“Everyone has a plan until they get punched in the face.” – Mike T

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“Everyone has a plan until they get punched in the face.” – Mike T

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CULTURE IS THE STRATEGY business is building better people January 23, 2013 tom@nextjump.com @Thom_Fuller

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3 HUMAN CAPITAL ECONOMY your enterprise needs to make people better AGRICULTURE ECONOMY MANUFACTURING ECONOMY People are another form of machine Capital & infrastructure focus HUMAN CAPITAL ECONOMY People focus

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4 WHAT WE STAND FOR To do the LITTLE THINGS that allow others to do the GREAT THINGS they are MEANT TO DO BETTER me + you = us + = BETTER me BETTER you BETTER us

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5 EVERYTHING STARTS WITH YOUR CULTURE human capital engineering (HCE) Hiring Environment 1 2 3 Firing

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6 OUR STORY TODAY 2006 1994 2002 1997 NxJ Founded: College Coupon Books Corporate + Internet 2008 2011 Survived Dot Com Bust: 4 NxJumpers HIRING ENGINEERS NxJ becomes top destination for engineers FIRING 2010 Turnover skyrockets to 40% as recruiters poach… Engineers are offered 2-3x salary increase within 1 yr of employment at NxJ ENVIRONMENT 2012 Turnover drops to 0% in weeks Revenue Growth Accelerates… 5 years 25% CAGR to 60% YoY ENVIRONMENT How do we grow even faster: Help people stop making the same mistakes [Character Imbalance] + =

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7 HIRING College Recruiting Lateral Hiring

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8 HIRING ENGINEERS: NxJ Tech Recruiting Stats

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9 COLLEGE RECRUITING many candidates at once, relevant at a later stage Boston Super Saturday Event Schedule

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10 HIRING: BIGGEST MISTAKE, TOP LESSON LEARNED LEAN = SUCCESS, FAT = FAILURE ? Startups w/ no resources achieve amazing things Then w/ capital + lots of resources almost always fails LATERAL HIRING IS LIKE DATING ? Same person interviews date 1, date 2, date 3 (advance only if) Trust is most important: buy used car, leave your family with? Human beings are the best judge of trust

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12 FIRING many mistakes made…leading to scathing criticism Toxic, toxic environment. Backstabbing individuals that are not doing their own jobs. Worst place to work. Should be called next Lie. Wouldn’t wish this place on my worst enemy. If you want to grow & learn, go elsewhere. Save yourself, DO NOT be the Next to Jump Extremely long hours – the reason Next Jump has trainer & food on premises is because they don’t expect you to go home.

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13 FIRING: BIGGEST MISTAKE, TOP LESSON LEARNED Ex-employee = #1 advertisement ? Existing employees are biased Anyone else doesn’t really know the company The ex-employee has been on the inside How you fire is a representation of how you treat people Timing: <3 mths, 3-6 mths ? People leaving within 3 months = min disruption in the org However biggest problems in people show up at 3-6 months Any decision after 6 months = significant pain firing + lingering pain

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15 ENVIRONMENT: 2 influencers helped us… Jim Loehr (Coach to world-class tennis, golf, NFL, NBA, Olympic athletes, top CEOs, FBI SWAT, any elite performer) Growth mindset: People can endlessly upgrade themselves. Requires deliberate practice. Simon Sinek (all-time top TEDTalk, author of best seller, keynote speaker) Humans exist to service other humans – the “universal why” BETTER me BETTER you + =

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16 “I will want to win. But the result of the race will not motivate me. I can honestly say that I am motivated by improvement, not results. That’s a core principle.” Mikaela Shiffrin EVERYTHING IS PRACTICE FOR GETTING BETTER BETTER me

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17 AT THE END OF YOUR LIFE…WHAT IS SUCCESS? EXTRINSIC MARKERS OF SUCCESS more stuff INTRINSIC MARKERS OF SUCCESS true wealth R.I.P. [YOUR NAME] Built billion $ company Made millions personally Owns 3 houses Owns 6 cars More stuff… R.I.P. [YOUR NAME] HELPING OTHERS.. BETTER you

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I DO IT FOR MYSELF… I train harder I take feedback differently I work hard to be my best self …So that I can take care of others 18 MINDSET THAT WINS & SUSTAINS … BETTER me BETTER you +

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20 #1 ISSUE: Judgment (more than skills) People need to trust your judgment Then its no longer about hours 2 hours of your time will be worth more than 40 hours of someone with poor judgment * We turned the entire company culture into training ground for leadership

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21 Mentorship: Talking Partners Start daily Becomes “co-working” Best coaches help people find their “blind spot” (their repeated error) Situational Workshops Weekly: problems + what they tried Train decision making vs “give solutions” Counters the “bull horn” effect TWO PROGRAMS THAT WORKED … ? ?

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22 LEADERSHIP DEVELOPMENT the next big growth opportunity Jim Loehr (Coach to world-class tennis, golf, NFL, NBA, Olympic athletes, top CEOs, FBI SWAT, any elite performer) Character is a muscle. It can be exercised and strengthened.

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23 OUR RESULTS THUS FAR… REVENUE 25% CAGR over last 5 years to 103% YoY Still accelerating… LEADERSHIP AWARD 2013 Winner

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24 WHERE WE’RE EXPERIMENTING DO THE JOB BEFORE YOU START ANYONE CAN BECOME A MARINE Test during interview process: Growth mindset [better me] - fixed or growth mindset Helping others [better you] - teaching/ giving motivates more learning No matter who you hire, the environment is designed so anyone can succeed But not everyone will succeed, some will opt-out No firing policy Alumni programs Except for moral, ethical and criminal Security - removed fear of failure Development took off: Tough Love Programs Boomerang - open-ended job offer to return anytime Benefits and perks for having been part of our family HIRING FIRING

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INVEST IN YOUR TEAM AS MUCH AS IN YOUR PRODUCT FROM DAY 1 25 It’s a shared dream It’s about the journey: concentrate on the steps to success CLOSING THOUGHT

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@Thom_Fuller Contact me: I will gladly do what I can, to help you achieve the GREAT things you were meant to do