How Google Works PDF

Eric Schmidt

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 How Google Works
Unlocking the Secrets of Google’s Innovative
Corporate Culture
Written by Bookey
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About the book
In "How Google Works," Eric Schmidt and Jonathan
Rosenberg share insights gained from their transformative
decade at Google, where they reevaluated their preconceptions
about management and corporate dynamics. This engaging
and accessible guide encapsulates their experiences, shedding
light on corporate culture, strategy, talent, decision-making,
communication, innovation, and navigating disruption. The
authors explore how monumental shifts like the internet,
mobile technology, and cloud computing have empowered
consumers and compelled companies to adapt. They argue that
success hinges on creating exceptional products and fostering
a new generation of 'smart creatives'. With memorable
management principles and compelling anecdotes from
Google’s journey, the book serves as a blueprint for
innovation and employee empowerment, reflecting the spirit
of openness that defines the company's ethos.

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About the author
Eric Schmidt is a prominent technology executive and
innovator best known for his role as the CEO of Google from
2001 to 2011, during which he played a pivotal role in
transforming the company into a global leader in internet
services and advertising. With a background in computer
science and engineering, having earned his Ph.D. from
Berkeley, Schmidt's leadership was marked by a commitment
to fostering a culture of innovation and collaboration, which
helped propel Google’s development of groundbreaking
products and services. Beyond his tenure at Google, Schmidt
has held various influential positions, including as the
Executive Chairman of Alphabet Inc. and an advisor on
technology and policy, contributing to discussions on the
future of technology and its societal impacts. His insights and
experiences are captured in his writings, including the
bestselling book "How Google Works," co-authored with
Jonathan Rosenberg, which provides a unique perspective on
the interplay of technology, management, and innovation in
shaping one of the world's most influential companies.

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Summary Content List
Chapter1 : Culture—Believe Your Own Slogans

Chapter2 : Strategy—Your Plan Is Wrong

Chapter3 : Talent—Hiring Is the Most ImportantThing You

Do

Chapter4 : Decisions—The True Meaning of Consensus

Chapter5 : Communications—Be a Damn GoodRouter

Chapter6 : Innovation—Create the PrimordialOoze

Chapter7 : Conclusion—Imagine theUnimaginable

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 Chapter1 Summary : Culture—Believe
Your Own Slogans

Section Summary

Introduction to Culture in In 2002, Larry Page's dissatisfaction led to a weekend where engineers proactively improved
Google the AdWords system, showcasing Google's empowering culture.

Role of Culture in Attracting Smart creatives prioritize meaningful work environments over compensation, making strong
Talent culture crucial for startups.

Defining and Communicating Companies should early define culture with core team input, ensuring authenticity and clear
Corporate Culture communication of values.

Importance of Crowded, Google promotes interaction through office design, integrating teams and communal spaces to
Collaborative Workspaces enhance creativity.

Navigating Hierarchies and Counteracting the influence of the HiPPO encourages meritocracy and open dialogue,
Decision-Making fostering a culture of constructive dissent.

Organizational Structure A flat structure with few direct reports promotes communication and teamwork while
Principles allowing prompt initiatives.

Balancing Work and Personal Fostering a culture where being overworked reflects engagement allows employees to have
Life ownership of their responsibilities.

Establishing a Culture of A positive workplace that encourages risk-taking and minimizes bureaucracy fosters growth
Positivity and innovation.

The Nature of Fun vs. Fun True enjoyment comes from positive interactions and creative freedom, rather than forced,
Activities superficial fun events.

Building a Strong Company Leaders should embody commitment, transparency, and integrity, using guiding principles
Culture like "Don't be evil" to maintain alignment.

Conclusion: The Power of A well-defined corporate culture motivates adherence to values and elevates individual
Culture performance, contributing to overall success.

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Summary of Chapter 1: How Google Works

Introduction to Culture in Google

In May 2002, Larry Page expressed dissatisfaction with

Google's ad relevance performance, leading to a
transformative weekend where a team of engineers improved
the AdWords system without being directly tasked to do so.
This shift showcased Google's unique culture, where
employees felt empowered to solve problems proactively.

Role of Culture in Attracting Talent

The chapter discusses how culture is a significant factor for

"smart creatives" when selecting a job. Unlike most
employees who prioritize compensation and job roles, these
individuals value a meaningful and engaging work
environment. Therefore, establishing a strong, desirable
culture becomes crucial for start-up success.

Defining and Communicating Corporate Culture

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Companies often neglect to define their culture early, leading
to vague and unsatisfactory mission statements. Founders
should seek input from their core team to articulate clear
values that reflect their beliefs. Authenticity and active
communication of these values are vital to ensure all
employees recognize and embody them.

Importance of Crowded, Collaborative Workspaces

Google's office design emphasizes crowding and interaction

among employees, fostering creativity and collaboration.
Unlike traditional corporate structures that segregate
employees based on roles, Google encourages integrated
teams and communal workspaces, enhancing the flow of
ideas and innovation.

Navigating Hierarchies and Decision-Making

The chapter warns against the influence of the "Highest-Paid

Person’s Opinion" (HiPPO), which can undermine
meritocracy. Creating an environment where ideas matter
more than titles encourages open dialogue and better
decision-making. A culture of dissent is essential, allowing
constructive criticism without fear of retribution.

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Organizational Structure Principles

A flat organizational structure, where managers maintain a

small number of direct reports, is recommended. This allows
for more freedom and less micromanagement, facilitating
better communication and teamwork. Initiatives should be
taken promptly to avoid the stagnation associated with
prolonged reorganizations.

Balancing Work and Personal Life

While “work-life balance” is often a buzzword, the authors

suggest creating a culture where being "overworked" is
viewed positively, reflecting engagement and passion.
Managers should empower employees by giving them
ownership of their responsibilities, thereby allowing them to
dictate their balance.

Establishing a Culture of Positivity

A positive, enthusiastic workplace where saying "yes"

frequently fosters growth and innovation. Managers should
encourage risk-taking and minimize bureaucratic barriers.

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The Nature of Fun vs. Fun Activities

The chapter distinguishes between genuine fun at work and

contrived fun events. True enjoyment arises from positive
interactions and creative freedom instead of mandatory,
superficial gatherings.

Building a Strong Company Culture

To build an effective culture, leaders must embody

commitment, transparency, and moral integrity. For Google,
the mantra "Don't be evil" serves as a guiding principle,
allowing employees to halt potentially harmful initiatives and
reassess alignment with core values.

Conclusion: The Power of Culture

A well-formed corporate culture acts as a foundation for the

organization's success, motivating employees to adhere to
defined values and commit to higher standards. When
embraced, this culture can elevate both individual
performance and the overall success of the company.

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Example
Key Point:Empowering Employees to Innovate
Example:Imagine working in an environment where
your ideas matter just as much as your title. In this
setting, rather than waiting for directives from your
manager, you see a problem and feel inspired to tackle it
immediately. If you're an engineer at this company, you
might find yourself staying late one weekend,
collaborating with peers, and proposing a new feature
that wins high praise from your colleagues. This level of
empowerment fosters creativity and drives innovation,
reinforcing a culture where every employee can take
ownership and make impactful contributions.

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Critical Thinking
Key Point:The role of corporate culture in attracting
talent is not universally applied.
Critical Interpretation:While it is asserted that a strong
corporate culture attracts 'smart creatives' who prioritize
engagement over compensation, this perspective may
overlook the diverse values and motivations of the
broader workforce. Studies have shown that not all
individuals prioritize workplace culture—some may
value financial incentives significantly more, rendering
culture a secondary concern. Additionally, organizations
with rigid structures or traditional hierarchies may still
attract talented individuals despite lacking an idealistic
culture, challenging the assumption that culture is the
primary allure. For instance, research by Harvard
Business Review indicates that compensation remains a
key driver for many professionals (HBR, 2016). Thus,
while Google's culture has fostered innovation, it
prompts an examination of how such a cultural
approach accounts for varied employee preferences in
different industries.

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Chapter2 Summary : Strategy—Your
Plan Is Wrong

Summary of Chapter 2: Key Insights on Business

Planning and Innovation

The Flaws of Traditional Business Plans

- Traditional MBA-style business plans are often flawed and

can lead to “achieving failure.”
- Emphasis should be on investing in the right people rather
than rigid plans, as successful entrepreneurs adapt to
evolving circumstances.

Foundational Principles vs. Fluid Plans

- A business may have a plan, but it should be understood as

flexible and adaptable.
- The foundation of the business should be based on current
principles, guiding the fluid plan as the market evolves.

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Attracting Smart Creatives

- Flexibility may deter some potential team members, but

“smart creatives” thrive in dynamic environments.
- Providing a strong foundational strategy is key to attracting
and retaining top talent.

The Importance of Technical Insights

- Successful Google products are grounded in unique

technical insights rather than merely market research.
- Technical insights lead to breakthrough innovations, while
market-driven strategies can lead to mediocrity.

Innovation and Combinatorial Insights

- There is potential for “combinatorial innovation” where

technology blends creative solutions to address significant
problems.
- Companies should leverage the available technology and
industry-specific expertise to drive innovation.

The Role of Platforms

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- Businesses should focus on creating platforms rather than
just products, ensuring scalability and network effects.
- Growth should be prioritized over quick monetization, as
seen in Google’s early strategies.

Choosing Between Open and Closed Systems

- While open platforms tend to facilitate more rapid scaling

and innovation, there are circumstances where a closed
system is advantageous.
- The decision to default to open should be guided by an
evaluation of competitive advantages and market strategies.

Shifting Focus from Competition to Innovation

- Obsession with competition can stifle creativity and prevent

truly innovative breakthroughs.
- Focusing on developing novel ideas, rather than mirroring
competitors, is critical for long-term success.

Strategic Meeting Guidance

- Effective strategy requires collaboration with smart

creatives, focusing on innovation and adapting to future

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changes.
- Use iterative processes based on real-time learning rather
than relying solely on market research.

Conclusion

- A successful venture thrives on adaptability, a solid

foundational strategy backed by technical insights, a focus on
scalable platforms, and a culture that encourages innovation
over competition.

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Chapter3 Summary : Talent—Hiring Is
the Most ImportantThing You Do

Summary of Chapter 3: Hiring the Right People

The Importance of Hiring

In February 2000, Jonathan's interview for a product leader

role at Google revealed that effective hiring is crucial. Sergey
Brin's unconventional interview method emphasized hiring
as the most critical function a manager performs, paralleling
hiring talented players in sports, rather than only crafting
strategies.

Peer-based Hiring Practices

Google adopts a model akin to academia, where hiring

decisions are based on committees rather than hierarchical
authority. This peer-based model values creative talent over
strict role requirements, ensuring the acquisition of top talent
who can adapt to evolving needs.

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Talent Attraction and Retention

A high caliber workforce attracts more talent, motivated by

the opportunity to work with exceptional individuals. To
maintain this environment, companies must hire cautiously,
avoiding any risk of diluting standards, which can lead to a
negative "herd effect."

Identifying Passion and Intelligence

Hiring processes should focus on identifying passion and a

growth mindset in candidates, with emphasis on candidates
who demonstrate both intellectual curiosity and a willingness
to learn. Engaging with candidates about their personal
interests can reveal genuine enthusiasm.

Prioritizing Cultural Fit and Character

Candidates should not only be skilled but also align with the
company culture. Using techniques like the "LAX test,"
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traits and their ability to contribute
team.

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Chapter4 Summary : Decisions—The
True Meaning of Consensus

Summary of Chapter 4 - "How Google Works"

Introduction to the Attack

In December 2009, Google faced a sophisticated cyberattack

from hackers aiming to steal confidential information rather
than disrupt services, marking a significant escalation in
threats facing the company.

Investigation and Origin

Sergey Brin quickly assembled a team of computer security

experts who discovered that the attacks were conducted from
China and aimed at accessing not only Google's intellectual
property but also the Gmail accounts of human rights
activists.

Entering the Chinese Market

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Google's entry into the Chinese market in mid-2004 was
driven by the potential for growth, despite concerns about
censorship and complicity in the government’s information
control. Sergey Brin opposed this engagement due to his
family's history with communism, while others in the
company, including Eric Schmidt, felt the opportunity to
improve information access justified entering.

Controversial Censorship Compliance

Google set up Google.cn in January 2006, complying with

Chinese censorship laws while attempting to inform users
when results were blocked. That compliance led to various
censorship requests that often lacked a clear legal basis,
ultimately igniting internal debate about the ethics of
operating in such an environment.

Hacking Incident and Decision to Withdraw

The incidents of cyberattacks prompted a reevaluation of

Google's presence in China. The decision-making process
culminated in a pivotal meeting where Sergey and Larry
supported stopping censorship on Google.cn despite potential

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repercussions from the government. Eric led a thorough
discussion emphasizing data-driven decisions, ultimately
deciding to disclose the attacks and the intention to cease
compliance with censorship, even as potential backlash
loomed.

Implementation of Decision-Making Principles

As the chapter unfolds, it describes core decision-making

principles at Google. Effective decision-making requires a
combination of data analysis, encouraging dissenting
opinions, and establishing a clear decision-making process.
The narrative emphasizes that true consensus involves open
debate and that decisions must be executed transparently,
ensuring that all voices are heard.

Conclusion: Committee on Regular Meetings and

Reflection on Leadership

The importance of daily meetings in critical decision-making

processes is highlighted, alongside the value of having a
coach to aid in personal and professional growth. Effective
management balances exercising authority while allowing
others to lead in their areas of expertise, fostering a culture of

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collaboration and continuous learning. Ultimately, Eric
Schmidt reflects on how true leadership involves recognizing
and nurturing potential within the team while making
informed, swift decisions that adhere to core values.

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Critical Thinking

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Chapter5 Summary :
Communications—Be a Damn
GoodRouter

Summary of Chapter 5: Communication at Google

Understanding Corporate Communication

Jonathan, an executive at Google, embraces immediate email

responses and information sharing, countering criticism that
he is merely an "expensive router." This encapsulates a
broader view of organizational communication where
information flows freely, contrasting traditional management
styles that hoard data as a means of control.

Default to Open

Google promotes a culture of transparency where most

information, including board reports, is shared
company-wide after meetings. This openness allows for
better employee engagement and accountability, as well as

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improving the quality of the information shared.

Setting Clear Objectives

Objectifying team goals through OKRs (Objectives and Key

Results) is crucial. Google leaders openly share their OKRs
and discuss past performances, ensuring alignment across the
organization.

Detail-Oriented Leadership

Effective leaders know their business's details. Regular

discussions about team progress, issues, and deliverables
help in maintaining awareness and accountability within
leadership roles.

Creating a Safe Environment for Truth

Fostering an environment where employees feel safe sharing

bad news is vital. Postmortems on projects and weekly Q&A
sessions encourage honesty and reflection, reinforcing
transparency within the company.

Encouraging Conversations

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Organizational culture thrives on conversations rather than
just formal communication. Leaders can initiate informal
gatherings to stimulate dialogue and build rapport across the
workforce.

The Importance of Repetition

Repeatedly communicating core themes is essential for them

to resonate within the organization. Leaders should ensure
messaging is effective, interesting, and authentic to maintain
engagement.

Utilizing Effective Communication Techniques

Email and other forms of communication should be

approached thoughtfully:
1. Respond quickly and crisply.
2. Clean up inboxes regularly to prevent clutter.
3. Use various media for different audience preferences.
4. Cultivate a culture of truth and humility in
communications.

Tailoring Communication for Various

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Constituencies

Leaders should adapt communication strategies according to

the audience—partners, boards, press, etc. Diplomacy is key
in partnerships, while authenticity is crucial in media
interactions.

Cultivating Relationships Over Hierarchy

In fast-paced environments, success relies more on building

relationships than adhering to formal structures. Establishing
trust and understanding within the team leads to better
overall performance.
This chapter emphasizes the significance of transparency,
open communication, and relationship-building as essential
elements in fostering an innovative and efficient workplace
at Google.

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Chapter6 Summary :
Innovation—Create the PrimordialOoze

Chapter 6 Summary: The Dynamics of Innovation

at Google

Reflection and Background

In March 2010, Eric Schmidt recalls a pivotal coffee meeting

with Apple CEO Steve Jobs, where they discussed the
Android operating system’s potential amid allegations of
using Apple’s intellectual property. Reflecting on their
history since 1993, it highlights a competitive friendship that
sparked both companies' innovation.

The Shift in Mobile Platforms

The launch of the iPhone in 2007 established Apple as a

leader in mobile technology, a direct competitor to Google's
Android. While Android embraced an open-source model
encouraging widespread adoption, Apple's iOS maintained

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strict control over its ecosystem to ensure a focused user
experience. This competition led to significant advancements
in mobile technologies, impacting economic growth and user
engagement globally.

Understanding Innovation

Innovation is not restricted to groundbreaking ideas; it also

includes incremental improvements that contribute to more
significant advancements over time. Both Apple and Google
operate in fast-paced industries where constant innovation is
necessary. Google emphasizes the importance of creating
radically useful and surprising solutions.

Context and Strategy for Innovation

Google's project teams evaluate ideas based on addressing

large-scale challenges and ensuring technological feasibility.
A conducive environment for innovation arises from a
rapidly growing marketplace filled with competition,
encouraging radical approaches over incremental
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Innovative Leadership and Culture

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Chapter7 Summary :
Conclusion—Imagine theUnimaginable

Summary of Chapter 7: How Google Works

Introduction

Eric Schmidt reflects on a family holiday in 2013, noting a

shift in media consumption among children who exclusively
used tablets for video, highlighting the diminishing relevance
of traditional television.

The Changing Business Landscape

The chapter discusses the significant disruption technology

brings to various industries, particularly how it affects
established corporations. This transformation is compared to
the historical economic transition from a feudal to an
industrial economy and now towards a platform economy,
exemplified by companies like Amazon, which redefine
consumer relationships.

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The Challenge for Incumbents

Businesses face a critical choice: embrace technological

disruption or continue outdated operational practices.
Organizations that fail to innovate risk obsolescence, as
demonstrated by the decline of Borders due to not adapting
to platform-based competition. The mindset of risk aversion
within large corporations stifles innovation, leading to
eventual failure.

Leveraging Platforms for Success

Incumbents can succeed by utilizing platforms to deliver

excellent products and foster innovation. However, corporate
culture often resists necessary changes. The emergence of the
social web, primarily driven by Facebook, prompted Google
to reinvent itself through efforts like Google+.

Asking Difficult Questions

The importance of probing challenging questions is

emphasized to spur innovation and prevent complacency.
Leaders should ask what potential future scenarios could

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drastically change their business models and offer pathways
for proactive adaptation.

The Role of Smart Creatives

Organizations must position themselves in appealing

locations to attract top talent, or smart creatives, who
contribute significantly to innovation. This talent migration
emphasizes the need for companies to foster environments
that support and retain creative individuals.

Government's Role in Disruption

Governments have a crucial part in shaping the business

environment. They can either protect incumbents or create
spaces that foster innovation. Governments should focus on
improving education, digital infrastructure, and regulatory
flexibility to encourage disruptive innovations.

Optimism Amidst Disruption

Despite the challenges posed by technological changes, the

authors maintain that these shifts can lead to positive
transformations across industries. With advancements in

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data, real-time technology, and collaboration, there are ample
opportunities for problem-solving and innovation in
healthcare, transportation, and beyond.

Future Outlook

The authors express optimism about the future, believing that

smart creatives will drive significant changes in various
sectors, creating new opportunities, businesses, and
employment. They acknowledge that while they are
influenced by these transformative forces, the next generation
of innovators will likely surpass them.

Conclusion

The chapter ends on an inspiring note, recognizing the

inevitability of change and the potential for new ideas and
leaders to emerge and challenge established companies like
Google.

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Best Quotes from How Google Works by
Eric Schmidt with Page Numbers
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Chapter1 | Quotes From Pages 34-68

1.At that point, Eric still thought Google was a fairly
normal start-up. But what happened over the next
seventy-two hours completely shifted that
perception.
2.This core insight—that ads should be placed based on their
relevancy, not just how much the advertiser was willing to
pay and the number of clicks they received—became the
foundation upon which Google’s AdWords engine, and a
multibillion-dollar business, was built.
3.Culture stems from founders, but it is best reflected in the
trusted team the founders form to launch their venture.
4.If a company believes in a culture where everyone gets a
say and decisions are made by committee, it will attract
like-minded employees.
5.When your mission is to organize the world’s information

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 and make it universally accessible and useful, then having
ads (which are information) that suck (which isn’t useful)
is a problem.
6.Most companies neglect this. They become successful, and
then decide they need to document their culture.
7.What values would you want that bleary-eyed employee to
consider? Write them down in a simple, concise way. Then
share them, not in posters and guides, but through constant,
authentic communications.
Chapter2 | Quotes From Pages 69-91
1.But we can tell you with 100 percent certainty that
if you have one, it is wrong.
2.Since the plan is wrong, the people have to be right.
Successful teams spot the flaws in their plan and adjust.
3.The tectonic, technology-driven shifts that characterize the
Internet Century have rendered some of the commonly
accepted strategic fundamentals we learned in school and
on the job incorrect.
4.Bet on technical insights that help solve a big problem in a

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 novel way, optimize for scale, not for revenue, and let great
products grow the market for everyone.
5.One way of developing technical insights is to use some of
these accessible technologies and data and apply them in an
industry to solve an existing problem in a new way.
6.Don’t look for faster horses.
7.Your job is to think of the thing you haven’t thought of yet
that you really need.
8.When there is disruption in a market, there are two possible
scenarios. If you are the incumbent, you can acquire, build,
or ignore a disruptive challenger.
9.Growth matters most. All big successes in the Internet
Century will embody large platforms that get better and
stronger as they grow.
10.Being proud of your competitors. Just don’t follow them.
Chapter3 | Quotes From Pages 92-132
1.For a manager, the right answer to the question
‘What is the single most important thing you do at
work?’ is hiring.

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2.Smart coaches know that no amount of strategy can
substitute for talent, and that is as true in business as it is
on the field.
3.The not-so-nice thing is that hiring well takes a lot of work
and time. But it is the best investment you can make.
4.A workforce of great people not only does great work, it
attracts more great people.
5.Passionate people don’t use the word 'passion.'
6.Once you hire those learning animals, keep learning them!
7.The urgency of the role isn’t sufficiently important to
compromise quality in hiring.
8.Combining passion and contribution is the ultimate luxury.

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Chapter4 | Quotes From Pages 133-158
1.For leaders, decisions are when the hard work
begins; there’s a reason why the word ‘tough’ is so
often followed by ‘decision.’
2.The pace of business change in the Internet Century
dictates that decisions be made quickly.
3.Getting everyone to say yes in a meeting doesn’t mean you
have agreement, it means you have a bunch of
bobbleheads.
4.You’re both right.
5.Spend 80 percent of your time on 80 percent of your
revenue.
Chapter5 | Quotes From Pages 159-183
1.If all I am is a very expensive router, I intend to be
a damn good one.
2.In the Internet Century you hire people to think.
3.Power comes not from knowledge kept but from
knowledge shared.
4.When you meet someone at Google and want to learn more

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 about what they do, you go on Moma and read their OKRs.
5.Make it safe to ask the tough questions and to tell the truth
at all times, even when the truth hurts.
6.Repetition doesn’t spoil the prayer.
7.The essence of being human involves asking questions, not
answering them.
8.Canaries are dying in the coal mine, but at least you are
aware of the avian carnage.
9.To get this right, you first need to know what the core
themes are.
10.The business should always be outrunning the processes,
so chaos is right where you want to be.
Chapter6 | Quotes From Pages 184-219
1.Innovation: It’s the next big thing. Or at least the
next big word.
2.To us, innovation entails both the production and
implementation of novel and useful ideas.
3.Focus on the user and all else will follow.
4.The CEO needs to be the CIO.

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5.You aren’t thinking big enough.
6.When you isolate it under a particular group, you may
attract innovators to that group, but you won’t have enough
first followers.
7.Good judgment comes from experience; experience comes
from bad judgment.
8.Ship and iterate.
9.It’s not about money.

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Chapter7 | Quotes From Pages 220-237
1.We live in a moment of great optimism but also a
time of great anxiety.
2.The forces of technology and disruption are too powerful.
So the incumbent that follows this strategy will eventually
fail, or at the very least become irrelevant.
3.What would happen to Sun’s business when the Wintel
price-performance finally surpassed Sun’s?
4.Technology is going to change, and governments should
favor disruption over incumbency.
5.We are technology optimists. We believe in the power of
technology to make the world a better place.
6.There are solid reasons underlying our optimism. The first
is the explosion of data and a trend toward the free flow of
information.
7.Such is our fate, surrounded by up-and-coming smart
creatives.

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How Google Works Questions
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Chapter1 | Culture—Believe Your Own Slogans|

Q&A
1.Question
What did Larry Page do when he saw ads that were
irrelevant to the search results on Google?
Answer:Instead of having lengthy discussions or
meetings about the issue, Larry Page simply printed
out the offending ads, posted them in a prominent
place within the office with a bold statement of
'THESE ADS SUCK' and left it for others to see.
His direct approach catalyzed a rapid response from
the team it inspired to fix the issue over the
weekend.

2.Question
What does the incident with Larry Page and the
irrelevant ads illustrate about Google's culture?
Answer:It illustrates a culture of immediate action and
problem-solving, where employees felt empowered to

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address issues proactively without needing explicit
permission or a formal hierarchy. The idea that the problem
was related to their mission—organizing the world's
information—compelled the engineers to innovate a solution
quickly.

3.Question
How did the engineers respond to Larry's post about the
ads?
Answer:The engineers, moved by Larry's assessment, not
only agreed with him but also took initiative. They conducted
an analysis, proposed a solution for improving ad relevance,
and even created a prototype over the weekend to
demonstrate their suggested changes.

4.Question
Why is company culture considered crucial in attracting
smart creatives according to the book?
Answer:Company culture is vital because smart creatives
prioritize working in environments where they feel their
contributions matter and where they can solve significant

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problems, rather than being confined by roles and
hierarchical restrictions. A strong, positive culture attracts
individuals who align with the company’s goals by fostering
innovation and collaboration.

5.Question
What is the difference between how most companies
handle culture and how Google does?
Answer:Most companies let culture develop organically
without intentional planning, often leading to disjointed or
corporate-speak cultures. In contrast, Google emphasizes
defining and codifying culture from the outset by engaging
their core team in discussions about values and principles,
ensuring that culture reflects the collective beliefs of its
employees.

6.Question
What approach does Google recommend for defining and
shaping company culture as a startup?
Answer:Google recommends that founders actively engage
their initial team in discussions about shared values, beliefs,

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and operational principles, and write these down to guide
decisions and actions as the company scales.

7.Question
How important is the authenticity of a company’s mission
statement according to the text?
Answer:Authenticity is paramount for a company’s mission
statement. It must genuinely reflect the company's culture
and values, as employees can quickly discern empty
corporate jargon. For a mission to inspire, it must resonate
with the actual behaviors and practices within the company.

8.Question
What are the key components of a strong company
culture according to the authors?
Answer:Key components include a clear mission and values
that are communicated effectively, a framework for
employee empowerment (like encouraging dissent), ensuring
meritocracy over hierarchy, and fostering an environment
conducive to creativity and open collaboration.

9.Question
What role do 'the Highest Paid Person's Opinion'

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(HiPPOs) play in decision-making structures, and how
can they be managed?
Answer:HiPPOs often dominate discussions based on their
pay level rather than the merit of their ideas, which can stifle
creativity and better solutions. To mitigate this, companies
should foster a culture of meritocracy where every employee
feels empowered and obligated to dissent when they see a
better path forward.

10.Question
How important is leadership in establishing and
maintaining a strong company culture?
Answer:Leadership is crucial as it sets the tone for company
culture. Leaders must demonstrate commitment, clarify
values through actions, and create an environment where
employees feel valued and have the freedom to contribute
meaningfully.
Chapter2 | Strategy—Your Plan Is Wrong| Q&A
1.Question
Why should entrepreneurs not rely heavily on business
plans?

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Answer:Business plans are often flawed and don't
adapt to market changes. Instead, entrepreneurs
should focus on assembling a strong team that can
adjust and iterate based on real-world feedback.

2.Question
What is the primary focus for successful new ventures
according to Google’s strategy?
Answer:Successful new ventures should prioritize attracting
talented teams and fostering an adaptable mindset rather than
sticking rigidly to a predefined plan.

3.Question
How did Jonathan manage to document Google’s
foundational strategy in 2002?
Answer:Rather than creating a detailed business plan, he
focused on articulating the company's strategic foundation,
which guided the evolving plans while allowing flexibility in
execution.

4.Question
What is the significance of technical insights in product
development?

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Answer:Technical insights are crucial as they lead to
innovations that fundamentally improve products, ensuring
they stand out in the market rather than being just
incremental improvements.

5.Question
How does Google suggest approaching competition?
Answer:Instead of obsessing over competitors, organizations
should focus on their unique innovations and solving
problems that others have not yet conceived.

6.Question
What does Eric Schmidt mean by 'combinatorial
innovation'?
Answer:Combinatorial innovation refers to leveraging
various existing technologies and components in novel ways
to create new products or solutions, which is increasingly
viable in our interconnected, tech-driven world.

7.Question
Why is scaling important for modern businesses
compared to the past?
Answer:In today’s competitive landscape, especially in the

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Internet Century, businesses must scale rapidly to leverage
global connectivity and maximize opportunities before they
are outpaced by nimble competitors.

8.Question
What lesson did Google learn about market research?
Answer:Google learned that relying on traditional market
research can lead to misguided product decisions, as it often
fails to identify solutions to problems that consumers do not
yet know they have.

9.Question
How did Google use the concept of 'open' in their
strategy?
Answer:Google embraced an open model for platforms that
allowed for innovation and scalability, believing that such
openness leads to greater value and a more dynamic
ecosystem.

10.Question
What is the key to successful growth in the Internet
Century according to Schmidt?
Answer:The key is to establish platforms that improve as

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they grow, leveraging network effects and optimizing for
scale rather than incremental growth.
Chapter3 | Talent—Hiring Is the Most
ImportantThing You Do| Q&A
1.Question
What is the most important thing a manager does at
work, according to Google’s philosophy?
Answer:Hiring. It’s emphasized that no amount of
strategy can substitute for talent, making hiring the
crucial responsibility of a manager.

2.Question
Why does Google prioritize hiring similarly to academia
rather than the traditional corporate model?
Answer:Google believes in a peer-based hiring process,
which fosters collaboration and ensures that the best
candidates are brought into the company.

3.Question
What are the key traits that Google looks for in
candidates?
Answer:Passion, intelligence, a learning mindset, character,

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and the ability to contribute meaningfully to both product
and culture.

4.Question
How can managers maintain a strong team dynamic
during rapid growth?
Answer:By consistently prioritizing quality in hiring and
ensuring that hiring processes are rigorous and collaborative.

5.Question
How does Google handle the urgency of hiring without
compromising quality?
Answer:By maintaining a structured and efficient interview
process, limiting the time and number of interviews, thus
encouraging clarity and speed.

6.Question
What is the significance of the 'LAX test' in hiring at
Google?
Answer:It evaluates whether a candidate is someone you
would enjoy being around during stressful times—essentially
gauging their character, interpersonal skills, and cultural fit.

7.Question

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How does Google suggest employees think about their
careers early on?
Answer:They should consider the industry first, then the
specific company they wish to work for, in order to
maximize future opportunities.

8.Question
What advice is offered regarding the retention of talented
employees?
Answer:Keep them engaged through interesting work and
listen to their career aspirations, allowing flexibility to
pursue their interests within the company.

9.Question
What’s the recommended way of securing good
candidates during the hiring process?
Answer:Every employee at Google should be involved in
recruiting, making it part of the company's culture and
responsibility.

10.Question
How does Google suggest evaluating a candidate’s
passion?

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Answer:Look for the depth of their interests through
engagement in conversations about what they care about,
rather than the mere use of the word 'passion'.

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Chapter4 | Decisions—The True Meaning of
Consensus| Q&A
1.Question
What lesson can be learned from Google's response to the
2009 hacking attacks?
Answer:The decisive and transparent response to
the hacking attacks illustrates the importance of
standing by your core values, even when faced with
immense pressure. Google's choice to stop
complying with government censorship highlighted
the need for ethical decision-making in business.

2.Question
Why is data crucial in decision-making according to the
text?
Answer:Data transforms subjective opinions into informed
decisions. Google emphasizes data in meetings to establish a
shared understanding, significantly enhancing the quality of
decisions made.

3.Question
What approach should leaders take towards consensus in

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decision-making?
Answer:Leaders should encourage open disagreement and
debate to cultivate true consensus, recognizing that the best
decision often arises from diverse viewpoints rather than
mere agreement.

4.Question
What does the term 'horseback law' signify in Google's
legal approach?
Answer:'Horseback law' refers to a pragmatic, swift
decision-making style in legal matters, where lawyers are
encouraged to make quick assessments rather than exhaustive
analyses, reflecting the rapid pace of the tech industry.

5.Question
How can a company ensure effective meetings according
to Google's practices?
Answer:Effective meetings should have a clear
decision-maker, a focused agenda, manageable size, and a
precise purpose, ensuring that discussions are productive
rather than bureaucratic.

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6.Question
What is the importance of a succession plan in
leadership?
Answer:Having a succession plan is vital for ensuring
business continuity and nurturing high-potential employees
who can assume leadership roles, thereby securing the
company's future.

7.Question
What does the 'Oprah Winfrey rule' suggest about
influencing decision-making?
Answer:The 'Oprah Winfrey rule' emphasizes the necessity
of emotionally connecting with team members to encourage
buy-in on decisions, rather than solely relying on rational
arguments.

8.Question
What key takeaway can be drawn from Eric Schmidt's
evolution regarding coaching?
Answer:Recognizing the value of coaching, Eric learned that
even experienced leaders benefit from guidance, reinforcing
that continuous learning and openness to feedback are crucial

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for personal and professional growth.

9.Question
Why might a leader choose to make fewer decisions?
Answer:Focusing on critical decisions rather than
micromanaging allows leaders to enable their team’s
capabilities and foster a culture of empowerment, while also
ensuring efficient use of time on pressing issues.
Chapter5 | Communications—Be a Damn
GoodRouter| Q&A
1.Question
What does it mean to be an effective communicator in a
corporate setting?
Answer:Being an effective communicator in a
corporate setting means to prioritize sharing
information openly and promptly. It involves
optimizing the flow of ideas and updates throughout
the organization, rather than hoarding information
like many traditional managers do. Leaders should
be 'routers' of information, ensuring that everyone
has access to the knowledge they need to do their

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jobs.

2.Question
Why is sharing information important in today's business
world?
Answer:In the Internet Century, information is the lifeblood
of business. Attracting 'smart creatives' and allowing them to
innovate requires an environment where information flows
freely. Leaders who hoard information limit the potential of
their teams and stifle innovation.

3.Question
How should leaders respond to mistakes or failures in the
company?
Answer:Leaders should foster an environment where it's safe
to speak up about mistakes. This includes conducting
postmortem sessions after project launches, where all team
members can openly discuss what went right and what went
wrong, facilitating transparency and learning.

4.Question
What is the significance of the concept "default to open"?
Answer:The concept of "default to open" encourages

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organizations to share information openly, only withholding
what is legally required. This practice builds trust and keeps
employees informed, which is critical for alignment and
morale.

5.Question
How can leaders ensure they are aware of the details in
their teams' work?
Answer:Leaders should actively ask questions about team
deliverables and challenges, as well as implement tools like
'snippets' to regularly check in on team activities. This
ensures leaders are in touch with both the details and the
larger context of their teams' work.

6.Question
What are effective ways to promote honest
communication within a team?
Answer:To promote honest communication, leaders must
create a culture that rewards transparency. Tools like Dory
for anonymous questions and regular open forums can help
make it safe for employees to voice difficult truths without

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fear of retribution.

7.Question
Why is repetition important in communication?
Answer:Repetition helps ensure that key messages and
themes are absorbed over time. It's important for leaders to
communicate core values and strategies frequently and in
various ways, so they resonate with all employees, even
when it feels redundant.

8.Question
How can organizations avoid the confusion that often
comes with overcommunication?
Answer:To avoid confusion, leaders should focus on sharing
essential information that ties back to core themes of the
organization. They can also tailor communications to
relevant audiences to ensure messages are practical and not
cluttered.

9.Question
What role does trust play in an open information-sharing
culture?
Answer:Trust is foundational in an open information-sharing

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culture. When leaders trust their employees with vital
information and foster an environment of mutual respect, it
encourages employees to be equally responsible in handling
sensitive information.

10.Question
How can leaders maintain effective communication with
their teams?
Answer:Leaders can maintain effective communication by
actively engaging with team members through meetings,
one-on-ones, and creating informal opportunities for
dialogue. They should also be responsive to emails and other
forms of communication promptly.

11.Question
How can companies help new employees integrate into the
culture?
Answer:Companies can facilitate integration by connecting
new hires with experienced mentors or tribal elders, sharing
the company's values and practices, and providing them with
opportunities to participate in discussions from the outset.

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12.Question
What is the impact of positive reinforcement on team
dynamics?
Answer:Positive reinforcement can greatly enhance team
dynamics by cultivating an atmosphere of appreciation and
motivation. Celebrating achievements, no matter how small,
fosters loyalty and encourages continued effort and
innovation from team members.
Chapter6 | Innovation—Create the PrimordialOoze|
Q&A
1.Question
What can we learn from Eric Schmidt's meeting with
Steve Jobs about the relationship between competition
and innovation?
Answer:The meeting between Eric Schmidt and
Steve Jobs illustrates that competition can drive
innovation. Both Google and Apple were developing
mobile operating systems, and their rivalry pushed
each company to innovate and perform better to
capture the market. This competitive tension forces

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companies to think creatively and improve their
products continually.

2.Question
How did Eric Schmidt and Steve Jobs' different
approaches to innovation manifest in their respective
companies?
Answer:Eric Schmidt believed in an open-source model with
Android, which encouraged experimentation and
fragmentation among device manufacturers. In contrast,
Steve Jobs maintained a closed ecosystem with iOS, focusing
on controlled quality and a seamless user experience. These
philosophies impacted how each company approached
product development and user interaction.

3.Question
What does the '20 percent time' concept at Google signify
about promoting creativity within a company?
Answer:The '20 percent time' initiative allows Google
employees to spend a portion of their time on projects they
are passionate about outside their official responsibilities.
This concept not only fosters creativity and innovation but

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also empowers employees to take ownership of their ideas,
resulting in valuable products like Gmail and Google News.

4.Question
Why is embracing failure crucial for innovation
according to Schmidt and his colleagues?
Answer:Embracing failure is crucial because it allows
companies to learn from their mistakes, refine their ideas,
and iterate on their products. The authors emphasize that
failures should be viewed as opportunities for valuable
insights. An environment that accepts failure encourages
risk-taking, which is essential for innovation.

5.Question
What role did user focus play in the development of
Google's products?
Answer:User focus was central to Google's product strategy.
The company consistently prioritizes user needs and
experiences over financial gains. By optimizing products to
enhance user satisfaction, Google has built trust and loyalty
among its users, which in turn leads to sustained business

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success.

6.Question
How does thinking big contribute to attracting and
retaining talent in an organization?
Answer:Thinking big, or setting grand objectives, attracts
ambitious talent who seek challenging opportunities.
Employees are generally more motivated when they work on
ambitious projects that promise significant impact. This
positive environment fosters retention as people feel their
work is meaningful and aligned with visionary goals.

7.Question
In what ways does the Google approach to innovation
differ from traditional corporate practices?
Answer:Google's approach to innovation resists rigid
bureaucracies and embraces organic idea development.
Instead of having a Chief Innovation Officer overseeing
bureaucracy, innovation is encouraged at all levels. This
leads to a more dynamic environment where employees are
empowered to pursue their ideas, fostering creativity across

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the organization.

8.Question
What does the success of projects like Google Earth
reveal about the relationship between audacity and
practicality in business?
Answer:The success of projects like Google Earth
demonstrates that ambitious ideas can also be grounded in
practical implementation. By starting with a bold vision and
iterating based on user feedback and real-world applications,
Google was able to create a product that not only fulfilled an
ambitious goal but also addressed practical user needs,
resulting in widespread adoption.

9.Question
How can the failure of projects like Google Wave be
beneficial for future innovations?
Answer:The failure of Google Wave provided valuable
insights into user needs and product development challenges.
Analyzing why Wave did not succeed informed subsequent
projects, enabling teams to avoid similar pitfalls and build on
the technology developed during Wave's lifecycle.

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Chapter7 | Conclusion—Imagine theUnimaginable|
Q&A
1.Question
What is the significance of the shift from traditional
media consumption to streaming on mobile devices for
future generations?
Answer:This shift indicates that today's youth are
growing up with a mindset that's drastically
different from previous generations, favoring
convenience and accessibility over traditional
broadcast methods. As such, businesses that are not
adapting to these changes may face obsolescence,
while those creating web-based content will thrive.
This reflects a broader trend in which technology
rapidly alters consumer behavior and expectations.

2.Question
How does the current economic landscape compare to
historical transitions in business structures?
Answer:The transition from The Household during the feudal
era to The Corporation with the industrial age reflects a

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similar transformation happening today, where platforms are
becoming the new hubs of economic activity. Companies like
Amazon represent this shift as they facilitate interactions
rather than just transactions, understanding that consumer
input is crucial to survival and growth in today's market.

3.Question
What critical question should businesses ask to navigate
the disruptions caused by technology?
Answer:Businesses must continually ask themselves what
could be true in five years rather than what will be true. This
encourages imagination and proactive thinking rather than
complacency, helping organizations prepare for potential
future shifts rather than merely responding to current trends.

4.Question
What is the danger of not asking the hardest questions in
a corporate setting?
Answer:By avoiding these difficult questions, organizations
become comfortable with the status quo, increasing the risk
of being disrupted by more innovative competitors.

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Challenges that seem uncomfortable often highlight areas
needing urgent attention; failing to acknowledge them can
lead to failure or irrelevance.

5.Question
How can governments foster an environment conducive
to innovation and disruption?
Answer:Governments should prioritize support for emerging
sectors over established industries, allowing for flexibility
and adaptability rather than imposing restrictive regulations.
They can promote educational systems that emphasize
lifelong learning and encourage a culture of innovation to
empower the next generation of leaders and thinkers.

6.Question
What qualities should a company look for to attract and
retain 'smart creatives'?
Answer:Companies need to foster an environment that
encourages creativity, risk-taking, and the free flow of
information. Leadership engagement in hiring processes,
capacity for innovative projects, and a culture that values and

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rewards exceptional product development are essential for
attracting talented individuals who drive impactful changes.

7.Question
How does the concept of the platform revolutionize
traditional business models?
Answer:Platforms enable two-way interactions where both
consumers and suppliers can actively participate, unlike
traditional corporations that offer a one-way system of
distribution. This allows for greater responsiveness to market
needs and leads to more personalized consumer experiences,
thus maintaining relevance in rapidly changing markets.

8.Question
What role does speed play in the current technological
landscape compared to the past?
Answer:Unlike historical technological advancements that
took decades to reach maturity, today's innovations transform
markets at an unprecedented pace. This speed can be
daunting for incumbents but offers fresh opportunities for
startups and innovative ventures, enabling them to rapidly

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adapt and capture market share.

9.Question
What is the importance of collaboration in today's
information age?
Answer:Collaboration enhances the sharing and analysis of
vast data sets, leading to more effective and impactful
solutions to complex problems. By breaking down
information silos, individuals and organizations can leverage
collective intelligence to foster innovation and improve
outcomes across various sectors.

10.Question
How should individuals and businesses prepare for the
changes brought by technology?
Answer:Preparation involves embracing change, fostering an
adaptive culture, and continuously seeking knowledge.
Individuals need to update their skills, while businesses
should stay agile, willing to pivot strategies as new
technologies and consumer behaviors evolve.

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How Google Works Quiz and Test
Check the Correct Answer on Bookey Website

Chapter1 | Culture—Believe Your Own Slogans|

Quiz and Test
1.Google's unique culture empowers employees to
proactively solve problems without being directly
tasked.
2.Employees at Google prioritize compensation and job roles
over a meaningful work environment.
3.A positive workplace culture at Google encourages
risk-taking and minimizes bureaucratic barriers.
Chapter2 | Strategy—Your Plan Is Wrong| Quiz and
Test
1.Traditional MBA-style business plans are often
effective and lead to guaranteed success.
2.The foundation of a business should be based on current
principles to guide the business's fluid plan as the market
evolves.
3.Focusing on competition is more important than fostering

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 innovation in business strategy.
Chapter3 | Talent—Hiring Is the Most
ImportantThing You Do| Quiz and Test
1.Google's hiring process emphasizes the importance
of hiring as the most critical function a manager
performs, comparable to crafting strategies.
2.Google's hiring model is based solely on hierarchical
authority and strict adherence to role requirements.
3.The urgency of filling roles should always come before the
quality of hires at Google.

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Chapter4 | Decisions—The True Meaning of
Consensus| Quiz and Test
1.Google faced a cyberattack in December 2009
aimed at stealing confidential information.
2.Effective decision-making at Google involves data analysis
and encouraging dissenting opinions.
Chapter5 | Communications—Be a Damn
GoodRouter| Quiz and Test
1.Google embraces immediate email responses and
promotes a culture where information flows freely
throughout the organization.
2.Google discourages open communication and prefers to
maintain strict data control among its employees.
3.Leaders at Google should only focus on achieving results,
regardless of the team's progress and engagement.
Chapter6 | Innovation—Create the PrimordialOoze|
Quiz and Test
1.Eric Schmidt discusses a pivotal coffee meeting
with Steve Jobs about the Android operating
system amid allegations of using Apple’s

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 intellectual property.
2.Apple's iOS maintains an open-source model encouraging
widespread adoption, unlike Android which has strict
control over its ecosystem.
3.The '20 percent time' policy at Google allows engineers to
work on their own projects, fostering a culture of creativity.

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Chapter7 | Conclusion—Imagine theUnimaginable|
Quiz and Test
1.Traditional television is becoming more relevant
compared to tablets for video consumption among
children.
2.Organizations that embody a risk-averse culture are likely
to innovate and adapt successfully to technological
changes.
3.Governments play a minimal role in shaping the business
environment in regards to innovation.

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