9/28/2016

LessonsFromGoogle'sManagementStyle

http://onforb.es/16m9g3h

TimWorstallContributor

Ihaveopinionsabouteconomics,financeandpublicpolicy.
OpinionsexpressedbyForbesContributorsaretheirown.

TECH

6/21/2013@12:32PM 30,991views

LessonsFromGoogle'sManagementStyle
TheresagoodpieceaboutGoogleshiringandmanagement
policiesintheNewYorkTimes.Therestwoparticularpoints
thatinterestme.Thefirstiswhattheyidentifyasbeingagood
manager.Thesecondisabouthowlittleformaleducationseems
tomattertothem.Bothhaveprofoundimplicationsforthe
widereconomy.
Thefirst:

Wefoundthat,forleaders,itsimportantthatpeopleknowyouare
consistentandfairinhowyouthinkaboutmakingdecisionsandthat
theresanelementofpredictability.Ifaleaderisconsistent,people
ontheirteamsexperiencetremendousfreedom,becausethenthey
knowthatwithincertainparameters,theycandowhateverthey
want.Ifyourmanagerisallovertheplace,yourenevergoingto
knowwhatyoucando,andyouregoingtoexperienceitasvery
restrictive.

Letstryandapplythattoourpoliticalleaders:theyneedtobe
predictableandconsistentandthatswhatprovidestherestof
uswithgreatfreedomofaction.Infact,wealreadyknowthis,
itsjustthatwecallittheruleoflaw.Somethingwhichin
politicalphilosophyisthoughtofasbeinganabsolutely
essentialrequirementforanyfreesociety.Wehavetoknowthe
rules,knowthattheyreset,beabletofollowthemandknow
thattheyrenotgoingtobechangedeitherrandomlyorforthe
benefitofsomepoliticalfavouredgroup.
Anexamplemightbethatasandwhenacarcompanygoesbust
thenthelongstandingandsettledrulesfortheprecedenceof
creditorsareadheredto.Notchangedinthisonespecial
instanceinfavourofapoliticallyfavouredgrouplikethelabour
unions.Anexampleofbothnotfollowingtheruleoflawand
alsobyGooglestandardsoneofbadmanagement.Oratleast
thatwouldbetrueifiteverhappened,somethingfromwhich
saveusall.
Thesecondisthatformaleducationqualificationsdontseemto
meanallthatmuch:

http://www.forbes.com/sites/timworstall/2013/06/21/lessonsfromgooglesmanagementstyle/print/

1/3

9/28/2016

LessonsFromGoogle'sManagementStyle

Oneofthethingsweveseenfromallourdatacrunchingisthat
G.P.A.sareworthlessasacriteriaforhiring,andtestscoresare
worthlessnocorrelationatallexceptforbrandnewcollegegrads,
wheretheresaslightcorrelation.Googlefamouslyusedtoask
everyoneforatranscriptandG.P.A.sandtestscores,butwedont
anymore,unlessyourejustafewyearsoutofschool.Wefoundthat
theydontpredictanything.
Whatsinterestingistheproportionofpeoplewithoutanycollege
educationatGooglehasincreasedovertimeaswell.Sowehave
teamswhereyouhave14percentoftheteammadeupofpeople
whovenevergonetocollege.

Itsnottruetosaythatthismeansthatwerenotaknowledge
economy.Googleis,clearlyandobviously,aknowledge
companyintheknowledgeeconomy.Butifformaleducational
qualifications(14%withoutacollegedegree?Assumingtheyre
nottalkingaboutthecooksandthejanitorsbutaboutthe
engineeringandprogrammingteamscanyouthinkofanother
UScompanywiththatsortofnumberwithoutanycollege?)
dontmeanmuchtothemthenthisisaseriousproblemforthe
currentmethodsofeducation.
Fortheargumentusuallygoesthataswereinaknowledge
societytheneveryoneneedstogainmoreeducation.Which
mightevenbetrue:butclearly,itsnotnecessarytogainmore
formaleducationthewaytheeducationsystemcurrentlydoes
it.IfGoogle(andno,thisisimportant,thisisGoogle)issaying
thatthepiecesofpaperprovidedbytheUSeducationsystem
dontmeanmuchtoitthendontyouthinkthisisshowing
somethingofaproblemwiththatUSeducationsystem?Andits
mostcertainlyshowingthatinordertojointhatknowledge
economyyoudonthavetosufferthroughmoreyearsofthatUS
educationsystem.AnotherwayofputtingthisisthatGooglehas
justexplodedtheideathattheknowledgeeconomymeansever
morepeopleneedtogotocollege.Itmayindeedbetruethat
theyneedtohaveknowledgetojointhateconomy:butclearly
thecurrenteducationsystemisntnecessarilyprovidingit.
Whatreallyinterestsaboutthesemanagementlessonsisthat
Googleisfamouslyengineeringdriven.Theylookatthedata,
crunchitandthenthinkaboutwhattheyvefound.Ratherthan
startingwiththetheoryofwhatoughttobeandthentryingto
imposepoliciesculledfromtheory.Thattheyarelookingatreal
worlddatatoguidetheirdecisionsmaybewhytheir
conclusionsaresodifferentfromeveryoneelses.
RECOMMENDEDBYFORBES

GoogleFallsFoulOfEuropeanDataProtectionLaws
Google'sEngineeringDirector:32YearsToDigitalImmortality
GooglePerchesAbove$900,NetflixBackToAlmost80%Of
2011Peak
GoogleReviewsMoreProminentWithOfficialKnowledge
GraphUpdate
TheRichestPersonInEveryState
5WaysSmartLeadersRuinCompanies
TheMostExpensiveHomeListinginEveryState2016
http://www.forbes.com/sites/timworstall/2013/06/21/lessonsfromgooglesmanagementstyle/print/

2/3

9/28/2016

LessonsFromGoogle'sManagementStyle

Apple'sNewiPhone7:NoHeadphoneJack,ButAwesome
Camera

Thisarticleisavailableonlineat:http://onforb.es/16m9g3h

http://www.forbes.com/sites/timworstall/2013/06/21/lessonsfromgooglesmanagementstyle/print/

2016Forbes.comLLCAllRightsReserved

3/3