ATT People Tracking: More People Managers, Less Software

Just a few months ago, AT&T CEO John Stankey issued a 2,500-word internal memo announcing that employees would return to the office. While the Esteemed MBA applauded the overall message, the memo had gaps. It was dense, lacked clear next steps, and boiled down to three broad points: everyone would return to the office, performance would be measured, and standards would be raised.

One of the themes Stankey emphasized was that employees would be evaluated on their behaviors. In principle, that makes sense—managers should manage based on behaviors. The problem was in how AT&T chose to measure them: with tracking software.

The system monitored whether employees were physically in the office, connected to the network, and appearing to work. At first, it successfully flagged so-called “freeloaders”—people who checked in briefly, grabbed a coffee, and left. AT&T moved quickly to address that. But the company kept using the system, and soon it was questioning the productivity of high-performing A+ employees. Naturally, those top performers pushed back. They knew the software was flawed, and they resented being second-guessed. Eventually, AT&T admitted the system caused widespread frustration and announced it would be shut down.

The Real Lesson: Trust and Management by Walking Around

If you have an A+ employee, the last thing you should do is question their commitment. Top performers don’t need surveillance—they consistently deliver, ask for more responsibility, and push themselves to excel. What they need is trust and opportunity.

And when it comes to accountability, nothing beats human interaction. Software can’t replace managers who engage directly with their teams. It’s managers who notice whether directs are present and contributing, who communicate expectations, and who connect company initiatives to the importance of collaboration. No algorithm can replicate the value of a leader walking the floor, having conversations, and building trust.

Takeaways for Esteemed MBA Students

  1. Trust your A+ performers. Empower them, give them bigger opportunities, and let them master their craft. They are the foundation of growth.

  2. Managers, not software, are the best monitors of behavior. Regular one-on-ones, feedback loops, and consistent communication eliminate the need for surveillance tools—and protect the trust between leadership and their teams.

AT&T’s experiment is a reminder that technology may identify a few short-term issues, but sustainable performance and culture come from managers who lead with trust, presence, and accountability.

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