Jack Dorsey Gets Rid Of Performance Reviews And Names New CTO

In an effort to reshape the company culture, Block Inc CEO Jack Dorsey has introduced a novel approach to performance management and appointed a new CTO (Chief Technology Officer). The company intends to eliminate the practice of conducting annual performance reviews and implementing PIPs (Performance Improvement Plans).

Time to step up

Dorsey communicated his objective to cultivate a culture of excellence at Block through a staff memo. Following the upcoming review cycle, the company will abandon its customary annual assessments for employees. Jack has also named Dhanji Prasanna, a seasoned professional at Block and the current Chief Scientist, as the new CTO.

This decision follows the recent announcement made by Dorsey regarding an anticipated 10% reduction in the workforce over the next few months. Instead of annual reviews, regular employee evaluations will take precedence, aiming to dispel the perception that Block allows its workforce to rest and vest throughout the company, according to Dorsey. Employees falling short of expectations may face immediate dismissal, bypassing formal feedback or performance enhancement strategies.

Fairness is key

Beginning next year, Block will introduce performance ratings categorizing employees as meet, exceed, or fall below, with each employee having access to their respective rating. Dorsey believes this shall facilitate a fair two-way conversation which holds everyone accountable to always raising the bar.

These modifications come at a time when Block has demonstrated outstanding performance in the market. The company witnessed a 37.5% growth in Bitcoin revenue, reaching $2.42 billion compared to the previous year, and generated a gross profit of $44 million through Bitcoin in Q3. This exceptional performance led to a substantial increase in the share price of the company.