How Google S HR Made It The Worlds Most
How Google Became the #3 Most Valuable Firm by Using People Analytics to Reinvent HR
By Dr. John Sullivan (www.ere.net) consummated by Wendy van Ierschot (www.vanierschot.com)
Google has the only HR function on the planet that is managed based on “people analytics” was the title of the article Dr. John Sullivan published on February 25, 2013.
If you haven’t seen it in the news, after its stock price broke the $800 barrier, Google moved into the
No. 3 position among the most valuable firms in the world. Google is clearly the youngest firm among the leaders; it has surprisingly been less than a decade since Google’s IPO.
Most companies on the top 20 market cap list could be accurately described as “old school”, because most can attribute their success to being nearly half a century old, having a long established product brand, or through great acquisitions. Google’s market success can instead be attributed to what can only be labeled as extraordinary people management practices that result from its use of “people analytics.” Combined with perseverance in implementation.
Continuous Innovation Requires a New Kind of People Management
The extraordinary marketplace success of Google (and Apple [2], which is No. 1 on the list) is beginning to force many business leaders to take notice and to come to the realization that there is now a new path to corporate greatness.
“New path” firms dominate by producing continuous innovation. And executives are beginning to learn that continuous innovation cannot occur until a firm makes a strategic shift toward a focus on great people management.
A strategic focus on people management is necessary because innovations come from people, and you simply can’t maximize innovations unless you are capable of recruiting and retaining innovators [3].
And even then, you must provide them with great managers and an environment that supports innovation. Unfortunately, making that transition to an innovative firm is problematic because almost
every
By Dr. John Sullivan (www.ere.net) consummated by Wendy van Ierschot (www.vanierschot.com)
Google has the only HR function on the planet that is managed based on “people analytics” was the title of the article Dr. John Sullivan published on February 25, 2013.
If you haven’t seen it in the news, after its stock price broke the $800 barrier, Google moved into the
No. 3 position among the most valuable firms in the world. Google is clearly the youngest firm among the leaders; it has surprisingly been less than a decade since Google’s IPO.
Most companies on the top 20 market cap list could be accurately described as “old school”, because most can attribute their success to being nearly half a century old, having a long established product brand, or through great acquisitions. Google’s market success can instead be attributed to what can only be labeled as extraordinary people management practices that result from its use of “people analytics.” Combined with perseverance in implementation.
Continuous Innovation Requires a New Kind of People Management
The extraordinary marketplace success of Google (and Apple [2], which is No. 1 on the list) is beginning to force many business leaders to take notice and to come to the realization that there is now a new path to corporate greatness.
“New path” firms dominate by producing continuous innovation. And executives are beginning to learn that continuous innovation cannot occur until a firm makes a strategic shift toward a focus on great people management.
A strategic focus on people management is necessary because innovations come from people, and you simply can’t maximize innovations unless you are capable of recruiting and retaining innovators [3].
And even then, you must provide them with great managers and an environment that supports innovation. Unfortunately, making that transition to an innovative firm is problematic because almost
every