Google CEO Eric Schmidt

Eric Schmidt, CEO of Google,
on how to run a company.
From an interview with Steven Pearlstein,
Financial Columnist for The Washington Post.

Slides by Mike Arauz

I believe every day that Google is
run by its culture, not by me.

Eric Schmidt, CEO of Google | Slides by Mike Arauz 2009

Everyone, including me, is
extremely dispensable, because
ultimately our company is bigger
than the people who make it.


The strategy and the products
that we build are a consequence
of the culture we have around
innovation and focusing on
the end user.


It often feels, at Google, like
people are pretty much doing
what they think best, and they
tolerate having us around.


We don’t really have a “Five
Year Plan.” We have a list of
things we think will happen
in the next year.


We really focus on what’s new,
what’s exciting, and how can you
win quickly with your new idea.


It’s much easier to have an
employee base in which everyone
is doing exactly what they want,
every day. They’re much easier to
manage. They’re always excited;
they’re always working on what
they care about.


You’re much better off if you
select people to work in your
firm who really want to change
the world.


We put up with a certain
amount of chaos. We don’t
necessarily know what order
the products will come in.


Sometimes there are products
that are invented, that we
ultimately decide we don’t like.
But, even in those situations,
we want to reward the creativity
of the people who brought a
new idea to us.


The new phrase is Network
Based Organizations. And
we think Google is probably
the best example of that.


Google is very flat, very
non-hierarchical, very much
informal in culture and in ideas.
Ideas come from everywhere.


The problem as an executive,
is that there may be a brilliant
idea in your company, but you
don’t know who to ask.


Part of the job of being a CEO
is to have an environment where
people are constantly throwing
you their best ideas, as opposed
to being afraid to talk to you.


We define “consensus culture”
not as everyone agreeing, but
as everyone agreeing to find the
best idea.


Sometimes the best information
only comes at the last minute,
and it’s fine to change your mind.
Just tell us why.


At Google no one – with the
possible exception of the found-
ers – really has a strong say in
which products will be successful.


We say to the engineering man-
agement, “It doesn’t matter what
I think of your product. What
matters is whether you end up
with users.” This is a vote. And
there will be a vote. And you will
either win or lose.


Mike Arauz is a Strategist at
Undercurrent, a New York based
digital think tank.

Let’s connect on Twitter: @mikearauz

My blog: www.mikearauz.com

Google CEO Eric Schmidt

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