“How Google Works” by Eric Schmidt & Jonathan Rosenberg, with Alan Eagle
This book is like an insider’s account of Google, written by Google’s former CEO Eric Schmidt and former SVP of Product Jonathan Rosenberg. It is an insight into Google’s corporate culture, strategy, and management style; or in short, how Google works.
The insights dwell around the notion that in order to survive today, businesses can no longer rely on traditional model of corporation with top-down management style. And instead they must design the company around a new philosophy, which, of course, imbedded in Google’s corporate culture.
The new philosophy is broken down in this book into 6 main categories:
- Culture: The way they structure the office is the ultimate strategy. Google strives to keep offices “open” and crowded to encourage interaction, instead of separated by individual cubicles. Meanwhile, the “Highest Paid Person’s Opinion” (aka high corporate rank) should not be granted extra weight, and instead decisions are made based on data and merit.
- Strategy: Betting on insights and not plans. Create superior products based on breakthroughs, and optimize for growth and not instant revenue.
- Talent: Hiring is the most important activity. Hire more people based on learning ability and not expertise, hire more diverse people with many different views of the world, while managers don’t unilaterally hire people and instead potential peers evaluate the candidates. The book also emphasize on the importance of having many small teams.
- Decision-making by consensus. Decisions by consensus doesn’t mean that everyone has to agree, but everyone’s voice must be heard. This also means healthy debates is required, but once it is decided everyone must support and work together to execute it. Also, decisions should be made in a quick manner, using the data available. The lesson on how to organize efficient meetings, in particular, is insightful.
- Communication. The rule in Google is all information should be shared with everyone, unless, of course, those with strict legal or regulatory reason to keep it confidential. Google also encourage people for repetitive communication to ensure everyone stays aware and aligned with the messages. Also important is knowing the details and healthy communication (that involves passionate arguments but unite afterwards).
- Innovations: the 70/20.10 Rule. Innovation cannot be forced by the higher management, but can be systematically budgeted. As at the publication date of this book in 2014: 70% of budget is allocated to core business (search engine and ads), 20% to emerging successes (Gmail and Google Drive), and 10% to speculative bets (such as self-driving cars).
The book is filled with a lot of real-life examples from internal cases, on these 6 philosophies; all of which underline the ultimate takeaway that the job of a modern leader is not to micromanage, but to clear the obstacles out of the way in order for the “Smart Creatives” to have the freedom, the resources, and the psychological safety net to innovate.
The downside of this book is that it has this corporate ass-kissing vibe to it, which feels cringy. It also noticeably brushes off some of the controversies that the company have had – such as problems in user privacy, data tracking, antitrust issues, tax dodging, etc – making the book squeaky clean like a corporate PR production and lacking the real big picture of Google (with all the good, bad, and ugly).
But nevertheless, if you can endure and overlook the self-congratulating corporate asskissery, you’ll get a pretty decent [but one-sided] book describing the core determinants that make Google the tech giant that they are today, with the company’s models have now been replicated in a lot of corporations around the world.