Innovation is managed chaos, w/Eric Schmidt of Google/Alphabet
Masters of Scale
WaitWhat
4.6 • 4.4K Ratings
🗓️ 19 January 2021
⏱️ 35 minutes
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Summary
Google has succeeded by innovating again and again. Their secret? They don’t tell their employees how to innovate; they manage the chaos. Eric Schmidt, the CEO of Google since 2001 and now chair of parent company Alphabet, shares the controversial management techniques he created to lead an environment of free-flowing ideas – and the disciplined decision-making that helps to make a breakthrough idea into a profitable product. He reveals the secret to Google’s former “20% time” policy, their approach to hiring smart creatives, and the parallels between leading Google and piloting small aircraft. Plus, his “roommate” at Google, and the decision he made to support a crazy idea that he was certain would bankrupt the company.
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Transcript
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| 1:00.4 | My first office at Google was an 8x-by-12 office, just enough room for me and my desk and my |
| 1:05.7 | little chair. And one day I walked in and I find I have a roommate. |
| 1:11.6 | He said, hello. |
| 1:12.6 | And he says, hello. |
| 1:13.6 | I said, hi, I'm Eric. |
| 1:15.6 | And he goes, hi, I'm a meet. |
| 1:17.6 | That's Eric Schmidt. |
| 1:18.6 | This story happened on his first day as Google CEO in 2001. |
| 1:23.6 | Now, as a new person coming to the company, it's very important to not create a cultural faux pa. Like, it would be incorrect to say, I'm the CEO, get the heck out of my office. I looked at my secretary and said, did you do anything about this? She said, no. And I said, well, who said you could move in? And he said, the VP of Engineering. And I said, ah, they're playing a joke on me. And I said, well, why did you move here? Well, because I was in a six-person office who was very crowded and your office was empty. So we became colleagues. So was Amid playing a joke on Eric? Oddly enough, Eric doesn't say. He drops the investigation. Omead offers no further explanation. They settle under the work and do a fine job of ignoring one another. He would put his headphones on and I would talk on the phone. I'm calling the vice president of sales. And at the time, the revenue was estimated at about 120. And I said, don't you think you could do better? And he said, well, I think we can get to 123, 124. Well, come on, push harder, push harder. And as I hang up the phone, I mean, takes his headphones off, and said, well, I can tell you what the revenue is going to be. And I said, I knew you were listening into my conversations. And so I said, what's the revenue going to be? He said, it's going to be 138. |
| 2:36.8 | I said, how do you know that? |
... |
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