Google and At&t
Google and At&t
two patents. With two financial backers founds the company that becomes
AT&T.
1892: AT&T reaches its initial goal, opening a long distance line
connecting New York and Chicago. The circuit could handle only
one call at a time. The price was $9 for the first five minutes.
1919: AT&T installs the first dial telephones in the Bell System,
in Norfolk VA. The last manual telephones in the system were
not converted to dial until 1978.
1988: AT&T lays and opens TAT-8, the first fiber optic
submarine telephone cable across the Atlantic. It has a capacity
equivalent to 40,000 calls, ten times that of the last copper
cable. (Today's cables have capacities equivalent to over 1,000,000 calls).
2000: For the first time, the volume of data traffic on the AT&T network
exceeds the volume of voice traffic.
The New York Times article criticising e-commerce giant Amazon’s alleged
mishandling of its employees in a “bruising workplace” has once again brought people
management into focus at the world’s leading corporations.
Conversely, recent research has commended fellow tech behemoth Google on its range
of employee initiatives that have led to a 37% rise in staff satisfaction, but how can
small and medium-sized businesses follow in Google’s path?
As discussed earlier this month by Insights, Google is one of the leading proponents
of the Objective and Key Results system of employee review. Commonly referred to as
OKRs, the process asks employees to set their own measurable goals and make them
public to colleagues via an internal network. In practice, an employee will set an objective,
such as aiming to increase website engagement by 20%, then identify three or four key
results that are quantifiable and help individuals hit their target.
Google claims the process is a much more adaptable and realistic method of evaluating
employee performance and showing where they need to improve, rather than the
traditional bell curve appraisal that ranks employee performance as low, medium or high.
Small business analytics company Swipely are one of many smaller companies to have
effectively introduced OKRs to their business. Despite the firm’s implementation of the
OKR system differing slightly from Google’s, chief executive Angus Davis argues that its
key tenets have proved vital in developing its growing workforce.
“Key results are not general or subjective actions you plan to take,” Davis explained.
“They should always include numbers to make it clear how much has been achieved. For
example, if Mary’s objective is to improve her sales prospecting skills, one key result
might be to spend two hours a week shadowing Jennifer, the team member who
demonstrates the most prospecting success.
“This consistency turns goal-setting into a habit and changes how people think about their
work and approach their everyday to-dos. It puts in place natural milestones that make
you think about what you need to do next and aim high.”
He added: “Most people wouldn’t consider 70% to be a good grade, but for OKRs that’s
just about perfect. You want your objectives to be ambitious enough to push you beyond
your limits. When everyone does this, it forces the tough conversations about what's truly
needed to beat expectations.”
LEADERSHIP THAT EMPOWERS STAFF
Bosses considering adopting the OKR system must also evaluate how Google’s method
of using the process in a collaborative way between line managers and personnel would
translate into their business. Google requires each employee to devise his/her targets
with their manager and dictates that there is no top-down dictation.
This requires a good manager, and the corporation specifically seeks to recruit and
develop leaders who are clear, consistent and fair when making decisions – even to the
point where they may be considered somewhat predictable.
Google argues that consistent leadership from managers actually provides a secure
working environment for staff to express themselves, as they know that, within certain
parameters, they can do whatever they want.
And for a company that has changed rapidly since its establishment in 1998, most
recently folding itself into a new conglomerate called Alphabet incorporating its
different businesses from health through energy to transport, its reliable and
dependable management principles provide a recognisable and unifying basis for staff to
innovate and contribute consistently to the corporation’s growth.
Based on data analytics, the executive identified the eight key qualities of such managers
(listed in the order of importance):
- Be a good coach
One of its most famous management policies is to give staff the freedom to spend up
20% of their work time on off-budget projects related to the core-business, and 10% to
pursue ideas based on one’s own interest and competencies.
Suggesting that bosses at now extinct video retailer Blockbuster could have survived if it
had sought innovation from within, Rosenberg said: “Most companies think that the set of
stuff that needs to be done is much more onerous than it really is today, and that’s
because they’re not thinking in terms of information, reach, and computing power. They’re
thinking in terms of the inputs that go into the old 20th-century manufacturing world.
“If you look at software today, much software is built on open standards. We have much
more powerful APIs. It’s very easy to do things, like the guys at Waze did or the guys at
Uber did, to put information together and accomplish something very significant with a
very small number of people.”
In return, the search giant, communicates its vision and gives staff the freedom to
implement it, while also attempting to strip away everything that gets in the employees’
way with a hassle-free working environment laced with benefits – from dry cleaning
services to leather seats.
So while your company might not have the global reach or financial muscle of Google,
there is nothing to say you can’t follow in its path and reinvent the way you manage your
people.