How Google Works: 8 key ideas
The core ideas of How Google Works, each in under a minute, written in our own words. Want the full depth? Get the book.
- IDEA 1 OF 8
Smart creatives drive success
Schmidt and Rosenberg, former Google executives, argue that the key to modern business is attracting and managing smart creatives: people who combine technical knowledge, business sense and creativity.
Traditional management can stifle them.
- IDEA 2 OF 8
Culture shapes everything
The authors argue that company culture should be clearly defined and lived.
Google's culture emphasised openness and ambition. In the authors' view, when people know what the company stands for, they make better choices even when no manager is watching.
- IDEA 3 OF 8
Hiring is critical
The authors describe hiring as the most important thing managers do.
Google used rigorous processes to hire talented people. In the authors' view, the people a company hires shape everything it later does, so it is worth spending much time on getting them right.
- IDEA 4 OF 8
Strategy rests on technical insight
The authors argue that products should be based on unique technical insights.
These give lasting advantage. In the authors' view, a product that is only slightly different from others is easy to copy, while one built on real insight is not.
- IDEA 5 OF 8
Data beats rank
The authors warn against the HiPPO, the highest-paid person's opinion, dominating decisions.
Data and debate should guide choices. In the authors' view, a decision should be made on the evidence and good arguments, and not simply because a senior person prefers it.
- IDEA 6 OF 8
Balance core and new projects
The authors describe a 70/20/10 approach: most resources on core business, some on emerging projects and a little on new ideas.
This balances stability and innovation. In the authors' view, this split lets a company keep earning from its main business while still trying new things for the future.
- IDEA 7 OF 8
Platforms create value
The authors argue that platforms, systems others build on, create network effects.
Google invested in platforms. In the authors' view, when others can build on a platform, the more people use it, the more valuable it becomes for everyone.
- IDEA 8 OF 8
Innovation needs freedom
The authors argue that innovation comes from giving people freedom and accepting failure.
Experiments drive progress. In the authors' view, if people are afraid of failing they will not try bold ideas, so a company must accept some mistakes.
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