Curious, why does he end the presentation saying that a tech ladder is bad? Is the idea that they should have a management ladder, but all engineers are at the same level? That sounds like a recipe for disaster.
"Curious, why does he end the presentation saying that a tech ladder is bad?" From the blog post which provides some context to the presentation ( http://piaw.blogspot.com/2010/10/facebook-and-google.html ), "Many consider Google's #1 mistake to be having a tech ladder in the first place. I covered that topic in my post on Promotion Systems ( http://piaw.blogspot.com/2010/04/promotion-systems.html ) , so did not feel…
Of course people started to get upset because the only way they could advance in the company was to go into management. A corporate VP can make $250k/year but a programmer never could. Maybe if you single handedly implemented Google you'd get a $50k bonus that year, but your base salary is still $80k/year. And maybe you get a 15% pay raise for your great contribution.
And when everyone is a "programmer" it is more apparent than even now that everyone is a replaceable cog.
It sounds like the Google promotion system is just bad. Since technical ladders don't have human resource bottlenecks (you can't make everyone the dev manager, but you can promote everyone to Level 4 SWE) you really should have very clear guidelines as to what constitutes a promotion.
When I've managed it looks like this: "This is where you're at today. To get to the next level, this is what you need to do. With your help we've put together this plan for your next 3-6 months. You'll finish up A, make sure B gets deployed. C gets checked-in with QA sign off. Do this w/o ticking anyone off or being a general jerk and that looks like Level XYZ".
Every week we talk about his/her progress against the plan. There's no pleasant surprises, but there's also no big disappointment. If you're not getting a promotion we've known about it for a while, and we're usually both not happy because I've made it clear that something is not going well.
Notice, there's no competition against other employees or any other such race. With that said, there are cases where there is little or no money associated with the promotion, but surprisingly this is often not a concern.