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- Merit is making a comeback
Merit is making a comeback
DEI is a failed construct
Rob Norris
July 30, 2024 • Estimated Reading Time: 8 minutes
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Good morning Launch Key 🚀 community!
I’m back after a whirlwind weekend road trip. I rubbed elbows and broke bread with bitcoiners, carnivores, and future country music stars during a 900+ mile southern driving tour.
Like any entrepreneur, I try to see where the business puck is heading. Road trips allow me to listen to podcasts, talk to new people, gauge different markets - trying to find facts that help inform me what’s happening just over the horizon.
And one thing is pretty obvious.
Merit finally seems to be making a comeback.
If you’re a small business you have always hired the best person for the job. Survival depends on it.
It seems like even corporate is getting the memo now.
Comment below and let me know if we’re on the right track.
Table of Contents
Pull to Eject
With the accelerating craziness of the news cycles it may have been overlooked – but merit is moving back toward center stage.
And not a minute too soon.
The dam began to crack last summer with the Supreme Court anti-discrimination case (Students for Fair Admissions). But it has rolled from universities to the Fortune 500 and even to media corporations.
People are – rightfully – losing their jobs.
Common sense understands sweat equity. But equity mandates have never made sense.
Even the Human Resources industry (SHRM) has walked back their DEI stance.
Just in time for college football season, the University of Alabama shuttered its DEI offices, joining Texas and Florida in kicking wokeness off campus.
Axios summed it all up in a recent article, “Four years after the business world went all in on DEI, it's having second thoughts.”
I’d say it’s got a lot more to do with consumers talking with their wallets.
Corporate agenda didn’t just change it’s mind.
Consumers have spoken. Don’t listen at your own risk.
Bud Light felt immediate backlash
Disney & Marvel have seen their movies boycotted
Cracker Barrel stock sell-off was blamed on failed “marketing and media strategy”
Tractor Supply & John Deere have reversed policies
ABC News is changing direction
People have had enough.
Critical industries are in need of just plain competence.
The lack of competency is dangerous.
“The five largest contractors—Lockheed Martin, Boeing, General Dynamics, Raytheon Company, and Northrop Grumman—will all struggle to maintain competency in the coming years.”1
Forever wars can’t be waged if the people who make and service equipment aren’t available.
“What happens when the men who built the complex systems our society relies on cease contributing and are replaced by people who were chosen for reasons other than competency?”2
The answer is clear: catastrophic normal accidents will happen with increasing regularity.
Incompetence by the Secret Service came within an inch of assassinating the former US President just 2 weeks ago.
The only way to turn this trend around is to focus on excellence.
Hiring the most qualified, skilled professionals available for each position. Based on merit. Other factors mean far less than competence.
Firms that tend to still focus on competency are generally small and private.
Side hustles, solopreneurship, and self employment have never looked so promising.
Smaller firms have two key advantages: they fall below the fifteen-employee threshold for the most onerous EEOC rules and the owner can directly observe the performance of everyone inside the company.
In small firms, under performance is usually obvious. And short-lived.
But the bigger the organization, the harder it is to cut. You probably can’t just fire all the under performers from your big company department.
Instead, you might need to start something new. On the side. Based on your ability.
Starting your own business guarantees competence. You either have what the market will pay for – or you don’t.
Start while you’re employed.
Add a digital product or service.
Only work with clients you choose.
Build your own audience.
Test, adapt and improve.
Don’t get blindsided by cutbacks.
Leave on your own terms.
Quality outcomes are the defining characteristic of success.
You’ll be accountable, because your name is on the virtual door. Late-career side hustles guarantee merit over DEI.
Successful or not – you will own all the equity.
Now go launch something 🚀
Don’t let others convince you that the idea is good when your gut tells you it’s bad.”
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Old School Wisdom
Long before Elon Musk or Jensen Huang or Tim Cook there was Jack Welch. He led G.E to become the most respected and valuable company in the world.
In its heyday, G.E. was Microsoft, Apple and Google combined in terms of prestige, technological prowess and management expertise.
One of the first things Welch did was lay off under performers.
In his first two years, he laid off 72,000 people, and shut down a dozen factories. He instituted what he called the “Vitality Curve.” Every manager of every unit would rank their department and fire the bottom 10% every year.
More importantly - he was excellent at hiring talent once he cleaned up the roles. The principles below apply now more than ever.
Free Knowledge
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