Filed under: Management, Google (GOOG), Employees, Entrepreneurs, Small business
I recently read an excellent book, Gary Hamel’s The Future of Management
. Essentially, he believes that corporate management approaches are antiquated. As a result, many companies are failing to innovate and grow.
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 one-of-a-kind 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 incredible accomplishment, there is a opportunity 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 allows. “My key programmer has lots of stock,” stated Bobby Kalili, who is a serial entrepreneur/investor and operates Yellowpages.travel. “When we’re 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.”
Very special 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’s 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
and The Edgar On the internet Guide to Decoding Financial Statements
.
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