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When Jonathan and Eric arrived at Google,  we thought we knew

all there was to know about running successful businesses.
But we quickly learned that almost everything we thought we knew

about managing businesses was dead wrong.
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And We’d need to figure out the new business rules that make
a company successful in the Inte...
We started by asking one
of Eric’s favorite questions: 

What’s different now?
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What has changed? 
Which assumptions do people make that are no longer true? 

Why does everything feel like it is speedin...
Technology is transforming virtually every business sector. 

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All the world's information Mobile devices mean Cloud ...
As a result,  barriers to entry that have
stood for decades are melting away. 

Every incumbent business is vulnerable

to...
This transformation is happening at an
unprecedented pace,  and it’s accelerating. 

It’s like Moore’s Law has run amock.
Power has shifted from companies
to consumers,  and expectations
have never been higher. 
Companies can’t get away with
ha...
Meanwhile,  Within companies the power /14: 5/azfied as well. 
Individuals and small teams can have a MASSIVE IMPACT. 
They...
The people that can have the

biggest impact of all are the ones we call: 

 MW CfEAlVfSf
These are the product folks who combine
technical knowledge,  business expertise, 

and creativity. 

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W...
The problem is,  most companies today

are run to minimize risk,  not maximize freedom and speed. 

 

Information and dat...
In other words,  most companies are slow by design!
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First you have to attract your smart creatives. 

  

They aren’t easily fooled.
This starts with culture. 
Smart creatives need to care

about the place they work.
So plan your Culture early. 
Think about (and document) the things you care about as a group, 

the way you work and make ...
Then live according to

your own slogans.
It’s best to work in SMALL TEAMS, 
keep them crowded,  and

foster serendipitous connections.
Organize the company around the

people whose impact is the GREATEST
Next comes strategy. 
Most new ventures start

with a business plan. 

 

Things are changing so fast,  though, 
that any ...
Smart creatives know this, 

and will be scared that a formal

business plan will hamper
their freedom.
(When Jonathan arrived at Google, 

one of his first work products was such a plan. 

Larry Page said the plan was “stupid”...
Don’t base your venture on a plan. 

Instead base it on a strategic foundation. 

You can have a plan, 
but know that it w...
A good foundation has three main pillars: 

, ... 

‘ 0 ¢ 0
Create superior products based Optimize for growth,  Know the ...
Now let’s get those smart
creatives into the company. 
Never forget that / airing is the

most important thing you do.
Lots of people say this,  but then they delegate hiring to recruiters. 
Everyone —— EVERYONE!  —— should invest time in hi...
Now that you have attracted and hired

a team of smart creatives,  you need to / M_____
give them an environment where the...
And that starts with your
approach to making decisions. 
Decision—making done right
lets smart creatives know that

they c...
Most forward—thinking companies
tout their consensus-driven approach. 
But they fizil to understand what

COI'lS€1'1SL1S I'...
It’s not about everyone agreeing, 
it’s about everyone being heard and

then rallying around the best answer. 

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Communication is as important as decision making, 
and like decision-making it is something that most leaders

think they ...
When it comes to communications, 

default to open. 

Maximize the velocity and volume

of information flow. 
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’ i
 _/  I
Do these things right,  and you have

a chance to reach business nirvana

.  . .  innovation!
But remember,  the CEO needs to be the CIO (Cbief Innovation Ofiicer). 
Innovation can’t be owned or ordained,  it needs to...
Set unattainable goals,  and then fail well.
Listen to the lab coats not the suits, 

and get the lab coats to produce prototypes,  not slideware. 

 

<1——o=1»>3 <1O—...
Ideas come from anywbere.
These steps aren’t just for entrepreneurs, 

and they just aren’t for high—tech businesses. 

Opportunity is everywbere. 
...
All you need is a BIG idea.  --—%
Couici

Ask yourself,  whatwv-i»l-l-be true in 5 years?
Try to imagine tbe unimaginable, 
because unimaginable things are

happening a lot.
Then make a bet on that future. 
Remember big bets can sometimes be easier

to achieve than small ones. ..

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S“,
Are you ready to get started?
WwW. l»oWgoo8l¢-wor«S. ne{- j ‘#l°wG° gl¢W°*l<5
Eric Schmidt: How Google works
Eric Schmidt: How Google works
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Eric Schmidt: How Google works

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Eric Schmidt explains the cultural approach needed to make your company fit for the Internet century

Veröffentlicht in: Kleinunternehmen & Unternehmertum

Eric Schmidt: How Google works

  1. 1. Googlc / /eels 3;, Eric Sctnv-'rcl‘l' 8: Jonathan Row-l= '~'g "I'll" Man Eagle- www. aow3.o3lr. worns. nr. + | 1-thaw Google Nor~t<§
  2. 2. When Jonathan and Eric arrived at Google, we thought we knew all there was to know about running successful businesses.
  3. 3. But we quickly learned that almost everything we thought we knew about managing businesses was dead wrong.
  4. 4. k $9; r; X Tll3 WAY j / . And We’d need to figure out the new business rules that make a company successful in the Internet Century. Here’s what we learned.
  5. 5. We started by asking one of Eric’s favorite questions: What’s different now?
  6. 6. Z_—: fl:Z D@f‘]: 7?'_| : -/——oJ> éza
  7. 7. What has changed? Which assumptions do people make that are no longer true? Why does everything feel like it is speeding up?
  8. 8. Technology is transforming virtually every business sector. E All the world's information Mobile devices mean Cloud computing and media is online. anyone can reach anyone, puts a supercomputer anywhere, anytime. in your pocket.
  9. 9. As a result, barriers to entry that have stood for decades are melting away. Every incumbent business is vulnerable to competition and disruption. méflfl‘ I on
  10. 10. This transformation is happening at an unprecedented pace, and it’s accelerating. It’s like Moore’s Law has run amock.
  11. 11. Power has shifted from companies to consumers, and expectations have never been higher. Companies can’t get away with having crummy products, at least not for long. For example, bad product reviews trump clever marketing. Today, great products win. Z07 (leaked)
  12. 12. Meanwhile, Within companies the power /14: 5/azfied as well. Individuals and small teams can have a MASSIVE IMPACT. They can create new ideas, experiment, fail, and try again, and get their successes to a global market.
  13. 13. The people that can have the biggest impact of all are the ones we call: MW CfEAlVfSf
  14. 14. These are the product folks who combine technical knowledge, business expertise, and creativity. % +@+¢‘a. ’ V When you put today’s technology tools in their hands and give them lots of freedom they can do amazing things, amazingly fizst.
  15. 15. The problem is, most companies today are run to minimize risk, not maximize freedom and speed. Information and data Their design is a vestige of an Decision-making power lies is hoai-ded, not shared, era when failure was expensive, in the hands of the few. and deliberation was a virtue.
  16. 16. In other words, most companies are slow by design!
  17. 17. This doesn’t work in the Internet Century. CLQV has L I/ :9“ / L;
  18. 18. . ~(hai- cloes work ,
  19. 19. Zbuilcliwy a S/ mc(tSSiv ®®@@@@® ctmum VENTURE o
  20. 20. We learned that the only way for businesses to consistently succeed today is to attract smart creative employees and create an environment where they can THRIVE at scale. @533
  21. 21. How do you do C? Tum? %
  22. 22. First you have to attract your smart creatives. They aren’t easily fooled.
  23. 23. This starts with culture. Smart creatives need to care about the place they work.
  24. 24. So plan your Culture early. Think about (and document) the things you care about as a group, the way you work and make decisions. ) E I if egiii / KL
  25. 25. Then live according to your own slogans.
  26. 26. It’s best to work in SMALL TEAMS, keep them crowded, and foster serendipitous connections.
  27. 27. Organize the company around the people whose impact is the GREATEST
  28. 28. Next comes strategy. Most new ventures start with a business plan. Things are changing so fast, though, that any thorough, MBA—style business plan is guaranteed to be wrong in some important way.
  29. 29. Smart creatives know this, and will be scared that a formal business plan will hamper their freedom.
  30. 30. (When Jonathan arrived at Google, one of his first work products was such a plan. Larry Page said the plan was “stupid”. )
  31. 31. Don’t base your venture on a plan. Instead base it on a strategic foundation. You can have a plan, but know that it will change, probably a lot. % The plan is fluid, the foundation stable.
  32. 32. A good foundation has three main pillars: , ... ‘ 0 ¢ 0 Create superior products based Optimize for growth, Know the competition, on unique technical insights. not revenue. but don't follow it.
  33. 33. Now let’s get those smart creatives into the company. Never forget that / airing is the most important thing you do.
  34. 34. Lots of people say this, but then they delegate hiring to recruiters. Everyone —— EVERYONE! —— should invest time in hiring.
  35. 35. Now that you have attracted and hired a team of smart creatives, you need to / M_____ give them an environment where they can tbrioe at scale.
  36. 36. And that starts with your approach to making decisions. Decision—making done right lets smart creatives know that they can make a difference. Done wrong, it kills tbeir spirit.
  37. 37. Most forward—thinking companies tout their consensus-driven approach. But they fizil to understand what COI'lS€1'1SL1S I'1’1€fl1'lS. tr
  38. 38. It’s not about everyone agreeing, it’s about everyone being heard and then rallying around the best answer. rid:
  39. 39. Communication is as important as decision making, and like decision-making it is something that most leaders think they are good at. They are mostly wrong.
  40. 40. When it comes to communications, default to open. Maximize the velocity and volume of information flow. / ’ i _/ I
  41. 41. Do these things right, and you have a chance to reach business nirvana . . . innovation!
  42. 42. But remember, the CEO needs to be the CIO (Cbief Innovation Ofiicer). Innovation can’t be owned or ordained, it needs to be allowed. You can’t tell innovative people to be innovative, but you can let them.
  43. 43. Set unattainable goals, and then fail well.
  44. 44. Listen to the lab coats not the suits, and get the lab coats to produce prototypes, not slideware. <1——o=1»>3 <1O——-=4»)
  45. 45. Ideas come from anywbere.
  46. 46. These steps aren’t just for entrepreneurs, and they just aren’t for high—tech businesses. Opportunity is everywbere. Smart creatives are everywbere. Ambitious people who want to build a team of the latter to pursue the former are everywbere.
  47. 47. All you need is a BIG idea. --—%
  48. 48. Couici Ask yourself, whatwv-i»l-l-be true in 5 years?
  49. 49. Try to imagine tbe unimaginable, because unimaginable things are happening a lot.
  50. 50. Then make a bet on that future. Remember big bets can sometimes be easier to achieve than small ones. .. ' S“,
  51. 51. Are you ready to get started?
  52. 52. WwW. l»oWgoo8l¢-wor«S. ne{- j ‘#l°wG° gl¢W°*l<5

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