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!