Case Discussion Note - Google

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Case Discussion Note #1

강주현 2020-14080

1. Google to Alphabet: Ten Things We Know to Be True (Harvard


Business School)
1) What do you think are distinguishing characteristics of Google’s
corporate values? Do you think Google’s values are still applicable in
Alphabet, a large and highly diversified parent company? If not, how
should the values change in the future?

As taught in strategic management class, a company’s value is what


a company holds and expects their employees to adhere to. Normally
one company pursues a number of values, and for Google, their
corporate value is summarized into ten different concepts. Among
these ten concepts characteristics such as focusing on doing one
thing really well or increasing speed are common characteristics. On
the other hand, concepts like focusing on the user or making work
challenging and fun at the same time through great company culture
are very distinct traits of Google. I personally think that Googleyness
mentioned in this case comes from these distinct values and that the
presence itself of such a word is the proof of how distinguishing the
values are.
Now let's talk about whether Google’s corporate values are still
applicable to Alphabet. I think the answer differs within each value.
Some are applicable and some are not. For example, Alphabet deals
with various product/services(Calico, Project Wing, Deep Mind etc),
some of which do not have even a small similarity. Alphabet is
trying to do many things quite well, while Google tries to do on thing
really well. Also while Google prioritized the end user first and
shareholders a distant third, I think this is impossible in the case of
Alphabet. Many product/services of Alphabet are new arising items
which need a lot of research and development, which again needs
huge amount of investment. Having big investors means that you
have to put shareholders’ interest in one of the top priorities. This
makes it challenging for Alphabet to consider users as the primary
issue.
Therefore, since Alphabet is very different from Google in its
product/service variety and current corporate goals, I think that
every single corporate value of Google should be changed,
supplemented, and eventually customized to Alphabet. How much
change each value must undergo may differ. Some would need
drastic change while some would merely need change. The perfect
example of undergoing such changes of values is Alphabet dropping
the ‘don’t be evil’ mantra, though it may be a dramatic example.
2) How does Google promote innovation and employee commitment
within its organization? What are their benefits and costs?
There are many ways in which Google promotes innovation and
employee commitment. For innovation, Google focuses on keeping
small teams and gives freedom to employees to innovate their ideas
within 20% of their time, also known as their own project time. Also
Google carefully designs its physical environment to increase casual
collisions that may eventually yield collaboration and shares
everything with Googlers, even the top-materials presented at board
of directors meeting. For employee commitment Google grants stock
options to all employees, provide various lavish perks such as free
massages or guest lectures, and lastly but most importantly, conduct
thorough peer reviews.
The biggest benefit of these actions is that they are price efficient.
Giving freedom and time or sharing important corporate information
to employees is not that costly. Likewise, providing free massages or
conducting peer reviews is not costly compared to other expenses of
Google. If Google tried to boost employee commitment in other ways
such as giving employees incentive, it would have been more costly.
However the flaw here is that there is too much burden on the
employees. Imagine you are a Google employee. First you have to do
what you originally have to do. If you are in the marketing team,
you must do the assigned marketing tasks. Second you have to do a
separate ‘moon-shot’ project during 20% of your time. Third you
constantly have to consider your peers in order to get a positive
peer review. Doing these three things will inevitably put substantial
pressure on you.

3) (In-class discussion question) In case of the drawbacks of Google’s


values, what do you think Google can do to solve the problems?

Still, there is a very simple way to solve this problem. Make


employees enjoy their work! Even though a certain task is physically
and mentally demanding, if you really enjoy doing it, the burden that
you actually feel will be far less. The key is to make the job fun.
Google exactly knew this key point. One of their core values is that
you can be serious without a suit – work should be challenging, and
the challenge should be fun.
Also in Google’s point of view, although it may not be a
fundamental solution to the problem(too much burden), I think that
they should hire people who are capable of these multiple tasks. In
order to successfully maintain their values, Google indeed needs to
put a lot of effort in the recruitment process and human resource
management. They should hire people who excel in(or who don’t get
stressed by) multi-tasking and also keep training and help their
employees to better manage multiple tasks. Google must hire those
who closely suit their corporation values!

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