Google's innovation leadership
by Miki SaxonPost from Leadership Turn Image credit: edans
“When asked if Google’s strategy would change as the economy heads into a likely recession, Schmidt replied: “What recession? Innovation has nothing to do with downturns. A hot product will sell just as well in a recession as it will in a nonrecession…by what degree we can get people to substitute [our product] for the other. The strong companies understand this, and during a recession, they invest.”
Google’s vaunted innovation culture is always talked about in terms of catered food and in-house massages, but those and similar perks aren’t what continues to attract and retain the best and brightest.
The real key is Google’s own variation of the 80/20 rule.
In Google’s case, the 80% is the work time that people owe Google, while the 20% is the time they have to work on their own ideas. “It means the managers can’t screw around with the employees beyond some limit. I believe that this innovation escape-valve model is applicable to essentially every business that has technology as a component.”
It works, because no matter how far on or off-the-wall, “The No. 1 thing we do require is: You can do whatever you want as long as you track it.” Further the focus need to fit, “We make an explicit decision to favor the end-user. [We] do not say, “Newspapers should be happy. Advertisers should be happy. Telcos should be happy. Competitors should be happy.” Those are fine if we can do it. But it’s all about end-users.”
Just how earth-shattering are the results of the 20%? How about Google’s entry into cloud computing?
What started as one programmer’s idea to teach the next generation of students how “to work—and to dream—on a vastly larger scale” morphed into cloud computing using the enormous muscle available in Google’s global hardware.
Finally, Schmidt doesn’t believe that innovation is “managed.” “You have to have a set of necessary conditions for innovation to occur. To start with, you have to listen to people…Innovation comes from places that you don’t expect.”
What does your company do to foster innovation?
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May 15th, 2008 at 9:02 am
Hi Miki- just wanted you to know that this post inspired two posts on the 80-20 rule and NOT managing innovation. I guess “doing whatever we want” on our blogs works. Great stuff!
May 15th, 2008 at 9:28 am
Hi Bob, thanks for stopping by. I think what Google understands is that innovation, like leadership, is who you are, not just what you do. (Hmmm, sounds like a post to me:)