Book cover of How Google Works by Eric Schmidt

Eric Schmidt

How Google Works

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"Good ideas with great execution are how you make magic." Learn how Google transforms ambitious ideas into groundbreaking innovations with its unique approach to leadership and workplace culture.

1. Build exceptional teams by hiring "smart creatives"

Modern businesses succeed through innovation, and innovation is driven by talented, imaginative, and knowledge-hungry people. Google calls such individuals "smart creatives." These employees combine deep technical expertise with creative thinking and a drive to solve problems. They are the backbone of Google's achievements.

Instead of relying on one manager’s viewpoint during hiring, Google uses diverse committees made up of representatives from various roles, such as engineers, managers, and salespeople. This collective evaluation ensures balanced judgments and encourages selecting candidates with varied skill sets. Additionally, resumes are less important than conversation during interviews. Asking candidates unexpected questions about their passions sparks deeper discussions and reveals their values and potential.

Larry Page and Sergey Brin, Google's founders, exemplify smart creatives through their approach to company decisions and products. They built a culture that empowers workers to focus on transformative solutions and remain engaged over the long term.

Examples

  • Larry Page's initial focus on building the best search engine set the tone for Google's talent needs.
  • Former CEO Eric Schmidt uses personal measures, like envisioning whether he could have an interesting conversation with a candidate during a long airport wait.
  • Google committees analyze a candidate's entire profile—including referral feedback and patterns of curiosity—to make hiring decisions.

2. Unlock creative energy by offering freedom

Providing freedom at work creates an environment where creative individuals thrive. At Google, open-ended time policies allow engineers to allocate 20 percent of their time to projects of their choosing. This freedom leads to breakthroughs, as employees aren't confined by rigid instructions.

This cultural willingness to let employees make independent decisions means both risk-taking and occasional failures are part of the process. When workers feel trusted, they bring new energy and insight to projects they genuinely want to solve. Google's founders also emphasize the importance of listening to employee concerns and ideas, no matter their hierarchy.

The ability to choose tasks and contribute to a shared mission fosters investment, as employees feel they matter. Googlers are not top-down order followers; they work independently and collaboratively toward shared goals.

Examples

  • The widely used Gmail service began as one engineer’s side project during their 20 percent time.
  • Google encourages innovation by dedicating 10 percent of its budget to experimental ideas or risky ventures.
  • Teams often improve existing products during hackathons, motivated by their personal sense of mission.

3. Make employee interaction effortless

Interaction between employees isn't just teamwork—it's a foundation for innovation. By encouraging open communication, Google has created processes where employees of all levels freely share ideas, questions, and feedback.

Much of this success comes from initiatives like Moma, Google’s database that includes project insights, employee goals, and weekly updates. Management also prioritizes transparency. For instance, weekly Q&A sessions with Google leaders allow any team member to submit anonymous questions, which ensures accountability and fairness across the company.

This culture of interaction establishes trust, cuts silos, and bolsters creative problem-solving. It's a two-way system—leaders share updates, and employees voice thoughtful concerns. When people feel heard, their contributions expand beyond their core responsibilities.

Examples

  • Google’s Moma makes knowledge, timelines, and updates accessible to all employees anytime.
  • Weekly company-wide meetings encourage unlimited questioning, fostering openness.
  • One engineer's weekend makeover of bad ads was spurred by a bulletin board note in the kitchen from Larry Page.

4. Focus on products, not flashy marketing

Google's strategy is rooted in one powerful belief: a quality product sells itself. This principle signifies a shift from heavy advertising budgets toward continuous product improvement.

With internet disruption, consumers demand excellence because they have endless alternatives. To compete, products must stand out for their reliability and usability. Google’s engineers maintain an attitude of constant revision, addressing user feedback promptly.

Instead of pouring money into conventional corporate promotion, Google builds its brand through excellent products. Search function efficiency, reliable email services, and innovative platforms became Google's biggest advertisements.

Examples

  • Google's initial focus revolved solely around building the world’s best search engine.
  • Consumers trust Google Maps because of its high-quality visual insights and seamless usability.
  • Google Workspace gained popularity without traditional marketing, thanks to user-driven feedback improvements.

5. Decision making thrives on debate

Managers at Google embrace heated discussions to uncover the best solutions. Decision making is not about hierarchy; it is about involvement and exploration. Instead of enforcing a singular vision, leaders encourage a free flow of ideas.

For example, when founder Sergey Brin disagreed with an engineer, rather than closing the debate, a compromise was struck so both ideas coexisted. This process fosters a sense of respect and teamwork, motivating employees to participate.

Moreover, timing matters. Complex decisions involve detailed debates, but deadlines ensure productivity doesn't stall.

Examples

  • Eric Schmidt enabled six weeks of daily discussions before finalizing a business deal with AOL.
  • Sergey Brin once lost a team-vote argument to an engineer’s idea during development.
  • Open debates during new feature launch meetings often yield breakthroughs.

6. Use guiding principles over fixed plans

In industries that evolve quickly, rigid plans invite failure. Instead of expecting an exact path, leaders must establish flexible guiding principles that foster adaptability.

Google’s strategy revolves around three ideas: developing tools driven by technical insights, embracing fast growth, and nurturing openness. These principles provide room for innovation and scalability. Employees know what aligns with the company’s broader vision while operating fluidly.

By avoiding stubborn adherence to business plans, Google achieves solutions for unanticipated challenges with ease.

Examples

  • Google’s commitment to openness is evident through Android’s open-source platform.
  • Creating globally accessible services like YouTube marked Google's decision to grow its ecosystem.
  • Technical insights led to major search engine algorithm upgrades, addressing user needs dynamically.

7. Be open; information builds collaboration

Hoarding information in silos slows progress. Sharing knowledge speeds up collective innovation. At Google, leaders share results, goals, and failures across teams, encouraging inter-departmental collaboration.

When employees can see what others are working on, opportunities emerge to overlap efforts. For managers, having all relevant details results in better decision-making frameworks. Transparency fosters better communication and aligns everyone's contributions.

Examples

  • Google’s transparent intranet promotes knowledge sharing company-wide.
  • Founders encourage idea-sharing among teams during brainstorming lunches.
  • Employee-to-employee instructional resources, like user manuals, enable smoother interactions.

8. Embrace trial and error for growth

Growth means risk-taking. Google doesn’t penalize mistakes; it encourages them to discover groundbreaking ideas. Failure isn’t the opposite of success—it’s often a path to innovation.

Whether working in staggered budgets or closing failed experiments like Google+, maintaining a healthy attitude toward ambitious goals keeps creative spirits alive. Taking big chances often pays off when employees' out-of-the-box projects gain traction.

Examples

  • Google dedicates significant resources annually to experimental "moonshots" projects like Waymo self-driving cars.
  • Products such as Google Translate were refined through trial-user prototypes.
  • Google Finance pivoted several times until it served meaningful audience purposes.

9. Foster meaningful goals that inspire innovation

Employees push boundaries when they’re chasing goals that excite them beyond monetary rewards. By presenting challenges like making cheap products 10 times better than alternatives, Google sparks intrinsic motivation among its team.

Smart creatives need missions that feel impactful. Whether it’s organizing global information or connecting remote regions through internet tools, vision ultimately shapes effort.

Examples

  • Self-driving-car technology focused on solving future urban congestion problems.
  • A lean Chromebooks concept brought affordable computing education to schools.
  • Google launched projects in developing countries delivering Wi-Fi capabilities using balloons.

Takeaways

  1. Establish hiring practices that involve committees for varied perspectives, and focus on curiosity and creativity over credentials.
  2. Create systems of transparency and prioritize openness to ensure information is consistently shared across teams.
  3. Allocate time and resources for experiments, and define overarching principles instead of rigid plans to ensure flexibility during growth.

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