In the 21st century, when discussing the greatest success stories in business, many people think of Apple, NVIDIA, and Microsoft. However, a closer look at their growth reveals a common philosophy: they prioritized people over technology and culture over individuals. This philosophy is systematically explained in the book How Google Works.
This book is more than just a success story. It serves as a management textbook documenting how the internet revolution transformed the world and the principles that guided a company at the center of that revolution in hiring, organizational management, and sustained innovation. Co-author Eric Schmidt served as Google's CEO from 2001 to 2011, leading the company from a small search engine to a global technology giant. Jonathan Rosenberg oversaw product strategy, leading efforts in search, advertising, mobile, and platform businesses, while Alan Eagle compiled their management philosophy. The trio focused on explaining the principles behind innovation rather than simply recounting their success.
The book's core concept is encapsulated in the term 'Smart Creative.' In the industrial age, labor was the competitive advantage, while knowledge was key in the information age. However, in the AI era, individuals who possess a combination of technology, creativity, execution, business acumen, collaboration skills, and learning ability are the ones who hold the competitive edge. Google refers to such talent as 'Smart Creatives.'
Smart Creatives do not wait for instructions. They define problems, analyze data, and seek better solutions alongside their peers without fearing failure. Skills take precedence over hierarchy, and logic outweighs authority. Companies should not be organizations that issue commands but platforms that help individuals unleash their full potential. This is why Google has been able to attract the world's top talent.
Google has made hiring a cornerstone of its management strategy. No single manager makes hiring decisions unilaterally. Future colleagues participate in interviews, assessing candidates' potential from various perspectives. The company values learning ability, problem-solving skills, collaborative attitudes, and curiosity over current experience. The principle that 'A players hire A players, while B players hire C players' remains widely cited today.
Google's organizational culture is also unique. Information is made as transparent as possible, and everyone is encouraged to voice their opinions. In meetings, data speaks louder than titles, and dissenting views are welcomed. Once decisions are made, everyone moves in the same direction. Discussions may be intense, but execution is swift. This culture reduces bureaucracy and accelerates innovation.
Another principle emphasized in How Google Works is product-centricity. Many companies start with market research and competitor analysis, but Google begins with technological insights. Rather than settling for minor improvements to existing products, it seeks technologies that fundamentally change user experiences. The belief that creating the best products will naturally attract the market underpins Google's growth.
In this process, failure is not something to be avoided but rather an essential part of innovation. Failed projects do not disappear; they leave behind valuable data about technology, markets, and users. In organizations that punish failure, no one dares to take new risks. Conversely, organizations that accumulate failures as learning assets become stronger over time. Google has applied this philosophy in practice, resulting in the discovery of new growth drivers through numerous experiments.
Google's concept of '10X Thinking' aligns with this philosophy. It encourages aiming for leaps that can change the world rather than merely improving products by 10%. This mindset explains Google's growth trajectory through search, maps, email, mobile operating systems, cloud services, and artificial intelligence.
Ultimately, the message of How Google Works is clear: innovation does not happen by chance. It flourishes when exceptional individuals are gathered, allowed to discuss freely, execute quickly based on data, and foster a culture that does not fear failure. While technology can be replicated, culture cannot be easily duplicated. Therefore, a company's true competitive advantage lies in its people and organizational culture rather than patents or facilities.
As generative AI reshapes industries today, this book reads not just as a management guide from over a decade ago but as a prophetic roadmap for the future. The performance of AI may become standardized over time, but the level of individuals utilizing AI and the quality of organizational culture will not be easily matched. Ultimately, the future winners will not be the companies with the best algorithms but those with cultures that allow the most talented individuals to work freely. This is the most significant message that How Google Works delivers to us today.
What should Korean AI companies learn? The management philosophies of the Tao Te Ching, I Ching, and The Art of War in the AI era.
After reading How Google Works, one naturally arrives at the question: 'What should South Korea's AI companies learn?' The answer is surprisingly simple: it is not about imitating Google. Instead, it is about reinterpreting the principles and philosophies that led to Google's success in the context of South Korea's reality. The world's top companies should be seen as sources of insight rather than mere templates for replication.
Above all, our companies must shift to a management approach that prioritizes people over technology. With the rise of generative AI, algorithms and large language models are rapidly proliferating. The technology gap is likely to narrow over time. However, human creativity and organizational culture cannot be caught up in the short term. Ultimately, future competitiveness will be determined more by the level of people than by the number of GPUs.
South Korea possesses world-class semiconductor technology. Samsung Electronics and SK Hynix lead the AI memory market, while Naver has accumulated expertise in super-large AI, search, and cloud technologies. LG AI Research is expanding industrial AI, and startups like Rebellion and FuriosaAI are pioneering new areas in AI semiconductors. However, it is now essential to build an AI ecosystem at the national level, transcending individual company competition. Only when semiconductors, cloud services, data centers, software, robotics, and physical AI are interconnected as a single strategy can South Korea leap forward as an AI powerhouse.
To achieve this, first, hiring philosophies must change. Companies should move away from evaluations based on academic background and experience, focusing instead on learning ability, problem-solving skills, and collaboration capabilities. Second, the culture of punishing failure must be transformed. Organizations that hide failures cannot foster innovation. Only companies that share failures and accumulate those experiences as assets for future challenges can grow sustainably. Third, CEOs must understand technology. In the AI era, leaders who do not grasp technology will struggle to design their companies' futures. Fourth, data must be opened up, and communication within organizations must be enhanced. When information is confined to specific departments, innovation slows down. Finally, research and development and long-term investments must be pursued steadfastly. The AI industry is not a sprint but a marathon.
Particularly, South Korea must now transition from a 'follower strategy' to a 'leader strategy.' In the past, it was possible to catch up with the global market by quickly absorbing and improving foreign technologies. However, in the AI era, companies that establish the first standards will dominate the market. The world has already shifted to platform competition, ecosystem competition, and data competition. Following strategies have their limitations. Like Google, there is a need for the courage to forge new paths first.
Interestingly, this philosophy of innovation has long been emphasized in Eastern classics. In the Tao Te Ching, Laozi said, 'The highest good is like water.' Water flows to the lowest places but ultimately carves through rock to create rivers and seas. Similarly, organizations in the AI era must be flexible and adaptable rather than authoritarian. Free discussion and autonomous collaboration yield the greatest strength when they flow like water.
Laozi also stated, 'Without action, nothing is unachievable.' This means that without forced control, everything can be accomplished. It speaks to a leadership style that respects the autonomy and responsibility of members. Google's Smart Creative culture is built on this same philosophy. The more trust is increased and interference is reduced, the more creativity flourishes.
The I Ching embodies the philosophy of change. 'When one is at an impasse, change is necessary; when change occurs, there is flow; when there is flow, there is longevity.' AI evolves daily. Yesterday's success formula can become today's failure. Only companies that continuously change and innovate themselves can secure sustainable competitiveness. Organizations that fear change will inevitably fall behind the times.
The Art of War enlightens us about the essence of strategy. Sun Tzu said, 'The winning army first has the conditions for victory before seeking battle.' Google did not rush into the market but prepared the winning conditions of technology, talent, data, and platforms before opening it. Additionally, as the saying goes, 'Know your enemy and know yourself, and you will never be defeated.' Companies must not only study their competitors but also understand their customers, data, and their own strengths and weaknesses to emerge victorious in the AI era.
These three classics convey common teachings despite differences in time and borders: to flow flexibly, adapt to change, and execute boldly after thorough preparation. Remarkably, Google can be seen as a representative company that has implemented this philosophy in modern technological management.
South Korea stands at a critical crossroads. Will it view AI merely as an industry, or will it seize the opportunity to redesign national civilization? Google was not just a company that created a search engine; it built a system where innovation continuously occurs. This is why it remains one of the world's top companies today.
What South Korean AI companies truly need to learn is not a specific technology or algorithm but a culture that respects people, an organization that turns failures into assets, decision-making based on data-driven discussions, and a spirit of challenge that does not fear the future. While technology may standardize over time, philosophy determines a company's fate.
The true competition in the AI era does not end with semiconductors and software. National competitiveness is only realized when people, culture, strategy, and philosophy come together. The essence of Google's success lies here. Now, South Korea must leap from being a 'fast-following nation' to a 'nation that opens new paths first.' This is the new historical task given to us as we enter the AI era and the most valuable legacy we can pass on to the next generation.
* This article has been translated by AI.
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