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A quick tour of… 
THE BEST OF THE BEST 
TALENT MANAGEMENT 
PRACTICES FROM THE 
SILICON VALLEY 
With A Focus On Google, Facebook And Apple 
BAPM - Nov. 13, 2014 
© Dr John Sullivan 
107sl 
www.drjohnsullivan.com
3 
I’m from the Silicon Valley… 
so I will move fast today 
LISA - Learning, Innovation, Speed & Adaptiveness
4 
Sit back and consider the possibilities 
1. They asked me to expose you to some 
leading edge best practices from the 
Silicon Valley… in order to make you 
re-think your current approaches 
2. Realize up front that these practices may 
or may not be a glimpse of the future of 
HR in Europe 
3. Please note: because these are advanced 
features… pick and choose the 
approaches that fit your firm 
We call him 
Poorly dressed 
Young 
Uneducated 
Inexperienced 
CEO
5 
The talent areas that I will cover today 
1. Productivity and business impacts 
2. WOW physical features 
3. WOW employee benefits 
4. Aggressive recruiting 
5. Prioritization 
6. Metrics 
7. Internal movement 
8. Retention 
9. Learning 
10. Innovation 
11. Speed 
12.Adaptiveness
Productivity and Business Impacts 
6 
In the Silicon Valley we focus on… 
Recommended actions 
• Make it your primary Talent Management goal… 
to increase employee productivity 
• You must know and then manage the factors that 
increase productivity
Where does HR rank… when compared 
to other strategic business functions ? 
When CEO’s and board-level executives were 
asked to rank business functions… which one was 
listed as the most strategic? 
Sales 
Where was HR ranked on the list? 
“the least strategic function” 
7
2 strategic questions related to employee productivity 
Are the employees working at firms which have 
“top performing” talent management functions… 
significantly more productive…than the employees 
that work at firms with only average performing 
8 
talent management functions? 
Yes / No 
If the answer is yes… What is the percentage of 
productivity improvement… as a result of having a 
great talent management function?
Comparing the workforce productivity of “Top to 
Very Good” firms in the computer /tech industry 
A comparison of employee output (rev per employee) 
Average $208,000 USD 
IBM $229,700 (11% above the average) 
HP $352,400 (Nearly 1¾ times the average) 
Amazon $697,016 (Nearly 3¼ times the average) 
Microsoft $877,000 (Nearly 4 times the average) 
Google $1,320,000 (Nearly 6.5 times the average) 
Facebook $1,580,000 (7.5 times the average) 
Apple $2,218,000 (Nearly 11 times the average) 
Key learning - it takes 10X more employees at 
IBM… to produce the same revenue as Apple 
(From 7/2014 data from www.MarketWatch.com ) 9
Does a top “best place to work” ranking 
correlate with business success? 
Employer brand 
1. Google 
2. Apple 
3. MS 
4. Facebook 
Market cap value 
1.Apple - $478 b 
2.Exxon - $406 b 
3.Google - $403 b 
10 
4.MS - $315 b 
13 Facebook - $211b 5/2012 
Product brand 
1. Google 
2. Apple 
3. IBM 
4. MS 
Do you see the similarities?
11 
Realize that… most of your firm’s productivity 
comes from your top performers 
How much more do top performers produce? 
 The top 1% of your workforce produces what % 
of your total output ? 
 The top 5% produce 
5% 
A top performer produces how much more than 
the average employee in the same job? 
- 10 times more than the average 
GE & Yahoo 
- 25 times more than average employee 
- 300 times more than the average 
- 1000 times more than the average 
Apple 
Google 
Microsoft 
26% (5X) - U of Indiana study
12 
In the Silicon Valley we have… 
WOW Physical Facilities 
Recommended actions 
• Don’t give employees a reason to leave the building 
(Casino) 
• Enhance collaboration with serendipitous meetings
How does this compare to your office? 
13
How does Amazon’s new HQ compare to yours? 
14
15 
A view of and access to the SF bay
16 
Can you match this? 
The Sweet Shop
17 
Can you match a BBQ smokehouse story?
24/7 technology access 
Every building has 24/7 IT supply and repair 
18
Google sends a message that they want you to think 
19 
Massage chairs
20 
If you don’t like the massage chairs… try this!
21 
Google Bowling Alley
Google wants going to a meeting to be fun 
Slides in Google offices 
(they see no compliance issues) 
Regular slide Long slide Fireman’s pole 22
23 
Open space/ standing desk for collaboration – 
“swing your arms and hit someone”
Improving decision-making speed at GSK 
Open-office design improves decision-making speed 
More interaction & cross-functional collaboration 
increases decision making speed by 45% Source: Forbes 2012 
24
25 
Video games for collaboration and fun
A scientific approach to the work environment 
Why does Google do this? 
To enhance collaboration 
26
A visible business plan keeps 
everyone on the same page 
27 
LISA means you won’t catch us 
http://roger.kaywa.ch/files/innovationatgoogle.pdfhttp://roger.kaywa.ch/files/innovationatgoogle.pdf
28 
They even use their strategic plan 
as a recruiting tool on a bus in Seattle
Google makes you look forward to going to work 
29 
“It's like… going to Disneyland everyday” 
Source Google employee on Glassdoor.com 
http://onlinelibrary.wiley.com/doi/10.1111/j.1744-6570.2011.01239.x/full
30 
Even our approaches to a conference 
are different
31 
A conference room at Zappos
32 
A Google conference bike
33 
In the Silicon Valley we have… 
WOW Employee Benefits 
Recommended actions 
• Don’t let them worry about non-work things that 
they must get done 
• Provide them with “a story a day”
Do you offer these WOW benefits? 
High pay and stock 
Free meals, espresso, red bull all day 
On-site physician /dental 
Valet parking, car detailing & bike repair 
Employees design their your own cubical 
Child care & back up 
Massage, yoga, hair stylist 
Company movie day, dances, picnics & concerts on-site 
Takeout food for new parents 
$5000 toward adoption 
Maternity 5 mths at 100% pay 
$20k for freezing a female employees eggs (Apple and Facebook) 
34
35 
Free time to experiment 
Up to 20% free time to work on “your project” 
20% time - “The important thing is that it really 
lets you say ‘No’ to your manager” 
From an employee’s perspective, under the 
rule.... “Nobody can tell you that you can’t 
experiment” Larry Page CEO
Would this feature attract top workers? 
36 
Free Wi-Fi shuttle bus and ferry to work… 
7,100 stops per day 
(Google, Facebook, Apple, Yahoo, Genentech etc.)
37 
Google offers a different band everyday
Google’s “policies” build their brand 
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” 
38
Eliminate bad rules 
Google’s ‘Big Scrub’ fixes bad policies/ rule 
Every quarter employees list and then vote on the 
top 20 rules they want to see changed 
(Google pledges to fix those rules within 2 months) 
39
Apple knows the value of a great job title 
40
Your policies can reveal the true level of your trust 
41 
“There is no policy or tracking” 
--------------------- 
Facebook does not track employee absences 
Key lesson - If you focus on, measure and reward 
performance… you won’t have attendance issues
Apple is much different than the rest 
42 
No free food 
A great deal of secrecy 
No facilitated career progression 
No individual bonuses 
Instead they focus on just two things… 
1.Doing the best work of your life 
2.Having a noticeable impact that makes you proud
43 
In the Silicon Valley we do… 
Aggressive recruiting 
Recommended actions 
• You must focus on recruiting top performers and 
innovators 
• You must use bold and unique recruiting 
approaches when you are fighting for the best
44 
Proximity recruiting 
Tokbox parked a taco truck across from Yahoo's HQ
45 
Yahoo raised the recruiting bar even further 
Coffee cart recruiting at Google’s bus stop
46 
Bigcommerce “proximity” recruiting 
At the same bus stop… this startup firm gave out 
“poached” egg sandwiches and coffee
47 
Would this be an aggressive poaching? 
EA vs. Radical entertainment (ASK-EE)
48 
Google Code Jam – Zombie smashers 
Google Code Jam 
 This version was a “Zombie smashing” contest 
 36,000 participants tried to solve 5 algorithmic 
problems including figuring out the most efficient 
way to whack zombies 
Google gets 3 million applications a year
49 
Employee generated videos (film festival) 
Make “finding the excitement” at your firm easy 
for outsiders (200 films)
50 
Videogame practice – My Marriott Hotel game
51 
Video job descriptions provide 
a competitive advantage 
A video job description 
Can reveal the excitement behind a job (Quickstop, Accenture and Deloitte)
52 
Referral cards can be powerful 
Your customer service just now was exceptional. 
I work for the Apple store and you’re exactly the 
kind of person we’d like to talk to. 
If you’re happy where you are, I’d never ask you to 
leave. 
But if you’re thinking about a change, give me a call. 
This could be the start of something great
53 
Firms have shifted to video interviews 
Initial interviews are now done live but remotely 
using a web cam (save travel and schedule issues) 
It now has an app for iPhone interviews
Apple careers website 
54
Boomerang re-hires - DaVita = 16% of all hires 
and Yahoo 14% 
“You’re always welcome here” e-card + alumni group
56 
Outrageous referral bonuses 
They offered a $20,000 referral reward for any job 
Any “friend of the company” qualifies for the $ 
They hired 9 in 1 month (from a base of 32 employees) 
Why? “People don't always listen to recruiters, 
but they do listen to their friends”
57 
Halfway 
Any questions at this point?
58 
In the Silicon Valley we… 
Prioritize and Focus 
Recommended actions 
• Prioritize the HR programs with the highest impact 
• “Do the big things right” by prioritizing high-impact 
bus. units, jobs and employees
Identify and then prioritize the people management 
programs that have the highest business impact (BCG) 
Source: BCG/WFPMA - From Capability to Profitability: Realizing the Value of People Management, 2012 59
Mid and lower impact HR functions 
60
61 
Make hiring the #1 priority 
“Hiring is the most important thing you do” 
Source: Eric Schmidt, Former CEO of Google
Prioritize top performers and 
know what they care about 
An average employee at firm 
xyz want these things… 
But top performers at the same 
firm want these factors… 
1. Doing the best work of your life 
2. Proud of their impact 
3. Great managers 
4. Opp. to innovate/ take risks 
5. Learn rapidly / being challenged 
6. Work with top co-workers 
7. A choice of projects 
8. Opp. to implement ideas 
9. To make decisions 
10.Input into schedule/ location 
62 
1. Guaranteed pay 
2. Exceptional benefits 
3. Security 
4. Time off with pay 
5. No surprises/ predictable 
6. Seniority matters 
7. Equal treatment 
8. Minimize risk and stress 
9. Work/ Life balance
63 
Focus on “A” players 
Hire only “A” players 
“The problem is that A players are only attracted 
to work at places where they see other A 
players, they smell B from a mile away” Inventor James 
Dyson 
Always hire the best managers, "A" people… 
As soon as you hire a B, they start bringing in 
B’s and C’s" Source: Steve Jobs 
“If people see poor performers all around them, 
they decide they don’t need to work that hard. 
Your very best people will leave” Source: Laszlo Bock Google
64 
In the Silicon Valley we make… 
Data supported decisions 
Recommended actions 
• Utilize metrics everywhere 
• Convert talent results into revenue impacts 
• Utilize predictive rather than historical metrics
What areas does HR do well & poorly? (KPMG) 
65
66 
The most advanced… and the non-users 
of analytics by business function 
Are advanced users Are non-users 
1. Finance 58% 7% 
2. Executive team 51% 11% 
3. Operations 48% 9% 
4. R&D 44% 23% 
5. Marketing 41% 16% 
6. Sales 34% 20% 
7. HR 27% 23% 
Learning: compared to HR, Finance has 2X the 
advanced users and 3x fewer non-users 
Source: AMA/i4cp 2013
67 
The use of analytics increases business results… 
(source: Harvard Business Review) 
Advanced users of workforce analytics… produced 
higher business performance in these areas 
% increase in performance by effective users
Google is the world’s only data driven TM function 
“All people decisions are based on data & analytics” 
"We want to bring the same level of rigor to 
people-decisions that we do to engineering 
decisions" 
“The best thing about using data to influence 
managers… is that it’s hard for them to contest 
it” 
For most… just knowing that information… 
causes them to change their conduct” 
68
69 
Experimentation in TM 
Google has an R&D team in Talent Management 
People & Innovation Lab (PiLab) - it runs 
dozens of experiments on employees in an effort 
to answer questions about the best way to 
manage a large firm (diversity, pay & weight)
70 
In the Silicon Valley we focus on… 
Improving internal movement 
Recommended actions 
• Faster and more impactful movement for retention, 
development and productivity
71 
Intra-placement 
Develop a “Intra-placement” recruiting team 
An intra-placement team… proactively identifies 
who needs to be moved and then accurately places 
them in the highest impact job 
“Inside First”
Employee choice internal movement practice – 
A new employee selects their own path 
72 
6 week on-boarding boot camp 
 They send new hires key paperwork to complete 
before they start 
 Every new hire goes through 6 weeks before they 
are placed 
 They get a mentor 
 The entire time they work on real team projects 
with access to the complete computer code 
 “Bootcampers choose the team and the project 
that they will join”
73 
Pick your next job 
Hackamonth self-directed movement 
 Picking your own next job… increases the 
likelihood that you will be doing “the best work 
of your life” 
 Any engineer after 1 yr. can select any new 
project for a month, and if they like working 
there… “they can stay”
74 
Internal project availability website 
Project availability website 
An IM program success factor is… the ability to 
make the available projects /rotations "visible" 
The most advanced approach is an internal 
webpage… to make employees aware of the 
available projects/ assignments (some allow bidding, 
while others proactively send out targeted alerts)
How to excite young, “techie” and diverse workers 
Reverse mentoring 
Matching execs. with “technical” or diverse employees 
 It keeps execs up to speed with trends/technology 
 It spreads inclusion 
 It can increase the retention of younger workers 
 Cisco, HP, PwC, IBM, Microsoft and GE 
75
Other firms can learn from our focus on… 
76 
Retention 
Recommended actions 
• Prioritize your employees and jobs 
• Personalize your retention plans 
• Find out why they leave with pre-exit interviews
Retention is an important issue among executives 
A SHRM/ economist survey of global C-suite 
executives showed that execs forecast that retention 
will be the top issue for 10 years 
77 
1. Retaining and rewarding the best people 
2. Attracting the best people to the organization 
Turnover rates increased last year by 45% 
Source: A SHRM / Economist survey 2010
85% of the employed would consider a new job. 
Source: LinkedIn 2014 
Almost everyone is available
79 
Retention of top performers 
High achievers will leave for better opportunities 
“High achievers… are leaving their employers 
after an average of 28 months” (i.e. high achievers are 
those that are on average 30 years old with great school and work 
credentials) 
If you don’t provide a better internal opportunity 
within 28 months… you will lose your high 
achievers 
Source: Harvard Business Review 2014
80 
Identifying who will quit 
Google uses an algorithm to identify who might quit 
 Employee reviews 
 Promotion history 
 Pay history 
 Employee surveys 
 Peer reviews (360 degree) 
 Employee training 
 Leadership meetings 
They look for employees who “feel underused”
81 
Use “stay interviews” 
Hold stay interviews before they quit 
This firm uses stay interviews (why do you stay?) 
to head off retention issues by asking current 
employees what excites them and makes them 
want to stay 
They then reinforce and build on those factors
The #1 Gallup lesson on retention 
“No one ever quits a company… 
they quit their manager!” 
Conclusion of the Gallup Survey 
82 
Develop a “bad manager identification program”
Improve retention with a More of / Less of list 
83 
I would like less of 
1.Meeting attendance 
2.Paperwork 
3.Writing reports 
4.Travel 
5.Weekend work 
I would like more of 
1.Leadership roles 
2.Stretch projects 
3. Interaction with execs. 
4.Attending conferences 
at Stanford 
5.New technology tools
Work flexibility 
Mass career customization (Deloitte) 
Every employee can dial up/ down their job… as 
career aspirations & personal needs change. 
They can adjust: 
• Work hours 
• Travel demands 
• Job responsibilities 
Results: 
• 2/3 of employees choose to dial up their career 
• Voluntary turnover rates of top performers 
choosing this option were 2x lower 
84
85 
Remote work helps the bottom line 
Results Only Work Environment 
• Pick when you work 
• Pick where you work 
• No in-person meetings required 
Is this laughable? Is it risky? 
The business impacts of a “mature adult” policy: 
ROWE employees have a 45% higher / lower 
turnover 
($13 million per year at $102k per employee) 
When workers switch to ROWE, their productivity 
jumps by 35%
86 
Pay to quit 
“Pay to Quit” at Amazon 
 “Once a year, we offer to pay our associates to 
quit”. ($2,000 the 1st yr., to $5,000 the 5th) 
 We hope they don’t take the offer, the goal is to 
encourage folks to take a moment and think 
about what they really want in the long-run 
 “An employee staying somewhere they don’t 
want to be isn’t healthy for the employee or the 
company.”
87 
Influence the influencers for retention 
4,000 showed up
Other firms can learn from our focus on… 
88 
Learning 
Recommended actions 
• Make employees own their personal development 
• Offer on-the-job projects because they are the best 
ways to learn
89 
Learning ability is the #1 competency 
“… learning ability is the key determiner in deciding 
among candidates” (across all jobs) 
Laszlo Bock VP of HR
90 
Development 
Development not training at Google 
"Do not get scared into thinking training is 
development”… “ training courses are of little 
use” because “people do not learn through going 
on training courses," 
"The vast majority of people learn through on the 
job learning” 
The primary mechanism for development is "on-the- 
job learning" through continuous internal 
project transfers
91 
Constant learning is important that Google 
“Testing on the Toto toilet” 
www.flickr.com/photos/gubatron/246489031
They recruit “makers” not degrees 
Obviously they can’t require a 
college degree 
Because their obviously successful 
CEO is a college dropout… 
“It would be weird for us to require 
a college degree” 
So instead their recruiting focus is 
“If you can build awesome stuff 
and have big impact, that’s all 
we’re really looking for” 
At Google - “the proportion of 
people without any college 
education at Google has 
increased…” 92
93 
In the Silicon Valley we focus on… 
Innovation 
Recommended actions 
• Calculate the business impact of innovation over 
productivity (5X) 
• Develop processes for hiring and managing 
innovators
What is required to increase innovation? 
Google has a formula for increasing innovation 
(Algorithm) 
Innovation = Discovery + Collaboration +Fun! 
94 
Source: K M World Magazine Webinar 2008 
(i.e. learning)
95 
Successful organizations must have innovation 
Innovation is critical in a fast-moving world 
“Creativity” is the most important factor for the 
successful company of the future 
CEO survey conclusion from IBM’s Capitalizing on Complexity 
 Innovation is replacing productivity as the #1 
business goal (as a result of the success of the Apple 
approach) 
 The impact of innovators in mid-level jobs is 
becoming… greater than the impact of many 
executives
96 
Google wants employees to aim high 
 A 10 % improvement rate “means that…you are 
guaranteed not to succeed wildly” 
Google expects it’s employees to… “create 
products and services that are 10 times better than 
the competition” 
A “1000% improvement requires rethinking 
problems entirely, exploring the edges of what’s 
technically possible, and having a lot more fun 
in the process” Larry Page
and leaking 
97 
Innovators see things as “broken” 
Innovators add great value because… they see 
most things as “broken” 
The best employees assume continuous obsolescence
98 
Facebook is focused on innovation 
Hackathon one night project 
Anyone can propose an all night session on a novel 
idea to create a prototype (Facebook Chat, Type ahead search and 
Friend Suggester came from one)
99 
Measure if your firm is innovative 
How do you measure if a firm is innovative? 
If more that 25% of it’s revenue (or business) 
comes from products and services that were 
developed within the last 18 months
100 
In the Silicon Valley we focus on… 
Speed 
Recommended actions 
• Hire “fast” employees 
• Be first.., so that you can give your firm a 
competitive advantage
Speed is essential quotes 
Speed is essential for business success 
Speed allows your firm to be “first to market” 
“If you never break anything, you’re probably not 
moving fast enough” 
“We’re less afraid of making mistakes than we 
are of losing opportunities” 
“Done is Better than Prefect” 
101
Innovation and risk-taking barriers 
Facebook managers encourage employees to take 
more calculated risks… 
102 
Why – risk taking means either rapid progress… 
or rapid learning from your failures
103 
Adaptiveness 
Recommended actions 
• Hire “adaptive” employees 
• Everything must be quickly “scalable” up and 
down 
In the Silicon Valley we focus on…
We live in a fast-changing unforgiving VUCA world 
It is no longer… the big and established firms that 
104 
dominate the small ones… 
it’s the fast and adaptive firms that now dominate 
the slower firms 
Warning: If the speed of change outside your firm 
exceeds the speed of change inside your 
organization, 
your end is in sight, 
and unfortunately… insiders will probably be the last 
to actually see the end coming 
Dr John Sullivan
Focus on those that are comfortable with VUCA 
When we hire talent, “we look for Googliness … 
people who are comfortable with ambiguity” 
Prasad Setty 
105
106 
A final check list of action items 
Expect resistance and criticism 
Be bold… to attract innovators 
Recruit where they currently work 
Prioritize your jobs and employees 
Make decisions based on data 
Speed, learning and collaboration 
Provide a competitive advantage 
Recruiting/retention are critical 
Focus on referrals for top talent 
Move people internally to excite
Did I make you think? 
And give you a few takeaways? 
www.drjohnsullivan.com 
JohnS@sfsu.edu 107

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PEOPLE MANAGEMENT PRACTICES FROM GOOGLE, FACEBOOK AND APPLE

  • 1. A quick tour of… THE BEST OF THE BEST TALENT MANAGEMENT PRACTICES FROM THE SILICON VALLEY With A Focus On Google, Facebook And Apple BAPM - Nov. 13, 2014 © Dr John Sullivan 107sl www.drjohnsullivan.com
  • 2. 3 I’m from the Silicon Valley… so I will move fast today LISA - Learning, Innovation, Speed & Adaptiveness
  • 3. 4 Sit back and consider the possibilities 1. They asked me to expose you to some leading edge best practices from the Silicon Valley… in order to make you re-think your current approaches 2. Realize up front that these practices may or may not be a glimpse of the future of HR in Europe 3. Please note: because these are advanced features… pick and choose the approaches that fit your firm We call him Poorly dressed Young Uneducated Inexperienced CEO
  • 4. 5 The talent areas that I will cover today 1. Productivity and business impacts 2. WOW physical features 3. WOW employee benefits 4. Aggressive recruiting 5. Prioritization 6. Metrics 7. Internal movement 8. Retention 9. Learning 10. Innovation 11. Speed 12.Adaptiveness
  • 5. Productivity and Business Impacts 6 In the Silicon Valley we focus on… Recommended actions • Make it your primary Talent Management goal… to increase employee productivity • You must know and then manage the factors that increase productivity
  • 6. Where does HR rank… when compared to other strategic business functions ? When CEO’s and board-level executives were asked to rank business functions… which one was listed as the most strategic? Sales Where was HR ranked on the list? “the least strategic function” 7
  • 7. 2 strategic questions related to employee productivity Are the employees working at firms which have “top performing” talent management functions… significantly more productive…than the employees that work at firms with only average performing 8 talent management functions? Yes / No If the answer is yes… What is the percentage of productivity improvement… as a result of having a great talent management function?
  • 8. Comparing the workforce productivity of “Top to Very Good” firms in the computer /tech industry A comparison of employee output (rev per employee) Average $208,000 USD IBM $229,700 (11% above the average) HP $352,400 (Nearly 1¾ times the average) Amazon $697,016 (Nearly 3¼ times the average) Microsoft $877,000 (Nearly 4 times the average) Google $1,320,000 (Nearly 6.5 times the average) Facebook $1,580,000 (7.5 times the average) Apple $2,218,000 (Nearly 11 times the average) Key learning - it takes 10X more employees at IBM… to produce the same revenue as Apple (From 7/2014 data from www.MarketWatch.com ) 9
  • 9. Does a top “best place to work” ranking correlate with business success? Employer brand 1. Google 2. Apple 3. MS 4. Facebook Market cap value 1.Apple - $478 b 2.Exxon - $406 b 3.Google - $403 b 10 4.MS - $315 b 13 Facebook - $211b 5/2012 Product brand 1. Google 2. Apple 3. IBM 4. MS Do you see the similarities?
  • 10. 11 Realize that… most of your firm’s productivity comes from your top performers How much more do top performers produce?  The top 1% of your workforce produces what % of your total output ?  The top 5% produce 5% A top performer produces how much more than the average employee in the same job? - 10 times more than the average GE & Yahoo - 25 times more than average employee - 300 times more than the average - 1000 times more than the average Apple Google Microsoft 26% (5X) - U of Indiana study
  • 11. 12 In the Silicon Valley we have… WOW Physical Facilities Recommended actions • Don’t give employees a reason to leave the building (Casino) • Enhance collaboration with serendipitous meetings
  • 12. How does this compare to your office? 13
  • 13. How does Amazon’s new HQ compare to yours? 14
  • 14. 15 A view of and access to the SF bay
  • 15. 16 Can you match this? The Sweet Shop
  • 16. 17 Can you match a BBQ smokehouse story?
  • 17. 24/7 technology access Every building has 24/7 IT supply and repair 18
  • 18. Google sends a message that they want you to think 19 Massage chairs
  • 19. 20 If you don’t like the massage chairs… try this!
  • 21. Google wants going to a meeting to be fun Slides in Google offices (they see no compliance issues) Regular slide Long slide Fireman’s pole 22
  • 22. 23 Open space/ standing desk for collaboration – “swing your arms and hit someone”
  • 23. Improving decision-making speed at GSK Open-office design improves decision-making speed More interaction & cross-functional collaboration increases decision making speed by 45% Source: Forbes 2012 24
  • 24. 25 Video games for collaboration and fun
  • 25. A scientific approach to the work environment Why does Google do this? To enhance collaboration 26
  • 26. A visible business plan keeps everyone on the same page 27 LISA means you won’t catch us http://roger.kaywa.ch/files/innovationatgoogle.pdfhttp://roger.kaywa.ch/files/innovationatgoogle.pdf
  • 27. 28 They even use their strategic plan as a recruiting tool on a bus in Seattle
  • 28. Google makes you look forward to going to work 29 “It's like… going to Disneyland everyday” Source Google employee on Glassdoor.com http://onlinelibrary.wiley.com/doi/10.1111/j.1744-6570.2011.01239.x/full
  • 29. 30 Even our approaches to a conference are different
  • 30. 31 A conference room at Zappos
  • 31. 32 A Google conference bike
  • 32. 33 In the Silicon Valley we have… WOW Employee Benefits Recommended actions • Don’t let them worry about non-work things that they must get done • Provide them with “a story a day”
  • 33. Do you offer these WOW benefits? High pay and stock Free meals, espresso, red bull all day On-site physician /dental Valet parking, car detailing & bike repair Employees design their your own cubical Child care & back up Massage, yoga, hair stylist Company movie day, dances, picnics & concerts on-site Takeout food for new parents $5000 toward adoption Maternity 5 mths at 100% pay $20k for freezing a female employees eggs (Apple and Facebook) 34
  • 34. 35 Free time to experiment Up to 20% free time to work on “your project” 20% time - “The important thing is that it really lets you say ‘No’ to your manager” From an employee’s perspective, under the rule.... “Nobody can tell you that you can’t experiment” Larry Page CEO
  • 35. Would this feature attract top workers? 36 Free Wi-Fi shuttle bus and ferry to work… 7,100 stops per day (Google, Facebook, Apple, Yahoo, Genentech etc.)
  • 36. 37 Google offers a different band everyday
  • 37. Google’s “policies” build their brand 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” 38
  • 38. Eliminate bad rules Google’s ‘Big Scrub’ fixes bad policies/ rule Every quarter employees list and then vote on the top 20 rules they want to see changed (Google pledges to fix those rules within 2 months) 39
  • 39. Apple knows the value of a great job title 40
  • 40. Your policies can reveal the true level of your trust 41 “There is no policy or tracking” --------------------- Facebook does not track employee absences Key lesson - If you focus on, measure and reward performance… you won’t have attendance issues
  • 41. Apple is much different than the rest 42 No free food A great deal of secrecy No facilitated career progression No individual bonuses Instead they focus on just two things… 1.Doing the best work of your life 2.Having a noticeable impact that makes you proud
  • 42. 43 In the Silicon Valley we do… Aggressive recruiting Recommended actions • You must focus on recruiting top performers and innovators • You must use bold and unique recruiting approaches when you are fighting for the best
  • 43. 44 Proximity recruiting Tokbox parked a taco truck across from Yahoo's HQ
  • 44. 45 Yahoo raised the recruiting bar even further Coffee cart recruiting at Google’s bus stop
  • 45. 46 Bigcommerce “proximity” recruiting At the same bus stop… this startup firm gave out “poached” egg sandwiches and coffee
  • 46. 47 Would this be an aggressive poaching? EA vs. Radical entertainment (ASK-EE)
  • 47. 48 Google Code Jam – Zombie smashers Google Code Jam  This version was a “Zombie smashing” contest  36,000 participants tried to solve 5 algorithmic problems including figuring out the most efficient way to whack zombies Google gets 3 million applications a year
  • 48. 49 Employee generated videos (film festival) Make “finding the excitement” at your firm easy for outsiders (200 films)
  • 49. 50 Videogame practice – My Marriott Hotel game
  • 50. 51 Video job descriptions provide a competitive advantage A video job description Can reveal the excitement behind a job (Quickstop, Accenture and Deloitte)
  • 51. 52 Referral cards can be powerful Your customer service just now was exceptional. I work for the Apple store and you’re exactly the kind of person we’d like to talk to. If you’re happy where you are, I’d never ask you to leave. But if you’re thinking about a change, give me a call. This could be the start of something great
  • 52. 53 Firms have shifted to video interviews Initial interviews are now done live but remotely using a web cam (save travel and schedule issues) It now has an app for iPhone interviews
  • 54. Boomerang re-hires - DaVita = 16% of all hires and Yahoo 14% “You’re always welcome here” e-card + alumni group
  • 55. 56 Outrageous referral bonuses They offered a $20,000 referral reward for any job Any “friend of the company” qualifies for the $ They hired 9 in 1 month (from a base of 32 employees) Why? “People don't always listen to recruiters, but they do listen to their friends”
  • 56. 57 Halfway Any questions at this point?
  • 57. 58 In the Silicon Valley we… Prioritize and Focus Recommended actions • Prioritize the HR programs with the highest impact • “Do the big things right” by prioritizing high-impact bus. units, jobs and employees
  • 58. Identify and then prioritize the people management programs that have the highest business impact (BCG) Source: BCG/WFPMA - From Capability to Profitability: Realizing the Value of People Management, 2012 59
  • 59. Mid and lower impact HR functions 60
  • 60. 61 Make hiring the #1 priority “Hiring is the most important thing you do” Source: Eric Schmidt, Former CEO of Google
  • 61. Prioritize top performers and know what they care about An average employee at firm xyz want these things… But top performers at the same firm want these factors… 1. Doing the best work of your life 2. Proud of their impact 3. Great managers 4. Opp. to innovate/ take risks 5. Learn rapidly / being challenged 6. Work with top co-workers 7. A choice of projects 8. Opp. to implement ideas 9. To make decisions 10.Input into schedule/ location 62 1. Guaranteed pay 2. Exceptional benefits 3. Security 4. Time off with pay 5. No surprises/ predictable 6. Seniority matters 7. Equal treatment 8. Minimize risk and stress 9. Work/ Life balance
  • 62. 63 Focus on “A” players Hire only “A” players “The problem is that A players are only attracted to work at places where they see other A players, they smell B from a mile away” Inventor James Dyson Always hire the best managers, "A" people… As soon as you hire a B, they start bringing in B’s and C’s" Source: Steve Jobs “If people see poor performers all around them, they decide they don’t need to work that hard. Your very best people will leave” Source: Laszlo Bock Google
  • 63. 64 In the Silicon Valley we make… Data supported decisions Recommended actions • Utilize metrics everywhere • Convert talent results into revenue impacts • Utilize predictive rather than historical metrics
  • 64. What areas does HR do well & poorly? (KPMG) 65
  • 65. 66 The most advanced… and the non-users of analytics by business function Are advanced users Are non-users 1. Finance 58% 7% 2. Executive team 51% 11% 3. Operations 48% 9% 4. R&D 44% 23% 5. Marketing 41% 16% 6. Sales 34% 20% 7. HR 27% 23% Learning: compared to HR, Finance has 2X the advanced users and 3x fewer non-users Source: AMA/i4cp 2013
  • 66. 67 The use of analytics increases business results… (source: Harvard Business Review) Advanced users of workforce analytics… produced higher business performance in these areas % increase in performance by effective users
  • 67. Google is the world’s only data driven TM function “All people decisions are based on data & analytics” "We want to bring the same level of rigor to people-decisions that we do to engineering decisions" “The best thing about using data to influence managers… is that it’s hard for them to contest it” For most… just knowing that information… causes them to change their conduct” 68
  • 68. 69 Experimentation in TM Google has an R&D team in Talent Management People & Innovation Lab (PiLab) - it runs dozens of experiments on employees in an effort to answer questions about the best way to manage a large firm (diversity, pay & weight)
  • 69. 70 In the Silicon Valley we focus on… Improving internal movement Recommended actions • Faster and more impactful movement for retention, development and productivity
  • 70. 71 Intra-placement Develop a “Intra-placement” recruiting team An intra-placement team… proactively identifies who needs to be moved and then accurately places them in the highest impact job “Inside First”
  • 71. Employee choice internal movement practice – A new employee selects their own path 72 6 week on-boarding boot camp  They send new hires key paperwork to complete before they start  Every new hire goes through 6 weeks before they are placed  They get a mentor  The entire time they work on real team projects with access to the complete computer code  “Bootcampers choose the team and the project that they will join”
  • 72. 73 Pick your next job Hackamonth self-directed movement  Picking your own next job… increases the likelihood that you will be doing “the best work of your life”  Any engineer after 1 yr. can select any new project for a month, and if they like working there… “they can stay”
  • 73. 74 Internal project availability website Project availability website An IM program success factor is… the ability to make the available projects /rotations "visible" The most advanced approach is an internal webpage… to make employees aware of the available projects/ assignments (some allow bidding, while others proactively send out targeted alerts)
  • 74. How to excite young, “techie” and diverse workers Reverse mentoring Matching execs. with “technical” or diverse employees  It keeps execs up to speed with trends/technology  It spreads inclusion  It can increase the retention of younger workers  Cisco, HP, PwC, IBM, Microsoft and GE 75
  • 75. Other firms can learn from our focus on… 76 Retention Recommended actions • Prioritize your employees and jobs • Personalize your retention plans • Find out why they leave with pre-exit interviews
  • 76. Retention is an important issue among executives A SHRM/ economist survey of global C-suite executives showed that execs forecast that retention will be the top issue for 10 years 77 1. Retaining and rewarding the best people 2. Attracting the best people to the organization Turnover rates increased last year by 45% Source: A SHRM / Economist survey 2010
  • 77. 85% of the employed would consider a new job. Source: LinkedIn 2014 Almost everyone is available
  • 78. 79 Retention of top performers High achievers will leave for better opportunities “High achievers… are leaving their employers after an average of 28 months” (i.e. high achievers are those that are on average 30 years old with great school and work credentials) If you don’t provide a better internal opportunity within 28 months… you will lose your high achievers Source: Harvard Business Review 2014
  • 79. 80 Identifying who will quit Google uses an algorithm to identify who might quit  Employee reviews  Promotion history  Pay history  Employee surveys  Peer reviews (360 degree)  Employee training  Leadership meetings They look for employees who “feel underused”
  • 80. 81 Use “stay interviews” Hold stay interviews before they quit This firm uses stay interviews (why do you stay?) to head off retention issues by asking current employees what excites them and makes them want to stay They then reinforce and build on those factors
  • 81. The #1 Gallup lesson on retention “No one ever quits a company… they quit their manager!” Conclusion of the Gallup Survey 82 Develop a “bad manager identification program”
  • 82. Improve retention with a More of / Less of list 83 I would like less of 1.Meeting attendance 2.Paperwork 3.Writing reports 4.Travel 5.Weekend work I would like more of 1.Leadership roles 2.Stretch projects 3. Interaction with execs. 4.Attending conferences at Stanford 5.New technology tools
  • 83. Work flexibility Mass career customization (Deloitte) Every employee can dial up/ down their job… as career aspirations & personal needs change. They can adjust: • Work hours • Travel demands • Job responsibilities Results: • 2/3 of employees choose to dial up their career • Voluntary turnover rates of top performers choosing this option were 2x lower 84
  • 84. 85 Remote work helps the bottom line Results Only Work Environment • Pick when you work • Pick where you work • No in-person meetings required Is this laughable? Is it risky? The business impacts of a “mature adult” policy: ROWE employees have a 45% higher / lower turnover ($13 million per year at $102k per employee) When workers switch to ROWE, their productivity jumps by 35%
  • 85. 86 Pay to quit “Pay to Quit” at Amazon  “Once a year, we offer to pay our associates to quit”. ($2,000 the 1st yr., to $5,000 the 5th)  We hope they don’t take the offer, the goal is to encourage folks to take a moment and think about what they really want in the long-run  “An employee staying somewhere they don’t want to be isn’t healthy for the employee or the company.”
  • 86. 87 Influence the influencers for retention 4,000 showed up
  • 87. Other firms can learn from our focus on… 88 Learning Recommended actions • Make employees own their personal development • Offer on-the-job projects because they are the best ways to learn
  • 88. 89 Learning ability is the #1 competency “… learning ability is the key determiner in deciding among candidates” (across all jobs) Laszlo Bock VP of HR
  • 89. 90 Development Development not training at Google "Do not get scared into thinking training is development”… “ training courses are of little use” because “people do not learn through going on training courses," "The vast majority of people learn through on the job learning” The primary mechanism for development is "on-the- job learning" through continuous internal project transfers
  • 90. 91 Constant learning is important that Google “Testing on the Toto toilet” www.flickr.com/photos/gubatron/246489031
  • 91. They recruit “makers” not degrees Obviously they can’t require a college degree Because their obviously successful CEO is a college dropout… “It would be weird for us to require a college degree” So instead their recruiting focus is “If you can build awesome stuff and have big impact, that’s all we’re really looking for” At Google - “the proportion of people without any college education at Google has increased…” 92
  • 92. 93 In the Silicon Valley we focus on… Innovation Recommended actions • Calculate the business impact of innovation over productivity (5X) • Develop processes for hiring and managing innovators
  • 93. What is required to increase innovation? Google has a formula for increasing innovation (Algorithm) Innovation = Discovery + Collaboration +Fun! 94 Source: K M World Magazine Webinar 2008 (i.e. learning)
  • 94. 95 Successful organizations must have innovation Innovation is critical in a fast-moving world “Creativity” is the most important factor for the successful company of the future CEO survey conclusion from IBM’s Capitalizing on Complexity  Innovation is replacing productivity as the #1 business goal (as a result of the success of the Apple approach)  The impact of innovators in mid-level jobs is becoming… greater than the impact of many executives
  • 95. 96 Google wants employees to aim high  A 10 % improvement rate “means that…you are guaranteed not to succeed wildly” Google expects it’s employees to… “create products and services that are 10 times better than the competition” A “1000% improvement requires rethinking problems entirely, exploring the edges of what’s technically possible, and having a lot more fun in the process” Larry Page
  • 96. and leaking 97 Innovators see things as “broken” Innovators add great value because… they see most things as “broken” The best employees assume continuous obsolescence
  • 97. 98 Facebook is focused on innovation Hackathon one night project Anyone can propose an all night session on a novel idea to create a prototype (Facebook Chat, Type ahead search and Friend Suggester came from one)
  • 98. 99 Measure if your firm is innovative How do you measure if a firm is innovative? If more that 25% of it’s revenue (or business) comes from products and services that were developed within the last 18 months
  • 99. 100 In the Silicon Valley we focus on… Speed Recommended actions • Hire “fast” employees • Be first.., so that you can give your firm a competitive advantage
  • 100. Speed is essential quotes Speed is essential for business success Speed allows your firm to be “first to market” “If you never break anything, you’re probably not moving fast enough” “We’re less afraid of making mistakes than we are of losing opportunities” “Done is Better than Prefect” 101
  • 101. Innovation and risk-taking barriers Facebook managers encourage employees to take more calculated risks… 102 Why – risk taking means either rapid progress… or rapid learning from your failures
  • 102. 103 Adaptiveness Recommended actions • Hire “adaptive” employees • Everything must be quickly “scalable” up and down In the Silicon Valley we focus on…
  • 103. We live in a fast-changing unforgiving VUCA world It is no longer… the big and established firms that 104 dominate the small ones… it’s the fast and adaptive firms that now dominate the slower firms Warning: If the speed of change outside your firm exceeds the speed of change inside your organization, your end is in sight, and unfortunately… insiders will probably be the last to actually see the end coming Dr John Sullivan
  • 104. Focus on those that are comfortable with VUCA When we hire talent, “we look for Googliness … people who are comfortable with ambiguity” Prasad Setty 105
  • 105. 106 A final check list of action items Expect resistance and criticism Be bold… to attract innovators Recruit where they currently work Prioritize your jobs and employees Make decisions based on data Speed, learning and collaboration Provide a competitive advantage Recruiting/retention are critical Focus on referrals for top talent Move people internally to excite
  • 106. Did I make you think? And give you a few takeaways? www.drjohnsullivan.com JohnS@sfsu.edu 107