How Google Works

by Eric Schmidt

If a company believes in a culture where everyone gets a say and decisions are made by committee, it will attract like-minded employees. But if that company tries to adopt a more autocratic or combative approach, it will have a very hard time getting employees to go along with it. Change like that not only goes against what the company stands for, it goes against its employees’ personal beliefs. That’s a tough road. The smart approach is to ponder and define what sort of culture you want at the outset of your company’s life. And the best way to do that is to ask the smart creatives who form your core team, the ones who know the gospel and believe in it as much as you do.

What is the technical insight upon which those new features, products, or platforms will be built? A technical insight is a new way of applying technology or design that either drives down the cost or increases the functions and usability of the product by a significant factor. The result is something that is better than the competition in a fundamental way.

Don Tapscott put it well in Wikinomics, when he wrote that “the Internet has caused transaction costs to plunge so steeply that it has become much more useful to read Coase’s law, in effect, backward: Nowadays firms should shrink until the cost of performing a transaction internally no longer exceeds the cost of performing it externally.”

“Be interested in finding the best way, not in having your own way.”