CASE HISTORY. How Google works. Sep 16th From The Economist print edition. Internet searching: With all the fuss over Google's IPO, it is easy to. Have you ever wondered how a huge and successful company like Google works? What are the attitudes which differentiate Google from all others in the market. Editorial Reviews. Review. "An informative and creatively multilayered Google guidebook from How Google Works by [Schmidt, Eric, Rosenberg, Jonathan].
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ONE - I Will, I Won't, I Want: What Willpower Is, and Why It Matters. TWO - The Willpower Instinct The Willpower Instin How the World Works. The rules for success in the Internet Century - by Eric Schmidt & Jonathan Rosenberg. Sign in. Main menu.
Frustrated with that, he printed the pages and posted it on the whiteboard in Google's kitchen, with the text "This ad sucks!
A team of engineers saw this on a Friday. Although this team was not officially responsible for ads, they were inspired by the problem and worked on it that weekend. By Monday they had solved the problem: ads should be organized based on their relevance and not just the value the advertiser pays. This insight has become the basis for creating Google Adwords, Google's largest revenue source.
That does not mean that Google inspires this kind of devotion, but the company culture attracts people who are motivated and dedicated problem-solvers. Google's Culture Google has an interesting culture full of myths. Here are some cool things about the Google way of being inspired.
Their office is open and always crowded, maximizing interactions and energy. No one has private offices, not even the senior managers. Teams are held together, not separated by functions. Everyone works, eats, and has fun, together.
Chaos exists, but it is an expression of innovation and is encouraged. People's ideas are judged based on the merits of the subject itself and not by who suggested it. Google strives to organize the business around the individuals who make the most impact. Nothing is based on function or experience, but on performance and enthusiasm, which attracts creative and intelligent professionals.
People do not need to ask permission to do interesting things. Google creates a fun working environment, always with parties, music, and lots of free food.
The dress rules are pretty simple. They call it: You just need to be dressed. Do not be surprised if you find people in pajamas or slippers at company offices. Retaining And Contracting Talents Creative and intelligent people are the key to developing great products.
So how could your business attract employees who fit that description? For starters, hiring employees should be one of your priorities. In most organizations, hiring a new employee is the responsibility of the supervisor.
However, one person's opinions can be highly subjective. Also, most senior executives will not want to hire someone who looks smarter than themselves, so they can maintain the company's status quo. Google has realized that the best way to hire someone is to make decisions together, forming a committee. A team reviews the candidates using many data and supporting materials such as interview reports, compensation history, curriculum, and referrals.
While all these supporting documents are valuable, hiring high-level employees also requires imagination. Looking at a resume and evaluating a candidate based on his experiences will not help you find the most attractive, intelligent, and adaptable employees.
In addition to the standard interview questions, ask the candidates about their interests and passions. Find out what he does and what he cares about outside of work.
Challenge the candidates with surprising questions. How does Google find and hire the best professionals?
The company has some interesting attitudes: Google attracts people - job seekers receive resumes from their potential future co-workers, so the smart and creative will be attracted to the opportunity to work with great talents as well.
Google is always looking for enthusiastic people - which is the driving force of the smart and creative. So the interviewers try to get their candidates to talk about the things that matter most to them.
Google hires people with an appetite for learning - people who have a growth mindset and who will approach their tasks as an opportunity to learn new things. Google tries to hire interesting people with different backgrounds - the kind of person who will not mind spending hours chatting at the airport if a flight is late. Once you've hired someone creative and smart, what do you do to keep that person in the company? This question is important since innovative and intelligent people are restless and ambitious.
At some point, they may want to leave your business to try something new. To prevent this from happening too soon, find ways to challenge and intellectually engage your employees.
That way, they will feel stimulated and motivated, which will suppress the urgency of leaving the company. For example, when a good engineer wanted to leave Google, Schmidt persuaded him to stay, inviting him to attend important meetings with the founders. Attending these meetings allowed the engineer to learn new things about the business, and as a result, he ended up staying with the company for another two years.
The reality is that more traditional business plans can lead to failure. That is because the traditional plan does not give room for change. Managing a business requires you to respond to new challenges. Let's assume you have defined a long-term strategy for your technology company.
What if a new technology or a new competitor came up, demanding that you react quickly? You will not be so responsive if you are stuck with a flat plan. That is why, in terms of strategy, you will be better prepared for the unforeseen ones if you create a foundation for your strategy rather than a static plan. The difference is that a plan is a step-by-step guide to taking care of your business while a foundation is a guiding principle that will guide you.
When Jonathan Rosenberg wrote the founding strategy for Google in , he initially planned to deliver to entrepreneurs a typical business plan.
However, he ended up writing a much more comprehensive document because he realized what helped guide employees in what to do. He detailed three main points: Each new product should be based on great technical insight: a new way of applying design or technology to lower the price or increase the functionality of a product.
Take care to create accelerated growth on a global scale, as competitors can take advantage of small benefits. The best way to scale up is to develop a platform: a combination of products and services that create new markets, bringing people together.
Be open. When you can, share information with the world. Establishing these fundamental ideas has allowed Google employees to apply their talents and special skills to create innovative solutions to unexpected problems. Senior managers make important decisions, while others agree. However, if you are fortunate enough to run a business with smart and creative employees, things will be different. The decision-making process becomes as important as the decision itself because if the officials do not support the decision, it will not go forward.
A good example was when Google had to decide whether or not to enter the Chinese market. In , Google opened an office in China, despite the fact that it would need to comply with the Chinese government's censorship requirements. Traffic and revenue grew for a few years, but then Google was attacked by hackers in December Google found that the hackers were sourced from China's government, who were trying to access the personal information of human rights activists and political dissidents.
So Google executives met several times to discuss the situation and decided Google. That would make Chinese Google lose traffic quickly, but it was the right thing to do. Decision-making needs to be a team effort.
This process is efficient because it involves all people and ensures that employees will support the final decision. If you want to encourage this type of decision-making in your workplace, you need to create a way for each opinion and position to be considered and discussed.
As a manager, it is up to you to reinforce a discussion, not a decision. In the end, none of the executives won the discussion, but debating their views together managed to come up with a better solution. Good decisions require consensus.
But when everyone discusses different opinions, reaching a decision can take a long time. Still, the timing is critical. Why do you do things? If you have a great set of values, the right kind of people will be attracted to your company. Google calls them smart creatives. Eventually, the entire team followed the engineer, because he had the more convincing solution.
Since it was a pressing issue, they committed to give the decision some time each day, to make sure a consensus was achieved before the deadline. Lesson 3: Give your employees room to be creative. This way people can stock up on energy while exchanging with colleagues , which is often where the sparks of creativity fly.
Weekly, company-wide meetings are held, where people can submit questions to the founders beforehand. This encourages everyone to speak their mind. Google gives their employees ambitious challenges and difficult to reach goals, which is just what those smart creatives crave. So make sure you not only hire creatives, but you also give them the space they need to get the most out of it. But then I looked at what lessons I could take away from it, and when researching around the web a bit I found all these interesting little details behind all these rules and principles.