How Google has created a culture of innovation
Wednesday, May 21st, 2008Silicon Valley’s most successful search company, Google, has a reputation for innovating new products and services. They are consistently improving their existing products and changing the game for their competitors. But how has the company, which has consistently landed on top of “Great Places to Work” lists, fostered an environment where innovation is the rule, not the exception?
BusinessWeek recently featured an interview with Google CEO Eric Schmidt. Schmidt has honed his leadership skills at Sun Microsystems and Novell, and his role at Google is to build “the corporate infrastructure needed to maintain Google’s rapid growth as a company and on ensuring that quality remains high while product development cycle times are kept to a minimum.” He has a clear view of innovation as a “culture,” not just a strategy. As he told the interviewer for BusinessWeek, “You have to have the culture, and you have to get it right.”
A big part of building that culture at Google is the often-admired but rarely-imitated 20% rule. As Google’s website recruitment section explains, “All Google engineers have 20% of their time to pursue projects that they’re passionate about. This has lead to the creation of some well-known Google products, like Gmail, and Google News – products that might otherwise have taken entire start-ups to launch.” So no matter how busy, how strapped for time, a project is, the key players will still be able to spend time working on their true passions. Schmidt proudly says, “If you’re the employee and I’m the manager, and I sit down and say, “Our product’s late, and you screwed up, and you gotta work on this really hard,” you can legally say to me, “I will give you everything I’ve got, 80% of [my time].”
Giving 80% sounds counter-intuitive, since most of us blithely promise our employers 100% dedication to any task. However, this strategy not only results in innovative products from some of the companies best minds, but also happier employees. While I’m sure Google’s free gourmet cafeterias are instrumental in keeping their workforce in good spirits, one has to assume that being allowed the freedom of creativity is slightly more satisfying.
Indeed, the Great Place To Work Institute has identified the key components that lead to job satisfaction, and they have little to do with free leftovers from the conference room (although a little food goes a long way). The institute argues that three relationships provide the secret to a great workplace:
- The relationship between employees and management.
- The relationship between employees and their jobs/company.
- The relationship between employees and other employees.
If a level of trust, respect, and collaboration exists between employees and management, their jobs, and their coworkers, any business can imitate Google’s innovation factory. Given the room to be creative, happy employees can provide the innovative ideas that in turn drive revenue. Even in hard economic times, a great workplace can lead to great financial reports. As Schmidt tells Businessweek, “Innovation has nothing to do with downturns. A hot product will sell just as well in a recession as it will in a nonrecession…The strong companies understand this, and during a recession, they invest.”
They invest not only in product development, but also in employee development. The 20% project is a fast and firm rule, not to be tampered with during hard times. Instead of cutting back on benefits and perks, Google maintains them to encourage employee retention and job satisfaction. While many businesses say, “Our people are our most important resource,” Google lives this platitude by giving them an environment where they can be innovative. The Great Place To Work Institute has many tips and tricks for businesses who want to create a culture of innovation and employee satisfaction. By following a model similar to Google’s, businesses can not only imitate the positive culture at the internet giant, but also achieve their lofty financial and business goals.





