In typical 37signals fashion, the wisdom in these pages is edgy yet

Test-drive employees
Interviews are only worth so much. Some people sound like pros but don't
work like pros. You need to evaluate the work they can do now, not the
work they say they did in the past.
The best way to do that is to actually see them work. Hire them for a
miniproject, even if it's for just twenty or forty hours. You'll see how they
make decisions. You'll see if you get along. You'll see what kind of
questions they ask. You'll get to judge them by their actions instead of just
their words.
You can even make up a fake project. In a factory in South Carolina,
BMW built a simulated assembly line where job candidates get ninety
minutes to perform a variety of work-related tasks.
*
Cessna, the airplane manufacturer, has a role-playing exercise for
prospective managers that simulates the day of an executive. Candidates
work through memos, deal with (phony) irate customers, and handle other
problems. Cessna has hired more than a hundred people using this
simulation.
+
These companies have realized that when you get into a real work
environment, the truth comes out. It's one thing to look at a portfolio, read a
resume, or conduct an interview. It's another to actually work with
someone.
*
Carol Hymowitz, "Any College Will Do," Wall Street Journal, Sept. 18,
2006, 
online.wsj.com/article/SB115853818747665842.html
*
Peter Carbonara, "Hire for Attitude, Train for Skill," Fast Company,
Dec. 18, 2007, 
www.fastcompany.com/magazine/04/hiring.html
+
Ibid.

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CHAPTER
 
DAMAGE CONTROL

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Own your bad news
When something goes wrong, someone is going to tell the story. You'll be
better off if it's you. Otherwise, you create an opportunity for rumors,
hearsay, and false information to spread.
When something bad happens, tell your customers (even if they never
noticed in the first place). Don't think you can just sweep it under the rug.
You can't hide anymore. These days, someone else will call you on it if you
don't do it yourself. They'll post about it online and everyone will know.
There are no more secrets.
People will respect you more if you are open, honest, public, and
responsive during a crisis. Don't hide behind spin or try to keep your bad
news on the down low. You want your customers to be as informed as
possible.
Back in 1989, the Exxon Valdez oil tanker spilled 11 million gallons of oil
into Alaska's Prince William Sound. Exxon made the mistake of waiting a
long time before responding to the spill and sending aid to Alaska. Exxon's
chairman failed to go there until two weeks after the spill. The company
held news briefings in Valdez, a remote Alaskan town that was difficult for
the press to reach. The result: a PR disaster for Exxon that led the public to
believe the company was either hiding something or didn't really care about
what had happened.
*
Contrast that Exxon story to the rupture of an Ashland Oil storage tank
that spilled oil into a river near Pittsburgh around the same time. Ashland
Oil's chairman, John Hall, went to the scene of the Ashland spill and took
charge. He pledged to clean everything up. He visited news bureaus to
explain what the company would do and answer any questions. Within a
day, he had shifted the story from a rotten-oil-company-does-evil narrative
to a good-oil-company-tries-to-clean-up story. 
+
Here are some tips on how you can own the story:
The message should come from the top. The highest-ranking person
available should take control in a forceful way.

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Spread the message far and wide. Use whatever megaphone you have.
Don't try to sweep it under the rug.
"No comment" is not an option.
Apologize the way a real person would and explain what happened in
detail.
Honestly be concerned about the fate of your customers--then prove it.

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