# Work Rules! by Laszlo Bock (part II) – the GLAT

In Work Rules!, Bock mentions briefly the GLAT (Google Labs Aptitude Tests) that were also mentioned in David Vise’s Google Story. But he just quickly says they may have been overused and sometimes a waste of time and of resources. But let me refer to his page 73:

That page begins with the image above which can be also found on google blog’s page Warning: we brake for number theory. It’s never too late solve math problems… If you solved it at the time, you got access to the following one:

The second puzzle:
f(1)=7182818284
f(2)=8182845904
f(3)=8747135266
f(4)=7427466391
f(5)= __________

Again feel free to try… you will find answers here. Bock just adds this: The result? We hired exactly zero people.

2.71828182845904523536028747135266249
7757247093699959574966967627724076630
3535475945713821785251664274274663919
3200305992181741359662904357290033429
5260595630738132328627943490763233829
8807531952510190115738341879307021540
8914993488416750924476146066808226480
0168477411853742345442437107539077744
9920695517027618386062613313845830007
5204493382656029760673711320070932870
9127443747047230696977209310141692836
8190255151086574637721112523897844250
5695369677078544996996794686445490598
7931636889230098793127736178215424999
2295763514822082698951936680331825288
6939849646510582093923982948879332036
2509443117301238197068416140397019837
6793206832823764648042953118023287825
>0981945581530175671736133206981125099

as well as this:

x = 1
2.71828182845904523536028747135266249
7757247093699959574966967627724076630
3535475945713821785251664274274663919

x = 2
2.71828182845904523536028747135266249
7757247093699959574966967627724076630
3535475945713821785251664274274663919

x = 3
2.71828182845904523536028747135266249
7757247093699959574966967627724076630
3535475945713821785251664274274663919

x = 4
2.71828182845904523536028747135266249
7757247093699959574966967627724076630
3535475945713821785251664274274663919

x = 5
2.71828182845904523536028747135266249
7757247093699959574966967627724076630
3535475945713821785251664274274663919
3200305992181741359662904357290033429
5260595630738132328627943490763233829
8807531952510190115738341879307021540
8914993488416750924476146066808226480
0168477411853742345442437107539077744
9920695517027618386062613313845830007
5204493382656029760673711320070932870
9127443747047230696977209310141692836
8190255151086574637721112523897844250
5695369677078544996996794686445490598
7931636889230098793127736178215424999
2295763514822082698951936680331825288
6939849646510582093923982948879332036
2509443117301238197068416140397019837
6793206832823764648042953118023287825
0981945581530175671736133206981125099

# Work Rules! by Googler Laszlo Bock

I just began reading it and the first pages are revealing: a company success is linked to its culture, and its culture comes from its founders. So Bock talks about Page and Brin early life. He refers to three portraits, Larry Page: Google should be like a family by Adma Lashinsky, Fortune, 2012; Larry Page’s University of Michigan Commencement Address in 2009; and The Story of Sergey Brin by Mark Malseed, Moment, 2007. Let me extract a few little things:

My father’s father worked in the Chevy plant in Flint, Michigan. He was an assembly line worker. He drove his two children here to Ann Arbor, and told them: That is where you’re going to go to college. Both his kids did graduate from Michigan. That was the American dream. His daughter, Beverly, is with us today. My Grandpa used to carry an “Alley Oop” hammer – a heavy iron pipe with a hunk of lead melted on the end. The workers made them during the sit-down strikes to protect themselves. When I was growing up, we used that hammer whenever we needed to pound a stake or something into the ground. It is wonderful that most people don’t need to carry a heavy blunt object for protection anymore. But just in case, I have it here.

It is said that the future of any nation can be determined by the care and preparation given to its youth. If all the youths of America were as fortunate in securing an education as we have been, then the future of the United States would be even more bright than it is today.

And about Brin entrepreneurship skills or unique personality: The Brins’ story provides me with a clue to the origins of Sergey’s entrepreneurial instincts. His parents, academics through and through, deny any role in forming their son’s considerable business acumen — “He did not learn it from us, absolutely not our area,” Michael says. Yet Sergey’s willingness to take risks, his sense of whom to trust and ask for help, his vision to see something better and the conviction to go after it — these traits are evident in much of what Michael Brin did in circumventing the system and working twice as hard as others to earn his doctorate, then leave the Soviet Union.

“I do somewhat feel like a minority,” he says. “Being Jewish, especially in Russia, is one aspect of that. Then, being an immigrant in the U.S. And then, since I was significantly ahead in math in school, being the youngest one in a class. I never felt like a part of the majority. So I think that is part of the Jewish heritage in a way.” Today, of course, being a young billionaire, he’s again in a class by himself. “I don’t feel comfortable being one of the crowd,” he reflects. “It’s kind of interesting — I really liked the schools that I went to, but I never rooted for the sports teams. I was never one of the crowd supporting something or not. I like to maintain my independence.”

A final note of serendipity in what I just read: The history of Russian Jewish emigration in the mid-1970s can be neatly summarized in a joke from the era: Two Jews are talking in the street, a third walks by and says to them, “I don’t know what you’re talking about but yes, it’s time to get out of here!” Just have a look at my recent post about A History Of Communism Told Through Communist Jokes. Nice coincidence…

# Business Lessons by Kleiner Perkins (Part I): Measure What Matters – John Doerr

Kleiner Perkins is a, not to say the VC brand name – but there is also Sequoia. When their partners write something, it is often worth reading. And this month two of them publish a book! I begin here with John Doerr and his Measure What Matters (though this is the paperback publication – the hardcover was published in 2017). In my next post I will write about Komisar’s Straight Talk for Startups

Ideas are Easy. Implementation is Everything.

Doerr is a Silicon Valley legend. He owes a lot to the pioneers of Silicon Valley, such as Noyce and Moore and particularly to Andy Grove, whom he mentions a lot: he calls him one of the father of OKRs. Chapter 2 is about Grove who said “there are so many people working so hard and achieving so little”. It reminds me of The Innovation Illusion: How So Little is Created by So Many Working So Hard. And many owe to him, beginning with the Google founders. Indeed Larry Page is the author of a short, 2-page and powerful foreword about OKRs: “OKRs are a simple process that helps drive varied organizations forward… OKRs have helped lead us to 10x growth, many times over.”

And Doerr begins with a tribute to Google and its two founders (page 4):
Sergey was exuberant, mercurial, strongly opinionated, and able to leap intellectual chasms in a single bound. A Soviet-born immigrant, he was a canny, creative negotiator and a principled leader. Sergey was restless, always pushing for more; he might drop to the floor in the middle of a meeting for a set of push-ups.
Larry was an engineer’s engineer, the son of a computer science pioneer. He was a soft-spoken nonconformist, a rebel with a 10x cause: to make the internet exponentially relevant. While Sergey crafted the commerce of technology, Larry toiled on the product and imagined the impossible. He was a blue-sky thinker with his feet on the ground.

So what are these OKRs? It’s an acronym for Objective and Key Results. “An objective is simply WHAT is to be achieved. Key Results benchmark and monitor HOW to get to the objective.” (Page 7) But there is no recipe. Each company or organization should have its own. “By definition, start-ups wrestle with ambiguity… You’re not going to get the system just right the first time around. It’s not going to be perfect the second or third time, either. But don’t get discouraged. Persevere. You need to adapt it and make it your own.” (Page 75)

# A few April Fool by Google

I like April fools. I have done a few in my life. Here is my favorite for 2017. It does not hesitate to smile at the promises of AI…

And this one isn’t bad either…

# Google in the Plex – Final thoughts

Time to finish my account of In the Plex after already four posts. Chapter 5 is about Google in the mobile and in the video. Chapter 6 is about China, a very interesting chapter about Google’s moral dilemmas. Chapter 7 is about the relationships with government.

These chapters show Google is now a mature and serious company, with exceptions:

The keynote did end on a high note. Page had insisted that there be a question period, almost as if he were running a Google TGIF. This was almost unheard of in CES keynotes. The people at Google in charge of the speech came up with an inspired idea: they spent a bundle to book the comedian Robin Williams (a huge Google fan) as Page’s sidekick for the Q and A. The conceit was that Williams would be a human Google. The comic’s manic improvisations made people instantly forget the awkwardness of Page’s presentation. The funniest moment came when a French reporter began to ask a tough question of Page but could not finish due to Williams’s relentless, politically indefensible, and utterly hilarious mocking of the man’s accent and nationality. The unfortunate Frenchman sputtered with rage. The moment fit Google perfectly: corporate presentation turned as anarchic as a Marx Brothers skit. [pages 246-247]

“Sergey and Larry are not kids anymore,” Eric Schmidt noted in early 2010. “They are in their mid-thirties, accomplished senior executives in our industry. When I showed up, they were founder kids— very, very smart, but without the operating experience they have now. It’s very important to understand that they are learning machines and that ten years after founding the company, they’re much more experienced than you’ll ever imagine.” From Schmidt’s comments, it was reasonable to wonder when the inevitable would occur—when Larry Page, now middle-aged and officially seasoned, might once again become Google’s CEO, a job he had been reluctant to cede and gave up only at the VC’s insistence. When asked directly if he was eager to reassume the role, Page refused to engage. “That’s all speculation,” he said. [Page 254]

And the inevitable brain drain would follow

Really reaching maturity?

Eric turned to him and said, “Okay, Larry, what do you want to do? How fast do you want to grow?” “How many engineers does Microsoft have?” asked Page. About 25,000, Page was told. “We should have a million,” said Page. Eric, accustomed to Page’s hyperbolic responses by then, said, “Come on, Larry, let’s be real.” But Page had a real vision: just as Google’s hardware would be spread around the world in hundreds of thousands of server racks, Google’s brainpower would be similarly dispersed, revolutionizing the spread of information while speaking the local language. [Page 271]

Failure in China

China has been Google deepest failure. Despite efforts and (too much?) compromise, Google has never really succeeded in China. Chapter 6 is another must read. Brin who has always been the most sensitive to human rights “went as far” as abstaining at a shareholder meeting.

[Page 305]

Finally…

“The security incident, because of its political nature, just caused us to say ‘Enough’s enough,’” says Drummond. The next day Drummond wrote a blog item explaining Google’s decision. It was called “A New Approach to China.” He outlined the nature of the attack on Google and explained that it had implications far beyond a security breach; it hit the heart of a global debate about free speech. Then he dropped Google’s bombshell:
These attacks and the surveillance they have uncovered— combined with the attempts over the past year to further limit free speech on the web—have led us to conclude that we should review the feasibility of our business operations in China. We have decided we are no longer willing to continue censoring our results on Google.cn, and so over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China.
On January 12, Google published the Drummond essay on its blog. The news spread through Mountain View like an earthquake. Meetings all over the campus came to a dead stop as people looked at their laptops and read how Google was no longer doing the dirty work of the Chinese dictatorship. “I think a whole generation of Googlers will remember exactly where they were when that blog item appeared,” says one product manager, Rick Klau.
[Page 311]

And according to Wikipedia, https://en.wikipedia.org/wiki/Google_China “As of November 2013, its search share has declined to 1.7% from its August 2009 level of 36.2%”.

By late 2007, Barack Obama already had an impressive Google following. Andrew McLaughlin, Google’s policy chief, was advising the senator on tech issues. The product manager for Blogger, Rick Klau, had lived in Illinois and had operated Obama’s blog when the politician ran for the Senate (he’d even let Obama use his house for a fundraiser). Eric Schmidt was the candidate’s official host. [Page 316]

In an ideal world: “I think of them as Internet values. They’re values of openness, they’re values of participation, they’re values of speed and efficiency. Bringing those tools and techniques into government is vital.” [Page 322]

But the reality is tougher: “The job was frustrating. Google hadn’t been perfect, but people got things done—because they were engineers. One of the big ideas of Google was that if you gave engineers the freedom to dream big and the power to do it—if you built the whole operation around their mindset and made it clear that they were in charge—the impossible could be accomplished. But in the government, even though Stanton’s job was to build new technologies and programs, “I didn’t meet one engineer,” she says. “Not one software engineer who works for the United States government. I’m sure they exist, but I haven’t met any. At Google I worked with people far smarter and creative than me, and they were engineers, and they always made everyone else look good. They’re doers. We get stuck in the government because we really don’t have a lot of those people.” [Page 323]

This is a debate I often have with friends and colleagues. You’ve seen my fascination and I love the way Google tries, explores and changes our world. Still, one may see things differently. As an example, here are some quotes about Google Print.

But not all of the publishers found Google charming. Jack Romanos, then CEO of Simon & Schuster, later complained to New York’s John Heilemann about Google’s “innocent arrogance” and “holier-than-thou” attitude. “One minute they’re pretending to be all idealistic, talking about how they’re only in this to expand the world’s knowledge, and the next they’re telling you that you’re going to have to do it their way or no way at all.” [Page 357]

[There] was the conviction that in a multimillion-dollar enterprise such as Book Search it was unconscionable for authors and publishers not to be paid. After the debate, Aiken laid out the essence of his group’s rationale to an Authors Guild member who told him that he’d like his books discoverable by Google. “Don’t you understand?” Aiken said. “These people in Silicon Valley are billionaires, and they’re making money off you!” [Page 360]

Google has missed opportunities such as in social networking. Orkut, then Wave, Dodgeball, Buzz replaced by Google + were more beta tests and then a reaction to Facebook. Google often tries things without much effort and checks if traction comes or not. But its ambition has not really slowed down: “Michigan had already begun digitizing some of its work. “It was a project that our librarians predicted would take one thousand years,” Coleman later said in a speech. “Larry said that Google would do it in six.” [Page 352]

Indeed Page had dreamed about digitizing books already at Stanford and in the early days of Google, he began playing with scanners, helped by Marissa Meyer: “The first few times around were kind of sloppy, because Marissa’s thumb kept getting in the way. Larry would say, “Don’t go too fast … don’t go too slow.” It had to be a rate that someone could maintain for a long time—this was going to scale, remember, to every book ever written. They finally used a metronome to synchronize their actions. After some practice, they found that they could capture a 300- page book such as Startup in about forty-two minutes, faster than they expected. Then they ran optical character recognition (OCR) software on the images and began searching inside the book. Page would open the book to a random page and say, “This word—can you find it?” Mayer would do a search to see if she could. It worked. Presumably, a dedicated machine could work faster, and that would make it possible to capture millions of books. How many books were ever printed? Around 30 million? Even if the cost was \$10 a book, the price tag would only be \$300 million. That didn’t sound like too much money for the world’s most valuable font of knowledge.” [Page 360] (Google Print is now Google Books – https://en.wikipedia.org/wiki/Google_Books)

In 2011, Page ambition is still there. He is now the CEO. In late 2010, “Sergey Brin had repeated the sentiment: ‘We want Google to be the third half of your brain’ “. [Page 386]

“I just feel like people aren’t working enough on impactful things,” Page said. “People are really afraid of failure on things, and so it’s hard for them to do ambitious stuff. And also, they don’t realize the power of technological solutions to things, especially computers.” He went on to rhapsodize about big goals like driving down the price of electricity to three cents a watt—it really wouldn’t take all that much in resources to launch a project to do that, he opined. In general, society wasn’t taking on enough big projects, according to Page. At Google, he said, when his engineers undertook a daunting, cutting-edge project, there were huge benefits, even if the stated goal of the project wasn’t accomplished. He implied that even at Google there wasn’t enough of that ambition. “We’re in the really early stages of all of this,” he said. “And we’re not yet doing a good job getting the kinds of things we’re trying to do to happen quickly and at scale.” [Page 387]

I just finished In the Plex and I kind of feel sad. It is a book I wish I would never have finished reading. I have now read four books about Google. In fact, we are far from the end. It may even be just the beginning as Page and Brin seem to believe and I will probably read other books abotu Google in the future. As good as this one? Only the future will tell… but i will finish here with a 2007 post.

# Google in the Plex – Part 4: so many products

If I consider the first 3 chapters of in the Plex as an amazingly great description of Google’s technology (chapter 1), business (chapter 2) and culture (chapter 3), the remaining chapters are also very good but I will not describe them in as much detail. Chapter 4 is about Google products that should be considered as based on two main features: they are fast and they are cloud-based (Gmail, Googledocs, Youtube, Chrome).

Sergey Brin even put a label on his cofounder’s frustration at the tendency of developers to load more and more features into programs, making them run way too slowly. Page’s Law, according to Brin, was the observation that every eighteen months, software becomes twice as slow. Google was determined to avoid this problem. “We want to actually break Page’s law and make our software increasingly fast over time,” says Brin. [Page 185]

And of course: Google often kept its products in beta much longer than other companies, signaling that users should be tolerant of faults and that an update was probably around the corner. In the case of Gmail, which became the public name for the project, the beta label was not removed until five years after Google released it, when it had tens of millions of users. [Page 171]

What’s also interesting is they’ve not always been built internally but also through acquisitions (JotSpot, Upstartle, Zenter, Android and many others – check the list of Google acquisitions – https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Google – with my short analysis below)

This reminds me a quote of Richard Newton: “Silicon Valley and the Bay Area are cradles of innovation.” And he further added, stating a colleague of his: “The Bay Area is the Corporation. […When people change jobs here in the Bay Area], they’re actually just moving among the various divisions of the Bay Area Corporation.”

I will let you discover the long analysis around concerns for privacy (Pages 179-78) but cannot avoid a final quote: It wasn’t Google’s job—nor should it be—to filter […] personal information. Griffin understood how [Eric Schmidt] felt, because she came across upset people all the time. You could explain forever how making obscure but damaging information available in milliseconds was at the core of Google’s lofty mission. “Principles always make sense until it’s personal,” she says. […] “My personal view is that private information that is really private, you should be able to delete from history,” Schmidt once said. But that wasn’t Google’s policy. If Google’s own CEO had trouble dealing with privacy, how could ordinary people cope? [Page 175]

As of August 2015, Google had acquired 182 companies (136 from the US, 26 from Europe, and 20 in the rest of the world) for more than \$26B. here is a visual description of the fields and years.

# Google in the (Null)Plex – Part 3: a culture

After Part 1 on the technology and Part 2 about the business, here is Part 3, following chapter 3 of Steven Levy‘s In the Plex.

“You can’t understand Google,” Marissa Mayer said, “unless you know that both Larry and Sergey were Montessori kids.” [Page 121]

“It’s really ingrained in their personalities,” she said. “To ask their own questions, do their own things. To disrespect authority. Do something because it makes sense, not because some authority figure told you. In Montessori school you go paint because you have something to express or you just want to do it that afternoon, not because the teacher said so. This is really baked into how Larry and Sergey approach problems. They’re always asking ‘Why should it be like that?’ It’s the way their brains were programmed early on.” [Page 122]

Nerdy jokes

As a corporation, Google was determined to maintain its sense of play, even if it had to work to do it. The high holy day of Google culture is April 1, when imaginations already encouraged to run wild are channeled into elaborate pranks requiring months of work. The effort involves considerable organization, as ideas go through an elaborate approval process to find a place in the company’s ever-increasing roster of seasonal spoofs. The need for some oversight became clear as early as 2000, when Brin sent employees an email announcing that Google had a new valuation (meaning the estimate of its market price had gone up) and would soon reprice its employee stock options— from 25 cents to \$4.01. Some people didn’t realize that \$4.01 was a reference to the calendar and frantically tried to buy up all the shares that they were entitled to before the price went up. They dug into savings and borrowed from their families. Google eventually had to make people whole. [Page 123]

As the years went on, more Google divisions felt compelled to devise their own jokes, and by 2010 Wikipedia listed seventeen major April Fool’s initiatives for that year alone. [Page 123] What follows is just one example, among the most famous ones.

************ GOOGLE MENTALPLEX – APRIL FOOL 2000 ************

 Enter your search terms… …or browse web pages by category.
 New! Search smarter and faster with Google’s MentalPlexTM Instructions: Remove hat and glasses. Peer into MentalPlex circle. DO NOT MOVE YOUR HEAD. Project mental image of what you want to find. Click or visualize clicking within the MentalPlex circle.

See our FAQ and illustrations for correct usage.

A unconventional company

The Bayshore Googleplex, also known as Building Zero, or the Nullplex, was the staging ground for Google to build out its culture into a sustainable corporate structure. No matter what happened, engineers would have the run of the place: their Montessori-inspired freedom would be Google’s distinguishing trait. [Page 129]

“Google is not a conventional company,” began Page’s letter, released on April 29, 2004. “We do not intend to become one.” It was an explicit warning to potential shareholders: fasten your seat belts!
In his “Owner’s Manual to Google,” Page put front and center the unofficial motto of Google, “Don’t be evil.” “We aspire to make Google an institution that makes the world a better place,” he wrote. “We believe strongly that in the long term we will be better served—as shareholders and in all other ways—by a company that does good things for the world even if we forgo some short-term gains. This is an important aspect of our culture and broadly shared within the company.”
[Pages 149-50]

The impact of money making…

Even the Google masseuse noticed the impact of money, especially when it came to the divide between early employees holding valuable options and those who came later. “While one was looking at local movie times on his monitor, the other was booking a flight to Belize for the weekend,” she said in a book she wrote. “Don’t think everyone wasn’t aware of the rift.”
[Pages 149-50] She became a millionaire herself.

Engineers can self-organize

Both Page and Brin believed that the company should run like the Internet itself: fast-moving, bottom up, going to work every day to make yesterday obsolete. “We were born in the Internet time,” says Megan Smith, “so our company’s like our products in some weird way.”
Google, however, had been through an early ordeal that showed that this flat-org ideal was unattainable. In 2001, Google had more than four hundred employees, reaching the point where it was impossible to pretend that it was an intimate company where everyone knew everyone else. Worse for Page and Brin, despite their best efforts, a layer of middle management was creeping in. Worse still, some of the newcomers were experienced product managers from companies such as Microsoft, whose training made them un-Googley—and those newcomers had difficulty adopting the often heretical approaches of the founders.
Brin and Page came up with a solution: Google would no longer have managers. At least not in engineering. Instead, they figured, the engineers could self-organize. That approach worked well in the nascent days of Google. If something needed fixing, people would figure out on their own what was wrong, and what was broken would be fixed. Other people would identify interesting problems in computing, and from those insights new products would arise. At the time Google had just hired Wayne Rosing to head engineering. Brin and Page figured that everyone could just report to him. The engineers would arrange themselves in pods of three, work on projects, and check in with Wayne.
That struck some of Google’s executives as madness. Stacy Sullivan, the head of HR, begged Page and Brin not to go through with it. “You can’t just self-organize!” she told them. “People need someone to go to when they have problems!”
The newly arrived Schmidt and the company’s unofficial executive coach, Bill Campbell, weren’t happy with the idea, either. Campbell would go back and forth with Page on the issue. “People don’t want to be managed,” Page would insist, and Campbell would say, “Yes, they do want to be managed.” One night Campbell stopped the verbal Ping-Pong and said, “Okay, let’s start calling people in and ask them.” It was about 8 P.M., and there were still plenty of engineers in the offices, pecking away at God knows what. One by one, Campbell and Page summoned them in, and one by one Page asked them, “Do you want to be managed?”
As Campbell would later recall, “Everyone said yeah.” Page wanted to know why. They told him they wanted somebody to learn from. When they disagreed with colleagues and discussions reached an impasse, they needed someone who could break the ties.
Nonetheless, Page and Brin were determined to go through with the plan. They called an all-hands meeting and announced it to a baffled workforce. For a few people it meant leaving the company. Others scrambled to find new roles. On the other hand, the move was welcomed by the engineers, who had been chafing at the creeping management restraints. For example, Eric Veach, who at the time was trying to invent the auction-based AdWords, later said that losing a manager had liberated him to make his breakthrough.
Ultimately, however, the plan petered out. After the initial turmoil, there was a quiet backslide where Google’s managerial class reassembled and regained a place in the structure. You just couldn’t have more than a hundred engineers reporting to Wayne Rosing. Google was taking on new engineers at a furious rate, and, brilliant as they were, the new people needed some guidance to figure out what to do. “I don’t remember Larry and Sergey saying that they were wrong and that we were right, but they agreed we could start to hire managers again, as long as the managers were good culture fits and technical enough and could be highly respected by the engineers,” says Sullivan.
[Pages 158-59]

It was Marissa Mayer who told him the obvious—Page wasn’t looking for project managers who were smart enough to understand engineers—he wanted them to be engineers. Mayer suggested that Google look for computer science majors who saw themselves not just as engineers but as future CEOs. Her idea was to assemble a legion of “associate product managers.” Google would get them straight out of school, young people with no preconceptions derived from working elsewhere. Their careers would co-evolve with Google. “We value insight over experience,” says Mayer. “We take people who we think have the right raw skills and insights and put them into roles with a lot of responsibility. And while that happens with APMs, it also happens all across the company. People here might not really be accomplished or have a long career before coming to Google, but they have the right data instincts about their area.” […]That process made the managerial weakness of the APM an asset for Google, by making sure that data was at the center of decision making.
[Page 161]

Ultimately, the program helped Google maintain its team approach while still focusing on engineering as opposed to the kind of more elusive un-Googley skills that an MBA brings. (One might also note that Google, in its management practices and hiring preference for freethinkers, has achieved a complete turnaround from the ethic posed in William H. Whyte’s 1956 classic The Organization Man, which describes the perfect corporate employee as “obtrusive in no particular, excessive in no zeal”—the polar opposite of a Googler.) [Page 162]

Larry’s and Sergey’s peripatetic ways could drive Googlers crazy. Even Eric Schmidt sometimes viewed them acerbically: “Larry will call and say, ‘I’m going to go visit Android,’” he says, referring to Google’s mobile phone project. “He’s not going over there to inspect—he’s going over there to have fun.” But Maria Montessori might approve. “To be … helpful,” she wrote, “it is necessary rigorously to avoid the arrest of spontaneous movements and the imposition of arbitrary tasks. [Page 166]

# Google in the Plex – Part 2: … and a business.

Following my part 1 about In the Plex, here is part 2 and though I will come back with the topic in part 3 let me begin with this: Googlers love jokes and in particular April Fool. Nobody knew how successful and profitable Google had been for some years…

Then Reyes told the bankers he was sorry, but he’d mistakenly put up the wrong slide. Could he display the real numbers? A balance sheet appeared with more than double the revenues and profits on the previous slide. It exceeded even the wildest expectations. April fool! “George was flawless,” says Buyer. “It was a beautiful moment.”
[Page 70]

The Google founders had not been that much focused on the business side… Salar Kamanagar would be a very unusual hire:

Kamangar became the point man in one of the weirder VC rounds in Silicon Valley’s history. Shriram helped him out, but Salar had a remarkable degree of responsibility. He wrote the slides for the presentations, crunched numbers for the valuation, and, of course, drew up the business plan. Though hired as a part-timer, he went fulltime two weeks later, dropping his pursuit of a second degree at Stanford. “It was ten times more exciting than what I was doing at school,” he says of Google.
[Pages 71-72]

“How big do you think this can be?”

[John Doerr, from Kleiner Perkins]’d seen plenty of smart nerds with good ideas, and was more than happy, on the recommendation of Andy Bechtolsheim, to see two more. Google’s idea, presented with Kamangar’s slides, was compelling. And its founders seemed straight out of the mold of previous winners from Stanford. The meeting was just ending when Doerr asked a final question: “How big do you think this can be?”
“Ten billion,” said Larry Page. Doerr just about fell off his chair. Surely, he replied to Page, you can’t be expecting a market cap of \$10 billion. Doerr had already made a silent calculation that Google’s optimal market cap—the eventual value of the entire company—could go maybe as high as one billion dollars. “Oh, I’m very serious,” said Page. “And I don’t mean market cap. I mean revenues.”
More than a decade after that meeting, Doerr would still marvel at the conversation. “I didn’t think the guy could do it, but I was impressed,” he says. “It had to do with the tone of voice. He wasn’t saying this to impress me or himself. This is what he believed. This was Larry’s ambition, in a very thoughtful, considered way.”
[Page 73]

The post-VC business plan anticipated three streams of revenues: Google would license search technology to other websites; it would sell a hardware product that would allow companies to search their own operations very quickly, called “Google Quick Search Box”; and it would sell ads.
Brin and Page themselves had made the very first licensing deal, with a company called Red Hat, a software company that distributed a version of the free Linux operating system. It earned Google around \$20,000.
[Page 78]

But advertising was far from obvious…

Susan Wojcicki later admitted the real problem: “No one clicked on the ads.” But she felt that the experiment was a great success. “It was incredible that we were going to build an ad system at all. What, we didn’t have enough to do with search? Now we’re asking our engineers, ‘Can you develop subsecond delivery times in every language in the world for every specific keyword?’ It was impressive that they actually did it.”
One contingent unimpressed at this point was Google’s investors. By the time of the Amazon affiliate bust in January 2001, it was almost two years after the \$25 million investment, and the company was yet to make any money from the 70 million daily searches on its site. One angel, David Cheriton, was joking to friends that all he’d gotten from his six-figure Google investment was a T-shirt—“the world’s most expensive T-shirt.” To the money people on Google’s board, the problem was no joking matter.
[Page 79]

So they hired a full-time CEO as the founders needed “adult supervision”.

From the start, Schmidt adopted a public stance toward the founders of unfettered admiration, a position he carefully maintained thereafter. “I fairly quickly figured out these guys are good at what they do,” he told me in early 2002. “Sergey is the soul and the conscience of the business. He’s a showman who cares deeply about the culture, the one who talks more, with a bit of Johnny Carson. Larry is the brilliant inventor, the Edison. Every day I am thankful I accepted this job offer.”
His anecdotes about disagreements with Sergey and Larry followed a consistent storyline: Schmidt expresses a tradition-bound preconception. The young men who, technically at least, report to him, reject the idea and demand that Google pursue an audacious, seemingly absurd alternative. The punch line? “And of course they were right,” Schmidt would say. What had seemed crazy was actually a canny assessment of how things worked in the new Internet-based economy! […]
That deference would prove a winning strategy, even though for a couple of years there were serious adjustment problems, because the founders clearly suspected that they would have done just fine on their own. Kordestani remembers that as Schmidt’s arrival was impending, both founders expressed their anxiety to him. Ostensibly, the issue concerned the titles each of the founders would use to describe his respective role. On a deeper level Sergey was troubled, says Kordestani, because “he was hiring his own boss, in a way, knowing he wants to be the boss.” Brin took the title president of technology.
Larry was even more troubled. Kordestani had to assure Page that he was still essential and Google would fail without him. Kordestani also reminded Page that he would no longer have to perform tasks that he didn’t enjoy, such as dealing with Wall Street and talking to customers. Page wound up describing himself as president of products.
As late as 2002, the founders still sounded bitter when explaining why Schmidt was hired. “Basically, we needed adult supervision,” said Brin, adding that their VC investors “feel more comfortable with us now —what do they think two hooligans are going to do with their millions?” The transition was rocky, but as the years went by, Page and Brin seemed to genuinely appreciate Schmidt’s contribution. Page would come to describe the CEO’s hiring as “brilliant.”
[Page 81]

Best of all was that Google, against all odds, was making that profit without surrendering its ideals. “Do you know the most common feedback, honestly?” Brin asked. “It’s ‘What ads’? People either haven’t done searches that bring them up or haven’t noticed them. Or the third possibility is that they brought up the ads and they did notice them and they forgot about them, which I think is the most likely scenario.”
[…] Page said in 2002. “Every month we make more money than the last one.” The only slight regret? They never got those PhDs.
“I’ve been meaning to,” said Sergey.
“Maybe someday,” said Larry.
“My mom keeps asking,” said Sergey.
Larry frowned. “My mom doesn’t ask me anymore.”

[Pages 93-94]

Still automatic advertising may be risky…

And here is the history of Google growth…

# Google in the Plex – Part 1 : a technology…

In the Plex is an(other) amazing book about my favorite company. Google is the reason why I wrote a book about start-ups: When I did a PowerPoint presentation in 2006 gathering what I knew about the Mountain View start-up, some friends told me to write a more general book about start-ups. Which I did in 2007. Hence this blog !

I have read already three books about Google and this one is as good as the previous ones. Maybe better. So I should thank here Michele Catasta, who advised me to read it when I did last June my updated presentation of the 2006 one. And I should certainly have read before this book published in 2011… I have also posted many articles about the company, just check with the tag Google. But I learnt many things In the Plex, and it is what I want to focus with this post(s). And first with Chapter 1 which is about its technology.

Google was not the only one with the technology

There was yet a third person with the idea, a Chinese engineer named Yanhong (Robin) Li. […] Li came to the United States in 1991 to get a master’s degree at SUNY Buffalo, and in 1994 took a job at IDD Information Services in Scotch Plains, New Jersey, a division of Dow Jones. […] He realized that the Science Citation Index phenomenon could be applied to the Internet. The hypertext link could be regarded as a citation! “When I returned home, I started to write this down and realized it was revolutionary,” he says. He devised a search approach that calculated relevance from both the frequency of links and the content of anchor text. He called his system RankDev. […]Robin Li quit and joined the West Coast search company called Info-seek. In 1999, Disney bought the company and soon thereafter Li returned to China. It was there in Beijing that he would later meet—and compete with—Larry Page and Sergey Brin. [Pages 26-27] (Robin Li is the founder of Baidu.)

The technology was ultimately the best but initially nobody saw the value

Excite would buy BackRub, and then Larry alone would go to work there. Excite’s adoption of BackRub technology, he claimed, would boost its traffic by 10 percent. Extrapolating that in terms of increased ad revenue, Excite would take in \$130,000 more every day, for a total of \$47 million in a year. Page envisioned his tenure at Excite lasting for seven months, long enough to help the company implement the search engine. Then he would leave, in time for the fall 1997 Stanford semester, resuming his progress toward a doctorate. Excite’s total outlay would be \$1.6 million, including \$300,000 to Stanford for the license, a \$200,000 salary, a \$400,000 bonus for implementing it within three months, and \$700,000 in Excite stock […] “With my help,” wrote the not-quite-twenty-four-year-old student, “this technology will give Excite a substantial advantage and will propel it to a market leadership position.” Khosla made a tentative counteroffer of \$750,000 total. But the deal never happened. [Page 29]

In barely a year since Brin and Page had formed their company, they had gathered a group of top scientists totally committed to the vision of their young founders. These early employees would be part of team efforts that led to innovation after innovation that would broaden Google’s lead over its competitors and establish it as synonymous with search. […] It was at least a ten-day process with one of Google’s first crawl engineers, Harry Cheung (everyone called him Spider-Man), at his machines, monitoring progress of spiders as they spread out through the net and then, after the crawl, breaking down the web pages for the index and calculating the page rank, using Sergey’s complicated system of variables with a mathematical process using something called eigenvectors, while everybody waited for the two processes to converge. (“Math professors love us because Google has made eigenvectors relevant to every matrix algebra student in America,” says Marissa Mayer.) [Page 41]

A technology but not a science… and maybe a dangerous one

In its first few years, Google had developed a number of specialized forms of search, known as verticals, for various corpuses—such as video, images, shopping catalogs, and locations (maps). Krishna Bharat had created one of those verticals called Google News, a virtual wire service with a front page determined not by editors but algorithms. Another vertical product, called Google Scholar, accessed academic journals. But to access those verticals, users had to choose the vertical. Page and Brin were pushing for a system where one search would find Everything. [Something called Universal Search]. [Page 58]

When the Universal Search team showed a prototype to Google’s top executives, everyone realized that taking on the project […] had been worth it. The results in that early attempt were all in the wrong order, but the reaction was visceral—you typed in a word, and all this stuff came out. It had just never happened before. “It definitely was one of the riskier things,” says Bailey. “It was hard, because it’s not just science—there are some judgment calls involved here. We are to some degree using our gut. I still get up in the morning and am astonished that this whole thing even works.” Google’s search now wasn’t just searching the web. It was searching everything. In his 1991 book, Mirror Worlds, Yale computer scientist David Gelernter sketched out a future where humans would interact, and transact, with modeled digital representations of the real world. […] But though Gelernter looked on the overall prospect of mirror worlds with enthusiasm, he worried as well. “I definitely feel ambivalent about mirror worlds. There are obvious risks of surveillance, but I think it poses deeper risks,” he said. His main concern was that mirror worlds would be steered by the geeky corporations who built them, as opposed to the public. “These risks should be confronted by society at large, not by techno-nerds,” he said. “I don’t trust them. They are not broad-minded and don’t know enough. They don’t know enough history, they don’t have enough. [Page 59-60]

As a final comment read the book. You may also have a look at my slideshare presentation.

# Something rotten in the Google republic?

I should have added a point of disagreement or discomfort in the analysis made by the authors of How Google Works. On page 125, there is a short section called Disproportionate rewards:

“Once you get your smart creatives on board, you need to pay them. Exceptional people deserve exceptional pay. Here again you can look to the sports for guidance: Outstanding athletes get paid outstanding amounts. […] Yes they are worth it (when they perform up to expectations) because they possess rare skills that are tremendously leverageable. When they do well, they have disproporationate impact. […]

You can attract smart creatives with factors beyond money: the great things they can do, the people they’ll work with, the responsability and the opportunities they’ll be given, the inspiring company culture and values, and yes, maybe even free food and happy dogs sitting desk-side. […] But when those smart creatives become employees and start performing, pay them appropriately. The bigger the impact, the bigger the comp. Pay outrageously good people outrageously well, regardless of their title or tenure. What counts is their impact.”

I am in fact coming back to Capitalism in Silicon Valley following my contribution on France Culture. My French culture naturally favors the collective rather than the individual, while America has a reverse culture. However, the excellent exchange between Xavier Niel and Edgar Morin (l’école de la vie) shows that the borders or at least the analysis are moving. “What can a young French do if he wants to get rich, which is not to be despised? Not much. So he/she leaves. If a young suburban, if excluded from the school system, he/she only has small jobs or illegal dealing. And it is tragic. […] The problem is that the state has no money. No money, no reform. There is no more vision and courage to face corporatism.” And there’s the problem of Republican elite which is out of breath. “The social elevator is not working anymroe. We have the worst grade among the OECD countries in this area. The elites are very little renewed. What hope can have a growing number of young people who will find it difficult to benefit from a system monopolized by a few self-proclaimed castes and other great public servants of the state, which management has also been poor?”

In California, Google also stirs controversy. The exclusivity and exception create exclusion. How to correct it? Picketty and others respond with tax. But Google and others do not pay (enough) taxes … And Eric Schmidt does not addresses the issue of the collective and Google uses the law to optimize taxation. The “exceptional” and “outrageously” can become outrageous…

My discomfort is amplified by the notion of merit. In the field of science, one “grows up on the shoulder of other giants” and many have been forgotten. Albert Einstein. Didn’t he owe anything to Mileva? These exceptional individuals. Don’t they owe nothing to the surrounding environment, which may have helped? I’m much more sensitive to the other argument the authors use: “fight for the Divas” (page 48). I believe that in science, we have not listened enough to the exceptional behaviors such as Perelman and Grothendieck, two mathematicians who have withdrawn from the world.

I do not have answers and just intuitions. Between the elite, the exceptions, the rare individuals, and the collective, society, people, there must be a better balance. Between the negative taxes that the multinational corporations pay and the higher-than-the-annual-income taxes of some wealthy entrepreneurs, there must be a wise mid-point, which should help solve some issues of Silicon Valley on one side and Europe on the other side…