The Wasted Times of Google (part 2)

(Continued from part 1)

In addition to lowering morale, the second consequence of reduced talent density is the loss of employees’ freedom.

Google had a famous 20% time policy: all engineers, regardless of their level, could use 20% of their work time on projects unrelated to their primary responsibilities.

This wasn't a benevolent gesture from the overlords, but rather, a result of the founders Larry Page and Sergey Brin's understanding of the importance of a free atmosphere for generating good ideas and successful business projects. Coming from a university background — the Stanford CS Department — they wanted to make Google like a graduate school. So they encouraged employees to explore freely outside of their primary projects, without needing their superior's approval. Only in this way did some innovative ideas that weren't possible in a top-down organization shine through. Some of Google’s most successful products, like Gmail, Google Maps and AdSense, all stemmed from these 20% projects.

Exceptional engineers often possess an entrepreneurial spirit. If the company doesn't provide them with opportunities to realize their ideas, they might just leave to start their own businesses. Therefore, the 20% time is a brilliant policy that not only allows employees to fully utilize their talents and achieve a sense of accomplishment, but also enables the company to benefit from their success, creating a win-win situation.

Google promoted a culture of openness internally — for all but the most confidential projects, all code can be accessed by all engineers. If an engineer loses interest in their project, they can play with the code of other projects before switching teams. They could even use their 20% time to work for another team until they found a new project that satisfied both parties before making the switch.

Decisions made this way naturally have a significantly higher success rate, facilitating an orderly flow of talent within Google. In a free and transparent market, resources tend to reach their optimal distribution, which is a cause for celebration for everyone.

Google was once known as a bottom-up company, where grassroots culture thrived. If you saw a problem, you didn't need to ask for permission — you roll up your sleeves and tackle it. If you had a good idea, you could rally like-minded colleagues to join your cause.

Yet, as a company grows and the talent density decreases, the tendency for tighter control from top management increases.

Once the company began to be overrun with B-players and C-players, management found that providing too much freedom might not be a good thing, as some people could really misuse this liberty. As a result, the 20% time policy had become merely nominal, jokingly referred to as the “120% time” policy. In other words, employees could pursue their ideas, but not during regular work hours — they would have to work overtime to do so.

What has been the outcome of this shift? Let's reflect: What are some impressive new products Google has introduced in recent years? How many of these products originated from 20% time? Can you name one?

Engineers who lose their freedom tend to perceive their work more as a means to making a living, rather than a passion. Along with this loss of freedom, invaluable creativity also dwindles.

(Continue to read part 3)