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Final Paper The Google Company and Change Ashley V. Twyman
Presented presentation for Partial Fulfillment Of the requirements of LEAD 560 Leading Change in Organizations 1/4/2010 – 2/14/2010 Dr. Susan Sasiadek
Introduction
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It would seem as though anyone who lives in a technologically driven society, such as I do, knows about the Google Company. Everyone Googles. In the work place I always hear, “I’m not sure… Google it!” If you want to prove a point you may be debating, “Google it”! Millions of people utilize this tool on a daily basis, but what do we know about the company behind one of the largest search engines that has existed? In this paper I will discuss a brief history of the Google Company, some of Google’s keys elements that define their management styles, and share an e-interview with Clive Twyman about his experience working alongside Google. I will also discuss how the Google Company has created a new outlook on company management in coordination with management styles and theories that are popular today. Finally, I will compare Google’s management styles with the seven key elements of mind change presented by Howard Gardner and to Abraham Maslow’s Hierarchy of Needs theory. A Brief History and Company Overview The Google Company was opened in 1998 in Silicon Valley, California. The idea for the free search engine was the brain child of Sergey Brin and Larry Page. The two attended Stanford University and the idea for Google started as a project the two were working on. Google is now a multi-billion dollar organization that employees over 19,000 people worldwide. They have plants in Sydney, Beijing, Shanghai, Hong Kong, Bangalore, Mumbai, Japan, Osaka, Seoul, Prague, Copenhagen, Helsinki, Paris, Budapest, Dublin, Italy, Amsterdam, Moscow, Madrid, Sweden, London, Montreal, Buenos Aires, Mexico, Tel Aviv, and the United States just to name a few. (about.com) Their headquarters, appropriately dubbed “The Googleplex” is located in Mountain View, California. The company says its mission is “’to
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organize the world’s information and mike it universally accessible and useful’” (computer.howstuffworks.com) It has been named in FORTUNE’s “100 Best Companies to Work For” for the third consecutive year. So what’s with the name? “The name "Google" was chosen from the word "googol," a mathematical term coined by Milton Sirotta, nephew of American mathematician Edward Kasner, for the number represented by 1 followed by 100 zeros. A googol, or google, represented a very large number and reflected the company's mission to organize the immense, seemingly infinite, amount of information available on the World Wide Web.” (fundinguniverse.com) Most impressive is the company monetary value. “In September 2008, Google’s market capitalization figure (Google’s stock price multiplied by the number of outstanding company shares) was more that $145 billion.”(computer.howstuffworks.com) Google’s Innovative Management Approach Google is highly respected as a company powerhouse that is changing and revolutionizing management methods as we know them. They are concerned with familiarizing themselves with the way people work and what they want. They have taken the first step in revolutionizing how organizations are controlled and they are leading by example. “Google can be seen as a new enterprise archetype because its management has made several innovations in human resources, production, customer relations, and most of all, control of its product operations. Google’s ways are the result of its own initiatives… but the most important thing to note is that Google first implemented these methods systematically. The company’s rapid growth, the co-founders’ personalities, their vision, their scientific
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culture, their obsessions, and the expertise surrounding them have all contributed to the construction of this unique business model that is the Google way.” (Girard 2009, 2) Ten Things Google Has Found To Be True Google has created guiding principles which they expect all Google branches around the world to adhere to. These are the defining characteristics they expect all Google employees to use to help answer questions and make decisions within the Google workplace. I feel that these ten things which have been emphasized by the Google Company are imperative to understanding the thought process behind their ability to change minds because it presents an intimate look into the company culture. The following are Google’s Ten Things as found in the book “Google Speaks” by Janet Lowe: 1. Focus on the user and all else will follow. The company strives to put the user ahead of shareholders when making corporate decisions. Additionally, Google makes these promises: •
The website interface will be clear and simple.
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Pages will load instantly.
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Placement or ranking in search results is never sold to anyone.
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Advertising must be relevant to the search and not be distracting.
2. It’s best to do one thing really, really well. “Google does search,” the company used to say. As Google grows and launches new products, it drifts farther and farther away
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from this maxim. Still, the company claims that other products such as Gmail, Google Desktop, and Google Maps are just part of Google’s efforts to improve search. 3. Fast is better than slow. “Google believes in instant gratification,” it says, adding that “Google may be the only company in the world whose states goal is to have users leave its website as quickly as possible.” 4. Democracy on the Web works. “Google works because it relies on the millions of individual posting websites to determine which other sites offer content of value,” explains Google on its website. This has also been referred to as “the wisdom of crowds”. 5. You don’t need to be at your desk to need an answer. This is why Google branches into technology to make search available on PDSs, on mobile phones, and in automobiles. 6. You can make money without doing evil. This is the most difficult and controversial of Google’s precepts. 7. There’s always more information out there. Google has indexed more Web pages than any other search service, and it continually adds more searchable material. This is not only desirable, it is necessary as the World Wide Web expands. 8. The need for information crosses all borders. More than half of Google search results are sent to users outside the United States. Search results are available in approximately 118 languages, and Google’s translation services improve continually.
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9. You can be serious without a suit. Nothing proves that more than Sergey’s and Larry’s attire. Most often they are seen in Levi’s and t-shirts, sometimes wearing Croc sandals. Even the head of their Paris office, working from a classy address near the opera, wears Levi’s to work. Recently the Google boys have been known to throw sports jackets over their t-shirts. 10.Great isn’t just good enough. Google tells its employees, “Always deliver more than expected.” Google does not accept being the best as an end point, but a starting point. Note: The Ten True Things are Google’s. The explanations are adapted from Google’s website and other sources. (Lowe 2009, 153-155)
Google Benefits The Google Company has been able to impact and change the minds of many employees in today’s work force. It’s no secret that the Google Company offers outlandish benefits for their employees. They have tennis courts, volleyball nets, in-house daycare centers, free lunches, massages, relaxation rooms, and of course health and dental coverage and retirement options that are second to no one. Google offers the basics such has health, dental and visual coverage, Flex spending accounts, Employee Assistance Programs (short term counseling, legal consultations, financial counseling, child care referrals, pet care referrals), Life and AD&D Insurance, Short Term and Long Term Disability, Business Travel Accident
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Insurance, Retirement 401 K Plan and 529 College Savings Plan. At Google your first year on the job you will be allowed 15 days vacation; at 4 years this will increase to 20 days and your 6th year you will receive 25 vacation days every calendar year. A Google employee will also have 12 paid holidays every year and sick leave will be taken when necessary. Maternity leave is 18 weeks (that’s four and a half months ladies!!!) at full pay. Paternal leave is available for 7 weeks at full pay. Google will pay for your schooling as well; $12,000 per calendar year as long as each class letter grade is a “B” or better. Know someone who would make a great Google employee? They will pay you for your referral. Other benefits include back up child care (5 days per year at through Children’s Creative Learning Center), Gift Matching Program (matches $3,000 per year), Adoption Assistance ($5,000 to help with legal expenses), free food (lunch, dinner and any snacks you could want), On-site doctor, on-site laundry, shuttle services, financial planning classes, on-site oil changes, car wash, massage therapy, gym, hair stylist, fitness classes and bike repair. Other benefits include: holiday parties, health fairs, a credit union, a sauna, roller hockey, and discounts for products and local attractions. With a list of benefits such as this, who would ever want to work anywhere else? Google’s perks may be many, but they come at a high price. You would be hard pressed to find any member of the Google team that does not hold at least a Master’s degree in their specialized field of study. Google believes in hiring the best and the brightest. How does a company find so many brilliant people? They have an intensively sized recruiting team. “In late 2005, Dr. John Sullivan, a human resource expert, reported that 350 people at Google were dedicated to recruitment. With 5,000 employees at the time, this meant that 1 in 14 Google employees was working in recruitment.” (Girard 2009, 56) Google firmly believes in
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the idea that you “Hire only A people, and they’ll hire other A people. If you hire a B person, they’ll hire C or D people.” (Girard 2009, 57) In his book “The Google Way” Bernard Girard points out there’s one short coming of the Google hiring process; it’s extremely long. One has to question whether or not this effort amounts to much higher outcomes; obviously the Google Company thinks so. It may seem, to many, that the benefits offered by the Google Company are a little too extravagant and they must come at a high cost. They certainly do, but Google’s founders feel that the benefits they offer the employees turn out to actually benefit the overall company just as much. “’ The goal is to strip away everything that gets in our employee’s way. We provide a standard package of fringe benefit, but on top of that are first-class dining facilities, gyms, laundry rooms, massage rooms, haircuts, carwashes, dry cleaning, commuting buses – just about anything a hardworking employee might want. Let’s face it: programmers want to program, they don’t want to do their laundry. So we make it easy for them to do both.’” states Eric Schmidt, Google’s CEO. (google.com) Google’s 80/20 Approach Italian economist and sociologist Vilifredo Pareto proposed what is now commonly referred to as the “80/20 principle”. “As explained by Richard Koch in a charming book, The 80/20 Principle, one can in general accomplish most of what one want – perhaps up to 80 percent of the target – with only a relatively modest amount of effort – perhaps only 20 percent of expected effort.” (Gardner 2004, 7-8)
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Google puts an innovative spin on the 80/20 approach to the work environment. Google knows that employees have interests and projects they like to pursue in their personal time, so why not allow for them to do so at work? Google assumes that 80 percent of an employees work day will be dedicated to assigned Google projects and the other 20 percent of their work day can be spent pursuing project interests of their own. The thinking behind this? Motivation. “Like other companies, Google uses external motivators. Many Google employees are making plenty of money, as you can easily see by counting the luxury cars in the parking lot. But Google also relies heavily on intrinsic motivation, because the company recognizes that its employees are motivated by more than money.” (Girard 2009, 64) This idea was admittedly originally conceived by 3M in order to reduce the amount of turnover they were having in their company structure; but Google has made it a way of life. Of course, Google assumes that the projects which the employees pursue will be closely aligned with the company’s goals; there are not a lot of questions asked. “When an employee envisions a new project, managers don’t say, ‘It’s not a priority so don’t waste your time on it.’” (Girard 2009, 65) This approach makes the Google Company very attractive for recent college graduates and entrepreneur who may eventually come up with a product or service they may be able to sell to Google. It is also thought to enhance productivity. “Google’s 20 percent policy (and 3M’s 15 percent policy before it) also enhances productivity. Engineers are motivated to work faster in order to free up their personal creative time, while Google’s overall culture of quality insures that 80percent of work won’t be slipshod.” (Girard 2009, 66) Girard also asserts that this method of time management as mandated by a company results in three indirect forms of leverage over its employees: (1) I owe something to the company because I’m
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given the freedom to invent and develop my own ideas. (2) If I can’t free up 20 of my time, my performance is below par. (3) My reputation depends on developing idea that will earn my college’s respect. (Girard 2009, 67) Google and Maslow’s Hierarchy of Needs In my opinion, the Google Company takes Maslow’s Hierarchy of Needs theory to the extreme. They realize that their employees have many other things to worry about besides work. Maslow asserts that every person is driven by unsatisfied needs. In this theory, he addresses the idea that first are the physiological needs (food, water, nourishment, sleep), next comes safety needs, then social needs, esteem needs and finally self-actualization. A person cannot think about the next level of needs until they have been able to meet the requirements of the need before it. For example, a person who may be very concerned about being able to feed their family has little interest in social or esteem needs because a lower need level has not been met. “According to Maslow’s theory, if such needs are not satisfied then one’s motivation will arise from the quest to satisfy them. Higher needs such as social needs and esteem are not felt until one has met the needs basic to one’s bodily functioning.” (netmba.com) The Google Company may be taking Maslow’s theory to a higher level by realizing that while work may be a very important aspect of one’s life it is surely not the only aspect of concern. The Google Company realizes that they are able to get better productivity out of each employee by providing them with benefits that meet their most basic of needs, such as laundry and eating, and the employees, in return, are better able to focus on work and therefore, work harder.
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Google and Howard Gardner’s Seven Areas of Mind Change Howard Gardner presents seven steps which are involved in the complex arena of changing one’s mind, which he called the seven R’s of mind change. In what follows I will address each of the seven areas, quickly define that area, and then relate each area to the Google Company in relation to how they have influence a change in mind in one aspect or another. Reason. “A rational approach involved identifying of relevant factors, weighing each in turn, and making an overall assessment. Reason can involve sheer logic, the use of analogies, or the creation of taxonomies.” (Gardner 2004, 15) Briefly, if it makes sense to the human brain, change will occur. The rest of the world gawks at the types of benefits the Google employees receive, and this type of motivation definitely makes sense. Google emphasizes that they want their employees to only be concerned with the work they have in front of them, not worried about the laundry at home or time to go to the gym or when they will get their vehicles serviced next. They have taken the approach that by fulfilling these needs for their employees, they will work harder for the company. Makes perfect sense! Research. “…the collection of relevant data. Those with scientific training can proceed in a systematic manner, perhaps even using statistical tests to verify – or cast doubt on – promising trends.” (Gardner 2004, 15) When the Google Company founders set out to start a company, they did their research about what employees want. As apparent by their abundant list of benefits, the Google Company set out to discover, or researched, what employees want from an employer in order to create an environment for maximum productivity.
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Resonance. “A view, idea, or perspective resonates to the extent that it feels right to an individual, seems to fit the current situation, and convinces the person that further considerations are superfluous.” (Gardner 2004, 15) At the time of Google’s induction to the technological mainstream that was Silicon Valley, many companies were offering benefits in smaller proportion than what Google currently maintains. Apple computer was known for having “desk to desk” masseuses for those cramps in the neck and shoulders associated with long hours at the computer and desk. The idea to take those ideas and inflate them must feel like the right thing to do to Google execs. Representational Rediscriptions. “A change in mind becomes convincing to the extent that it lends itself to representation in a number of different forms, with these forms reinforcing one another.” (Gardner 2004, 16) I believe Google uses this within their own corporate structure. They represent their benefits program in a number of different ways and each reinforces the other. If one benefit were to be cut from the circle, it would impact the others. Resources and Rewards. “Sometimes, however, mind change is more likely to occur when considerable resources can be drawn on… Individuals are being rewarded for one course of behavior or and thought, rather than the other.” (Gardner 2004, 16-17) Google has definitely utilized the resources and rewards aspect of Gardner’s theory. The company feels it has the financial resources to reward its employees appropriately, and this is the strongest correlation between Google and Gardner’s theory lies. Rewards create motivation, and motivation is precisely what Google is looking for. From their resources, rewards are born and
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passed along to those individuals who truly appreciate and benefit from it – the individual employees. Real World Events. “Sometimes an event occurs in the broader society that affects many individuals, not just those who are contemplating a mind change.” (Gardner 2004, 17) In recent discussion of the company I have discovered that the government is attempting to find a way to tax the benefits presented to Googlers. Basically, they want the amount of the benefits to be reflected on the pay checks of employees in order for tax purposes. Free food is a benefit, but how can you put a monetary value in order to show a reflection on paychecks. In addition, Google feels as though free meals are a benefit they don’t want their employees to be financially responsible for later. What will happen? Will the government mandate a way for Google to implement these changes or will Google have to start cutting benefit programs, and in turn, hurting their culture they’ve so carefully crafted? Resistances. “The six factors identified so far can all aid in an effort to change minds. However, the existence of only facilitating factors is unrealistic… While it is easy and natural to change one’s mind during the first years of life, it becomes difficult to alter one’s mind as the years pass. The reason, in brief, is that we develop strong views and perspectives that are resistant to change. Any effort to understanding the changing of minds must take into account the power of various resistances.” (Gardner 2004, 17-18) Most individuals cannot fathom being the recipients of benefits such as Google offers to its work force. The company is very often questioned and scrutinized for these fringe benefits but outsiders. The company is also faced with resistances, as previously mentioned, from the government lately. Google may
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also be creating an unrealistic work environment for their employees as well, and in future situations, employees may be less willing to work for less than what they receive from Google. A tactic to get employees to stay? Very possible. Google; An Outsider’s First Hand Account My father, Clive Twyman, and I have spoken about the Google Company before and I knew he had been there a time or two, so I decided to ask him for some information about his experience with the Google Company and their ways of motivating their employees. Clive began his career at Apple Computer in Cupertino, California from 1977-1985, as the 19 th employee for the company. He worked with Sun Microsystems in Menlo Park, California from 1985-1997 filling numerous engineering manager positions. He worked at Brocade Communications in San Jose California from 1997-2002 and Product Design and Qualification in Pleasanton, California from 2003-2004. He currently works at M3 Design Inc in Round Rock, Texas as the Director of Business Development. In his current potions he works closely with numerous technology companies located in Silicon Valley. Below is an interview I conducted with him concerning his firsthand accounts at Google’s headquarters in Mountain View, California. What follows is an e-interview (emailed interview) with Clive Twyman. Note: The responses from Clive Twyman are untouched and unedited. •
Tell me about your first visit to Google (when and why were you there?) o I had a meeting at Google in November 2008 to discuss a potential design project they were considering outsourcing to a product development firm.
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What was the Google Atmosphere like? (The company culture?) o The environment is a both high energy and reserved at the same time. When you come into the building they have large lobby areas but have very distinct security procedures about why you are there, who you are supposed to see, getting you “signed in” and contacting the person you have an appointment with. o One of the more interesting things at the reception area is they have a projector showing a scrolling list of real time “searches” being entered by Google users on the web.
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What kinds of employee benefits did you see being utilized (or benefits that you saw which were available to be utilized) during your visit? o When I pulled into the parking lot it was extremely busy with cars double parked all over. I drove into the lot and came upon a “valet station” manned by 4 -5 young men who explained to me that I was to park (double park if needed) my car and then drop off my keys at the Valet stand in case they had to move my car to let others exit. I parked my car and dropped off the keys. When I returned my car was moved back a couple of spots (they let a couple of people out) but basically where I parked it. o Outside the lobby reception area there were bicycles parked in bike racks available for employees to use to ride to other Google buildings
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o Prior to the meeting start, we went to break room where there is a large selection of beverages and food snack items provided for employees and guests free of charge. o At the end of the meeting we went to the onsite cafeterias for lunch … where no money is used and all food and beverages are free of charge. The people I was with explained there were also smaller satellite cafeterias – again, all no charge. My hosts also explained that there was food brought in during the weekend so employees working the weekend could easily come and get something to eat as needed. •
What kinds of benefits did you think were strange or above the “normal” benefits? o Bicycles for traveling between buildings was new (although I have seen something like this at manufacturing companies where they use 3 wheelers to transport parts and orders to the shop floor). o Free beverages in the snack room isn’t unusual, but free snacks (including breakfast cereals) are. o The valet stations in the parking lots were “unusual”. o No-cash / no-pay cafeterias was definitely a first! Most cafeterias are subsidized and offer good quality food for a reasonable price … but never free.
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Have you ever had benefits given to you by a company that were “above average”, which may not have been a normal occurrence at the time? o At Apple we had free beverages (including Odwalla fruit juices) in the break rooms. o At Apple we would have days where traveling massage therapists would show up at your office and offer 15 minute in chair massages. o At Sun we has an onsite post office, in the parking lot car detail / service (oil change, etc.) and onsite dry cleaner pick and delivery.
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Do you think that the benefits provided by the Google Company to its employees create an environment that gets employees to change their minds about working? o Changes there mind to keep working? It is possibly a retention tool but it is more for productivity and to keep employees working (innovating, creating new products and intellectual property, etc.) tool. The goal is to make it so you don’t have to leave and you can be / stay in your office more often.
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How do you think the Google Company has created change in the corporate world, especially in Silicon Valley? o When Google went public a lot of people said all the “perks” would change … they haven’t. Google is in a unique position because they are making very high margins / profit on / from their products and services. They have been focused
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on making a small fee from a HUGE number of transactions that pretty much just happen automatically. They have been focused on providing access to online services and then collecting the money” when the services run automatically and people start using them. •
What else would you like to add in relation to the Google Company, its culture and its ability to change minds (either employees or influence over other corporate structures). o One unique thing about working with Google. You are not allowed to tell people you are working with Google. You cannot use their name in any way, shape or form on documents, presentations, etc. … and you definitely better not heard talking at a bar / restaurant about the big project you are doing for Google. You are told to create an acronym code name for Google and use it on all your internal documentation, tracking systems and discussions. Unless you are inside a Google building you are not to say their name. o Generally speaking, all the fringe benefits are probably more interesting / important to younger people … and it definitely a young environment. I think over time things like work life / personal life balance, ability to have good / key positions at other growing companies (both small and large) and opportunity to have “impact” become higher driving focus for more mature employees.
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o Again, the goal is to keep people working and productive. The company obviously believes they are getting a return on their investment by providing a lot of services for the employees and having the employees be m ore productive. o Also, the business model is services not so much a physical product … although the Google phone is the start of a new business. o Look for any interview or articles about Eric Scmidt (sp?). I worked with him at Sun. All he kept saying all the time (1995-isH) was “the future is about selling services and providing easy access”. Now he is the CEO of Google. Tying It All Together Google has taken some very innovative approaches to managing their business, as can been seen from the information provided within this paper. Since the induction of the extreme Google employee benefits package, other companies have been influenced to do the same. It is commonly remarked that if you come to the Google offices at two a.m. you will find many employees still hard at work. Through their excessive list of benefits, they have created an environment where employees have little else to be concerned about besides getting the job done. Will Google’s standards of management and employee care set the stage for future companies, or are they an oddity in the business world? Only time will tell.
References:
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Gardner, H. (2004). Changing minds: The Art of Science of Changing Our Own and Other People’s Minds. Boston, Mass: Harvard Business School Press: Girard, B. (2009). The Google Way: How One Company Is Revolutionizing Management As We Know It. No Starch Press Lowe, J. (2009). Google Speaks: Secrets of the World’s Greatest Billionaire Entrepreneurs, Sergey Brin and Larry Page. John Wiley & Son’s, Inc. Maslow’s Hierarchy of Needs. from Netmba.com http://www.netmba.com/mgmt/ob/motivation/maslow/, retrieved 2/8/2010. Google Inc Company History. from FundingUniverse.com http://www.fundinguniverse.com/company-histories/Google-Inc-Company-History.html, retrieved 2/8/2010. Google World. from About.com http://retailindustry.about.com/od/topusretailcompanies/a/googleworld_2.htm, retrieved 2/8/2010. Google Company Culture. from HowStuffWorks.com http://computer.howstuffworks.com/google6.htm retrieved 1/26/2010. The Google Culture. from Google Corporate Information at Google.com http://www.google.com/corporate/culture.html retrieved 1/26/2010. Benefits, US Jobs. from Google.com http://www.google.com/intl/en/jobs/lifeatgoogle/benefits/ retrieved 1/26/2010.