like ferguson that we don't actually get coverage of. and i've been finding those and trying as much as possible. but that is what my work is now is finding people that need to talk and giving them the platform because they give me a giant platform over here and i want to get people on it with me. i do have a website going up. it jobindustries.com. we are having everybody i meet write something. anytime i see something, i can reblog if it's the same experience i had were some appeals's version. but the point is it isn't just me but i'm not at all represented. there are many of us. we respond differently. i smoke. one of my best friends thinks i'm a terrible person and she thinks i'm crazy. that's how both of us deal with the pressure. but the pressure is the same.

the situations are the same and what we need to prove and how we have to prove it is that it is an escapable and that it's similar and it is u-uniform that uniform that all of these things are the same across states and across the income brackets and across the generations, across the races. we all face the same pressures and so my goal was to get as many thousands of us as possible to tell our story so that we can present it as a fait accompli and say here you go america, here is a microcosm i dare you to read this and don't think there's a problem. ..

>> >> our subject tonight is "how google works" we will examine that question with the google executive chairman eric schmidt and senior vice president jonathan rosenberg are here to discuss their new book by the same title "how google works". this is surprising and candid and filled with anecdotes and an authentic inside look at the culture practices behind one of the world's most successful companies. and what a moderator to lead the discussion president and ceo of the off to google's 20th employee she saw this from the inside and i cannot

wait to get started. please join me to welcome our guests. [applause] >> i am so delighted to be here tonight. i am sure i got a chance to work with both of these men with it to the longest standing mentors but also not a day goes by but i don't think of something of what should shape the way that i do next but jonathan maybe the most insightful

person i have the third met about people in addition to. >> what about me? >> eric may be the most insightful with scaling all forms. >> could we say something about boris the? >> we had user design, reviews, we will get there. >> i am very excited to talk about their more understanding of people and scaling so about the book have you decided to write it in molas the process like a? gimmick deal built half of this stuff. [laughter] you know, the answers. [laughter] we have been through this. right? i used to come back from eric's staff meetings and i would get bored so i would write down rules that people came up with that were

insightful if i had all the rules like repetition does not spoil then i could get everyone to move along more expeditiously to go to the next point then i go to my staff to explain the rules in 2009 had a sales said we should pass this tribal wisdom on the nose for the best seller i will never published and people liked it. is a best seller and we did publish its. so what is the prize and has been taken from the book? >> people are very hungry

for new ideas as you know, along the way over the decade google pioneered a whole new set of principles whether the way we've recruited people or make decisions that is bizarre, as you know, , it worked and it worked remarkably well. of course, the reason rulebook is real benefit by making companies stronger to try the new model i was concerned a huge gap between the role we lived in and the normal companies handle whole generation of people coming out that the traditional companies are not designed it does not make sense to them they're very smart and cool and quick and have very rigid management systems.

>> host: i felt for me there are values that i hold dear. to say like it is my husband or my family that is why it thinks there is so much in there but what defines our culture is what you look for when you hire? >> i think hiring is everything we have a set of attributes that you hope to create the knowledge of basic cognitive ability but we really looked for passion and a generalist another specialist what i learned in the first year was technology was changing so quickly that if you put a specialist into the role they will look based on their specialty they will roll with the punches to be able to deal with the

change. the other thing that was fundamentally different is the way we hired the committee that i could not stand in the beginning and she had this crazy system we rated people on a scale from one through four and four is good.

then she explained for means that this person is so good deere committee if you have the audacity to turn them down to call me to major rebuilding of this person to my company. and a number one was the opposite call me this person is so bad i don't want them and our company. that is how bad we were reaching people. >> host: the idea was to convince positive or negative. >> now you understand how it works i try to follow the logic. all longs of way so let's take control her most important accomplishment over many at google one day she decided we had to rethink the way product management worked. at the time their retreat

product managers. so how low do we build that model? marissa had the idea to hire people technical backgrounds with no programmers so we take these people better very young widow of college never worked in the company and eager to do everything. and if you look at that group will will saugh all of the interesting start-ups in the valley are headed by those people. a that model worked brilliantly. then jonathan had idea to have work for the people said you had these were extremes in this is how we would develop them.

>> host: and also if jonathan was there jonathan was at google for months trying to grow product management hiring eight engineers per week there's 64 people jonathan hired to. with a total of five and he gave one person to susan and i said when do i get my person and he said when you make revenue. [laughter] one was doing advertising one was doing partnerships and i was doing consumers. and jonathan just said i don't know. can i grow new product

managers higher -- faster than you can hire them. [laughter] >> but in my career when i was most upset i was in campbell's office. i was trying to hire people like me and i could not find people like me that this survey would approve. [laughter] i had a couch. >> marissa. i can say that appear in the appropriate way of an older male colleagues i've loved it but here is what really happened. i am on bill campbell's

couch before i was even at google one year which would have ended tragically i explain it cannot hire and marissa is outside it is 2002 she is 27. and she comes in and says what's the matter? i said i am failing to hire and maybe marissa has an idea. she is exciting and she starts talking about this program. bill says what the use think? and i said i doubt it will work and marissa looks at me and says your problem jonathan is you are trying to hire people like you and people don't like people like you. [laughter]

and that is when bill campbell and i about lead over to strangle her. [laughter] >> ladies and gentleman, and i think we have fixed exhausted the program that is serving as the mechanism to build creativity in the company and it worked brilliantly. >> host: thank-you. talking about the book it is creative and that is the way associate product managers with computer science degrees to do to your rotational program spending she would make them go on the strips. and they would stage three people to one room and eat for quality food and it worked.

>> to see the product in the wild and meet with advertisers but talk about what is creative and what it brings to a culture. >> these people are highly technical also business 70 and creative and passionately curious and don't take no for an answer. they today can build a demo out of the tools that we have off the shelf to produce things with and they show you as opposed to tell you what day it will do so you don't need a rigid product plan but predates demo and a prototype to test them to see birthday go. >> we figured out righty in the book almost all traditional business discussions is around scarcity how you manage marketing and channels?

now there is a global source of funds. to allow you to distribute and a brand yourself new brands popple - - pop up all the time. warda you left with? phenomenal products. if you don't have the over allocation then you will not be competitive in such a hyper competitive world. which is why that whole recruiting path and the focus on culture is so importuned going forward. the tech industry has been largely copied it is true for non tech companies as well. >> one of the claims in the book is interviewing is the most important skill. talk about that. >> in our staff meeting would tell managers you are the sum of what your people

produce. i find interesting managers don't spend the amount of time with recruiting that they should. looked at the coach of a sports team they get it. the players they draft is all that matters. we lose sight of that and we delegate recruiting to some recruiters and as soon as you do that then you go in a downward spiral. you want to make sure all employees are focused on recruiting and larry used to tell us when we could not meet the hiring quotas we could double every quarter just hire one person in his math was correct we did lots of interesting things that were nontraditional but one of the more controversial was the hiring committees to

make the hiring decisions and the manager was often not on the committee and thus subject to not know what they would work on so hiring is critical on the university and they ran no whole process. introduced this ruthless efficiency and we were heavily criticized for these decisions will look over the decade it was one of the most important things because it gave us a work force that was flexible for the challenges. >> one thing that marissa learned from tim armstrong adult learn from the invasion of the bozos. [laughter] what was clear that a cannot

hire a because they are afraid they will be better than vague as our the teach them how to hire you will and avoid the invasion of the bozos. >> they are a great people how to make sure they stay creative? been a people whose visit google to with because of the free food and though lovell lamp and i'd like that. the on-site doctors but there is a secret that the best people want to work on what they want to work on and be allowed to be successful if you can build a culture to empower them to do that you will retain them if you micromanage or don't give them their resources they need they will go

somewhere else. >> you cannot tell the people how to think but you can manage their environment you can be transparent with information, run meetings that allows everybody to participate in the limits the hippos highly paid her since opinion -- highly paid personal opinion they are in a savannah. >> actually they are in the water. >> but they kill more of good ideas than companies and one of the rules that we had i always figured out late because i always tried to get larry to move up model i only had three people working for me it would be so easy it was

others but i had 12 or 15 you cannot do it that way. then one day there was an engineering manager who wanted to do the same thing and larry said we cannot let him do that he will be a hippos if you have to imitate people you cannot micromanage them the. [laughter] >> what is the number in your case? >> if i had eight marissa working for me i could conquer the overall. [laughter] >> host: over worked in a good way. happily overworked. tell us about there there is always weigh more workman and people. >> we have been criticized

because it does not sound right but the people we want working in our company that will do this because they love it and they work best they can when they also want to raise their families or go to movies but overworked in a good way that is the context. if you think work is 9:00 a.m. through 5:00 p.m. with half-hour lunch break them work for the government. but that is not the kind of person we look for we want someone who cannot wait to solve a new and interesting problem with their sales or policy or legal or management. people are delighted in that. we learned this to manage

people we went to allow warren buffett empire beating this is like the highest ratio up leverage ever assembled and he only bought companies where the leadership would stay in place and he would do it whether he bought them are not he would just call and talk to them. at googled key aspect of competition of resources that people will try to make things happen because they care passionately it is easier to decide where the priorities are we don't have to worry if somebody is off the reservation and. >> host: there is a colorful metaphor of the needs and the defense -- the

maids and the divas. did you write that? techno the credit goes to our. are there but i can explain what he meant. typically we find the most successful teams are relatively small. but one end of the things you find is you get a dynamic of social controls. people help to modify bad behavior in a small group the worst thing that can happen you allow the made someone do ligase or cheats are steals to takes credit and does not pick it up after she spills coffee. get rid of them and if you get to that tipping point nobody wants to come to work

>> host: i looked at maids and the divas in the book spent making what to minimize the maid and help the divas who is a brilliant person that believes everything should be done in the exceptional play and is often dictatorial, difficult to work with but has great vision with a better notion of where the world is going than anybody else and they can drive out most people. so exiled the maid and fight for the divas other then the entertainment value these are the people who drive the culture for word and say that is not good enough they drive the average person push them to fight harder

these are the people who ultimately become the most famous in our industry you can argue steve jobs very driven very strong but look at the impact of people like that. >> host: i talked in the opening to manage scale from 200 people with a new joint and more broadly values scale culture we had 200 people with too much work garricks of the annual plan under the doubling principle we will go up at 400 and eric said no-no. we will have 50 between now and the end of the year and

cut it to one-fourth of what we hope to. and have these little laminated cards you had to return in one of the laminated numbered cards. [laughter] >> and it created a whole black markets if the sales guides with say i could give you this. [laughter] so talk about what made you do it. some places we could not grow faster in some places it was important not to but if we tried to double the company then use that commitment is so important. >> talking to the engineering team baby twice as many engineers as it has no right now.

there is a way that an organization can hire and even eyeball it alleged that the hiring rate we will hire 50 people we can hire more but realistically we will hire 50 people so it was the simple way that was rigorous but we were using quick books with the five user license on one single pc it was taking too long to get the report. and that is true. [laughter] >> my position on the company to build a management team that can scale i am a strong believer you can systematically innovate. it is not something you do

randomly but it is a way of hiring so what would happen is to figure out the growth plan and they would take the current growth rates and extrapolate. they were roller blading over to the campus and came back and said we need that campus. let's get the growth rates you can plot that so companies don't really have long-term plans but ultimately you need a five-year plan but this is the hiring plan and here we go. >> host: but the way we could scale the culture to

say we are one and building company recalled her the doesn't really scare me but are we growing? we're down like 80 sq. ft. per person which is tied to. how did we get our culture to scale? >> at the outset google had a mission that was clear to create a selection for those that believe in that same mission it was the smart creators are the founding people division that had these most have the opposite they get started then they have a little bit of success said they could hire the person that says i will write out the culture but they don't know which if it jumped up to bite them with

the rifle partnerships with their customers rededication hard worker severance of our wonderful employees to generate shareholder value. >> host: by the way i was in that meeting. [laughter] >> that was from enron. [laughter] >> integrity. communication and excellence this was lehman brothers. [laughter] >> were you in the meeting when i first saw this but i thought this is a stupid marketing phrase that

conversation about a product the boundary halfway through they'd basically said that is evil in the conversation stopped i thought oh my god. after link the hour of debate it was agreed to not move forward. then it gave this particular engine your a moral question to ask about his actions. >> host: my favorite was when h.r. had the culture meeting polling old-timers together to say don't the evil that was number six.

someone said you cannot have of negative corporate value. can you rephrase back? to good. >> you can have fun without bring a suit. the first mine was to focus on. >> we talk about this and the book with a framing principal if you look at the challenges a corporation faces today we retreat successfully doing it for the end user we can get through anything. >> host: one of the things i learned a long subway that was tactical was meetings. jonathan and i and all types of meetings because one

night jonathan arrives then we all know what was said. said to organize the meeting handing up the agenda in the notes after words. >> but jonathan actually force having to projectors in the room one for the projectors and one was the notes tuesday with the note taker was saying he would say i did not say that i was a master sitting in the room to write everything down then after everybody else left to say what they said they agreed. [laughter] when i put the second projector in the room i would not allow those product managers to do that. they would follow eriks principal to be the meeting

with what they were supposed to be doing. >> host: and it takes time out of your day you'd always say i work for meetings that is how i get things done. >> having figured out the rules of your meetings are important. we had that not everyone would agree after the meeting was over they would do whatever they wanted. [laughter] it was highly effective as you can see per greg google we have the new idea that this model to figure out the best outcome, the best idea for the process. somebody makes the proposal then we try to have a debate and try to have every person have an opinion. there is usually two or three that will dominate the

conversation so i try to get a spark of opposition maybe that is not to a good idea but then you have a debate. you need to have a time limit my rule was to stimulate with said -- with a time limit without the time and you have a university with the decision and everyone would move forward and in the book we go through that decision as an example not as an issue of china but as an example of the process. >> dealer in my weekly staff meeting. >> host: i was.

>> we had one of the apm and his or her job for to assemble all the information instead of everyone coming into the meeting to get updated day had the informational and go out the day before then everybody got good at sating the information we would go around the table to force everyone to articulate what they need from the people in the room to be more e efficient. that is how we started which eventually you got very good at and eventually you would come in with your list ahead of time why do you start your management meetings with actual data? marissa would show up on her own with a complete study where the users were and where the trends were on

each property the moment she put up the slide we would have an argument. but you start with the data. >> host: start with than dash board data. >> if all we have is the opinions we go with mine the [laughter] that is what we call the hippo. [laughter] >> host: talk about those important thing that companies build on product and how important it is every great product has the technical insight. >> said technical insight is the kind of things that ends up in a journal article. that typically a researcher a scientist, think about

google there is technical insight why is church so great? so the notion of quality. why are nappes so great it is the emir of the world and looking at other products like sales force and.com they realize you can use the cloud for relationship management or you can tell stories with computers when technology is changing very quickly leverage choose some insight how technology works to usurp the existing set to make the product better by a factor of 10. >> with a cloud computing the smart phones are well

enough connected now you could be connected to a survey of -- server bank to do a speech recognition off the phone and send it back fast enough to think that the phone did it but it is a super computer. civic that is another example of. >>. >> host: and what is another technical insight? with the products and services? what will drive that? >> one of the profound is artificial intelligence we do every day in the search brigade that google does or voice recognition that use sophisticated algorithms off

the server. we are very close to do highly accurate speech recognition and image recognition and text recognition that will start profound things what is that useful for? imagine the assistant you have to do get up now you just want to invade there do i need to go to the dentist? all the things that are an annoyance we can help you with. of a few years ago google built a new role that work with no programming whatsoever. not thinking what else do it started to watch u2 and watched $11,000 and what did it discovered? that a human face and it

discovered capp's. [laughter] i am dell whole concept detail the running the upper and tougher. the wish i could report this seminal moment in the history of humanity to discover aristotle or plato there is a lot of evidence that will establish of very broad of applications with medicine and so forth. >> the biggest and most exciting are in health care with genetic research and designer drugs but the other exciting thing is the notion of longitudinal lee being able to track information about people and today we see to

stay fit to put that will move to measure things that matter. using disinformation from a cell phone to a psychologist to talk about depression or anxiety if you ask a teenager how they're doing. then ask what a phone could do in that sort of situation with anything they you could track over large numbers of people. >> thinking in the context of how google works have reducing their expectations

will shake things. >> my observation is the following text decks texting and pitcher of them saul's and then text text text a pitcher of the food they're eating. [laughter] so what you learn from this? they're highly highly interactive bear much more tech savvy than i was at that age they earn not supercharged all the time.

seriously if you have the child on line all the time if they break up that night there on-line when they wake up and go back to sleep. >> with that state of millenials that i could ever hope to me i would ask someone that you hired for me then tell them how to develop products for those millenials we're seeing a transition to that apps i cannot at figure out the form of communication with that is but it as there is i can tell what is the best way to communicate? >> it is linked to links to

length. some people are watching links that people send it to them or they'll encounter on social networks like facebook. >> host: they are very entitled to have a lot more church transparency. one of the great things matter how big that company got is it important for is it not? >> it is usually important. been to model that from the

beginning it went beyond tg i f but all aspects of all information that eric would get quarterly to produce the board slides and a litter of the present the same slide to all employees that were presented to the entire board their understood natalie the mission and that the magic's by which we measure the company but also and -- access on the internet if you have the expectation the ideas will percolate up you have to be transparent how you share the information. >> host: so anyone can ask a question and we have questions from the audience we will do rapid-fire.

first is what opportunities are there for the sharing economy? >> we are of big investor with uber to start. >> it means a future products and one of the discussions of the self driving cars in the futures of driving cars could be shared they will show what you get in it and get out and it will go pick up someone else so we have a opportunity to rethink the ownership model. but at 9% of the urban rampage is devoted to parking. >> i think we are in the middle of what google does

is help reduce inflammation caused to help people reduce transactions with any economy we can get those synapse firing to the person who might want to buy that asset. or any other good. your cars sitting idle, your home, the dress you wore this week you will not wear next week. >> also what we try to do is make the entire business transaction a bitterly the moment you wanted to we get it to you. that benefits the entire ecosystem with the manufacturer and ultimately the consumer. >> host: are there any aspects of google culture that should have been

different or would have done differently the next time? >> for me i think all of the errors we have made what is taking too long to do something or allowing something to go on for too long. one team brought out wave we launch it every month traffic goes down and down. we kept trying things and it went down and down. but understand the real opportunity costs not to put that team on something else else, that highest cost of our business is opportunity cost. >> host: how do tell the

smart creator's from the creative ones? [laughter] >> i interviewed for passion. i get them talking about the things not from what they rehearse but what they are passionate about when they're let their guard down and the farther they go in the interview the more they tell you the crazier they are the more likely they are to be the divas personality of better i would rather err on the side to breed in the people better crazy than the figure of how to manage them then not allow me those crazy people in the door. >> host: i have assigned to it is a to.

and i taught my son to recognize it. [laughter] how much of that cultural success? >> so briefly to actually lead the h-p way it is surprising that don't get these documents but at the time where management was by walking around. i think senior managers at google they come in and figure out they have not been brought in to be dictators but aggregate years and viewpoints to help get the synapses firing across the teams then they can be successful i think that is the management style

>> can an employee behind the successful with time left over for a family? spee mike we have a number of here on the stage and family members are scheerer. >> but think about diversity think about trying to get the very best people you have to solve the child care problem that is a blank the conversation we created three slightly different day care centers with that example of what you have to do you have to solve a problem on their terms it is one that everyone can understand we talk about the

women that we work with would disappear for two hours for whenever they run up to then come back afterwards working late into the night by choice you have to find a way so don't encroach on that time you encroach on their family time that is just as important as time with eric and jonathan. >> host: do you think silicon companies are overvalued jedi keep hiring aggressively now or should i secure funding and spend it more wisely over time? [laughter] >> you always want to spend money wisely but really the question is are real and

that technological bubble? i think it is no i would circulate regularly from morgan stanley and if you look at the bubble of 2000. >> nasdaq is not quite that the bubble level of 2000. >> the go to those slides as a proxy for the value begat e-commerce the amount has grown enormously and removing to the model mentioned earlier to eliminate friction if you eliminate friction between people it is seamless to create a transaction it will go through the roof exponentially and the other thing to add in that equation is sold funds are getting cheaper we have 2.5 billion people from all

corners of the globe to access information on the internet and engaged in commerce so those number of opportunities are huge and it is already far greater than it was. >> but it feels like a bubble because of the hierarchy but it went up because these companies have a product and it goes over 1 billion people then you have a sex -- successful product and so in that company stage you are building your technical team be careful to hire carefully , high quality people from the classic model. if you have revenue be careful understanding that

revenue growth rate. depending that or not you will have a different answers. >> what is the chain gang? >> a simple list we would create if any manager could define that -- find a task force of numbers to help them figure out where the resources within the engineers were allocated to figure out what all the people were doing. basically it is the guy who was popping balloons and torturing a the apm that came. random tasks that management needed some kid right out of school to do but marissa said he would get to do something, you will get big projects right out of school.

she would recruit them. but to a company that i gave them all these little tasks to keep them busy. >> host: jonathan said i want to give them all these little tasks. if you're managing d mail or the answer from chrome actually the same person did those. he would get a task and he said i am being enslaved. i am doing jonathan's task so there was of little ricky page then a chain gang. >> imagine a situation with incredibly smart people that know the answers to your business so we really needed of physicist and we put them in the page next to mine --

the office next to mine to talk about the physics of them are given no we would analyze these to say how to remake it better and stronger? . .

and they made you look at all of my pictures since 2007. so i then went to the staff meeting and tried to show to try to show them the pictures and larry said while you miss all sorts of stock in seven, eight, nine, ten years you won't need to take pictures like this you will put a camera on your head and when you come back, software will figure out all the best pictures for you. and he's almost right. today you can put a camera on your head and google story is to say this is the best stuff. >> this is an example of an algorithm within google to pick what is given in the photo storing. >> that they are. >> it's also very useful. >> the next question is the management principles that worked at the decision-making's

decision makings and other startups and other cultures. it's hispanic i would argue the principles that we talk about in the book work very well in any start up in the world. it's quite clear and i say this with conviction any of them have copied and any people came from our culture etc.. so to me the question is what happens for existing companies? here they are regulated and have different problems. how would you attack it? look at their hiring. it turns out that large existing companies would hire five to 10% of their workforce every year adopting the hiring principles which the two of you pioneer in the upcoming books in an even more detailed version of all of this. so that is a step number one.

the second there are two pages i actually wrote to. >> strategy pages. >> but anyway, the largest company that i deal with, they don't really have the five-year strategies however they haven't figured out what to do when the model is disrupted. but as the narrative, old business and new business the growth of america we can support them and so on and educate them etc.. the right answer is over a five-year period each and every company should organize itself around the disruption. and almost no company can answer that question. but here are some examples. obviously everyone gets it.

any great thing that ever could have happened sometimes you just can't see far ahead to plan that far. >> my weight is you have to have a vision. let's have conversations with everyone in this room what do you think will be in two and five years let's start with smartphones. you are all going to sleep with them next to your bed. and you are going to use them very extensively. what's going to happen in the back and? the transaction will be much less. you start making those assumptions and then you can start to say how am i going to do and what is going to happen in my product and how will i make my revenue and transition to the new model?

>> i think i would short in what he said and do culture is very hard to change if you are on the wrong trajectory. my suggestion would be start over. anything beyond that strategy done in a more fluid way where strategy is the foundation, it's not literally a documented dictator to plan and applies to all of these companies. i think all of the principles and decision-making about how to run meetings and eliminate them everything and communication, repetition, sharing everything and a lot of the principles and innovation focusing on the user into thinking big come all of those things apply to any company and in the industry. >> how did the senior executives make good decisions in the rapidly changing circumstances given that they have far less information than they need to make decisions. >> first you do make mistakes

and it is important to acknowledge that executives and individuals make mistakes for part of it is the one to make the culture that you fail quickly. you admit your failures and move forward and we've made a deal on the way that we've got them right produced a good success and i think that this sort of principle number one. principle number two is in the aspect of technology that we can all use you can extend the value and reach of an executive far and wide. read and answer your e-mail. though what's going on. i'm a big fan of actually holding senior executives accountable for what they do. and you will hear this. fix it. there is a team in charge unlike other things like the government. [laughter] >> i disagree on the premise

that there is mismanagement today particularly in the web based businesses and all of the decisions we made in the early years related to the products that were done on the basis of the testing and data and statistics that told us what was going on. the same bad news in terms of inventory wal-mart cut target, bed bath beyond the know way more about what is going on in their business than they did ten years ago. >> in 1987 -- we had a crisis. we had a transition on the computer manufacturing and we nearly ran out of cash and it involved in the great planning and so forth and scott mcnealy at the time was justifiably worried so he ordered all of us to spend four out of every five days per week in the factory

working on this and it is as a management team. you want to understand the difference between there and today. when i first joined google i was was shocked that he knew the revenue down to the second down to the nanosecond. >> i remember one of the things he asked me to do along the way he was opening the key opening and said you're funny. why don't you play gave a business and i am hugely complimented and put together a

little skit in the video and i got the video back and it was awful. so awful i spent time on the phone talking through how bad it was and how i could tell him how bad it was. and i went to him and i said it's bad. it isn't usable. and they said we can't possibly. you said you had a sense of humor in that moment. how important is a sense of humor? there is a simple rule at the end of the day if people can leave your office smiling just a little bit you are going to get more work out of them. so it is just human nature. they want to be respected a little bit and off they go. i don't know if you know this story. we were all over him building 41

at the time and there was a review of a proposal that an engineer had to go by air at san san francisco in the subset subsequently did it in a different way. we have a new executive team in started asking questions and the same junior did not know the answer to any single question. you could watch their mood go from ecstatic to be presenting to this board to being about to kill themselves. they were literally destroyed. your idea was brilliant and i want you to spend some time and i want you to come back and tell you how to address it. and if you don't do that, you're

not going to get any productivity. then they went back and incorporated all the feedback and came back with a product that again helped make it happen. but we really do it for fun as you know in these other things. we make fun of the most senior people in management. so, i know you probably like everyone to believe that you know most of your management techniques. you just mentioned when you leave my office i want to touch your heart and i want you to smile. who is the brilliant management writer and personality that you learned that from? >> oprah. [laughter] oprah is a gifted woman and

explained for example if you want to change human behavior you have to change people's heart. it's true we call it in the book the oprah principle. but it's true. it's back to that note it is both a heart and head thing. you talk about in about in the book it's required to be successful. what does that mean blacks. fun, witty, quick, laugh at my jokes. i think it's like marissa. there we go. [laughter] the ultimate smart, creative. [applause] our time here has gone too fast but i have one question to the young man in the audience who is a dream it has been to ask a question so here is our final

question for the night. [laughter] just jump. the >> i want to know how google is trying to deliver coverage to people in remote areas because i heard a study on all these projects and i wanted -- they want to know how they are delivering the internet coverage to them. >> wow. [laughter] [applause] >> he had another question.

>> i also want to know about google and china are they willing to accept internet censorship? like to go [applause] >> so, in the first place, we understand how balloons work and we invented a balloon that would sit in the stratosphere. >> i think i've heard that before. >> will give him the microphone. put it on him. so, what happened is the key breakthrough is that we've figured out a way to make a transponder on the balloon that could talk to existing smartphones that had never been done before. we figured it would never work. not only did it work but it worked fabulously. the people that you're talking about in the remote areas will

be able to talk to that early the balloons in the sky and 60,000 feet all around the southern and northern hemisphere. and they fear by moving up and down. it's the neatest thing ever. and your question about china. ask the question again. >> is google willing to enter internet censorship into china? actually, no. ' mix of china has the most people in the world. shouldn't most companies are willing to accept any terms to get the market open? [laughter] >> we debated this a long time and we talk about this in the book, which you clearly read -- been actually i haven't read it. i haven't heard of it. >> okay. well here's my coffee. [laughter]