July 4, 2020

Restoring the Soul of Business | Rishad Tobaccowala | Talks at Google

[Music] as you can probably recognize the first and most important thing with good management is surround yourself with great people and get out of the way which is a lot of what I've done and in fact many of them and Kari is one who's been more gentle will tell you that they did there's a guy called Tim Harris for instance who will tell you he did all the work and I just hung around which actually is sort of true but on the other hand he still hangs around with me which is probably good so with that being said what I'm gonna do is speak for about 20-25 minutes and then we're gonna have a conversation and open it up for Q&A and I'm gonna talk about some themes from my book and I'm gonna begin by telling you why I wrote the book there a little bit about how I tried to do something very googley and I know a little bit about Google because when Stockholm IP was formed a gentleman came to our office and no one took him seriously his name was Sergey Brin ok this was 1999 so that sort of gives you an idea of how long we've been there and one of my daughters spent five years in Mountain View so I have some concept of what goes on in this place though no one has ever given me a job here so that's a different thing so you know with that being said the reason I wrote the book was because I was very worried that something was going wrong all across business in the world so this is not an advertising or marketing book this is basically a business book and I was worried that because of companies like yourselves and Facebook and Amazon and others that people were starting to tilt towards what I call the left brain they were tilting more and more towards math and as a result I thought they were hurting people society and in the middle of the long run they were hurting their own employees in the world of their own company and as someone with a advanced degree in mathematics an MBA in finance and someone who has some credentials in understanding what digital is and was I thought I would be an interesting voice to say so because it wasn't like I was an art student who was anti technology to do so and I shared some of these thoughts in a fireside chat in September I believe in soldier fields some of you all may have been there I know Mac was there and mentioned it to your management and I basically I just spoke the other day to 2, 000 people at Twitter responsibilities in the age of data okay and where Matt Tara and Jack dose he asked me to speak to them so this is not a anti-tech anti science anti the future person right I'm Pro Google pro pro Amazon and then I'm not that Pro some other people and an improved future change but here was the concern the concern was the following one we were basically putting such an emphasis on what I call a spreadsheet side of our business which is the data the number and the math because the most valuable companies in the world like Google like Microsoft like Amazon were basically in this country and by doing Alibaba those in other places were being driven by math that I was trying to explain to my clients that data is gonna be like electricity for most companies which is you can't live without it but no company outside of a few can differentiate themselves on electricity you do year of any company that basically says we use electricity better which is why we are a better company now a company that doesn't use electricity doesn't exist today but a company that basically outside of you all in a few companies I do not believe a company will differentiate on its use of data five years from now I believe a company will have to have world-class data to remain in business obviously companies like yours which are truly data-driven companies it's a different deal but most companies won't they will succeed and differentiate because of the story side of their business and the story side of the business is basically the talent the culture the values its purpose of the company I'll give you an idea how that works I do not have a citation for this I wish I had written it down but it is not something I made up because I don't have to make this up but let's take a look at one of your competitors not your competitor but one of the companies in your space which is Facebook so Facebook two years ago if someone who is an engineer got a job at Facebook 90% of them accepted the job today that number is 49% the only thing that's changed is the story their data is the same they got more customers they got a whole bunch of other stuff but basically people say do I actually trust you and there are people who say I don't I'm not proud as a world-class engineer saying I work at Facebook you all have the same issue to a certain extent at Google right and so what I told people is these that oh that if you don't focus on the purpose you don't focus on the meaning the most talented people will leave a company this is the way I basically got to run some of the best companies inside the agency business is I attracted the best talent and I basically got them to believe that what they were doing was meaningfully important right they had great fun and so what tends to basically happen is folks like y'all and like senior management believe what is important and is important in any career is fame and money and power and I will tell you that money fame and power are important so anybody who says that is it important then they are basically either the Dalai Lama or someone else like that okay however after a point I can also tell you that fame power and money are insufficient and what is sufficient is purpose growth and connections and this is something I've studied over the years so it basically happens is fine I got a little bit of Fame I got a little poly with a meaning but not everybody will be able able to get power and power and fame they may get money right but some people would get all of those but then when you basically begin to have on the other three and those are can you grow as a person that's growth purpose are you doing something that's meaningful and you feel good about and connections how do you feel about the people you work with your bosses your colleagues the people who work for you and successful companies have those following work and let me go outside the category until Walmart got a new CEO it was a horrible place to walk into right if you walked into a Costco and you walked into a Walmart they were two totally different experiences but it was the same thing if you actually think about it the difference was in Costco the store managers got to run the stores and they invested in those people in Walmart they basically said how do I cut costs Walmart stock initially did better than Costco and then it was the contest was over so that gives you an idea of a simple thing let's look at Southwest versus United Airlines if you look at the number of Southwest basically has a 2.

4 percent turnover rate 2.

4 percent of the people turnover in United 20 percent turnover which one is more productive whose stock price has done better which airline is more friend to fly Southwest so when people basically tell me it's all about the math I say you should as a leader fire yourself immediately let me prove to you again why that is true because I know you all are data driven company I go back now into this category which is the industry category so one of the people who I whether my chapter starts with a concept which I will talk to you about you just called the third on the table which is when you're sitting around the table all of you are gathering around and there's something Brown and moist and you'll think it's a brownie it's usually a piece of but none of you all may be brave enough to say so people were not brave enough at Wells Fargo to say why are we opening accounts that are fake and now you know what happened to Wells Fargo people basically were not brave enough at Boeing to basically say what the hell are we doing with 737 max now this email the moment that happened I said I know that there was there's a paper trail there for two to three years these things don't happen without people not being allowed to speak up people are too smart I think talent is too smart not to know some shits going on but people have not been able to say so because of power and a whole bunch of things but on the third on the table the chapter this chapter starts with me having a conversation with a gentleman you you mean may or may not know he's another one of the famous Indians that seem to be running old technology his name is Shawn Tanana Ryan he's the CEO of Adobe and he had come and it was in 15 20 years ago and we're talking about partnering and I said Shawn through you just bought an agency and now you're talking about partnering explain to me how this thing works right so I said I want to call the turn out on the table you're you're and you've just you're like my competition talking about partnering and then he explained what he was doing and he says thank you very much and we became friends he's one of the people who basically endorsed my book and he shows up in this chapter and I sent it to him saying is this okay he says yes I remember this which is whatever it was but look at Adobe ten years ago about eight nine years ago cheltenham made a decision which basically was a non numerical decision and his non-numerical decision was he was going to stop selling software package software and basically go to subscription using the cloud his stop price fell by about 70 percent in the next two years why because his revenue fell by 70 percent by 60 to 70 percent in the next two years because instead of selling a $400 piece of software he was basically selling you $9.

99 a month which only added up to 120 dollars at the end of the year so he had a hundred and twenty he was replacing 400 dollars of revenue every three years with a hundred and twenty dollars of Revenue and his stock price fell down to 30 bucks and he said okay but I did the right things so last week his stock price was three hundred and seventy five dollars and last week his company basically was the most valuable enterprise software company in the world after Microsoft ahead of Oracle ahead of si P ahead of everybody he made a non numerical leadership decision he actually did the math but he didn't say my stock price has to be kept high and I'm so scared so I'm not gonna basically do stuff right when Satya Nadella came over he didn't go shouting like Steve Ballmer Windows Windows Windows Windows right he shut down the windows division he along with y'all and Amazon our graph had Apple are grappling for the most valuable company in America guess what he focused on people he basically gave every be a group book called the growth mindset in fact my agent is the publisher who is the agent of Carol Dweck or the growth mindset he says your book is like that so I said good hopefully other people will read it right but but what tends to basically happen is so whenever you tell me that the numbers make you do something I will tell you you will be out of a job very quickly because you're AI and Microsoft's AI and maybe one day you know Amazon's AI and everybody else's AI is going to start making numerical decisions in our jobs better than we are going to be making numerical decisions your CEO has said it's going to be bigger than fire and electricity and I believe him and therefore if you tell me that your job is to read a spreadsheet and make a mathematical decision your company is going to make you obsolete before they're gonna make me obsolete because they'll first come to save money by making you obsolete right and therefore again and again when people tell me it's all about the spreadsheet and I'm basically saying no it's the spreadsheet and the story if it's all story and not spreadsheet and you don't have data and you don't have math and you don't have income you know what have you have we work right we don't need no we work but what basically happens is I'm simply saying is if the world is going to succeed we're gonna have to do something interesting now when I was in the bathroom and I'm sorry you have become so used to going to Google stuff as I'm going to learn something good because while I'm pissing I'm gonna read the thing so interestingly I read the thing on the top and I said oh these guys are doing better than the rest of the world but not bad so if I read what I was reading correctly 22% of y'all are disengaged at work the number for the United States is 55% 55% of employees are disengaged at work and guess what management says let's do the following let's put our press releases let's talk about let's have fewer meetings let's talk about math what do you think is gonna make them more engaged or less engaged right as a person with advanced mathematics I've gone out of my way to make sure that my job doesn't depend on advanced mathematics because advanced mathematics is done faster by machines let's say you're a lawyer they did a test lawyers looking at NDA's for mistakes right the average lawyer to go through this document took 30 minutes and they've covered 97 not they discover 95 percent of the mistakes a machine did it in 3 seconds with 99 percent accuracy so therefore I believe that business can only come back when it's restoring its soul and its soul is its people its meaning and its culture and so my book basically is about that and I'm going to talk about three or four concepts and it opened up for questions but I just wanted to – I remain you know customize this to you all so one is there's a chapter on it called too much ok when I was speaking at your big event I sent an advance copy of my book and they said here are the six chapters that are most applicable to Google Google so we have written my book is I basically try to or rethink what a book is it's twelve different chapters you can read any chapter in any order it's a Spotify playlist each one is a freestanding book right for a modern YouTube video age it's like 15 20 minutes I mean each depends on a faster reader you arts on behalf in our chapter or so but the ones that related one was called too much math too little meaning which is how do you act Rach actually extract a meaning from mathematics which is number one another one was called chained sucks and the reality of it is even if you're a company that drives change like Google you all as individuals are constantly being buffeted by change right new technologies new policies new laws new legal new something and so I've always believed that change sucks and the reason I believe change sucks is the following isn't it interesting when people come to you and say change is good they want you to change but they're saying it's good when they come and tell me I basically say I'm happy you change now I've remained in the same company for 37 years not because you know it's one of two reasons either I hate change I'm unemployable that's basically it okay I've lived in the same city for 39 I've known my wife for 48 years since we were 12 so I hate change but when you actually look at my bio and it's not fake it looks like I've been driving a lot of change the reason is because I know how much it sucks but you know what sucks worse than change is irrelevance and I basically watched a lot of my friends become irrelevant because they refuse to change your to this date I worry a lot that I'm one of the few people in my company who's very adept at social media and the senior management and they say why are you doing this I said this is the way you engage this is the way you sell box this is the way you build brands but most importantly there's something else for this reason and that is because people follow people they don't follow titles make make no mistake you know you have to genuflect for title because some crazy person can fire you right so you have to say yes madam yes madam thank you very much you go outside have a beer and say what a woman she should be shot right but then you will follow people who you believe are inspiring who take you to the other side which is important and so I know you're in this process where you'll all trying to get better I think you are reviewing each other and reviewing yourselves or whatever the process is so what are the chapters that is very valuable in my book and I'm just going to talk about these last two one of them is how to upgrade your mental operating system and another one is called how to be how to lead with soul and I'm just gonna talk a little bit about those two before I open it for questions because I think those are very important so my underlying concept of my book is how to see think and feel differently about growing your company your team and yourself so screw Google they can look after themselves so you just worry about your team and yourself right so growing your team is how to be a leader and what I've understood among good leaders is goodly that there is nothing like a good leader or a bad leader all of us have in us the qualities of being a good leader and a bad leader the good leader is said to be good leaders most of the time and once in a while they show bad tendencies the badly does tend to primarily be bad leaders most of the time accepting at evaluation time where they show some of their good tendencies right it's what they basically do what's common among good leaders are their five characteristics of the good leaders the first one is they're capable and I found that people sometimes forget that you have to be capable to be a good leader right you have to know what you're doing so one is capability the other is integrity can you trust them the third one is vulnerability will they actually tell you when they don't know what they're doing the third is empathy can they see your perspective can they see someone else's perspective and fifth is inspiration can they basically make you do things that the numbers tell you you should not be doing right those are five characteristics and all of us all of you regardless of whether you've got hundreds of people reporting to you or nobody reporting to you have the potential to be a great leader at the same stage each of us have some constraints of a bad leader the good people showed the bad leadership traits under pressure when things get really intense sometimes either you don't know what the hell you're doing so one of them is the narcissist so the narcissist is I mean mine everything is all about me the other one is a micromanaging Fidler this particularly occurs when there is a big pitch or a big proposal the micromanaging fiddler has to make sure that every single page is you know correct the third one is the Oscar contender and I'm sure you'll award for some Oscar contenders this Lando's they say they look away they yell they cry you know all kinds of other stuff and the last one is the double-crossing assassin okay you know who those are right and so the reality of it is I'm calling them out and a lot of people are giving these to their bosses and saying read this chapter I hope it's for the good purpose of the bad part but it's a very flexible thing but I want to sort of end with the most important thing which is okay Google's fine team's fine what about me right and how do i braid us up mental operating system is something that is extremely critical because I believe that for Google to succeed you all are going to basically have to think differently and I'm gonna give you one concept that you have to think differently which is not in the book because this book is not about advertising or marketing so I believe that Google is no longer an advertising operating system I believe Facebook is no longer an advertising operating system I believe Amazon is no longer a transaction operating system with an advertising operating system I believe the three of you all our society operating systems society operates on you're not advertising and and the more you optimize for advertising the more you're likely to hurt society I'm just saying that five years ago I spoke at Facebook I still have a thing from David Fisher saying you were so brave and I said I was so right – this is immediately after the election about four years ago three years ago February 2017 right and I said make no mistake all of you allows stunned in California about the election results these election results were because your system was gamed in part and they said no no no I said don't be stupid you're telling me your stuff works for advertising and doesn't work for political advertising it works better for political advertising than advertising I need two things for political advertising micro targeting and emotion I can get it right no we don't do anything like that I said wake up now right that's the key thing that people have to basically sort of understand this is no longer about that I'm at the University of Chicago the University of Chicago basically now is asking where the companies like you all have to be broken up these are the anti these are the people who created the antitrust rules that help take away antitrust right are now basically saying what the hell has happened simple thing has happened it's is about society and about no longer about consumers and that's the key thing that you'll have to sort of think about because I do believe that Google is very valuable in the future is a great company but in effect unless you'll think differently and you still think in the same way you'll be like surprised when bomber was thinking Windows Windows Windows all it required a certain or they'd rather close down the division and say no it's about the cloud we're not about consumer we're basically about enterprise and that changed the whole mindset mindset matters how do you all change your mindset maybe Google won't change the mindset but you can change your mindset because companies get better when the people in the company change their mindsets so number one very easy to do try to do one new thing every day when you do one new thing every day you figure out and I'm not just saying at work you know private lives whatever it's less when you are alive you're alive when you're doing something new you know remember when you're traveling and your plane gets canceled or you get detour to a new place you're not paying attention because it's all new right so go home in a new way go to a new restaurant like but I came in here I said what's my new things I said go check out the city market shift they got a great hot dog you know stuff like that so always do one new thing a day the other one which you'd be surprised I'm sure you'll do it but maybe you'll don't you must invest one hour a day in learning new things don't think that because you're at Google you're gonna remain smart please know y'all are gonna be in its halo of self-love it's not gonna work that way ok it'll feel really good but no babies will be born ok I'm leading something else so you know with that being said you have to basically invest in our everyday learning I wake up every morning at 4:30 and I learned for an hour a half I take a little bit more time than most people I'm getting older but most of you won't can do it in an hour I'm not saying get up at 4:30 you spent seven hours a week learning if you don't spend seven hours a week learning you will become irrelevant the only reason that I still know what the hell is going on is because I was doing that right so I can talk about things like we're entering the third connected age I can describe the last 25 years in the fact in the first connected age which is what media or company was about connecting to transactions and connecting to information you all are the information company Amazon is the transaction company the second was guess what connecting to everybody connecting all the time and connecting to the cloud Facebook Apple Microsoft right we're now entering the third connected age data connecting to data ai you all ever you're ever play there things connecting to things IOT new ways of connecting voice much faster ways of connecting 5g Google home is a device so I've just looked at the last 25 years how because I've studied stuff besides the advertising business I paid no attention to goddamn Omnicom no attention to WPP because my whole stuff is being less pathetic than other pathetic people still makes me apathetic and I'm not taking away from them because all of us are pathetic so similarly if you all the time you're basically only focusing in your industry you'll miss what's coming because the future doesn't come from the heavens it comes from the slime IBM did not see Microsoft Microsoft did not see Google y'all did not see Facebook then you'll tried G+ which was a sucker you know etc right and the reason Google y'all didn't see it is because you'll came at it from a math thing the moment I saw it I said these are mathematicians designing this you know small in groups it's and I knew a lot because my daughter actually worked on Google+ in this special floor mountain view where she was next to so again everybody my stuff is the biggest I've ever seen in my life right why are you doing it like this why are you doing it like this but everybody oh it's so J's project on that project someone should say to him right so that's the thing that you have to be very important but the most important thing is this which is you have to build a case for the exact opposite of what you believe so whenever someone comes into the room and tries to sell me something I said tell me why the exact opposite of what you just told me is right and if they say we don't know I said that how do you believe what he just told me so I go to our management and I build cases as to why they should not do things that I've recommended to them and sometimes I'm so good at building those cases that they call me and say you have to have breakfast with you did you recommend this so it's saying we shouldn't do it literally i breakfast with authors adun right he says you said this epsilon thing was good but now he's saying it's all bad right is it good or is it bad I said it's good but I said I'm giving you facts on both sides right and then I said then as a leader we got to make a call and my call basically is we die slowly or we die fast or we live I mean we die die slowly die fast or live and I said we don't do things like that we die slowly this will either make us die fast or live so choose simple choice right that's the kind of stuff that I think you'll need to do because I truly believe that your amazing talent and an amazing company and your company needs you more then you need your company and the day you don't work in a company where you believe that you are more valuable than the company you're working for the wrong company that's what I told all my folks right I have an inn first thing my whole stuff is you heard a good place if you keep increasing your market value and the company depends on you but if you basically are sitting there thinking of some sort of baby right suckling at the nipple of basically google go find another job is what I simply basically say because that means you're slowly becoming irrelevant you're not actually growing the company you're just growing yourself it's all controversial but this is a way to actually think because you all have the ability to both change your company and further your career like nobody else that I know but you'll just have to think different as the man from Apple said back in the early days of Starcom IP when anybody joined the team or the department we would have weekly meetings and as that new person came in they were put on the spot and asked to justify their existence knew you weren't supposed to really talk too much about like your professional your education it was supposed to be something that really brought out like who you are as a human what your silly talent I can remember a woman did limericks there was somebody that went up on a table and did his fight songs do you remember that's a woman playing the tuba I don't remember what how I justified my existence it doesn't matter but I know I wasn't in the room when you would have had to do it so can you please justify your existence so I now justify my existence as basically in two ways one is I'm still trying to basically learn from my kids so I'm staying around to learn from them we're a little bit older now but as importantly I do believe that I have a message in a story that I want to tell which is sort of what in my book and so my current existence is how do I get all the people who helped me over the years thrive but as importantly give back to all the young people as well as my colleagues and peers because I'm now in a fortunate position where I don't have to worry about crazy thing like in the old days I would always worried someone would send hate mail saying why is he saying something like this now I'm an adviser to the company I'm not an employee or publicist you can know clients can say we fire poom the Cespedes publicist we'll say the guy doesn't work for us he's just like I ever it is professor he's a crazy guy sorry we take pity on him alright so the whole thing is my my current belief is I'm sort of teaching but teaching in a different way which is try to get people to recognize that they have amazing potential but often because of what's going on in society often because they're so scared that they aren't as good as they should be so I'm trying to get people to see think and feel differently I love it because even for today I was gonna get a VP to come and do this moderation and she wasn't available and so I was like Rashad we could change the date and he goes no Carrie you can do this I was like are you sure I could sure I can do this it's like yes you're me let's have you be my plan a was so he like lives us out all the time and I'm so old right that now the CEOs of my competing companies were trainees under me that's how sad it is and they still invite me which is kind of good let's talk a little bit more about how you stay relevant because this man like he you've talked about it a little bit earlier today but can you give us just some little more nuggets I'm like the types of sources you go to what types of topics you're like most interested in now if you're gonna spend an hour every single day learning something how do you what's what's what are you what's driving you what's what are you learning about so there are four broad topics that I'm now studying and there are four different gradients so one of them that I am studying a lot about is what happens when leadership fails okay so what is studying to basically happen is I truly believe that we have a leadership crisis in the world we have a leadership crisis at the political level we have a leadership crisis in business and why do leaders fail it how do leaders succeed so the sole thing about leadership I'm reading a lot about it both historical you know and and today because there was a time when I could look around and there were a lot of people I admire and that list is getting smaller and smaller and and so my whole stuff is why is that happening so that's the sort of one thing because the people haven't got worse right so that's number one the second area that I'm studying a lot about is what is the implications when technology exponentially increases much faster than human beings can adapt so Moore's Law the processing power doubled every 18 months what I read is AI capabilities are doubling every 90 days and when you basically take AI and you take biotechnology and you combine those two what we basically now have and that's what the reason why sundar Pichai certain today allow and all are basically saying we have to legislate AI because I think these are amazing leaders I think sundar Pichai is a fantastic leader I think something until as a fantastic leader you know and and what I think Rob Bob Iger of Disney who basically made the hard decision you know to go into streaming is a greatly so they're still very good leaders so that's why I'm studying leadership I'm studying how the good leaders do it but I similarly this what I'm finding interesting is whether it's musk or gates or such a Nutella or sundar Pichai they're all very worried about AI at at the same time they're talking about is potential to change society in the good so I'm trying to figure that one out because it's a society impact the third one is it's really fun but I'm following a deep dive on filmmaking and it's not because my daughter is at filmmaking it's because I just got fascinated by it and what I would encourage you all to do if you all haven't done this is there is a show called better call Saul okay it's it's the prequel to brain so if you haven't seen Breaking Bad see that it's the best show ever on American television but if you even if you haven't seen this fine this is a prequel you don't have to do and around season four it got better than Breaking Bad I tell you without a doubt it got better Breaking Bad but here's the key thing it has a podcast with it and the podcast is unlike any podcast most of these show podcasts review the show like who did what at etc this is basically the showrunner so it's like Vince Killian and the people write the editor the people who make it the product on how they made that episode and it is just looking at that show and looking at the podcast and reading books about art and film because to me we're living in an age where television has become the highest art form in the world its overtaken movies right and and to a great extent how does that thing and I'm fascinated by that so I'm studying a lot of that and it's fun but I'm doing sort of the nerdy element of it which is which is a key element and the last one which I'm spending you know a whole bunch of time on is somewhat you know fascinating which is about writing but I'm rereading the great writers so in my book I talk about if you want to get great insights sometimes you don't have to go to a focus group right read Madame Bovary read Anna Karenina you learn more about people than any focus group well so I'm trying to figure out how literature of the past can allude to the future so one is odd one is literature one is AI and one is leadership so you think about business science movies and words and then I combine them because a big part of my belief is innovation is connecting dots so I'm trying to have many dots and then you know try to create Reese's Pieces within putter in the peanut butter in the chocolate it's always a good combo let's go into that a little bit deeper because there is a chapter about unleashing your creativity and how companies recognize that you need a left and a right brain to make magic and the story happen but you also allude to the fact that sometimes it's not very natural that oftentimes companies like ours will do off sites or they'll create a brainstorm to have that creative outlet happen in that specific instance what I didn't get and what I'd love to know a little bit better is what are some other ways that you can instill from an organizational standpoint more authentic opportunities for creativity and innovation so there – there – there – big broad things one is environment and the second a sort of catalyst so a what we sometimes forget when we do off sites and a whole bunch of other things is ideas that innovation doesn't happen on command you know it's not like okay now we're gonna have ideas and just because the environment is we put you in some catalyst ranch and surround you with rubber duckies it's going to come right and my whole idea is and at that stage when you hear what people say there is no idea as bad feel free to speak up my own stuff is why is that only happening like this one day every six months or one day every year are other days idea is bad are other days days where you're not allowed to speak up why are you saying if you actually listen to what people are saying they're saying you're free if this is a gig get out of jail card for one day and then you go back into jail so my old stuff is why don't you take the environment and make it every day which is therefore create atmosphere where people can speak up where people aren't scared about talking to their bosses about sharing bad ideas one of the things we used to do at both giant step and stock armed IP is they were like I mean we had crazy people saying crazy things all the time right and my old stuff is you can say anything you want as long as it is at a disparaging and does doesn't make anybody feel bad right but we would do reverse things we would call ourselves lepers right with people in like us we would basically sell like right then we would call us our elitist you surprise people like are you bad or are you good right you know I would have this whole thing about the future as a brown and Buddhist and all your people have to disappear I remember this thing so it was always like fun right so people have sort of speak up so nobody as long as nobody felt threatened and nobody felt that they were to listen and fell safe that's an environment where you get innovation you don't get innovation without that the other one is the catalyst or the environment you want the environment to basically be what you try to have at an off-site but every day but then what you want to basically say is what are the off-site doesn't happen that way only that way but instead you take some of that money and some of that budget and you basically tell people that you have a art budget so my big connection here was this that the world's best entrepreneurs are artists therefore the best innovators are artists because artists start with a blank sheet of paper and they start with a blank sheet of paper and they write a book or they serve the blank sheet of paper and they paint or they have a stone or they've an empty stage or they have a blank screen and they light code right there basically it's basically artists and artists basically what we have to be exposed to and today because of Google's right so if I want to see the world's great art I can Google lets me sue see it if I want to see a whole bunch of stuff you know y'all enable more you know the reason I've been a big fan of your company is because it gives me godlike power right it allows me to conquer space and distance so my old stuff is why don't we use these technologies to basically tell people that hey you can go and become members so like in Chicago right I would basically say look I'm gonna underwrite a year's membership to any two things you want in Chicago and then if you want more than to tell me and all right so you want to go become a member of the Art Institute or MoMA or you want to get a subscription to the good man or to the Joffrey or whatever you know music and sound play whatever it is go do it that and then the only thing is when you come back let's have little gatherings where people talk about what they learned and the reason why that's important is you're seeing what artists do or do artists do they not only create new stuff but artists frame ways to see things when you basically see the first cubist painting from Picasso you say who the hell is this how do you see the world this way right so it's a key thing but the other thing that artists do is they frame not only frame things different ways but they show you how to come back from failure because every artist there's no artist that has ever succeeded without being failing so shows you and that's part of innovation so my stuff is all around us why we only having it an off-site so that's the thing there but the other one is this which is when you want to basically give us presentation we often use I don't use it because I'm lazy but we use videos and we used you know slides and we use a whole bunch of stuff and often the video has happened to be film or television things etc so we're actually using art to tell people things and you know when I wanted to tell a boss that he was being like bad I could do it in one of two ways you're constantly ordering us around I don't know why you ordering us around none of us are following you now if I say that I don't keep my job I need to keep my job so how do I communicate this fine thing to him and I did this I basically said it is this French film and this is not – my French boss this wasn't – Maurice because right so else because if I said I'm a French film – Maurice it threw me out of the room so loosely okay so it's like hey I've got a French film and you want to show you this little scene from the French film it's a very famous scene from an old film it's do y'all got 400 blows okay there's a and in that there is like a gym teacher who comes out with all of his people and he they're supposed to follow and he's blowing the whistle and there's an overhead scene of Paris and as he's running everybody's running off in different directions right mm-hmm and I said look at that gym teacher he's basically going Bing Bing Bing look at all these people they're running off in different directions East I got what you're trying to tell me thank you very much that was done elegantly using art I have a handful more questions but I will pause if anybody has questions you can start yeah go ahead slightly controversial but in the abstract question so I joined Google at the very end of 2016 and in the following three years there was a lot of upheaval about our corporate mission and values and how it reflected our culture and all of this stuff made the news don't have to go into it but I'm curious if you have any perspective on that you mentioned earlier Facebook for example suffered this change of the story that they potentially like didn't retain what you might you know what are your calling the soul of the business are there any things that it's important for Google or individual Googlers to keep in mind based upon some of those things that have happened and so so so what I basically believe is the reason that Google will do they don't read my older need Mahalo world-class company but y'all will continue to thrive is primarily because internal opposition is making your change so because y'all were protesting what basically happens is there's there was there was much more inside Facebook of basically the world is against us and we we are we must all be gathered together at Google it was like there were factions like hey why did we get rid of don't be evil what the hell is going on right and you all are so powerful that you have it you all have actually changed your management right I've always basically said it I'm out and I've said this to Carolyn Everson and everybody I said Facebook has one controlling weakness it's controlling shareholder thank you very much okay and what basically begins to happiness when you have a controlling shareholder who can do whatever they want you know he doesn't listen to anybody it doesn't matter what anybody says like I tell my clients and basically say all the fortune five it's true –gel two but all the fortune 500 advertisers account for less than 30% of the revenue of these major companies they'll keep you happy but it doesn't make any difference it's this long tail advertiser right so stop and don't think there's because you have a good meeting anything is going to change it's gonna change when Zuckerberg is replaced with either a chairman or or he has a board that actually talks otherwise there's not a piece of information that he basically has you all don't have that problem you all just change your management very elegantly do you think it has more to do with like this hot mic or is it about a governance structure or is it the interaction between those things I think there are two or three things one is you all didn't have one person you'll have two people and you really had three people because of Eric Schmidt in his early days and also as a result you had a much stronger board your board is actually a very bored and so what tends to basically happiness and you'll have a very strong CFO and you love it very strong right so what a standard happiness you all are actually a company that's more likely to make it and all of y'all will make it'll be very successful companies but you're more likely to make it because you'll have actually spoken up right I have amazing friends at Facebook and I think they're also going to speak up but give you sort of an idea if you say today that you work at Google or Facebook I would basically say people are more happy to work at Google than Facebook right I'm not thinking talking about environment just a brand name and so I think y'all are doing the right thing but I do believe the real challenge is to recognize the implications that that there is a talk I gave in at in January of 2018 which you can see if it's on ad exchanger and was basically a talk where I said it's time to optimize for the citizen and I mentioned that at the start of my book write and saw my book I say gave this talk and this is what I tell this is what I basically I think I said in some section at the the off-site with some of you all as some of your management but I said this is my basic case that I tell people in man in my clients when I had clients I don't have any but when I had clients I would say look all this stuff work works really well but how come your business isn't growing right I said sometimes when you show me about how well all these online programs are working but you aren't growing does that mean that you have to spend more on online or there's something off but I said sometimes I think I'm in a hospital the monitor tells me I'm getting healthy but the doctors the only one who's growing fat right I just give them that analogy and I say okay fine but you're in business you're not in a campaign you're in business and as business how about these where what is your data flexibility what is your strategic flexibility what is your reputation flexibility right and these are things you should worry about what you will see in I think your company is getting used to it and I'm not sure others I've got used to it you all have become so important that you no longer part of the advertising and marketing department you are a board level conversation and a big thing that I've told my clients is no one is coming to disrupt my business because it sucks too much to disrupt everyone is coming to disrupt our clients business make no mistake okay and and so my whole stuff is remember that your work you're working with these are business and society operating systems they're not advertising operating systems which is one of the reasons you're seeing CMOS disappear all over the place right because the CMOS my stuff is if you're a CMO with any power you should be on the board of directors of the company otherwise who are you you know all these people say oh we care all about people people consumers etc I said okay you got a CFO runs money CIO runs information CTO runs technology all on your board where's your people person right what has happened is marketing was not taken seriously but because the future is marketing the future is googles and Facebooks and Amazon's and Viacom CBS and everything else and society is changing because of these platforms boards have to take pay attention so I basically face this is going to be an incredible time both for our industry and your industry and for our clients industry as long as we realize this isn't about ads I'm getting the vibe that it's like restructuring the way that we're thinking about doing business and making these decisions what are your thoughts on how this is adapted to business schools are the future business leaders business schools are one of the other groups that are being disrupted themselves so I'm talking to business schools I'm obviously associate with the University of Chicago Booth but I've got Michigan the other day I was at Duke because they are thinking about how to change because in effect education healthcare and finance are the three categories with this too much GDP in there and not enough value being created and those are businesses y'all are going to be very big in health for sure you know try to be big in finance right and I think you're can be very big in education because the reality of it is the where people are getting educated today is we're pretending that we're still in the 1950s which we basically are hopefully that helped you all right I think we're I think we right so if we if you wouldn't mind giving Rashad a round of applause you you.

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