The Google Formula for Success

29. September 2014

Date: 29-09-2014
Source: The New York Times

Can Google’s winning ways be applied to all kinds of businesses? The authors of “How Google Works,” Eric Schmidt, Google’s former chief executive, and Jonathan Rosenberg, a former senior product manager at Google, firmly believe that they can.

How Google Works“How Google Works” is filled with instructive anecdotes of Google lore.

The critical ingredient, they argue in their new book, is to build teams, companies and corporate cultures around people they call “smart creatives.” These are digital-age descendants of yesterday’s “knowledge workers,” a term coined in 1959 by Peter Drucker, the famed management theorist.

But the new breed is a far cry from the staid, organization men of the past. Smart creatives, the authors write, are impatient, outspoken risk-takers who are easily bored and change jobs frequently. They are intellectually versatile, typically “combining technical depth with business savvy and creative flair,” the authors note.

“They are a new kind of animal,” Mr. Schmidt and Mr. Rosenberg write. “And they are the key to achieving success in the Internet Century.”

Their book, written with Alan Eagle, a speechwriter and communications employee at Google, is filled with instructive anecdotes of Google lore. One early story, from 2002, is presented as a distillation of Google’s distinctive culture. Larry Page, the co-founder, was chagrined at how terrible the ads were that were being served up alongside many searches — random and irrelevant. He printed out the searches with the offending ads, marked them, and wrote on top, “THESE ADS” STINK. He pinned the pages to a bulletin board in the company kitchen, and left for the weekend.

Five engineers worked on the ad program over the weekend, without any direct prompting, and solved the problem. That became the essence of Google’s “ad relevance score,” which presented search-related ads based on their relevance rather than how much the advertiser was willing to pay or how many clicks the ads received. The five “problem-solving ninjas,” the authors write, were not even on the Google ads team.

It’s a neat and telling story. But it’s also true that similar stories of smart, creative entrepreneurial teams solving thorny problems are nothing new. Read the rest of this entry »