follow Now, for Schmidt and Rosenberg, we have The Platform. It seems that we have these platforms, which can scale and make small companies large very quickly. Google had grown possibly faster than any in history even though Google may not have done platforms well. But the point of platforms is to be open, share information, and try not to keep too much of the value. So that leaves room for other players, which I assume allows for a dynamic and competitive process where you have disruptive start-ups and large incumbents like Google co-existing.
Here are the authors again:.
The rules for success in the Internet Century - by Eric Schmidt & Jonathan Rosenberg. Start by marking “How Google Works” as Want to Read: Both Eric Schmidt and Jonathan Rosenberg came to Google as seasoned Silicon Valley business executives, but over the course of a decade they came to see the wisdom in Coach John Wooden's observation that 'it's what you learn.
This is the difference between twenty-first and twentieth-century economies. Whereas the twentieth century was dominated by monolithic, closed networks, the twenty-first will be driven by global, open ones. There are platform opportunities all around us. The successful leaders are the ones who discover them.
Successful leaders will create large corporations, I presume. In the firm, we are left with a slew of intangibles software, databases, designs, processes, training, culture , the value of which is not accurately represented by accounting data. The workings of firms with high intangible investments look something more Smithian. It focuses on the sympathies between decision-makers, and providing maximum freedom when there is interpersonal trust.
It focuses on conflicting perspectives, finding propriety in workplace actions, and what lines cannot be crossed. Like The Theory of Moral Sentiments, these accounts focus on relationships, aspirations, and personal conduct. When filling in this hole of how innovation is managed, and not simply assume it comes naturally from free people under law, property, and contract, industrial-era thinkers rallied around the policy-administration dichotomy. The policy-makers could set rational policy according to a careful calculation of the costs and benefits of alternative courses of action.
Then, all that is left if for the administrators to execute that strategy.
Any new information would flow up the chain with decisions flowing back down. But How Google Works shows that under uncertainty, most decisions to take action should come from where the knowledge is, which is in the day-to-day operations and not from a distant manager operating behind PERT and Gantt charts. This all means that there is a premium on goal coordination, which comes through again and again in the book.
Any manager you know will tell you that managing a star performer is a very dicey affair and one you have to put a lot of planning into. They are known for the curveballs thrown at candidates during interviews which check the adaptability factor more than anything else. Many other dead companies have had few or most of such traits but didn't succeed! Try Blinkist for free for 7 days. Trivia About How Google Works.
When you are foregoing before-the-fact control from the top to coordinate system-wide goals, then you need the decentralized decision-makers to be steered in a common direction so that results appears to have been coordinated after-the-fact. Rosenberg and Schmidt tell us that praise, and getting employees self-motivated to solve company problems, is one of the secret sauces of management.
This post has taken broad brush strokes to paint a picture that places the ideas of How Google Work. In future posts, I will go into a more detailed comparison of 1 project decisions, 2 culture, and 3 platforms as they are treated in Google and in the Defense Acquisition System.
The purpose will be to continually reconnect what is said in the book to what occurs in defense acquisition. If we take How Google Works to heart, then the patterns of funding should focus on people and organizations first, not programs and requirements. Most of the time the ideas that give you 10x or 1,x gains require scrapping the old way and trying something new.
This overview has provided a framework for understanding the broad themes of How Google Works. It has also identified the central impediment to defense reform based on its philosophy, namely, the PPBS.
None of the DIB recommendations address the elephant in the room, an elephant that will stamp out the intent of its initiatives and leave behind only more processes to follow and boxes to check. Save my name, email, and website in this browser for the next time I comment.
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Overview Reviews of How Google Works seem to be mixed. How to choose wisely?
Google uses four criteria in evaluating new hires: general cognitive ability, role-related knowledge, leadership experience, and Googleyness a unique blend of ambition, team orientation, bias to action, creativity, and integrity. More important than the specific criteria is the willingness to put the time and effort required into hiring. In order to create a culture where everyone achieves without having to be babysat, Google has made a strong effort to foster a spirit of radical transparency in the organization.
Snippets are quick daily or weekly updates of important activities and achievements.
To complement this freedom of information, Google employees are encouraged to give negative feedback. They do detailed, formalized post-mortems after most tasks and hold company-wide TGIF meetings each Friday, where any topic is fair game and employees often critique those above them. This book is an incredible opportunity to learn from two of the best in the world at what they do. To complete your subscription, please click the link in the email we just sent you, and we'll be sending you weekly goodies - direct to your inbox. Sign up for top business book summaries, delivered to your inbox every Tuesday for free.
Impress your colleagues with your book smarts in no time. It should be a great session.