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The Amazing Way Google Manages Talent

Join this webinar to learn about Google's innovative strategies for managing talent and how you can implement them in your own organization. Discover their approach to recruiting, development, performance management, and motivation. Get inspired by Google's success story and ask your burning questions.

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The Amazing Way Google Manages Talent

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  1. THE AMAZING WAY THAT GOOGLE MANAGES TALENTBPI WebinarOctober 11, 2007Dr. John SullivanProfessor, Author and Advisor to ManagementModerated by Master Burnettwww.DrJohnSullivan.com Dr John Sullivan JOHNS@SFSU.EDU

  2. “If the rate of change inside an organization is less than the rate of change outside… their end is in sight!” “Change before you have to” Jack Welch 7

  3. My 3 goals for today To show you what makes Google the world’s first true “talent machine” To give you a few ideas to implement To answer your questions 8

  4. Topics I will cover Why focus on Google? – their results Google’s people strategy HR’s approach Recruiting innovations Development innovations Performance management innovations Motivation and benefit innovations Your questions 9

  5. Presentation Notes • I have no financial relationship with Google • My assessments of their strategy and approaches are independent and have not been approved by Google • Quotes in these slides are from their web site or current or former Google employees • Some factors mentioned here do change over time

  6. Business results 11

  7. Business results Google - two college students… but since their IPO in 04 • #1 in firm performance(BusinessWeek 3/26/2007) • Stock moved from $85 to $609 Google has a larger market value than HP, IBM, Intel or Wal-Mart • Brand value >

  8. Brand The 10 most powerful global brands (and brand value) 1. Google ($66.4 billion) 2. General Electric ($61.9 billion)3. Microsoft ($55 billion)4. Coca-Cola ($44.1)5. China Mobile ($41.2)6. Marlboro ($39.2)7. Wal-Mart ($36.9)8. Citigroup ($33.7)9. IBM ($33.6)10. Toyota Motor ($33.4) Source Millward Brown Optimor 4/2007

  9. People results 14

  10. People results Google people results • Grown from 2 to nearly 14,000 global employees • Less than 5% turnover • Revenue per employee >

  11. Employee productivity Average $160,000 IBM $260,102 HP $592,600 Microsoft$699,016 Dell $870,245 Google $1,056,000 It takes 4X more employees at IBM… to produce the same revenue as Google

  12. “Employment brand” results Google employer brand • #1 best place to workin Fortune (1st try) • #1 most desirable college employer for MBA’s & undergrads (Beating McKinsey after 12 years) • 29% of surveyed managerswould like to work at Google… The next highest firm was 9% Goldman Sachs (BusinessWeek 8/07 poll of 2,000 execs & managers) • Applicants - Up to 6000 resumes a day (2 million a year)

  13. People strategy "Don't be evil." 18

  14. People strategy People strategy “We hire great people and support them in turning their aspirations into reality We work hard here, and play here, and dream here Googlers are bright, passionate people with diverse backgrounds, coming together to create a unique culture One where the open exchange of ideas is encouraged”… an example > 19

  15. Ex - Master plan for everyone to see Google Master Plan Building 43 Lobby, Mountain View, Ca Sep 27, 2006 From cdibona's Public Gallery 20

  16. 21

  17. People strategy People strategy “Thinking beyond the norm is expected, no matter what position you happen to hold Working at Google is as much a mindset as it is a job” “Innovation is our bloodline. Even the best technology can be improved. We see endless opportunity to create even more relevant, more useful, and faster products for our users” > 22

  18. Productivity is replaced by innovation Productive people do more wires… at a higher quality Innovative people eliminate wires

  19. Innovation – half empty vs. all empty Paranoia - The best are always paranoid and they automatically “assume” that their competitors are rapidly gaining or are already ahead of them! Toyota – Presumption of imperfection, Intel – Paranoia and running behind the crowd 24

  20. Is it worth it to seek out an innovator? One top-notch engineer is worth "300 times or more… than the average" (Google) “would rather lose an entire incoming class of engineering graduates than one exceptional technologist” Alan Eustace, VP of Engineering, Google

  21. Time to innovate Time allocation for innovation (Products from 20%) To provide time for innovation and learning Google utilizes a 70/20/10 time allocation model It leaves up to 30% of an engineer’s time to their own discretion 10% "time for innovation, creativity, and freedom to think" And 20% for “personal development which will ultimately benefit the company" 26

  22. HR really matters “If we do not succeed in attracting excellent personnel or retaining or motivating existing personnel, we may be unable to grow effectively.” (2007 SEC filing) 27

  23. HR approach “Google's culture is unlike any in corporate America” 28

  24. “HR” approach It is a decentralized approach Managers and employees “own” and do most HR work (Ex: managers spend 30% time on hiring) A focus on recruitingand retention(14 to 1 ratio) Few centralized policies or rules…an example > 29

  25. “Typical” Google policy Our Dog Policy “Google's respect and affection for our canine friends is an integral facet of our corporate culture. We have nothing against cats, per se, but we're a dog company, so as a general rule we feel cats visiting our campus would be fairly stressed out”

  26. Recruiting innovations 31

  27. Recruiting innovations The world’s only “WOW story” culture (GE) # 1 at being “talked about” in the press (884,000 pp) A “story a day” to take home Google in outer space (NASA) “Green” recruiting(Hybrids, electric car, 150 cafe & solar panels) Pizza during final exams Benefits create stories >

  28. Benefits that become… WOW stories Free meals, espresso, red bull all day On-site physician /dental Valet parking, car detailing & bike repair Design your own cubical Child care & back up Massage, yoga, hair stylist On-campus Martini blowout Company movie day, ski trip, dances, picnics and concerts On site organic market Free Wi-Fi shuttle service to several Bay Area locations Takeout food for new parents $5000 toward adoption Maternity 12 wks at 75% pay, Parental 6 wks at 75% pay 33

  29. Recruiting through contests and games 34

  30. Google attracts math majors 35

  31. Looking for talent through contests Used by Google, Yahoo, Sun, Intel and Microsoft 36

  32. Games to recruit Google Games About 180 students from Stanford and Berkeley, visited Google for Google Games, a day of team competition with mind-bending puzzles, Lego building problems and video games It is called the Google Games, a convivial way for the mostly computer science and engineering students to renew the Stanford-Berkeley rivalry. But behind the fun was a serious corporate recruiting event NY Times 37

  33. GLAT – A spoof on aptitude tests http://cruftbox.com/blog/archives/001031.html 38

  34. Recruiting their customers 39

  35. A unique “targeted” approach 40

  36. A unique “targeted” approach Graduating soon? Can one conversation change the world? Find out how a career at Google can make your dreams a reality 41

  37. Google targets it’s customers via GMail 42

  38. Google targets it’s customers via GMail Based on the “cookie” that identifies where you come from… and the “key words” you use in your Gmail… you could be recruited 43

  39. Google targets it’s customers via GMail From JimStroud.com 44

  40. Google targets it’s customers via GMail Join Google in Atlanta www.Google/jobs We are hiring engineering experts 45

  41. Other recruiting innovations 46

  42. Referrals Referrals are critical Good people know other good people. “Our best employees have been hired through referrals” Give me 5 approach 40+ % Bonus $2000 \

  43. Google recruits at public events family? Here is how! 48

  44. Video recruiting Videos tell their story YouTube Google channel - A moving picture really is worth a thousand words Recruiting (An inside look at Google) (Over 500,000 views) Google Factory Tour Secret and Hidden Places at Google "The Google Story" "All Marketers are Liars" ... 49

  45. Blogs Blogs tell their story Hundreds of blogs spread their story and make them accessible and “real” Google culture blogs = 110 Recruiting related blogs = 24 50

  46. Hiring and Assessment Hiring approach Hire for this andyour “next job” Top grading approach (top performers in all positions because… rapid growth means you never know where they will end up) Managers/ employees do the hiring (Involvement) Interviewers give you real problems and you are asked “you to solve them in real time” “It's not a question of getting the answer right or wrong, but the process in which you use to solve it. Creativity is important” 51

  47. College recruiting 52

  48. Recruiting “on-campus” CEO and founder talks at campus events Talks at student professional organizations help you reach and influence the very best Have your employees teach classes or bring “their” problems into the classroom to increase visibility Hold practical training classes on-campus to attract and secretly assess college students

  49. Google recruiting innovations Built a building next to campus (Faculty & interns)

  50. On-boarding 55

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