is a simple but profound adage from executive Red Scott: "Hire smart, or manage tough." This principle posits that the vast majority of management problems are, in fact, hiring problems in disguise. Companies spend countless hours and resources trying to train, motivate, or terminate underperforming employees, a struggle that could have been avoided by making a better decision at the outset. Adler contends that while nearly every manager pays lip service to the importance of hiring, their actions reveal a different priority. They are often pressured by a need for speed and cost-reduction, leading them to use flawed systems designed to fill empty seats rather than to find exceptional people.

The story of Chuck Jacob illustrates the "hire smart" mentality in action. He understood that the long-term value of bringing three brilliant minds into the company far outweighed the short-term cost of a less-than-perfect presentation. This mindset is a radical departure from the norm, where hiring is often seen as a distraction from "real work." Adler argues that hiring is the real work. He estimates that effective hiring accounts for 70-80% of a manager's success, making it the highest-leverage activity they can engage in.

Define the Job's Success, Not the Candidate's Skills

Key Insight 2

Narrator: The traditional job description is one of the biggest barriers to hiring great people. It is typically a laundry list of skills, qualifications, and years of experience that often has little to do with what a person actually needs to do to be successful. This approach screens out high-potential candidates who could excel in the role but do not fit a rigid, preconceived mold. Adler proposes a radical alternative: the "Performance Profile." Instead of listing what a candidate must have, a performance profile defines what they must do. It is a document built around six to eight key performance objectives that describe success in the role.

For example, a company was struggling with an egocentric but talented software development manager who created communication bottlenecks. A traditional job description might ask for "good interpersonal skills," a vague and unmeasurable trait. Using Adler's method, they reframed this into a performance objective: "Develop a new communications approach to deal with a very dominant, yet talented, software manager." This shifts the focus from a personality trait to a tangible, problem-solving outcome, allowing interviewers to assess how a candidate would actually handle the specific challenge. By defining the job, not the person, companies can attract a wider, more diverse pool of candidates and assess them on their ability to deliver results.

Attract Talent with Opportunity, Not a Job Posting

Key Insight 3

Narrator: Top performers, especially passive candidates who are not actively looking for a new job, are not interested in job descriptions. They are interested in career opportunities. To attract them, companies must stop writing boring, company-centric ads and start marketing compelling career moves. Adler emphasizes that ads should answer the candidate's primary question: "What's in it for me?" They should focus on what the person will learn, do, and become.

A powerful example comes from a Verizon call center in Dallas that was struggling to attract quality applicants. Their original ads were generic and uninspiring. The team rewrote the ad to focus on the opportunity: an interactive training course, the chance to solve complex problems, and a commitment to personal development. The results were immediate and dramatic. The new, candidate-centric ad significantly increased both the quantity and quality of applicants. This demonstrates that the language used to describe a job is a critical sourcing tool. The goal is not to sell a job, but to offer a challenge and a path for growth that is so compelling that a top performer feels they cannot afford to ignore it.

The Two-Question Performance-Based Interview

Key Insight 4

Narrator: Traditional interviews are notoriously unreliable. Studies have shown they are only slightly better than a coin flip at predicting job success because they are susceptible to bias, first impressions, and a focus on presentation skills over actual competence. Adler replaces this flawed model with the Two-Question Performance-Based Interview, a structured approach designed to gather evidence of past performance.

The first and most important question is: "What is your single most significant accomplishment?" After the candidate provides an example, the interviewer spends the next 10-15 minutes digging into the details: the challenges, the process, the team, the timeline, the results, and the candidate's specific role. This deep dive uncovers patterns of behavior and verifies competence. The second question is a visualization question: "Here is a key objective for this role. How would you go about achieving it?" This assesses planning, problem-solving, and critical thinking. A client hiring a head for a new business unit used this to great effect. During the interview, the candidate and hiring manager spent an hour at a flip chart, collaboratively mapping out the entire business plan. This session was more revealing than any traditional interview, proving the candidate had the insight and approach needed for the job long before an offer was made.

Make Decisions with Evidence, Not Emotion

Key Insight 5

Narrator: The single greatest cause of hiring mistakes is emotional decision-making. Managers often make a snap judgment within the first few minutes of an interview and spend the rest of the time seeking evidence to confirm their bias. To counteract this, Adler insists on a formal, evidence-based assessment process. After the interviews, the entire hiring team must gather for a formal debriefing session. Using a "10-Factor Candidate Assessment" template, they must justify their ratings for each candidate with specific facts and examples drawn from the interviews. Gut feelings and generalities are not permitted.

A story of an overlooked financial executive powerfully illustrates the danger of ignoring this rule. A vice president of finance, who prided himself on his intuition, dismissed a promising but nervous candidate within 15 minutes. He ignored advice to wait and gather more evidence. That same "overlooked" candidate was hired by a competitor and, a few years later, became a senior executive who negotiated the purchase of a major asset from the very vice president who had rejected him—at a significant premium. This costly mistake could have been avoided if the decision had been based on a balanced assessment of evidence rather than a premature, emotional reaction.

Recruiting Is a Continuous Conversation, Not a One-Time Close

Key Insight 6

Narrator: Recruiting does not end when the interviews are over. Adler argues that negotiating and closing an offer should be a continuous conversation that happens throughout the hiring process. Too many companies wait until the very end to discuss compensation and other critical details, turning the final step into a high-stakes, adversarial negotiation. Instead, recruiters should test the offer at every step. After the first interview, they can gauge interest by asking, "Assuming we can put together an attractive offer, how does this job appeal to you as a career move?"

This approach separates the job from the offer, allowing the company to build the value of the opportunity before money becomes the central focus. A search firm seeking a COO faced a candidate whose salary demand was 50% higher than the client's budget. Instead of ending the conversation, they focused on the immense growth opportunity the role represented. As the candidate became more invested in the challenge, the salary gap became less important. They eventually met in the middle, a compromise that would have been impossible if the negotiation had been a last-minute, all-or-nothing event. This proves that recruiting is about building commitment to an opportunity, not just closing a deal.

Conclusion

Narrator: The single most important takeaway from HIRE with your HEAD is that hiring is not a peripheral HR function but the central, strategic driver of organizational success. It is a business process that can and must be managed with the same rigor and objectivity as finance or operations. By shifting the focus from what a candidate has (skills, experience) to what they have done and can do (performance, results), companies can fundamentally change their ability to attract and identify top talent.

The book leaves managers with a challenging question: Is your current hiring process designed to find the best person available, or is it merely designed to find the best person who happens to apply? Adopting a performance-based approach requires a conscious decision to stop filling jobs and start building a team of superior performers, one evidence-based decision at a time.

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