I recently read an excellent book, Gary Hamel's The Future of Management
But, Hamel has found a variety of companies that are building new management models. Of course, one is Google (NASDAQ: GOOG).
According to Hamel: "What makes Google unique is less its Web-centric business model, but rather its brink-of-chaos management model. Key components include a wafer-thin hierarchy, a dense network of lateral communication, a policy of giving outsized rewards to people who come up with outsized ideas, a team-focused approach to product development, and a corporate credo that challenges every employee to put the user first."
That's a lot, but it's working quite well so far.
So how can your company get some Google magic?
Let's take a look:
A great place to hang out: Do your employees really want to come to work? If not, there are some ways to improve the environment.
Take a look at GotVMail, which is a provider of voice mail services to small businesses. The company subsidizes lunch for employees. Not only is this a nice perk, but it keeps employees focused on their projects, provides convenience and, yes, means spending less on gas.
Another interesting case is Seventh Generation, which is the largest seller of green cleaning products. At Seventh Generation dogs are allowed at work, for example. Oh, and all employees get one massage every week.
Outsized Rewards: Several years ago, Google established its "Founders Awards" program. That is, if a group of employees pull off an amazing accomplishment, there is a chance to receive millions in stock rewards. No doubt, it's led to some great innovations.
Actually, it's probably a good idea to provide your key employees some level of stock options or grants. "My key programmer has lots of stock," said Bobby Kalili, who is a serial entrepreneur/investor and operates Yellowpages.travel. "When we are working on a project, he often comes up with new features. This is something he probably wouldn't do if he didn't have an equity stake."
Unique Titles: Metropark, which is hip retail chain, knows that its managers and store sales people need to have passion and motivation. To this end, they are actually called "Style Consultants." There is also an extensive training program to improve customer relationships (called "clienteling"). In addition, for the top "Style Consultants," there are annual rewards, such as the Chairman's Club, which involves a three-day offsite.
Tom Taulli is the author of various books, including The Complete M&A Handbook
Comfort Zone Investing: Survival of the fittest -- letting some banks fail
Three All-American stocks for portfolio fireworks
Michael Jackson fireworks, the workaholic
Reader Comments (Page 1 of 1)
6-22-2008 @ 8:41PM
Lilguy said...
According to Hamel: "What makes Google unique is less its Web-centric business model, but rather its brink-of-chaos management model. Key components include a wafer-thin hierarchy, a dense network of lateral communication, a policy of giving outsized rewards to people who come up with outsized ideas, a team-focused approach to product development, and a corporate credo that challenges every employee to put the user first."
This quote from Hamel sounds strangely like the way Wall Street investment banks were behaving until their world fell in on them. About the only words I change are "put the bottom line first" at the end of the paragraph.
It will be interesting to see how GOOG's culture (& others like it) change when they meet adversity.
6-24-2008 @ 3:35PM
Anna said...
It is amazing how some companies get it and others do not.
I have worked for a few businesses that found ways to make life easier for their workers. And most of the time it didn't cost much or any money.
The problem is that many businesses concentrate so much on the bottomline that they forget about the people who will in the long run make them more profits.
Anna
http://www.babyshowerriches.com
6-25-2008 @ 12:57AM
Marco said...
This feature article is about the work culture or the culture of the workplace. Within this US president's two terms, the work culture has gotten lost along with innovation. For many years, I worked for a large corporation in New York with a "wafer thin hierarchy," putting the consumer first and, yes, I received rewards for my user friendly ideas. The corporation was so successful that it was gobbled up by a larger corporation. It took our people ... for a while. We quit en masse realizing it was prison. Now that behemoth corportation is in financial trouble. Why? Since it didn't treat workers as humans, the brain drain left it WITH their new, exciting ideas and technology. The oversized hierarchy has carpeted walls and vista views. The worker bees are reduced to windowless offices. That's a corporation getting what it deserves! Wake up, corporate America!
6-25-2008 @ 5:56PM
twilightrune said...
GotVmail also writes a mean newsletter (I mean that in a good way). I find it quite useful (and their product too lol), concentrated on online tools as it is.
http://gotvmail.com/newsletter/06-2008/
6-26-2008 @ 3:53PM
janebetsch said...
I do real estate and flat fee mls or discount brokers have used google to get listings. Instead of knocking on doors. Check out these sites: see 4 yourself.
http://www.mlsflatfeefsbo.com
http://www.mlsisland.com
http://www.listingflatfeemls.com
6-27-2008 @ 4:15PM
Jeremy Horn said...
These are great tips, and weekend reading, about how to bring a little Google 'magic' to your own start-up. For some more weekend reading checkout the latest Weekend Reading from The Product Guy @ http://tpgblog.com/2008/06/27/the-product-guys-weekend-reading-june-27-2008/.
Read, Enjoy & Share!
Jeremy Horn
The Product Guy
http://tpgblog.com