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How do companies organize for successful innovation in periods of rapid change? In 2010, only 12 years after it started, Google was generating almost US$30 billion in annual revenue. By 2011, it was the world's most valuable brand. This success was based on a stream of new and innovative products - some acquired, but many developed in-house. Can Google's experience reveal organisational characteristics essential for continuous innovation? And will other firms be able to copy their approach?
Faced with this question, researchers decided to ask the company directly. Google proved very willing to talk about their success and how the business works, giving them unprecedented access. Face-to-face interviews with 28 Google employees covering a range of functions and product areas were held over an eight-month period in 2010. Most people were based at the company's headquarters at Mountain View, the remainder in Europe, Asia or elsewhere in the USA. The sample included two non-managers and two vice presidents - the remaining interviewees were all at director level.
Being "Googley"
Google is known for creating new products and entering new business areas. In open-ended discussions, these individuals ranked seven organisational elements in order of importance for innovation at Google. Innovativeness here means success in launching new products and business models - but not necessarily success for all market launches.
These "Googlers" ranked culture and the strength of Google's people jointly as the most important factors behind its success, with shared beliefs, values, norms and priorities crucial for innovativeness. From the outset the company's founders wanted to change the world - organising information and making it universally accessible and useful. Google has had a Chief Cultural Officer since 2005, with culture teams worldwide to see that it stays...