A critique of Mark Zuckerberg's 4 tactics for dealing with a slowdown

Some of the fastest growing tech companies of the past decade are now firmly entrenched in pullback mode.

A good example is Meta who sees great challenges ahead. As The New York Times reported, CEO Mark Zuckerberg sees Meta facing one of the "worst downturns we've seen in recent history." Meta's profits will decline due to a change to Apple's mobile operating system that limits the amount of data Facebook and Instagram can collect about its users.

The problems are reflected in its financial results and stock price. Meta's quarterly earnings report in February disappointed and its stock lost 26% of its market value, plunging more than $230 billion. Facebook is cutting costs by announcing that it will cut the number of people it plans to hire in 2022 by 30-40%.

Here are four strategies Zuckerberg is about to employ to improve Meta's financial performance and prospects. Below, I comment on each of them and give my thoughts on what business leaders should do about them.

1. Collaborate on inspiring goal setting.

Business leaders should expect more from their employees during difficult times.

Meta does that. Zuckerberg recently told employees that the company would "increase the heat on internal goals and metrics used to assess employee performance." Additionally, Chris Cox, Chief Product Officer of Meta, urged employees to do more in less time with fewer resources, The Times noted.

Here are some questions Meta employees may ask themselves:

How much of Meta's profit decline is due to my slacking? How much of the problem is Meta's strategies and approach to team coordination? Will my underwater stock options regain their lost value? If not, is there a compelling reason why I shouldn't seek employment elsewhere?

This tactic could cost Meta many of its most talented employees. It's because I think people tend to perform better when they participate in setting goals and feel empowered to find the best way to achieve them.

In short, business leaders shouldn't try to scare employees into becoming diligent hamsters running faster on the wheel to achieve the goals that senior executives command them to achieve.< /p>

2. Get accurate data on what people are doing.

Rather than giving orders, meta executives should collaborate with employees to set inspiring goals and judge their performance based on facts.

Specifically, the leaders of Meta (and all publicly traded companies, according to my book, Scaling Your Startup) must do the following to hold people accountable:

Set goals in a process that inspires employees Once goals are set, collect objective data on how employees are achieving them Review with employees how their actual performance compares to their goals Reward employees who exceed their goals For those who fail, find out why and develop a plan for improvement

3. Delete people and projects that don't measure up.

During an economic downturn, business leaders need to take a hard look at which people and projects to keep and what to do about the rest.

There is always a danger in such situations that leaders view these decisions from the perspective of what the most powerful leaders want rather than what will allow the company to sustain creative long-term relationships of value with customers and employees.