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Work Rules!: Insights from Inside Google That Will Transform How You Live and Lead, by Laszlo Bock
Free PDF Work Rules!: Insights from Inside Google That Will Transform How You Live and Lead, by Laszlo Bock
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NEW YORK TIMES BESTSELLERWALL STREET JOURNAL BESTSELLER
The Globe and Mail Top Leadership and Management BookForbes Top Creative Leadership Book
From the visionary head of Google's innovative People Operations comes a groundbreaking inquiry into the philosophy of work-and a blueprint for attracting the most spectacular talent to your business and ensuring that they succeed.
"We spend more time working than doing anything else in life. It's not right that the experience of work should be so demotivating and dehumanizing." So says Laszlo Bock, head of People Operations at the company that transformed how the world interacts with knowledge.
This insight is the heart of WORK RULES!, a compelling and surprisingly playful manifesto that offers lessons including:
- Take away managers' power over employees
- Learn from your best employees-and your worst
- Hire only people who are smarter than you are, no matter how long it takes to find them
- Pay unfairly (it's more fair!)
- Don't trust your gut: Use data to predict and shape the future
- Default to open-be transparent and welcome feedback
- If you're comfortable with the amount of freedom you've given your employees, you haven't gone far enough.
Drawing on the latest research in behavioral economics and a profound grasp of human psychology, WORK RULES! also provides teaching examples from a range of industries-including lauded companies that happen to be hideous places to work and little-known companies that achieve spectacular results by valuing and listening to their employees. Bock takes us inside one of history's most explosively successful businesses to reveal why Google is consistently rated one of the best places to work in the world, distilling 15 years of intensive worker R&D into principles that are easy to put into action, whether you're a team of one or a team of thousands.
WORK RULES! shows how to strike a balance between creativity and structure, leading to success you can measure in quality of life as well as market share. Read it to build a better company from within rather than from above; read it to reawaken your joy in what you do.
- Sales Rank: #2565 in Books
- Published on: 2015-04-07
- Released on: 2015-04-07
- Original language: English
- Number of items: 1
- Dimensions: 9.25" h x 1.25" w x 6.50" l, 1.40 pounds
- Binding: Hardcover
- 416 pages
Review
"The book is a true masterpiece."―Forbes.com
"An intriguing profile of an innovative company that continues to shake up the world."―Kirkus Reviews
"Good guidance from the head of Google's innovative People Operations, who wants to show companies how to attract and keep the best managers...Love the read-it-two-ways title."―Library Journal
"Anecdotes about Google's founding and history mingle with discussions of management theory, psychology, and behavioral economics to create a fascinating and accessible read."―Publishers Weekly
"WORK RULES! delivers on its promise. Befitting a volume written deep within the algorithm factory, WORK RULES! is dense with data and counterintuitive conclusions for anyone looking to make the workplace a better place."―Forbes
From the visionary head of Google's innovative People Operations--a groundbreaking inquiry into the philosophy of work and a blueprint for attracting the most spectacular talent to your business and ensuring the best and brightest succeed. The praise for WORK RULES! includes the following bestselling authors and top flight executives:
Adam Grant, author of Give and Take
"WORK RULES! offers a bold, inspiring, and actionable vision that will transform the future of work. It should be mandatory reading for everyone who leads, manages, or has a job."
Daniel Coyle, author of The Talent Code
"Laszlo Bock's book is a dazzling revelation: at once an all-access backstage pass to one of the smartest organizations on the planet, and also an immensely useful blueprint for creating a culture of creativity. It should be given to every leader, every entrepreneur, every manager, every student, and every human being who wants to understand how to build a successful, cohesive, high-performing workplace."
Dan Pink, author of Drive and To Sell Is Human
"Laszlo Bock has written a remarkable book that reveals the secrets of becoming a talent powerhouse. He shows the many benefits of a high freedom culture with a mission that matters. And along the way, he topples pillar after pillar of conventional wisdom on hiring, training, assessing, and compensating the people who power your organization. If you're looking for forehead-smacking insights along with an array of savvy new practices, WORK RULES! is an essential read."
Susan Cain, co-founder of Quiet Revolution and author of Quiet
"WORK RULES! is spectacular. I spent weeks with it, because I wanted to take such careful, detailed notes. I plan to share it with our entire Quiet Revolution team-and I'm sure that all company founders will do the same."
Ram Charan, coauthor of Execution and advisor to boards and CEOs
"WORK RULES! is an exceptional book aimed at any manager who wants great ideas for encouraging success from their team . . . an instant classic for the management shelf."
Indra K. Nooyi, chairman and CEO, PepsiCo
"With a clear-eyed, data-driven look into today's workplace, Bock reveals the non-traditional practices that can fundamentally transform businesses of all kinds."
Tom Gardner, founder and CEO, Motley Fool
"The finest book on organizational culture that I have ever read. WORK RULES! is the essential playbook for creating high-performance cultures that liberate people to do their most important work."
John Doerr, managing director, Kleiner Perkins Caufield & Byers
"WORK RULES! is more than a must-read business book. It's a handbook for high-performance teams that win."
Jeffrey Pfeffer, author of Leadership B.S.
"Some will think that WORK RULES! is a book about Google. It is, but mostly it is much more: a book about how to build people operating systems that permit any organization to get the smartest decisions from their workforce. Clearly written, evidence-based, with practical guidance and a cogent underlying philosophy, WORK RULES! needs to rule the world of work."
Peter H. Diamandis, chairman, XPRIZE; exec. chairman, Singularity
"WORK RULES! is a surprising, unconventional book that is required reading for anyone looking for a job in the tech sector, and for every entrepreneur seeking new modes of innovative thinking."
Robert I. Sutton and Hayagreeva Rao, co-authors of Scaling up Excellence
"A riveting ringside view of people operations at Google. A deft marriage of research and practice that is full of practical tips. It is an indispensable book for all people managers."
Tim Brown, CEO of IDEO and author of Change By Design
"As a company renowned for questioning our assumptions, it should be no surprise that Google has developed unique and profoundly effective approaches to culture, talent and leadership. By debunking many accepted HR practices WORK RULES! establishes itself as a new testament for managing talent in modern times."
Liz Wiseman, author of Multipliers and Rookie Smarts
"Laszlo Bock has done far more than codify Google's recipe for its high-freedom, high-performance workplace, he has created the essential guide for unleashing talent in the digital age. Intelligent, playful, and practical, WORK RULES! is for all leaders who want to inspire brilliance and bring out the best of humanity in their workforce."
About the Author
Laszlo Bock leads Google's people function, responsible for attracting, developing, retaining, and delighting "Googlers." Bock's earlier experience spans executive roles at the General Electric Company, management consulting at McKinsey & Company, start-ups, non-profits, and acting.
During Bock's tenure, Google has been named the Best Company to Work For more than 30 times around the world and received over 100 awards as an employer of choice. In 2010, he was named "Human Resources Executive of the Year" by Human Resources Executive magazine.
Most helpful customer reviews
180 of 189 people found the following review helpful.
Very Useful Information
By Loyd Eskildson
Most books about business aren't worth reading because they're either a selective collection of anecdotes with unknown biases and completeness (eg. Malcolm Gladwell), a summary of the practices of a company that's often a 'flash-in-the pan' (eg. Baldrige Award winners), or the writings of some obscure PhD focusing on some relatively secondary point (eg. employee morale, while ignoring strategy and the competitive environment). Fortunately, this book is an exception - summarizing H.R. practices employed at Google, along with (in some cases) their evolution.
A key point made immediately - Google managers cannot unilaterally decide whom to hir or fire, how someone's performance is rated or rewarded, when software code is of sufficient quality to be incorporated into working systems, final product design and/or launch date, or who is promoted. Instead, each of those decisions is made by a group of peers, a committee, or a dedicated and independent team. Outcomes are thus calibrated across groups, and managers instead focus on clearing roadblocks and inspiring their teams. Google contends that giving non-managerial individuals and teams decision-making authority, providing learning opportunity outside what is needed to do one's job, and increasing reliance on teams works best. (See Kamal Birdi for related academic research.)
Block tells readers that Google relies on three cornerstones in its H.R. practices. The first is its Mission Statement - cornerstone of its culture, intended to convey a mission that matters, a moral rather than business goal. Why? Nothing is a more powerful motivator than knowing you are making a difference in the world. The second is transparency. Weekly, Larry and Sergey host the entire company (live and Internet video) for updates from the prior week, product demonstrations, welcoming new hires, and fielding 30-minutes of questions from anyone on any topic. (Staffers submit questions, discuss, and vote on their priority - 'Hangout On Air Q&A' is the software utilized for this; also utilized by Obama to handle and prioritize questions from audience members when he speaks.) Transparency is valued because it promotes information-sharing, encourages improvement (eg. New York's posting CABG mortality rates for each hospital brought an overall death rate reduction of 41%). Bridgewater Associates (world's largest hedge fund) goes further - recording every meeting and making the available to employees - shows how decisions are made, encourages more precise thinking and communications, reduces politicking/backstabbing, stops the 'I never said that.' Complaints about someone within an email are forwarded to that individual. The third is employee voice. Google has an annual Bureaucracy Busters program where staffers identify their greatest frustrations, vote on them, and initiate actions.
Bock believes that most assessments of potential hies occurs in the first 3 - 5 minutes, if not sooner. Further, most interviews are subconsciously biased towards people like the interviewer. Finally, most interview techniques are worthless. (These assertions are backed by research cited in the end-notes.) In addition, other research has concluded that about 90% of training doesn't bring sustained performance improvement or behavior change. Thus, Google spends considerably more on recruiting than the average firm, with less emphasis on training.
Even the best-intentioned managers compromise their standards as searches drag on.
Side Notes: 1)As late as 2010, most new Googlers took significant salary cuts when joining - some as much as 50% or more. Hints at the value of adding Google to one's resume. 2)Google now prefers to take a bright, hardworking student who graduated at the top of his class at a state school over an average or above-average Ivy League graduate. It also looks for humility and conscientiousness. Google only hires about 0.25% of those considered. 3)As of 2008, Google continuously crawls the Web and reprocesses its findings several times/day.
Continuing, Bock states that only 10% of an organization's applicants (at best) will be top performers - this creates a need for more interviews. Moreover, most top performers aren't currently looking for work. Two teams of senior leaders (one for product management and engineering roles, another for sales, finance, and all else), plus a final reviewer (Larry Page) enforce Google's high hiring standards. A major rationale - this avoids declining standards over time, as well as hiring preference for friends. 3)Google no longer uses case interviews and brainteasers - researchers have found them useless.
Google analyses have found that academic performance didn't predict job performance beyond the first 2 - 3 years after college, so they've stopped requiring grades and transcripts - except from recent graduates. At one point, over half of new hires came from employee referrals, and then dropped off. The reason - they'd exhausted their networks. Google helps boost recollection by having events at which staffers go through their Facebook, LinkedIn, etc. networks, with H.R. individuals standing by. Another reason - Google was taking too long to contact those referred and not providing feedback to the referrer. That too has changed - an initial call is made within 48 hours and the referring Googler is given weekly updates. Since so many of the best potential applicants don't apply, Google has developed an in-house recruiting staff (using 'gHire') that now brings in over half of its new hires. It stopped using job boards (eg. Monster.com) in 2012.
Researchers Schmidt/Hunter in published (1998) a meta-analysis of 85 years of research on how well assessments predict performance. Unstructured job interviews 'explained' 14% of performance variation, reference checks - 7%, experience (3%). Work-sample tests (29%) were best (Google uses); general cognitive ability (26%), when combined with assessment of conscientiousness brought the level to 36%.
Google now uses 'qDroid' - one chooses the attributes they want to test for and supply the job needing to be filled - the system provides questions appropriate for the interview. Bock also commends the sample questions available on the U.S. Dept. of V.A. website.
In 2007, Google started looking for themes across the 10,000 or so individuals it had hired, and the millions it had not hired. Four predictive attributes were identified - 1)General Cognitive Ability, 2)(Emergent) Leadership, 3)'Googleyness' - enjoying fun, having humility, conscientiousness, comfortable with ambiguity, and 4)Role-Related Knowledge. The latter was least important, and Bock sort of waffles around about it. Google now requires all interview feedback to comment on each attribute. Subsequent reviewers may disagree with the conclusions reached by those previously involved, and the system rates interviewers on their longer-term accuracy.
Google became infamous for its long, drawn-out hiring and interview processes. Analysis found that four interviews were enough (provided 86% confidence), and that each additional interview beyond those four only added another 1% confidence in the decisions made. Acting upon this information has cut the median hire time to 47 days, down from 90 - 180. The process begins with resume screening by someone familiar with all Google jobs (Bock omitted the initial computer screening and key words/phrases utilized), a phone or Google+ 'Hangout' interview to assess general cognitive ability, then in-person interviews with hiring manager, peers, subordinates, and a cross-functional representative, followed by summarization of the formal structured prior interviews, along with 'backdoor references' (eg. information from current Googlers who knew the individual before, perhaps in college), an interview with a senior leader, then the CEO. The average Googler spent 1.5 hours each week on hiring in 2013.
Google tries to reduce 'distance' between layers - no executive dining rooms, parking spots, or pensions. Decision-making is based on data, as much as possible. ('Don't politic, use data.') H.R. practices are tested via surveys, test data, and sometimes double-blind experiments. Rejected candidates are sometimes hied to see how they perform. Purported biases are taken seriously and checked out via data - do those reporting to upper managers get more promotions and better ratings, what about those on the more important projects? (Analyses were conducted and the results posted. When the analyses uncover or bear out a problem, Google tries changes.) Engineers are allowed to spend 20% of their time on non-work-related projects (presumably related somehow to bettering Google - some projects have to do with H.R. changes), and a sizable proportion do so.
Sidebar: Bock states that part of the reason women are paid less than men is that they negotiate less - he backs this up with data. Google disseminates this finding to staffers in an effort to encourage them to be more assertive in requesting raises and promotions.
All supervisors receive structured feedback from their subordinates; those with 100 or more subordinates have summaries of that feedback posted for all to see. (These results are not factored into their performance ratings or pay decisions.) Google also regularly uses five questions that predict whether employees are likely to quit - action is triggered if favorable responses fall below 70%.
Google board member John Doerr introduced Intel's goal-setting practices (Objectives and Key Results - OKR) to Google in the early 2000s. Results must be specific, measurable, and verifiable. (Bock suggests having both quality and efficiency measures, and cites Edwin Locke and Gary Latham as guiding authorities.) The firm deliberately sets ambitious goals, believing that if they achieve all of them, the goals are not aggressive enough. ('If you set a crazy, ambitious goal and miss it, you'll still achieve something remarkable' - Larry Page) Larry sets OKRs for Google at the start of each quarter. Everyone's OKRs are visible on Google's internal website. Since research has shown that hours spent cascading goals up and down a firm doesn't improve performance, and those grossly out of alignment are quickly obvious, Google spends little time on that.
Google stopped doing quarterly ratings in 2013 (now every six months) and went to a 5 point scale (from 41). Managers assign a draft rating to each of their employees and then sit with about 5 other managers and review the outcomes to help standardize/calibrate them. This is seen as reducing the incentive/pressure to inflate ratings, and improving fairness. Prior to beginning the sessions (last about 3 hours), the group reviews the seven types of likely bias (eg. recency, central tendency). Not every individual is discussed, but they do look at the various ratings distributions.
Google separates the 'how you did' conversation from the 'how to do better' discussion by about a month. Managers are assisted in this by Google-provided guides.
Google believes that some individuals in technical jobs are worth far more than others at the same level - even after accounting for differences in project impact. Bock cites Bill Gates: 'A great writer of software code is worth 10,000 the price of an average software writer.' (When I wrote software the generally-accepted figure was a much more modest 20X - still quite impressive.) Unfortunately, this runs afoul of typical rewards systems. Google tries to account for these differences with varying stock grants, though these are infrequent (usually generate resentment); public recognition and less dramatic rewards (eg. trip to Hawaii) are more frequent.
Typical reward systems assume a normal-curve distribution of talent/contributions. Bock contends a 'power' (exponential) curve is more appropriate - if for no other reason than the fact that the worst performers don't get hired or, are fired if they were hired. He then documents that power-curve distribution of talent in a number of areas (academic publishing, professional sports, musicians, etc.) using data from O'Boyle/Aguinis and their study of 633,263 individuals. (Also why median incomes in the U.S. almost invariably are lower than mean incomes.) Those falling in the bottom 5% at Google are provided training, sometimes given a new position (usually they rise to average), or fired. The range of rewards within a level at Google can easily vary 300 - 500%; a consequence is that average performance is rewarded with less than average compensation. As for failures - they too are rewarded if seen as thoughtful and well-attempted.
Bock/Google are relatively dismissive of training - Bock references research concluding that most is a waste, primarily because of a lack of evaluation. Google tries to use fellow-workers as trainers (more credible and knowledgeable) and to assess behavior/practice/performance changes that result.
Bock ends by reporting that while Google does offer an excellent menu of benefits, many are free are very low cost to the company. Examples include allowing onsite provision of services for employees that help simplify their busy lives - cleaning, bicycle repair, etc. Employees pay for the services, though sometimes Google is also able to negotiate lower rates.
Overall - an excellent description of how Google recruits, retains, and motivates its staff.
81 of 84 people found the following review helpful.
Excellent complement to "How Google Works"
By Jeremey Donovan
While Eric Schmidt's book "How Google Works" is better, Work Rules adds considerable depth on Google's People Operations practices. Here are my key takeaways:
- Operate on the belief that people are fundamentally good
- Use groups of peers or independent teams for: hiring, promotions, salary increases, awards, and firing (often excluding the direct manager)
- Managers exist to: (a) make tie-breaking decisions (b) coach/train to develop employees (c) care about people's well-being (d) set vision/strategy (e) provide technical advice (f) empower by clearing roadblocks
- Conduct 2x-per-year performance reviews on a 5-point scale and then calibrate (which are separate from continuous feedback); get 360 feedback on ‘do more of’ and ‘do differently’ 1x per year
- Make all goals (objectives and key results) public
- Design physical spaces to encourage interaction across departments
- Help employees meet the people they are helping
- Ensure transparency (in all matters unless unlawful)
- Only hire people who are better than you, who will be successful in the context of your organization, and who will make everyone around them more successful
- Referrals from existing employees are the best source of candidates
- Couple assessments of cognitive/problem-solving/learning ability, conscientiousness, and emergent leadership/fit with structured interviews that are job related: (a) Tell me about a time..? (b) What would you do if…? Note: 4 interviews are sufficient
- Eliminate status symbols
- Pay bonuses based on the median salary of all people in a job
- Have people who are the best at something train everyone else (share principles, role-play, discuss, review video of role-play)
- Make pay commensurate with contribution (following a power law rather than a normal distribution)
- Provide experiential rewards (as a complement to monetary awards)
- Celebrate accomplishment with public recognition
- Reward smart failure and make sure to conduct “what did we learn?” post-mortem sessions
- Provide nudges to influence, not dictate, choice
- Uphold the obligation to dissent (a McKinsey core value)
- Treasure the weird
- Put more wood behind fewer arrows
- Building a great culture requires constant experimentation and renewal
Various programs and processes:
- TGIF: weekly all company meeting to share updates plus 30 minutes of Q&A
- Dogfooding: Have employees test new products and provide feedback before piloting with customer
- Bureaucracy Busters: annual program to identify and fix biggest frustrations
- Upward Feedback Survey: 2x per year survey about manager quality
- 20 Percent time: time for people to engage in side-projects (often 120% time)
- Googlegeist: Annual survey focused heavily on innovation, execution, and retention
- Tech Advisor: network of experienced leaders offering confidential, one-on-one office hours
- Random Lunches: set people up with others they don’t yet know
- Tech Talks: Employees sharing work (and non-work) expertise
- Talks at Google: Outsider (ex: authors, business leaders, entertainers, etc.) sharing their wisdom
45 of 50 people found the following review helpful.
Hire The Best and Free Tibet Goji-Chocolate Creme Pie
By H. Le
It takes a conscious effort for me to choose a book and to spend the time read it through. It is especially rare for me to write a review because that is a dedication of couple of uninterrupted hours (almost an impossible feat in my family with a relentless toddler). With that being said, this book compelled me to share my opinion because I think it gives an extraordinary first person (Laszlo Block) account of how a company (Google) excel with its talent acquisition, retainment, development, and sometimes termination. And most importantly, its continuous improvement to anticipate the needs of an ever-expanding company.
I believe the book itself attracts three primary types of audience;
(1) Managers and Executives who are looking to build a stronger team/company
(2) Human Resource personnel looking to develop themselves and their organization
(3) And finally, people who are interested in innovation/new ideas
I happen to fall into both the first and last category.
I really like this book because it helps explain why I felt connected to some companies versus others regardless of the company size, team dynamic, or manager style. I have spent time at companies that value their employee, others less so. I have seen very strong/cohesive and very poisonous departments operating at the same time within the same company. Right now I am a consultant working for a great company partnering with a not so great company that is riddled with bureaucratic mumbo jumbo.
In short what this book helps me realize is that culture is most important in a company. From the founders to the janitor, everyone at Google seems to be free from the typical corporate constrains, as a result gains and produce much more. It is that foundation and ongoing system that this book attempt to give outsiders a glimpse of the inner workings of the People Operations at Google (HR in most companies).
Google as a whole seems to be a big university lab and encourages people to think, not just to work, as a result it spurs further innovation and the process becomes a chain reaction replicating onto itself. The normal Plan, Do, Study, Act model of performance improvement seem to be taken with a twist, it appears that they apply the scientific method to the process; Realizing/anticipating the need/problem, formulating the options, designing experiments on a small sample size, collecting data and interpreting the results, and most importantly putting it into action for the whole population of Googlers (employees).
What I find fascinating about the way the People Operation follows Google's mission statement of "...organize the world's information and make it universally accessible and useful". They have the capability, capacity, and ability to collect data, understanding it, and make use of it to "Nudge" Googlers to do more beneficial acts such as eating healthier, adapting to the on-boarding process quicker, or saving more on retirement.
One of the resounding topic is Google's hiring process, which essentially is a way for them to hedge the hiring risk by systematically spending enormous amount of time and resources at the beginning of the hiring process to hire the very best. This way, they spend far less time/resources developing an average pool of employees. Rather, they focus on improving the lagging and rewarding "Unfairly" (enormously) to the leading employees.
One of the stories that was most memorable to me is the one about the "Free Tibet Goji-Chocolate Creme Pie". Essentially it was a new lunch item at the Google cafe, however because of the name "Free Tibet...", it was a very sensitive subject amongst Googlers, thus creating an email storm with thousands of responses. The chef who came up with the name was suspended as a result. In the end, the suspension was reversed by Laszlo because he realized that this was an opportunity to reinforce the company culture. Such that if a trivial matter such as a name of a pie causing an uproar, suspending the chef would cause enormous harm to the culture because people will be afraid to express their opinions, and thus stifle future innovation within the company.
So...after my review, you must be wondering why I am only giving this book a four star? It's because I am an iOS user...Actually it's not because of that, but rather it is because Laszlo believes that any company can do what google has done (in terms of its People Operations). I on the other hand think that is not the case. I cannot see how an established company (medium business and up) can achieve all or even most of these cultural changes. I would equate that a typical HR department is like an average person, and operating like google is like competing (and finishing) the Ironman Triathlon. Like most people, putting in real effort will get them through a 10k run, training really hard will get them through a marathon, and giving their all and training every day may allow them to finish that Triathlon. But is it possible for an established company to do that even with all their dedication? I don't think it is possible because of the existing gene pool. Established organizations already have an "average" gene (talent) pool, so the question is can they remove everyone who are below average like the town of Lake Wobegon (where everyone is above average)? That's for you to judge if you choose to read this book, thus my four stars on an otherwise great book.
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