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Eric Schmidt’s Top 10 Rules For Success (@ericschmidt)


usually in companies there’s a notion of

usually in companies there’s a notion of a hierarchy a set of objectives a

a hierarchy a set of objectives a

a hierarchy a set of objectives a quarterly plans or we had none of that

quarterly plans or we had none of that

quarterly plans or we had none of that there’s always people smarter than you

there’s always people smarter than you

there’s always people smarter than you there’s always people who just think

there’s always people who just think

there’s always people who just think more clearly than you and if you can

more clearly than you and if you can

more clearly than you and if you can find such a person align yourself with

find such a person align yourself with

find such a person align yourself with them as a general statement about

them as a general statement about

them as a general statement about society we need to ask the harder

society we need to ask the harder

society we need to ask the harder questions and we need to ask for

questions and we need to ask for

questions and we need to ask for stronger solutions and one of the

stronger solutions and one of the

stronger solutions and one of the engineers whose name is Ron pounds the

engineers whose name is Ron pounds the

engineers whose name is Ron pounds the table had said that would be evil and

table had said that would be evil and

table had said that would be evil and I’m like oh okay

I’m like oh okay

I’m like oh okay what what just happened he’s an American

what what just happened he’s an American

what what just happened he’s an American software engineer business person an

software engineer business person an

software engineer business person an executive chairman of alphabet from 2001

executive chairman of alphabet from 2001

executive chairman of alphabet from 2001 to 2011 he served as CEO of Google in

to 2011 he served as CEO of Google in

to 2011 he served as CEO of Google in 2016 Forbes ranked him as the 100th

2016 Forbes ranked him as the 100th

2016 Forbes ranked him as the 100th richest person in the world with a

richest person in the world with a

richest person in the world with a fortune of ten point eight billion

fortune of ten point eight billion

fortune of ten point eight billion dollars he’s Eric Schmidt and here’s my

dollars he’s Eric Schmidt and here’s my

dollars he’s Eric Schmidt and here’s my take on his top ten rules for success

take on his top ten rules for success

take on his top ten rules for success rule number ten is my personal favorite

rule number ten is my personal favorite

rule number ten is my personal favorite and make sure to stick around all over

and make sure to stick around all over

and make sure to stick around all over to the end for some special bonus clips

to the end for some special bonus clips

to the end for some special bonus clips also as eric is talking if he says

also as eric is talking if he says

also as eric is talking if he says something that really resonates with you

something that really resonates with you

something that really resonates with you leave it in the comments and put it in

leave it in the comments and put it in

leave it in the comments and put it in quotes so that other people can be

quotes so that other people can be

quotes so that other people can be inspired as well usually in companies

inspired as well usually in companies

inspired as well usually in companies there’s a notion of a hierarchy a set of

there’s a notion of a hierarchy a set of

there’s a notion of a hierarchy a set of objectives a quarterly plans or we had

objectives a quarterly plans or we had

objectives a quarterly plans or we had none of that our theory was that the

none of that our theory was that the

none of that our theory was that the leadership in particular the Bottoms Up

leadership in particular the Bottoms Up

leadership in particular the Bottoms Up leadership really should be empowered by

leadership really should be empowered by

leadership really should be empowered by what we were doing and we’d see how far

what we were doing and we’d see how far

what we were doing and we’d see how far they get we didn’t have an

they get we didn’t have an

they get we didn’t have an eighteen-month strategy we just kept

eighteen-month strategy we just kept

eighteen-month strategy we just kept iterating so what I learned from this is

iterating so what I learned from this is

iterating so what I learned from this is it fast iteration is the key the most

it fast iteration is the key the most

it fast iteration is the key the most important thing to do is every week a

important thing to do is every week a

important thing to do is every week a new product a new idea just keep pushing

new product a new idea just keep pushing

new product a new idea just keep pushing you’d be amazed how much progress you

you’d be amazed how much progress you

you’d be amazed how much progress you make in three months or six months the

make in three months or six months the

make in three months or six months the background that you had you know working

background that you had you know working

background that you had you know working at Novell working at Bell Labs working

at Novell working at Bell Labs working

at Novell working at Bell Labs working at Xerox you know to that point in your

at Xerox you know to that point in your

at Xerox you know to that point in your career when you met Larry and Sergey I

career when you met Larry and Sergey I

career when you met Larry and Sergey I wonder what led you to choose that

wonder what led you to choose that

wonder what led you to choose that opportunity next what what about them

opportunity next what what about them

opportunity next what what about them was so different that that made you say

was so different that that made you say

was so different that that made you say okay this is the next thing for me to do

okay this is the next thing for me to do

okay this is the next thing for me to do well in my case I’ve been working at

well in my case I’ve been working at

well in my case I’ve been working at Novell and I was invited to visit Larry

Novell and I was invited to visit Larry

Novell and I was invited to visit Larry and Sergey who had invited me to their

and Sergey who had invited me to their

and Sergey who had invited me to their little office they had all this food on

little office they had all this food on

little office they had all this food on the table which had been prepared by the

the table which had been prepared by the

the table which had been prepared by the Google

Google

Google which I thought was rather odd and they

which I thought was rather odd and they

which I thought was rather odd and they had my background on the whiteboard

had my background on the whiteboard

had my background on the whiteboard which they were projecting and they

which they were projecting and they

which they were projecting and they proceeded to examine me in terms of my

proceeded to examine me in terms of my

proceeded to examine me in terms of my ideas and the technology we were

ideas and the technology we were

ideas and the technology we were building which they disagreed with

building which they disagreed with

building which they disagreed with completely and I thought well that’s a

completely and I thought well that’s a

completely and I thought well that’s a very nice meeting and I realized as I

very nice meeting and I realized as I

very nice meeting and I realized as I left and it was curiously in an old Sun

left and it was curiously in an old Sun

left and it was curiously in an old Sun building that it was the most

building that it was the most

building that it was the most interesting conversation I’d had in a

interesting conversation I’d had in a

interesting conversation I’d had in a decade and that’s why I joined it could

decade and that’s why I joined it could

decade and that’s why I joined it could it have gone another way was there a

it have gone another way was there a

it have gone another way was there a moment that you looked at that if you

moment that you looked at that if you

moment that you looked at that if you look back on that and said if this has

look back on that and said if this has

look back on that and said if this has happened I wouldn’t have taken it or

happened I wouldn’t have taken it or

happened I wouldn’t have taken it or this if this had happened I wouldn’t

this if this had happened I wouldn’t

this if this had happened I wouldn’t have gotten it are there moments like

have gotten it are there moments like

have gotten it are there moments like that I think from my perspective because

that I think from my perspective because

that I think from my perspective because I’d already run a large organization I

I’d already run a large organization I

I’d already run a large organization I wanted to work in a very small very very

wanted to work in a very small very very

wanted to work in a very small very very smart organization I figured Google

smart organization I figured Google

smart organization I figured Google would be that you know God knows it came

would be that you know God knows it came

would be that you know God knows it came out so differently but what I learned

out so differently but what I learned

out so differently but what I learned what I learned in this process is that

what I learned in this process is that

what I learned in this process is that if you can there’s there’s always people

if you can there’s there’s always people

if you can there’s there’s always people smarter than you there’s always people

smarter than you there’s always people

smarter than you there’s always people who just think more clearly than you and

who just think more clearly than you and

who just think more clearly than you and if you can find such a person align

if you can find such a person align

if you can find such a person align yourself with them in this case these

yourself with them in this case these

yourself with them in this case these two young men are you know they’re you

two young men are you know they’re you

two young men are you know they’re you know they’re in their 20s right and

know they’re in their 20s right and

know they’re in their 20s right and they’re awfully precocious and I haven’t

they’re awfully precocious and I haven’t

they’re awfully precocious and I haven’t had that tough an argument from that you

had that tough an argument from that you

had that tough an argument from that you know young men in a long time and I

know young men in a long time and I

know young men in a long time and I thought this is it you know you just

thought this is it you know you just

thought this is it you know you just knew

knew

knew and these people are rare and we now

and these people are rare and we now

and these people are rare and we now know them as the great founders in our

know them as the great founders in our

know them as the great founders in our industry and I’m sure some of them are

industry and I’m sure some of them are

industry and I’m sure some of them are here in the audience if you find such a

here in the audience if you find such a

here in the audience if you find such a person work with them work for them

person work with them work for them

person work with them work for them manage them do whatever it takes when

manage them do whatever it takes when

manage them do whatever it takes when he’s pitching you what don’t you want to

he’s pitching you what don’t you want to

he’s pitching you what don’t you want to hear everyone asks what you do what

hear everyone asks what you do what

hear everyone asks what you do what don’t you want to hear

don’t you want to hear

don’t you want to hear I want to hear that everybody is focused

I want to hear that everybody is focused

I want to hear that everybody is focused on this new architecture and anybody

on this new architecture and anybody

on this new architecture and anybody who’s coming in with plans based on the

who’s coming in with plans based on the

who’s coming in with plans based on the earlier architectures you’re not going

earlier architectures you’re not going

earlier architectures you’re not going to make it you need to be on scalable

to make it you need to be on scalable

to make it you need to be on scalable plans that solve real problems it’s so

plans that solve real problems it’s so

plans that solve real problems it’s so easy to solve a local problem you need

easy to solve a local problem you need

easy to solve a local problem you need to dream bigger over and over again we

to dream bigger over and over again we

to dream bigger over and over again we hear ideas that are interesting in a

hear ideas that are interesting in a

hear ideas that are interesting in a local context but they’re not big enough

local context but they’re not big enough

local context but they’re not big enough it’s a dream bigger right as a general

it’s a dream bigger right as a general

it’s a dream bigger right as a general statement about society we need to ask

statement about society we need to ask

statement about society we need to ask the harder questions and we need to ask

the harder questions and we need to ask

the harder questions and we need to ask for stronger solutions there is a global

for stronger solutions there is a global

for stronger solutions there is a global emerging consensus around issues and so

emerging consensus around issues and so

emerging consensus around issues and so forth together we’re

forth together we’re

forth together we’re are we strong the people you hire define

are we strong the people you hire define

are we strong the people you hire define the culture whether you like it or not

the culture whether you like it or not

the culture whether you like it or not so Larry and Sergey when they started

so Larry and Sergey when they started

so Larry and Sergey when they started the company said we need to have really

the company said we need to have really

the company said we need to have really smart people so they hired a rocket

smart people so they hired a rocket

smart people so they hired a rocket scientist and they hired a medical

scientist and they hired a medical

scientist and they hired a medical doctor and they hired a Stanford

doctor and they hired a Stanford

doctor and they hired a Stanford graduate who had been a professional

graduate who had been a professional

graduate who had been a professional football player because they figured

football player because they figured

football player because they figured that they wanted normal people who had

that they wanted normal people who had

that they wanted normal people who had done something exceptional so in my case

done something exceptional so in my case

done something exceptional so in my case I was a pilot and I had done other

I was a pilot and I had done other

I was a pilot and I had done other things and they said ok you’re good

things and they said ok you’re good

things and they said ok you’re good enough you know the CEO has to have

enough you know the CEO has to have

enough you know the CEO has to have something besides being a CEO that makes

something besides being a CEO that makes

something besides being a CEO that makes them interesting and everyone had

them interesting and everyone had

them interesting and everyone had something I would go around I’d say well

something I would go around I’d say well

something I would go around I’d say well what’s special about you it’s like

what’s special about you it’s like

what’s special about you it’s like what’s like Sesame Street you know

what’s like Sesame Street you know

what’s like Sesame Street you know what’s special about you and what’s

what’s special about you and what’s

what’s special about you and what’s special about you but there was always

special about you but there was always

special about you but there was always an interesting story

an interesting story

an interesting story so another lesson I learned is that you

so another lesson I learned is that you

so another lesson I learned is that you don’t hire generic people you hire

don’t hire generic people you hire

don’t hire generic people you hire people who’ve had some kind of stress or

people who’ve had some kind of stress or

people who’ve had some kind of stress or achievement or whatever the best people

achievement or whatever the best people

achievement or whatever the best people hired by the way are CFO’s who’s gone

hired by the way are CFO’s who’s gone

hired by the way are CFO’s who’s gone bankrupt because boy have they been

bankrupt because boy have they been

bankrupt because boy have they been through the war and on the CFO’s I’m the

through the war and on the CFO’s I’m the

through the war and on the CFO’s I’m the CFO side and the finance side you want

CFO side and the finance side you want

CFO side and the finance side you want somebody who’s not going to happen again

somebody who’s not going to happen again

somebody who’s not going to happen again and you only go bankrupt once by the way

and you only go bankrupt once by the way

and you only go bankrupt once by the way I think I should create a general

I think I should create a general

I think I should create a general question for all businesses if you were

question for all businesses if you were

question for all businesses if you were coaching a business class or a company

coaching a business class or a company

coaching a business class or a company how does a company remain nimble today

how does a company remain nimble today

how does a company remain nimble today what does we have to do that maybe my

what does we have to do that maybe my

what does we have to do that maybe my problem with most strategy conversations

problem with most strategy conversations

problem with most strategy conversations is that they’re always in word out you

is that they’re always in word out you

is that they’re always in word out you know we establish well first we’re the

know we establish well first we’re the

know we establish well first we’re the best in the world because everybody

best in the world because everybody

best in the world because everybody thinks that which can’t possibly be true

thinks that which can’t possibly be true

thinks that which can’t possibly be true and second we see that all of our

and second we see that all of our

and second we see that all of our products are going to be successful and

products are going to be successful and

products are going to be successful and therefore we’ll be very successful in

therefore we’ll be very successful in

therefore we’ll be very successful in the future and that’s usually how

the future and that’s usually how

the future and that’s usually how strategy has done in businesses I prefer

strategy has done in businesses I prefer

strategy has done in businesses I prefer a completely different approach work

a completely different approach work

a completely different approach work very very very hard to figure out what

very very very hard to figure out what

very very very hard to figure out what the world is going to look like in five

the world is going to look like in five

the world is going to look like in five years what will people be doing what

years what will people be doing what

years what will people be doing what will your customers want

will your customers want

will your customers want where will cost beat will be in our case

where will cost beat will be in our case

where will cost beat will be in our case what will networks look like how

what will networks look like how

what will networks look like how important will phones be what will the

important will phones be what will the

important will phones be what will the apps look like what services and spend

apps look like what services and spend

apps look like what services and spend an awful lot of time on that and then

an awful lot of time on that and then

an awful lot of time on that and then take a look at your offerings what are

take a look at your offerings what are

take a look at your offerings what are the strongest ones which are the ones

the strongest ones which are the ones

the strongest ones which are the ones are going to iterate quickly you’re

are going to iterate quickly you’re

are going to iterate quickly you’re probably going to do fine there you

probably going to do fine there you

probably going to do fine there you understand those businesses what about

understand those businesses what about

understand those businesses what about these others if you think about in the

these others if you think about in the

these others if you think about in the media business there are business media

media business there are business media

media business there are business media businesses that are growing very well

businesses that are growing very well

businesses that are growing very well and others that are in great trouble

and others that are in great trouble

and others that are in great trouble this is completely predicted five years

this is completely predicted five years

this is completely predicted five years ago right so the leaders and the ones

ago right so the leaders and the ones

ago right so the leaders and the ones that are in trouble

that are in trouble

that are in trouble sure

sure

sure have right done a five-year plan and

have right done a five-year plan and

have right done a five-year plan and said holy cow what are we going to do

said holy cow what are we going to do

said holy cow what are we going to do what are the things we do or maybe we

what are the things we do or maybe we

what are the things we do or maybe we sell ourselves we try something

sell ourselves we try something

sell ourselves we try something different but almost all of these

different but almost all of these

different but almost all of these strategic shifts are predictable using

strategic shifts are predictable using

strategic shifts are predictable using my my five-year model almost nobody does

my my five-year model almost nobody does

my my five-year model almost nobody does a five-year plan most businesses do a

a five-year plan most businesses do a

a five-year plan most businesses do a one to two year plan you know especially

one to two year plan you know especially

one to two year plan you know especially in our Suites but even in most

in our Suites but even in most

in our Suites but even in most businesses the only business that I

businesses the only business that I

businesses the only business that I discovered that does a five-year or

discovered that does a five-year or

discovered that does a five-year or longer plan is the oil and gas industry

longer plan is the oil and gas industry

longer plan is the oil and gas industry and the reason is because they have to

and the reason is because they have to

and the reason is because they have to deploy so much capital and do all this

deploy so much capital and do all this

deploy so much capital and do all this planning but even there they have

planning but even there they have

planning but even there they have trouble because the prices go up and

trouble because the prices go up and

trouble because the prices go up and down and so forth so even there it’s

down and so forth so even there it’s

down and so forth so even there it’s difficult what would you tell a founder

difficult what would you tell a founder

difficult what would you tell a founder they should do to protect and to to hold

they should do to protect and to to hold

they should do to protect and to to hold on to their equity what advice would you

on to their equity what advice would you

on to their equity what advice would you give them well the I can always tell

give them well the I can always tell

give them well the I can always tell when we’re dealing with a proper founder

when we’re dealing with a proper founder

when we’re dealing with a proper founder when we start with how are they spending

when we start with how are they spending

when we start with how are they spending their money and so whenever I go into a

their money and so whenever I go into a

their money and so whenever I go into a startup that has beautiful offices in

startup that has beautiful offices in

startup that has beautiful offices in really nice chairs

really nice chairs

really nice chairs I cringe because that means that they

I cringe because that means that they

I cringe because that means that they haven’t quite figured out that it’s not

haven’t quite figured out that it’s not

haven’t quite figured out that it’s not their money unless it is their money

their money unless it is their money

their money unless it is their money which case they can waste it on that

which case they can waste it on that

which case they can waste it on that when I joined Google the I was given an

when I joined Google the I was given an

when I joined Google the I was given an office and I had a little corner of a

office and I had a little corner of a

office and I had a little corner of a desk with four other engineers

desk with four other engineers

desk with four other engineers eventually I was given an 8 by 12 office

eventually I was given an 8 by 12 office

eventually I was given an 8 by 12 office where my desk was a door with whatever

where my desk was a door with whatever

where my desk was a door with whatever hobbyhorses whatever they are like the

hobbyhorses whatever they are like the

hobbyhorses whatever they are like the tabletop was able were able table a

tabletop was able were able table a

tabletop was able were able table a literally a door which I’ve retained to

literally a door which I’ve retained to

literally a door which I’ve retained to try to remind myself of what it takes to

try to remind myself of what it takes to

try to remind myself of what it takes to be successful so my office today has

be successful so my office today has

be successful so my office today has that door in it the great founders are

that door in it the great founders are

that door in it the great founders are frugal they understand that the money

frugal they understand that the money

frugal they understand that the money needs to be used precisely for certain

needs to be used precisely for certain

needs to be used precisely for certain areas many of the most successful

areas many of the most successful

areas many of the most successful founders begin with no salary at all

founders begin with no salary at all

founders begin with no salary at all you know I’ve lots of stories about

you know I’ve lots of stories about

you know I’ve lots of stories about Larry and Sergey but let’s just say that

Larry and Sergey but let’s just say that

Larry and Sergey but let’s just say that when I started one of them was having

when I started one of them was having

when I started one of them was having trouble with his car so I had to loan in

trouble with his car so I had to loan in

trouble with his car so I had to loan in his car because his car broke down my

his car because his car broke down my

his car because his car broke down my car because he broke down I mean that’s

car because he broke down I mean that’s

car because he broke down I mean that’s the kind of stuff we’re talking about

the kind of stuff we’re talking about

the kind of stuff we’re talking about and so if you’re not prepared to live

and so if you’re not prepared to live

and so if you’re not prepared to live that you don’t really understand what of

that you don’t really understand what of

that you don’t really understand what of being a founders like I mean it mean for

being a founders like I mean it mean for

being a founders like I mean it mean for me you know I’d love to be a founder I’d

me you know I’d love to be a founder I’d

me you know I’d love to be a founder I’d love to have a nice corner office with

love to have a nice corner office with

love to have a nice corner office with beautiful view and lots of secretary

beautiful view and lots of secretary

beautiful view and lots of secretary wood Lazar that’s not how it works

wood Lazar that’s not how it works

wood Lazar that’s not how it works right and the great founders always

right and the great founders always

right and the great founders always started that way so that should give you

started that way so that should give you

started that way so that should give you some data I don’t agree that you should

some data I don’t agree that you should

some data I don’t agree that you should narrow your focus what I believe is that

narrow your focus what I believe is that

narrow your focus what I believe is that you get the best outcome when you make

you get the best outcome when you make

you get the best outcome when you make the broadest appeal in terms of

the broadest appeal in terms of

the broadest appeal in terms of leadership and excitement and so forth

leadership and excitement and so forth

leadership and excitement and so forth and we worked very hard to make that

and we worked very hard to make that

and we worked very hard to make that happen but there were other other things

happen but there were other other things

happen but there were other other things for example we would refuse to doing

for example we would refuse to doing

for example we would refuse to doing exclusive deals with people but I would

exclusive deals with people but I would

exclusive deals with people but I would explain to people well we don’t really

explain to people well we don’t really

explain to people well we don’t really do exclusive deals but we only have the

do exclusive deals but we only have the

do exclusive deals but we only have the capacity to work with one and it’s going

capacity to work with one and it’s going

capacity to work with one and it’s going to be you right so that there are other

to be you right so that there are other

to be you right so that there are other ways of achieving those kinds of things

ways of achieving those kinds of things

ways of achieving those kinds of things so I’d be careful too to conclude that

so I’d be careful too to conclude that

so I’d be careful too to conclude that you should do a small thing all success

you should do a small thing all success

you should do a small thing all success starts from doing one thing really

starts from doing one thing really

starts from doing one thing really really well but you’ll recruit better

really well but you’ll recruit better

really well but you’ll recruit better with a broader vision that’s credible

with a broader vision that’s credible

with a broader vision that’s credible and that you can articulate but go back

and that you can articulate but go back

and that you can articulate but go back to that selling the dream right what you

to that selling the dream right what you

to that selling the dream right what you do is selling a dream if you can’t sell

do is selling a dream if you can’t sell

do is selling a dream if you can’t sell the dream then you’re not going to be

the dream then you’re not going to be

the dream then you’re not going to be successful I received so many different

successful I received so many different

successful I received so many different kinds of advice I don’t know where to

kinds of advice I don’t know where to

kinds of advice I don’t know where to start one that comes to mind is to have

start one that comes to mind is to have

start one that comes to mind is to have a coach our board member in 2002 John

a coach our board member in 2002 John

a coach our board member in 2002 John doar said you need a coach and I said

doar said you need a coach and I said

doar said you need a coach and I said well audit the coach I’m going to

well audit the coach I’m going to

well audit the coach I’m going to establish CEO why would either coach

establish CEO why would either coach

establish CEO why would either coach does something wrong no no you need a

does something wrong no no you need a

does something wrong no no you need a coach everybody needs coach SoDo

coach everybody needs coach SoDo

coach everybody needs coach SoDo Campbell became my coach and it served

Campbell became my coach and it served

Campbell became my coach and it served Google very well every famous athlete

Google very well every famous athlete

Google very well every famous athlete every famous performer has somebody

every famous performer has somebody

every famous performer has somebody who’s a coach somebody who can watch

who’s a coach somebody who can watch

who’s a coach somebody who can watch what they’re doing and say is that what

what they’re doing and say is that what

what they’re doing and say is that what you really meant did you really do that

you really meant did you really do that

you really meant did you really do that they can give them perspective but one

they can give them perspective but one

they can give them perspective but one thing people are never good at is seeing

thing people are never good at is seeing

thing people are never good at is seeing themselves as others see them a coach

themselves as others see them a coach

themselves as others see them a coach really really helps so one of the ideas

really really helps so one of the ideas

really really helps so one of the ideas that we had a few years ago was that we

that we had a few years ago was that we

that we had a few years ago was that we would be better off with more and more

would be better off with more and more

would be better off with more and more people in our ecosystem and the best way

people in our ecosystem and the best way

people in our ecosystem and the best way to do that is to essentially help

to do that is to essentially help

to do that is to essentially help entrepreneurs be successful that doesn’t

entrepreneurs be successful that doesn’t

entrepreneurs be successful that doesn’t mean they’re captive to us they’re still

mean they’re captive to us they’re still

mean they’re captive to us they’re still going to use competitor products and

going to use competitor products and

going to use competitor products and competitor ad systems and competitor

competitor ad systems and competitor

competitor ad systems and competitor platforms but it seems one of the things

platforms but it seems one of the things

platforms but it seems one of the things that people don’t understand when they

that people don’t understand when they

that people don’t understand when they view business is they assume that

view business is they assume that

view business is they assume that business is how to describe it it’s a

business is how to describe it it’s a

business is how to describe it it’s a zero-sum game that if company a wins

zero-sum game that if company a wins

zero-sum game that if company a wins company B loses I’ll tell you that when

company B loses I’ll tell you that when

company B loses I’ll tell you that when Yahoo

Yahoo

Yahoo was young and Terry Semel was running it

was young and Terry Semel was running it

was young and Terry Semel was running it whenever he and his company would win a

whenever he and his company would win a

whenever he and his company would win a deal I would call him to congratulate

deal I would call him to congratulate

deal I would call him to congratulate him and whenever we would win a deal he

him and whenever we would win a deal he

him and whenever we would win a deal he would call me to congratulate me now by

would call me to congratulate me now by

would call me to congratulate me now by the way we were tough competitors why

the way we were tough competitors why

the way we were tough competitors why would we do that

would we do that

would we do that because we both understood that we were

because we both understood that we were

because we both understood that we were building a larger market so you can

building a larger market so you can

building a larger market so you can understand our our goal as philanthropic

understand our our goal as philanthropic

understand our our goal as philanthropic you can understand it as making the

you can understand it as making the

you can understand it as making the world a better place but you can also

world a better place but you can also

world a better place but you can also understand it as self-interested in the

understand it as self-interested in the

understand it as self-interested in the building more people who understand the

building more people who understand the

building more people who understand the concepts of network computing and

concepts of network computing and

concepts of network computing and platforms and so forth benefits everyone

platforms and so forth benefits everyone

platforms and so forth benefits everyone including Google 20% time was a rule

including Google 20% time was a rule

including Google 20% time was a rule with vetted again when I started there

with vetted again when I started there

with vetted again when I started there there were two actually interesting one

there were two actually interesting one

there were two actually interesting one was don’t be evil in the second one was

was don’t be evil in the second one was

was don’t be evil in the second one was 20% time don’t be evil I thought was a

20% time don’t be evil I thought was a

20% time don’t be evil I thought was a joke

joke

joke um because I mean nobody here is evil

um because I mean nobody here is evil

um because I mean nobody here is evil nor the evil you want to be evil and so

nor the evil you want to be evil and so

nor the evil you want to be evil and so I was sitting in the original conference

I was sitting in the original conference

I was sitting in the original conference room in the small building when we’ve

room in the small building when we’ve

room in the small building when we’ve started and there’s this conversation

started and there’s this conversation

started and there’s this conversation about ad targeting and a particular ad

about ad targeting and a particular ad

about ad targeting and a particular ad click and one of the engineers his name

click and one of the engineers his name

click and one of the engineers his name is Ron pounds the table had said that

is Ron pounds the table had said that

is Ron pounds the table had said that would be evil and I’m like oh okay what

would be evil and I’m like oh okay what

would be evil and I’m like oh okay what just happened and the whole mood of the

just happened and the whole mood of the

just happened and the whole mood of the room changes and there’s this huge

room changes and there’s this huge

room changes and there’s this huge debate over whether that’s evil or not

debate over whether that’s evil or not

debate over whether that’s evil or not and ultimately they didn’t do the change

and ultimately they didn’t do the change

and ultimately they didn’t do the change and so I thought what’s the analogy

and so I thought what’s the analogy

and so I thought what’s the analogy they’re in it the analogy was it was

they’re in it the analogy was it was

they’re in it the analogy was it was it’s the Kanban system right in Japan

it’s the Kanban system right in Japan

it’s the Kanban system right in Japan the notion that any employee can stop

the notion that any employee can stop

the notion that any employee can stop the line if they see a poor-quality

the line if they see a poor-quality

the line if they see a poor-quality thing and it works because of shared

thing and it works because of shared

thing and it works because of shared values strong shared values a strong

values strong shared values a strong

values strong shared values a strong buy-in to principles takes you far I

buy-in to principles takes you far I

buy-in to principles takes you far I think that helped us and that I think it

think that helped us and that I think it

think that helped us and that I think it may or may not be true today that the

may or may not be true today that the

may or may not be true today that the company has that feeling but there

company has that feeling but there

company has that feeling but there certainly its history is clearly that

thank you guys so much for watching I

thank you guys so much for watching I made this video because Sam Boorstin

made this video because Sam Boorstin

made this video because Sam Boorstin asked me to so there’s a famous

asked me to so there’s a famous

asked me to so there’s a famous entrepreneur that you are made of

entrepreneur that you are made of

entrepreneur that you are made of profile next leave it down in the

profile next leave it down in the

profile next leave it down in the comments below and I’ll see what I can

comments below and I’ll see what I can

comments below and I’ll see what I can do I’d also love to know which of the

do I’d also love to know which of the

do I’d also love to know which of the ten rules had the biggest impact on you

ten rules had the biggest impact on you

ten rules had the biggest impact on you and why what did you learn from this

and why what did you learn from this

and why what did you learn from this what are you going to change in your

what are you going to change in your

what are you going to change in your business your life after watching this

business your life after watching this

business your life after watching this video leave in the comments and I will

video leave in the comments and I will

video leave in the comments and I will join in the discussion I also want to

join in the discussion I also want to

join in the discussion I also want to give a quick shout out to Jim Farrell

give a quick shout out to Jim Farrell

give a quick shout out to Jim Farrell Ben Jim thank you so much for buying my

Ben Jim thank you so much for buying my

Ben Jim thank you so much for buying my book it really means a lot to me

book it really means a lot to me

book it really means a lot to me those are you watching if you want your

those are you watching if you want your

those are you watching if you want your chance at a shadow in the future video

chance at a shadow in the future video

chance at a shadow in the future video make sure to pick up a copy of the book

make sure to pick up a copy of the book

make sure to pick up a copy of the book and email any receipts you can keep

and email any receipts you can keep

and email any receipts you can keep track thank you guys so much for

track thank you guys so much for

track thank you guys so much for watching

watching

watching continue to believe or whatever your one

continue to believe or whatever your one

continue to believe or whatever your one where it is and I’ll see you soon

well I learned a lot from our founders

well I learned a lot from our founders and one of the things I learned was ask

and one of the things I learned was ask

and one of the things I learned was ask the impossible and really dream big what

the impossible and really dream big what

the impossible and really dream big what you learn about people is if you paint a

you learn about people is if you paint a

you learn about people is if you paint a very broad vision you attract people who

very broad vision you attract people who

very broad vision you attract people who really want to make it happen because

really want to make it happen because

really want to make it happen because there are dreamers too so you can

there are dreamers too so you can

there are dreamers too so you can inspire people and with that inspiration

inspire people and with that inspiration

inspire people and with that inspiration you get the smartest people and they

you get the smartest people and they

you get the smartest people and they deal with a lot of stuff the can an

deal with a lot of stuff the can an

deal with a lot of stuff the can an organization like Google which espouses

organization like Google which espouses

organization like Google which espouses the idea that you’re going to give

the idea that you’re going to give

the idea that you’re going to give people in the organization fifteen or

people in the organization fifteen or

people in the organization fifteen or twenty percent of their time to do

twenty percent of their time to do

twenty percent of their time to do almost anything they want in terms of

almost anything they want in terms of

almost anything they want in terms of innovation can that system work in

innovation can that system work in

innovation can that system work in smaller companies can that system work

smaller companies can that system work

smaller companies can that system work in any companies that a leadership

in any companies that a leadership

in any companies that a leadership tenant that can work across a broad

tenant that can work across a broad

tenant that can work across a broad range of companies well in fact it

range of companies well in fact it

range of companies well in fact it worked at Google when Google was tiny so

worked at Google when Google was tiny so

worked at Google when Google was tiny so the answer is yes it does work in small

the answer is yes it does work in small

the answer is yes it does work in small companies remember we give this to

companies remember we give this to

companies remember we give this to engineers and engineers are not that

engineers and engineers are not that

engineers and engineers are not that clever right if they’re going to work on

clever right if they’re going to work on

clever right if they’re going to work on something in their twenty percent time

something in their twenty percent time

something in their twenty percent time it’s going to be something that’s pretty

it’s going to be something that’s pretty

it’s going to be something that’s pretty related to their training in their

related to their training in their

related to their training in their knowledge and that’s why it’s so

knowledge and that’s why it’s so

knowledge and that’s why it’s so powerful very very few people sort of

powerful very very few people sort of

powerful very very few people sort of get off the reservation and do something

get off the reservation and do something

get off the reservation and do something completely different from technology and

completely different from technology and

completely different from technology and so forth and if they did we would

so forth and if they did we would

so forth and if they did we would encourage it has something manifests

encourage it has something manifests

encourage it has something manifests that you can recall come from just that

that you can recall come from just that

that you can recall come from just that kind of incubation virtually all of the

kind of incubation virtually all of the

kind of incubation virtually all of the interesting apps now came from a

interesting apps now came from a

interesting apps now came from a combination of an acquisition and a 20%

combination of an acquisition and a 20%

combination of an acquisition and a 20% time if you look at maps if you look at

time if you look at maps if you look at

time if you look at maps if you look at Google Earth if you look at chrome and

Google Earth if you look at chrome and

Google Earth if you look at chrome and Android all of them came from somebody

Android all of them came from somebody

Android all of them came from somebody trying something identifying something

trying something identifying something

trying something identifying something and then we would say we have all these

and then we would say we have all these

and then we would say we have all these 20% timers but we need a real group and

20% timers but we need a real group and

20% timers but we need a real group and the fastest way to do that was to create

the fastest way to do that was to create

the fastest way to do that was to create a real group or a bio company I want to

a real group or a bio company I want to

a real group or a bio company I want to offer a cautionary tale and again having

offer a cautionary tale and again having

offer a cautionary tale and again having both read your book and also the notes

both read your book and also the notes

both read your book and also the notes that you kindly sent me before this if

that you kindly sent me before this if

that you kindly sent me before this if you don’t understand the subtlety here

you don’t understand the subtlety here

you don’t understand the subtlety here you you would conclude that the correct

you you would conclude that the correct

you you would conclude that the correct thing to do is to grow everything as

thing to do is to grow everything as

thing to do is to grow everything as fast you possibly can everywhere right

fast you possibly can everywhere right

fast you possibly can everywhere right so let’s just make as many engineers as

so let’s just make as many engineers as

so let’s just make as many engineers as many salespeople as many products and so

many salespeople as many products and so

many salespeople as many products and so and so on that completely does not work

and so on that completely does not work

and so on that completely does not work and it doesn’t work because no product

and it doesn’t work because no product

and it doesn’t work because no product shall ship before it actually works

shall ship before it actually works

shall ship before it actually works right and the way you build great

right and the way you build great

right and the way you build great products is you have small teams with

products is you have small teams with

products is you have small teams with strong leaders

strong leaders

strong leaders obsess over trade-offs and they push

obsess over trade-offs and they push

obsess over trade-offs and they push things off and they say we’ve got to get

things off and they say we’ve got to get

things off and they say we’ve got to get it done and they put a lot of pressure

it done and they put a lot of pressure

it done and they put a lot of pressure on the team they work all night and they

on the team they work all night and they

on the team they work all night and they produce a product that just barely works

produce a product that just barely works

produce a product that just barely works okay the original use non-google

okay the original use non-google

okay the original use non-google examples the original iPod just barely

examples the original iPod just barely

examples the original iPod just barely worked look at what it became try people

worked look at what it became try people

worked look at what it became try people remember the original iPhone no apps

remember the original iPhone no apps

remember the original iPhone no apps right everyone’s forgotten that just

right everyone’s forgotten that just

right everyone’s forgotten that just barely worked but he just was just the

barely worked but he just was just the

barely worked but he just was just the right combination to create an enormous

right combination to create an enormous

right combination to create an enormous franchise that’s now 70% of the revenue

franchise that’s now 70% of the revenue

franchise that’s now 70% of the revenue of the world’s most valuable company I

of the world’s most valuable company I

of the world’s most valuable company I was talking to Travis kalanick

was talking to Travis kalanick

was talking to Travis kalanick we are major investors inside of uber so

we are major investors inside of uber so

we are major investors inside of uber so we have good relationships with uber and

we have good relationships with uber and

we have good relationships with uber and he has description of uber was that he

he has description of uber was that he

he has description of uber was that he understood scaling but the product the

understood scaling but the product the

understood scaling but the product the app wasn’t ready so so you have to sort

app wasn’t ready so so you have to sort

app wasn’t ready so so you have to sort of have judgment about when the product

of have judgment about when the product

of have judgment about when the product is ready to scale against it and so we

is ready to scale against it and so we

is ready to scale against it and so we would debate this over and over again

would debate this over and over again

would debate this over and over again and so Larry and Sergey would play

and so Larry and Sergey would play

and so Larry and Sergey would play tricks on me so typical example would be

tricks on me so typical example would be

tricks on me so typical example would be I would say we’re not strong enough to

I would say we’re not strong enough to

I would say we’re not strong enough to take on Microsoft and they wanted to do

take on Microsoft and they wanted to do

take on Microsoft and they wanted to do an operating system in a browser and I

an operating system in a browser and I

an operating system in a browser and I said there’s no scenario where we’ll

said there’s no scenario where we’ll

said there’s no scenario where we’ll ever do an operating system in a browser

ever do an operating system in a browser

ever do an operating system in a browser and because Microsoft will kill us and I

and because Microsoft will kill us and I

and because Microsoft will kill us and I don’t want to get killed were a small

don’t want to get killed were a small

don’t want to get killed were a small company and yes yes you’re very smart

company and yes yes you’re very smart

company and yes yes you’re very smart yes yes we’re full of smart people and

yes yes we’re full of smart people and

yes yes we’re full of smart people and yes yes we have lots of revenue these

yes yes we have lots of revenue these

yes yes we have lots of revenue these guys can kill us because I’d been

guys can kill us because I’d been

guys can kill us because I’d been previously killed in previous jobs and

previously killed in previous jobs and

previously killed in previous jobs and so they hired somebody to to improve the

so they hired somebody to to improve the

so they hired somebody to to improve the performance of Firefox six months later

performance of Firefox six months later

performance of Firefox six months later I’m called down to one office and this

I’m called down to one office and this

I’m called down to one office and this person who is supposed to improve the

person who is supposed to improve the

person who is supposed to improve the performance of Firefox has managed to

performance of Firefox has managed to

performance of Firefox has managed to invent Chrome

invent Chrome

invent Chrome shocking good and I say well how long

shocking good and I say well how long

shocking good and I say well how long you been doing this well I’ve been doing

you been doing this well I’ve been doing

you been doing this well I’ve been doing it on the side no you haven’t you’ve

it on the side no you haven’t you’ve

it on the side no you haven’t you’ve done it full-time well yeah you know I

done it full-time well yeah you know I

done it full-time well yeah you know I three other people okay well how many

three other people okay well how many

three other people okay well how many more people you have ten more people

more people you have ten more people

more people you have ten more people well good lyric okay dude Larry and

well good lyric okay dude Larry and

well good lyric okay dude Larry and Sergey know about this Larry Ansari

Sergey know about this Larry Ansari

Sergey know about this Larry Ansari encouraged it I said put those axles all

encouraged it I said put those axles all

encouraged it I said put those axles all right you know I knew it I knew they

right you know I knew it I knew they

right you know I knew it I knew they were going around me right okay hmm so

were going around me right okay hmm so

were going around me right okay hmm so and then I said well we can’t do an

and then I said well we can’t do an

and then I said well we can’t do an operating system so they bought this

operating system so they bought this

operating system so they bought this company called Android and they said

company called Android and they said

company called Android and they said yeah yeah it’s just for smart phones its

yeah yeah it’s just for smart phones its

yeah yeah it’s just for smart phones its software smart phones don’t worry Eric

software smart phones don’t worry Eric

software smart phones don’t worry Eric today Android is 1.4 billion are 1.4

today Android is 1.4 billion are 1.4

today Android is 1.4 billion are 1.4 billion plus operating systems used

billion plus operating systems used

billion plus operating systems used largest number of operating systems in

largest number of operating systems in

largest number of operating systems in the world chrome is large the largest

the world chrome is large the largest

the world chrome is large the largest the most successful browser so it may be

the most successful browser so it may be

the most successful browser so it may be the lesson to learn and management is

the lesson to learn and management is

the lesson to learn and management is I’m just wrong all the time but but the

I’m just wrong all the time but but the

I’m just wrong all the time but but the secret was you sort of you have to have

secret was you sort of you have to have

secret was you sort of you have to have judgment as to when these things can

judgment as to when these things can

judgment as to when these things can scale right and I can give you plenty of

scale right and I can give you plenty of

scale right and I can give you plenty of negative examples an obvious one is wave

negative examples an obvious one is wave

negative examples an obvious one is wave right it was a complicated email product

right it was a complicated email product

right it was a complicated email product that we launched to great fanfare and we

that we launched to great fanfare and we

that we launched to great fanfare and we watched its adoption rate Marissa had

watched its adoption rate Marissa had

watched its adoption rate Marissa had this rule which is a good rule that you

this rule which is a good rule that you

this rule which is a good rule that you cannot a Google you cannot tell how

cannot a Google you cannot tell how

cannot a Google you cannot tell how successful a product is until the first

successful a product is until the first

successful a product is until the first six months because you get this adoption

six months because you get this adoption

six months because you get this adoption cycle and everyone loves the product

cycle and everyone loves the product

cycle and everyone loves the product cause everyone tests it and then you

cause everyone tests it and then you

cause everyone tests it and then you watch what happens and the great

watch what happens and the great

watch what happens and the great products you know they’re bumpy but they

products you know they’re bumpy but they

products you know they’re bumpy but they go up well this is what it looked like

go up well this is what it looked like

go up well this is what it looked like like this so it took Eric your friendly

like this so it took Eric your friendly

like this so it took Eric your friendly CEO 18 months of going down straight

CEO 18 months of going down straight

CEO 18 months of going down straight down before the project was canceled

down before the project was canceled

down before the project was canceled right

right

right so again lack of due diligence last so

so again lack of due diligence last so

so again lack of due diligence last so the reason I’m answering your question

the reason I’m answering your question

the reason I’m answering your question in the Blitz growth argument by saying

in the Blitz growth argument by saying

in the Blitz growth argument by saying you’ve got to have the products that you

you’ve got to have the products that you

you’ve got to have the products that you can scale yep if you have the products

can scale yep if you have the products

can scale yep if you have the products that can scale the thing that’s new is

that can scale the thing that’s new is

that can scale the thing that’s new is you can scale very quickly the uber

you can scale very quickly the uber

you can scale very quickly the uber example once you have an app and a

example once you have an app and a

example once you have an app and a business model that more or less works

business model that more or less works

business model that more or less works there’s no reason why you shouldn’t go

there’s no reason why you shouldn’t go

there’s no reason why you shouldn’t go global and wide successful companies are

global and wide successful companies are

global and wide successful companies are a set of things so Google was a was and

a set of things so Google was a was and

a set of things so Google was a was and is this remarkable technical platform it

is this remarkable technical platform it

is this remarkable technical platform it also was

also was

also was new way of doing advertising our way

new way of doing advertising our way

new way of doing advertising our way based advertising and if you go back to

based advertising and if you go back to

based advertising and if you go back to your career and look at what you’ve done

your career and look at what you’ve done

your career and look at what you’ve done at Salesforce what you did Oracle what I

at Salesforce what you did Oracle what I

at Salesforce what you did Oracle what I did at these other jobs they all had the

did at these other jobs they all had the

did at these other jobs they all had the property that you had an interesting

property that you had an interesting

property that you had an interesting platform that the technologists saw and

platform that the technologists saw and

platform that the technologists saw and you also had a monetization model the

you also had a monetization model the

you also had a monetization model the next generation of that is going to be

next generation of that is going to be

next generation of that is going to be applications monetization web services

applications monetization web services

applications monetization web services monetization the way these developers

monetization the way these developers

monetization the way these developers this new generation can make money

this new generation can make money

this new generation can make money because ultimately if they want a to be

because ultimately if they want a to be

because ultimately if they want a to be to be very successful there has to be

to be very successful there has to be

to be very successful there has to be revenue coming in to focus everything so

revenue coming in to focus everything so

revenue coming in to focus everything so so I think for me the fact that we were

so I think for me the fact that we were

so I think for me the fact that we were able to combine those it was that both

able to combine those it was that both

able to combine those it was that both the hardest thing but also the most

the hardest thing but also the most

the hardest thing but also the most powerful thing because when the two work

powerful thing because when the two work

powerful thing because when the two work together it happens very very quickly

”

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