Eric Schmidt - How Google Works
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- Book:How Google Works
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Today, Google is a global icon that regularly pushes the boundaries of innovation in a variety of fields. HOW GOOGLE WORKS is an entertaining, page-turning primer containing lessons that Eric and Jonathan learned as they helped build the company. The authors explain how technology has shifted the balance of power from companies to consumers, and that the only way to succeed in this ever-changing landscape is to create superior products and attract a new breed of multifaceted employees whom Eric and Jonathan dub smart creatives. Covering topics including corporate culture, strategy, talent, decision-making, communication, innovation, and dealing with disruption, the authors illustrate management maxims (Consensus requires dissension, Exile knaves but fight for divas, Think 10X, not 10%) with numerous insider anecdotes from Googles history, many of which are shared here for the first time.
In an era when everything is speeding up, the best way for businesses to succeed is to attract smart-creative people and give them an environment where they can thrive at scale. HOW GOOGLE WORKS explains how to do just that.
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Copyright 2014 by Google, Inc.
All illustrations Nishant Choksi 2014
Cover design by Jonathan Jarvis
Cover copyright 2014 by Hachette Book Group, Inc.
All rights reserved. In accordance with the U.S. Copyright Act of 1976, the scanning, uploading, and electronic sharing of any part of this book without the permission of the publisher constitute unlawful piracy and theft of the authors intellectual property. If you would like to use material from the book (other than for review purposes), prior written permission must be obtained by contacting the publisher at permissions@hbgusa.com. Thank you for your support of the authors rights.
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ISBN 978-1-4555-8233-4
E3
The New Digital Age: Reshaping The Future of People, Nations and Business
(coauthored with Jared Cohen)
To our favorite smart creatives, Wendy and Beryl.
by Larry Page
Google Cofounder and CEO
When I was younger and first started thinking about my future, I decided to either become a professor or start a company. I felt that either option would give me a lot of autonomythe freedom to think from first principles and real-world physics rather than having to accept the prevailing wisdom.
As Eric and Jonathan explain in How Google Works, weve tried to apply this autonomy of thought to almost everything we do at Google. Its been the driving force behind our greatest successes and some impressive failures. In fact, starting from first principles was what got Google going. One night I had a dream (literally) and woke up thinking what if you could download the whole Web and just keep the links? So I grabbed a pen and scribbled down the details to figure out whether it was really possible. The idea of building a search engine wasnt even on my radar at the time. It was only later that Sergey and I realized ranking web pages by their links could generate much better search results. Gmail started out as a pipe dream too. And when Andy Rubin started Android a decade ago, most people thought aligning the mobile industry around an open-source operating system was nuts.
Over time Ive learned, surprisingly, that its tremendously hard to get teams to be super ambitious. It turns out most people havent been educated in this kind of moonshot thinking. They tend to assume that things are impossible, rather than starting from real-world physics and figuring out whats actually possible. Its why weve put so much energy into hiring independent thinkers at Google, and setting big goals. Because if you hire the right people and have big enough dreams, youll usually get there. And even if you fail, youll probably learn something important.
Its also true that many companies get comfortable doing what they have always done, with a few incremental changes. This kind of incrementalism leads to irrelevance over time, especially in technology, because change tends to be revolutionary not evolutionary. So you need to force yourself to place big bets on the future. Its why we invest in areas that may seem wildly speculative, such as self-driving cars or a balloon-powered Internet. While its hard to imagine now, when we started Google Maps, people thought that our goal of mapping the entire world, including photographing every street, would prove impossible. So if the past is any indicator of our future, todays big bets wont seem so wild in a few years time.
These are some of the principles that I think are important, and there are more in the pages that follow. Hopefully you can take these ideas and do some impossible things of your own!
I n July 2003, Eric Schmidt had been the CEO of Google Inc. for two years when he received an email from one of the companys board members and investors, Mike Moritz, a partner at Sequoia Capital. It included a suggestion:
you may want to think about picking a three hour slot in mid-august when the management presents to the board our campaign to compete with finland. (i do not think we should wait until the september meeting. this is far too important a topic and weve all learned that the best way to discover how short a year happens to be is to compete with finland.)
To the uninformed, this note might have been confusing. Why would Google, a several-hundred-employee, five-year-old Internet start-up based in Mountain View, California, be competing with Finland, a country of five million people that was over five thousand miles away and generally considered to be a friendly, peaceful place?
The Finland email arrived just when Eric felt like he was finally settling into Google. He had come from Novell, where he had been the CEO, and had also worked at Sun Microsystems and Bell Labs. After growing up in northern Virginia, he graduated from Princeton with a degree in electrical engineering and received a masters degree and PhD in computer science from the University of California, Berkeley, so not only was he no stranger to working with engineers and computer scientists, he was one. Still, when he got to Google he stepped into a place very different from anywhere else he had been.
His I have a feeling were not in Kansas anymore revelation started on his first day. When he arrived at the office that had been assigned to him, which was already quite modest by big-shot CEO standards, he found that it was occupied by several software engineers. Rather than kicking them out, he decamped to the next office over, which was more of a closet with a window than an actual office.
Then, a few weeks later, it got worse. One morning, as he walked down the hall to his closet office, he noticed that his assistant, Pam Shore, had a troubled look on her face. He soon found out why: He had a new officemate. It was one of the search engineers, Amit Patel, who explained to Eric that his office had five inhabitants, with another on the way, and that his solution of sawing one of the desks in half to make more space hadnt worked. In comparison to his current space, Erics spot seemed quite roomy, so Amit moved in. (The facilities crew had refused to move Amits stuff into Erics office, so he had done it himself.) Amit and Eric ended up sharing the office for several months. Clearly, this was not a measure-your-importance-in-square-feet kind of place.
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