The Decline of '20% Time' at Google

One of the things Google is known for is giving their employees so-called '20% time' — that is, the freedom to use a fifth of their working hours to pursue their own projects. Many of these projects have directly improved Google's existing products, and some have spawned new products entirely. An article at Quartz on Friday made that claim that 20% time was all but dead at Google, largely due to interference from upper management. Some Google engineers responded, and said that it has essentially turned into 120% time — they're still free to undertake their own projects, but they typically need their whole normal work week to meet productivity goals. "What 20% time really means is that you- as a Google eng- have access to, and can use, Google’s compute infrastructure to experiment and build new systems. The infrastructure, and the associated software tools, can be leveraged in 20% time to make an eng far more productive than they normally would be." An article at Ars makes the case that this is not necessarily a bad thing, because Google has enough good products that simply need iteration now, making the more innovative 20% time less useful. "Google wasn’t hurting for successful products when it started to tout its 20 percent time: off the backs of its pre-IPO services, it earned a market cap of over $23 billion. But if it was a company that wanted to grow and diversify beyond products that were either related to search or derivative of what already existed, it needed more ideas, better ideas, as quickly as possible. Hence, liberal use of 20 percent time made a lot of sense. Now, Google is not only an enormous company of nearly 45,000 employees with a market cap twelve times that of its first IPO ($286 billion), it has a lot of big products that it wants to make work. More than it needs more ideas, it needs to make the ideas it has great."

Comments

Object lesson

[Anonymous Coward]

The stock market kills companies.

Re:Object lesson

[Opportunist]

Because money is tempting. Imagine this, there is a LOT of money (use your own definition of LOT) being dangled in front of you with the promise to not take any direct influence in your decisions. Hey, as long as I hold 50%+1 of the company I call the shots, right?

It usually doesn't take long to realize that those 50-1% hold a LOT of power over you when they can afford losing them and you cannot.

Re:Object lesson

[bondsbw]

Shareholders want to turn as much profit as they can in as short a time frame as can be done.

Going public is a great way to slowly kill a good company. Many shareholders don't care where the company is in 10 years; they care about their dollar in one year. When the stocks start on a permanent trend downwards, those shareholders sell and move to the next company that has potential in the near term.

Re:Object lesson

[EvanED]

There are laws and rules that require publicly traded companies to maximize stockholder profit.

No no no no!

It's not really true. It's not completely false to talk about the need of public companies to take into consideration , but there are significant problems with the argument most of the time you see someone trot out that line. Shareholder wealth maximization is a consideration, but is by far need not be be-all, end-all goal from a legal perspective. This is particularly true in this scenario of 20% time, because if the board thought that 20% time was a good thing to have from the company's perspective, they would be completely allowed to implement it.

"While the duty to maximize shareholder value may be a useful shorthand for a corporate manager to think about how to act on a day to day basis, this is not legally required or enforceable. The only constraint on board decision making is a pair of duties â" the âoeduty of careâ and the âoeduty of loyalty.â The duty of care requires boards to be well informed and to make deliberate decisions after careful consideration of the issues. Importantly, board members are entitled to rely on experts and corporate officers for their information, can easily comply with duty of care obligations by spending shareholder money on lawyers and process, and, in any event, are routinely indemnified against damages for any breaches of this duty. The duty of loyalty self evidently requires board members to put the interests of the corporation ahead of their own personal interest."

"But if shareholder value thinking is counterproductive, how did it become so prevalent? Non-experts often assume the approach is rooted in law, and that public companies are legally required to maximize profits and shareholder returns. This is pure myth. Thanks to a legal doctrine called the business judgment rule, corporate directors who refrain from using corporate funds to line their own pockets remain legally free to pursue almost any other objective, including providing secure jobs to employees, quality products for consumers and research and tax revenues to benefit society."

"[Dodge vs. Ford Motor Company] is frequently cited as support for the idea that "corporate law requires boards of directors to maximize shareholder wealth." The following articles attempt to refute that interpretation. ... In that context, the Dodge decision is viewed as a mixed result for both sides of the dispute. Ford was denied the ability to arbitrarily undermine the profitability of the firm, and thereby eliminate future dividends. Under the upheld business judgment rule, however, Ford was given considerable leeway via control of his board about what investments he could make. That left him with considerable influence over dividends, but not as complete control as he wished."

"Many of us have heard that corporations are legally required to maximize shareholder value. Guess what, they are not. The law in the United States does not require management to maximize shareholder value (except under rare circumstances such as when the company gets put up for sale). This may surprise you because you've also probably also heard that shareholders own the corporation. That's not true either."

And finally, to make things ever more interesting:

"In case law speak, judicial commentary articulating an opinion and not decisive to the case is known as "dicta" and is not binding in the court of law. The comments that have made Dodge v. Ford the si

Re:Object lesson

[DerekLyons]

so why did google go public if its so bad?

Because they handed out stock options left and right, and ended up with enough people holding enough vested options that the rules said they had to go public. But even, they pulled a fast one - the GOOG traded on the market are lower class shares... with no dividend, ownership, or voting rights. All of higher class shares with all those rights are held by a very small number of people - early Google insiders, investors, and VC's.

bad thing for who?

[Trepidity]

An article at Ars makes the case that this is not necessarily a bad thing, because Google has enough good products that simply need iteration now, making the more innovative 20% time less useful.

A change from a work environment where you can spend 20% of your time experimenting with new ideas you have, and 80% working on the "regular" mainline products, to one where you're expected to spend at least 100% of a regular workweek iterating on the "regular" products, seems like a bad thing from the perspective of the engineer at least. Ars seems to be arguing that it's not necessarily a bad thing for Google's stockholders, which is a pretty different question.

Re:bad thing for who?

[Tough Love]

Don't worry, Tommy will be passed over for promotion too, even after sucking ass for years. You get to have a life and clean lips, in return for exactly the same result as Tommy. That's how it works.

Re:Do more for less

[ILongForDarkness]

What that often translates into is: do stuff we aren't paying you for. Why can't the staff handle their own secretarial needs? Why can't they clean up their own workspace, get their own supplies from storage, install their own software etc etc. We take what was before someone elses full time job and just tack it on to everyone else's day but don't reduce the productivity expectations to compensate.

Re:Do more for less

[Billly Gates]

What is productivity? How do you define productivity?

My point is you can work for gmail and do your metrics to hit your spam filtering code. But, what if the next big idea is there that can generate more revenue. Would it then be wise to work on better spam filtering for your gmail users or would it make more sense to fund something that no one has done yet and that Microsoft or Apple will invent and then patent the shit out of instead?

That was my point. I have worked at companies where they are were sooo process oriented that we just put out fires and no one could ever call out sick or go on vacation or the whole operation would shutdown.

The good employees left and they had to bring in H1B1 because they were cheaper and would have no quram working 65 hours a week just to remain employed. Work 40 hours a week you were fired for being lazy. No improvements and no say were allowed outside of the directors as we had no time to do anything else. We just put out fires and worked 120% to keep our jobs. That might have worked for the previous CEO to gain his bonus but the company is losing over a 1 billion a year now!

Attack of the MBAs

[anvilmark]

The more MBAs in your organization the less innovation you will have.
They don't think in terms of success through better (or more diverse) products, only in squeezing maximum efficiency from everything - Marx would applaud them.

Re:Attack of the MBAs

[DigiShaman]

MBAs are extremely important in few numbers. But once you have entire departments full of them, they become parasitic by short-changing the company in order to make themselves and their position have a sense of value.

Maybe someone with an MBA can show us an MBA ratio bell curve graph with regard to company productivity. =)

Back when I started working as engineer for

[mark_reh]

Motorola in 1981 they used to say "work smarter, not harder", we got comp time off for overtime worked, etc. After a while it became "work harder", and the comp time off went away, and overtime was expected with no compensation. A little while later it became "work!", followed by "work, goddamit!" where you were viewed unfavorably if you used company time to take a leak.

The bean counters always win...

20% time is encouraged, but unpopular

[another_larson]

I work for Google. 20% time is unpopular, undertaken by single-digit percentages of engineers. Despite that, the message coming down from management is generally positive.

My sense of the issue is that a lot of engineers are spooking at shadows, worried about their performance reviews if they spend 80% of their time on their teams' main business rather than 100%. The solution to this, as far as I am concerned, is to make sure there is someone who is willing to stand up and say positive things about your project at review time. Since Google has an intricate system of peer review, that should be enough.

And if you can't find _one_ person who thinks your project is a good idea, take some time to figure out what you are hoping to accomplish before continuing.

Here's The Deal

[Frosty Piss]

But there is something else going on here.

Google was, a long time ago, a young idealistic company full of people that had drunk the Kool-Aid and were willing to pour out their energy into neat little side projects that one day might make Google greater.

Times have changed.

The smart folks at Google percolate their ideas on their own time in secret, and then bail out and start a "start-up" (and then possible sell the idea back to Google).

The whole "creativity" dynamic has changed at Google. It is still a pool of VERY smart people, but they know better than to give their ideas away for free.