In my career with high-tech firms and research universities, my most memorable phase was at Google, Inc.
In 1998 — in midst of Hawaii’s then-tourism recession — Google’s co-founders, Sergey Brin and Larry Page, were Stanford University Ph.D. computer science candidates. Their computer algorithms, which is the heart of Internet Web search, were — in today’s word — “monetized.” From 2002 annual revenues of $400 million, Google’s 2016 revenues topped $89 billion, and it has now 60,000 employees.
Below are some lessons for Hawaii.
Ranked high among unique factors about Google, the first is “meritocracy in hiring.” Recruiting new staff is a highly valued process. University ranking, major and grades are scrutinized, and in order to be “blind,” numbers are assigned for interview ratings. I recall the hiring of a French citizen who was studying for his master’s in computer science at Cambridge University and had studied Japanese — a world-class engineer who could excel anywhere.
For Hawaii, organizations could achieve greater success through hiring based on merit. Too often a cousin or friend is hired, and talented candidates (in or outside Hawaii) are overlooked. Strong leadership throughout Hawaii must assemble the best teams, whether in the private or public sectors, regardless of familial or school ties.
Google is composed of half-engineering, half-product management. Engineers are top-ranked university graduates, and product managers have a high level of engineering background, different from product managers at other Silicon Valley firms. This explains why its products, like Google Maps or gmail, have user- oriented features of the highest technical quality.
Although Gov. John A. Burns promoted a Hawaii economy “based on research,” few Bishop Street firms conduct R&D for new products. Rather, the Hawaii economy is based on visitors spending money for lodging and restaurants. To diversify Hawaii’s economy, Hawaii businesses must develop a “product” focus. The first step is nurturing young Hawaii people with foreign language skills and a keen interest in how people in other countries prioritize product features, like mobile phone “chat”; the second step is for firms here to grow technical expertise and leverage R &D from local university labs.
Google also launched what is now seen as “extreme collaboration”; it’s famous for services for employees, from mobile dentists to free food. Productivity soared since employees spend more time talking to their boss and colleagues — the ideal of teamwork.
Hawaii private and public sectors should explore ways to foster teamwork across departments that reaches high metrics. This is a leadership challenge throughout Hawaii, from education, business and government agencies: raising the bar on academic achievement, customer satisfaction and public/neighborhood services.
For some Hawaii residents, the state has become a “low expectations, low-quality” society. The statehood dream was the opposite: a first-class Hawaii — public education, health services, well-maintained streets — better than any mainland state.
Google led the way for other “upstart” firms in “visioning the future,” including Facebook, Airbnb and Uber. This is the most important lesson for Hawaii. Instead of factories, software (and mobile) applications can be made anywhere for a global market and bring in global revenues.
To diversify Hawaii’s economy, the entire society here must develop “centers of excellence” like software engineering and product R&D, as well as a “startup culture,” especially at the University of Hawaii Carnegie 1 research campus.
Hawaii CEOs must “vision” the future, especially on what consumers like (and pay for). For example, Hawaii experts from different silos — like tourism, software engineering and Chinese language – can develop mobile applications via collaboration for the future wave of Chinese visitors. Global product innovation made in Hawaii will create new digital industry jobs for Hawaii.
Honolulu resident Ray Tsuchiyama was with DEC, Google, AOL and M.I.T., and now advises startups and Fortune 500 corporations.
