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Chairman Eric Schmidt and executive advisor Jonathan Rosenberg pull back the curtain to reveal how the company created its unique culture of workplace innovation

How Google Works

How Google Works

by Eric Schmidt, Jonathan Rosenberg

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How Google Works

Ever since Google was born in 1998, the company has become one of the most valuable and successful companies in the tech world. But despite having a net worth of hundreds of billions and 15 years of history, the company still maintains a startup mentality.

How does Google achieve...

The technological advancement over the past few decades has brought a highly competitive market. Consumers became increasingly more demanding, as they could easily compare prices and quality (reviews) of products. So companies had to adjust and produce better products to stan...

Successful companies need to rely on employees who can give them a competitive edge. These employees are called smart-creatives by Google. Smart-creatives combine ideas from different areas. They combine business and tech expertise in a creative way. They are competitive, curious...

Hiring should be a top priority. So instead of relying on just a single opinion of a manager, as it is the case in most companies, you should create a committee to represent the company’s different viewpoints.

Resumes aren’t the best way to find the most interesting and intelligent employee...

To attract smart and creative people, you have to create a company culture which attracts those types of employees. The culture should encourage interaction (as smart people love to talk to other smart people), freedom (smart-creatives don’t like to be in a rigid environment).

Employees sho...

Enforcing innovation rarely works because external motivators are harmful to intrinsic motivation as described in Drive. How can a company then encourage innovation? You create the conditions for innovation to flourish.

So how can we create the right conditions for inn...

Google dedicates 10 percent of its budget to experiments. Employees have 20 percent free time to spend on whatever they like.

Thanks to these measures innovation keeps moving. Gmail for example was a result of an employee’s 20-percent time.

Google learned from the book Where Good Ideas Come From that they come from collaborating environments. Innovative companies foster this type of rich environment by creating collaborative working environments and company-wide meetings.

Google has an Intranet s...

The restless and ambitious nature of smart creatives will naturally lead them to create something of their own sooner or later or at least make a change and try something new, like going to another company. So how can you retain them? The answer is, by giving them what th...

How to assure long-term success? Most CEOs would think that their company needs a business plan. But a rigid business plan in fact isn’t going to work well in most situations. A fixed plan doesn’t leave room for fine-tuning. And in the technology business, things change all the time. A company ne...

In a traditional company, management used to be hierarchical (vertical). That means that decisions are to be made from superiors and that they are not debated openly, employees have to shut up and follow orders from their superiors.

In smart, creative cultures, dec...

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