How Google Works
How Google Works talks about how to succeed as a company in a fast growing era and digital age. Their answer is to attract smart creatives and give them an environment where they can thrive and scale. The author also focuses on corporate culture, strategy, talent, decision making, communication, innovation and dealing with disruption.
Google’s early principles were simple but powerful: constantly focus on the user, always hire as many great software engineers as you can and perhaps the most important part, give those engineers freedom. Google was managed with informal meetings of small engineering teams. Eric Schmidt and Rosenberg took advantage of the opportunity given to them to create a business plan to take on Microsoft. To carry out this task, they invested more time in learning new ways of managing these smart creatives who are not shackled by organizational structures and defined rules. Using this process, the new management methods being learned were documented and this book gives insight into how Google works, providing a series of steps in the development of a company.
CULTURE: Culture is an important consideration when starting a company. Google imbibed the culture of close interaction among employees from inception to date. The culture was deliberate to reduce envy of other colleagues facilities. Collaboration was highly prioritized which has helped in increasing integration. It had been discovered that smart creatives care about where they work to produce their best of work. Google’s culture was an intentional “established a culture of saying YES!” Equally important to saying yes, is to start things which lead to experiences, which in turn leads to an increase in knowledge.
STRATEGY: The author moved on to the principles of Google’s strategy which are:
Bet on technical insight, not market research. Technical insight either increases functionality or reduces the cost of a product significantly. Almost all successful Google products were developed using this strategy. Google search was and it is better than any other search engine because the founders worked out how relevant a web page is to a search query based on which other pages are linked.
Optimize for growth and not for revenue. In order to achieve something, you need to be able to grow quickly and globally. Google resisted the urge to make money by placing advertising on its homepage and instead focused on improving and investing in the search engine.
Let great products grow the market for everyone. Keep your product open by adhering to standards and sharing computer code for example: losing control but gaining scale and innovation.
TALENT: In the organization, talent cannot be substituted with any amount of business strategy. Google’s recruitment process is carried out by the interviewee’s potential future peer. The most important thing they look out for is passion, growth mindset and character.
DECISION: There is more to decision making than just making the right decision. The timing, the process of getting to a decision and the way the decision is carried out is extremely important. The author dove deep into Google’s decision making process and principles and they were implemented.
COMMUNICATION: Effective leaders share information rather than keeping it to themselves. As a leader, knowing the details is very key. This requires asking the right questions and getting the right answers even if it’s not good news. Emails aim to respond quickly. Emails are meant to be clear and straight to the point. There shouldn’t be any content there that people can skip.
INNOVATION: Thinking big is vital and provides a unique advantage of giving creative smart people more freedom to express themselves. One thing that Google has found in it’s process is that big challenges often attract big talent.
In conclusion, when making decisions, think more about the future and how it will impact the outlook. Schmidt and Rosenberg believe that with enough data and skills, any problem can be figured out and therefore solved. Computers were and will continue to design, to make lives easier and better but for yet more people. The future is bright and technology will transform practically every field.
THE BIG THREE – KEY POINTS
Keypoint #1: The Basis of success with product excellence is iterating, at speed.
Keypoint #2: Determine who runs the company based on performance and passion not based on function and experience.
Keypoint #3: Optimize for scale not revenue.
One Last Thing
“The most valuable result of 20 percent time isn’t the products and features that get created, it’s the things that people learn when they try something new.”
― Eric Schmidt, How Google Works