Work Rules!: Insights from Inside Google That Will Transform How You Live and Lead

by Laszlo Bock

Welch and Conaty had implemented a 20-70-10 performance ranking system, where GE employees were sorted into three groups: the top 20 percent, the middle 70 percent, and the bottom 10 percent.

‘leading with your heart can make a successful business.’

take care of customers, awarded $5.1 million in scholarships to employees in 2013,12 and even encouraged an employee to start her own in-store bakery simply because her homemade cookies were so good.

Google’s approach is to cleave the knot. We deliberately take power and authority over employees away from managers.

Each of these decisions is instead made either by a group of peers, a committee, or a dedicated, independent team.

What’s a manager to do without these traditional sticks and carrots? The only thing that’s left. “Managers serve the team,” according to our executive chairman, Eric Schmidt. Like any place, we of course have exceptions and failures, but the default leadership style at Google is one where a manager focuses not on punishments or rewards but on clearing roadblocks and inspiring her team.

Performance improved only when companies implemented programs to empower employees