Google’s “20% time,” which brought you Gmail and AdSense, is now as good as dead

Then "professional" management came in and killed the proverbial goose. They had to focus more on the "bottom line". To do what was easy to measure and track, rather than what was necessary for the next step of the company, and now HP is a mere shadow of its former glory -- directionless and bleeding.

3M and Corning have largely avoided this fate, but it seems that Google won't. This should make a lot of entrepreneurs happy, as there will continue to be a lot of top-down management-driven products that, if history shows, will continue to be market failures. Yet somehow, I'm incredibly sad, as it seems that too many companies go down this road.

I mean sure-- if your company is under cash flow pressure you have to pinch pennies. You have no choice. Spreadsheet says so, and spreadsheet's the boss. But if you're not, you should be investing and thinking long term cause the other guys probably aren't.

I've seen a related phenomenon in the startup world. Watched it, front row seat. I did a stint in startup-tech-focused business consulting. If you have a top-ten MBA and connections you can raise millions of dollars, set fire to it like the Joker in Batman Begins, and then raise millions of dollars again, serially.

They were basically cargo cultists, mindlessly imitating the words, phrases, and superficial behaviors of supposedly-successful people and businesses. But there was no higher-order conceptual thinking beneath the surface-- no "there" there. They had no plan and no plan on how to acquire a plan. They got the money and then did a kind of mindless MBA rain dance until the money was gone. Then they'd raise more.

I watched them do shit like destroy products that big customers had money in hand ready to pay for when they were inches away from release. I mean a done product, ready to go, and better than anything else in its market. A product that they owned and had already paid to develop. The rationale was always some kind of MBA newspeak blather. I can't even remember it since my mind filters out sounds that imitate language but lack conceptual content. Otherwise I risk wasting a synapse.

But what do I know? I went to a po-dunk Midwestern state school, so what looks obviously stupid to me is maybe genius. I'm not saying I definitely could have done better, but I do think my probability of failure would have been <= to theirs. But there is no way in hell I could get what they got. Not a chance. I saw people try with better credentials than me and who were probably much smarter, but they lacked whatever special magic blessing the cargo cult guys had.

I'm convinced its pure cronyism and ass-covering. I guess nobody ever got fired for losing their clients' money to a Harvard or MIT Sloan MBA. Nobody with a degree like that could be at fault. It has to be the employees (I've seen really good people get blamed for following stupid orders several times), bad market timing, etc.

When your ability to make money hand over fist starts to get challenged, it is difficult to continue giving people free reign, especially when your competitors focus on cost, cost, cost. HP was a great place that made oodles of money selling tank-like PCs (among many other things) that cost $3k. But then Dell came along, invested $0 in R&D and started cleaning HP's PC clock. Bell Labs was engineer/scientist nirvana, then the AT&T monopoly went away.

The other issue in big companies is that as people with direct connections to the business start losing control, the bureaucrats (well intentioned as they are) start moving in, and they worry about things that the engineers/etc didn't really care about. They are passionate about you using the appropriate powerpoint template, and will speak to your supervisor if you don't comply!

That kind of thinking sounds like it would lead to a "race to the bottom" to me. If everybody is obsessing over - and competing on - a quest to cut costs the most and the fastest, I really don't see how anybody is going to benefit from that in the long run.

Or to put it another way: "You can't cost cut your way to a growing company".

Of course, I'm not saying there's never a time when circumstances change and some cost-cutting might be called for. But cost-cutting is a tactic, IMO, and not a strategy. Innovation, on the other hand, and committing to the activities that lead to more and better innovation, is a strategy.

My feeling: If you want to grow, you have to innovate. So if you reasonably believe that "20% time" is an approach that leads to useful innovations, then cutting it is a short-sighted, and arguably mistake, move.