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Interesting that Google also has stack ranking. If stack ranking were such a major factor of MS's decline why isn't it affecting Google the same way?
by plinkplonk 13y ago
Interesting that Google also has stack ranking. If stack ranking were such a major factor of MS's decline why isn't it affecting Google the same way?
- cromwellian 13y agoGoogle doesn't solely use stack ranking. Most of the grading is done on the OKR system with peer feedback.
- dsymonds 13y agoGoogle uses stack ranking only for calibration across the company. There's nothing like "bottom 10% get fired", and in a team of high performers it's perfectly okay for everyone to get a great performance review, so there's no politics involved in that way.
- potatolicious 13y agoWhat cromwellian said, but I'd also add that, as an outsider at least, the zeitgeist amongst people I've spoken to is that stack ranking is hurting Google. The poisonous effects of stack ranking may take time to manifest in a notable way at Google. Maybe if Google's products stopped being as cool as they are now, or their compensation is no longer as generous as it is now (see: becoming Microsoft), this would be accelerated.
- DannyBee 13y agoHurting how? Google doesn't fire the bottom 10% or whatever. They also don't completely screw the bottom 50%. The only curve that is enforced is really a calibration to ensure equal pay for equal performance across orgs
- reeses 13y agoBecause they're not yanking yet and the equity growth is still attractive enough to keep unvested "low performers" from leaving. Google don't have to cut costs to make Wall Street happy. They need to grow and increase the top-line, and for that, they need people. Once they reach the point of "maturity" where they need to minimize operating costs to increase net margins and continue to justify their P/E, they'll be like Cisco, Microsoft, Intel, and others, disgorging 5-30% of their workforce in a single massive push.