What works from “How GOOGLE Works”

How Google Works written by Google-insiders Eric Schmidt (ex-CEO) and Jonathan Rosenberg (ex-Senior Vice President) is a fluent read about creating superior products by nurturing innovation. They focus on building an environment to attract and retain people who they describe as “the smart creative.” The core tenets of culture, strategy, team-building, decision making, and communication are built around hiring and breeding that “smart creative,” a philosophy that encapsulates all the characteristics and skills of a professional.

A “smart creative” is analytical, business savvy, risk taking, thorough, and driven. The authors claim that smart creatives exist incognito all around us, but are enough of them truly accessible? Is this simply two men of privilege who conjecture their ‘white whale’ exists everywhere but in reality is a singular mammal below the sea? Rather, the authors espouse principles that Google has been following for years to develop an organization attractive to the hypothetical “smart creative” where “smart creative” can thrive. Nevertheless, the authors do not search in vain for their ‘white whales,’ but rather attract them by promises of a better work-life. For someone who believes in the mantra that it’s “all about people,” this book can serve as a guide to building great organizations. The authors also lay the building blocks of a business built upon culture followed by strategy.

The book depicts the journey of Google through several anecdotal examples and tries to capture principles learned along that journey. While I am not a fan of anecdotal evidence as proof of basic truths, Google’s practices across culture, recruitment, strategy, and communication originate from well-regarded and renowned principles. Principles and the evidence they rely upon are therefore not forcefully attributed to a lone theory or random coincidences in history. 

Below are the themes that I found interesting:

1.     Driven by “insights”:

• The authors stress technical insights rather than market research is critical to creating great products. They openly admit they cannot give customers what the customers want because both parties do not know initially. Many Google products fail the test of insight as they neither address customer needs nor delights, but Google will let it ‘fail hard and fast.’ While thinking through this practice of experimenting with solutions, and the cycle of failing fast and learning, I wonder what will help instill this behavior in an organization? The authors eventually answer the chapter on Talent.
• Hire people who have a knack for insights called “learning animals.” A “learning animal” is a lifelong learner who has the quest for knowledge and exhibits this in everything he or she does. Intelligence is necessary, but not a limiting factor as constant learning helps drive change in real life. Often, we look for people with similar experiences with profile-matching to the job requirements and our search stops there for the “learning animal.” Instead, expand the hiring process! Technology has enabled a level playing field for the experienced and the non-experienced in almost all areas. 
• In the chapter on Innovation, the authors recommend practices that may help us generate insights regularly. Almost all companies must ask themselves hard questions and it may be impossible for company “insiders” to obtain fresh “insights” by not seeing the “forest for the trees.” Humans do not always perceive change, so one remedy is to surround oneself with people who can ask hard questions. The 70/20/10 rule can also help us: 70% of resource allocation in the most revenue-generating business line, 20% in emerging businesses, and 10% in completely new opportunities.

2.     Default is open, not closed:

• The principle of openness in what Google does is visible around its strategy of making Android an open platform. The idea of making it easy for customers to leave is counterintuitive until the revelation of the company’s mission to work hard to keep customers by driving innovation
• Another example of following this principle is being a good “router” in corporate communication. A router is someone that can dissipate a uniform message across the company. Board presentations are shared internally, and everything is shared virtually including all employees OKRs (“objective and key results”) companywide. 

3.     Driving consensus:

• In the chapter on Decision Making, the authors emphasize the meaning of “consensus” which also is a misnomer as it is not intended to make everyone agree on a unanimous approach. Instead, the goal is to drive meritocratic consensus towards the best idea, so that the best “idea” wins. The best idea only wins when every idea is thoroughly examined and all conflicts have been resolved. One caveat in this ‘conflict resolution’ phase is to avoid the ‘least common denominator’ syndrome (i.e. satisfying everyone by taking the path of least resistance).
• I see the Consensus approach also flows into hiring, which is described in the chapter on Talent. To develop true consensus and remove biases in hiring, a committee is involved in making decisions and the manager doesn’t have the sole decision-making capability. While growing fast, Google faced a challenge between scaling and hiring-quality which was solved by co-Founder Larry Paige being the ultimate person to “check” the quality of the hire. To make the hiring process data-driven, a hiring packet was created with data and facts on the candidates, and not simply opinions. Opinions were backed with evidence. The hiring packet was distributed to everyone and biases were confronted with more evidence and data. It seems to me that the obsession to kill subjectivity in hiring was addressed which naturally led to many managers quitting as their authority was curtailed. Yet, the same methodology was followed in promotions.

4.     Scale is pivotal to growth:

• I like how a distinction is made between scale and growth. Growth is a number produced in each quarter or year while Scale leads to growth. To scale, the focus must be on customer experience. A choice is made to either grow or monetize, but the revenue model must be in place in the beginning itself.
• Scaling teams significantly depends on setting an organizational structure. The preferred mode is to organize by skills consisting of small teams (engineering, products, marketing, and sales). Organizing by business segments might lead to the lack of information sharing thus creating silos that will defeat the purpose. The principle followed here to scale rather than optimize each business line. The authors also advise on organizing teams around the person having the highest impact. And their intent is not to create a few star performers and create dependence on those employees, but rather institute a “dance troupe” of high performers across functions. Their advice is to organize teams around products and at least 50% of the top team should consist of people from product function.

Several other principles are hidden in every nook and corner of the book, like “no monetary incentive for innovation or creativity,” and “setting almost unattainable goals.” The authors provide tools to implement some of the principles and share best practices, so I recommend you give it a read. I came across two recommendations while reading the book which will keep me occupied for the next few days.