As we discussed in Comm 101 Class 19 (People, Culture and Teams1), organizational culture is a set of core values that shape behaviours in the organization and help build long-term enduring brand. Acknowledging the important role it plays in business operations, I wonder, does great culture guarantee a great return?
In fellow student Seham Abdul Karim’s blog, she has shared valuable insights into Google’s organizational structure and explained how it contributes to the giant’s success. Similar to Zappos, Google gives its employees enough freedom to pitch in creative ideas (according to 70-20-10 rule), encourages workers to project their “crazy thoughts” directly to the top executives2, and offers generous compensations (free meals, healthcare, etc.). I agree with Seham that Google has one of the greatest culture and offers dream jobs that many people envy; like an “engineer’s playground”, Google gives its employees opportunities to explore their passions without concerning too much about the financial outcomes.
However, as the failure of Google Glass3 illustrated, Google didn’t pay much attention to the market needs while being dominant in research. It seemed to me that the company cared too much about its workers’ happiness and ideas rather than the ones of the customers, which isolated the company from the demand-and-supply world. Apparently, equipped with an optical head-mounted display, touchpad and camera that can record 720p HD videos4, Google Glass didn’t fail because of the technology, rather because of its vague, undefined value proposition. Customers didn’t know what problem it solved or why they may need it.
In my opinion, building working culture and making workers happy is important, but it should be based on customers’ and happiness and satisfaction. Culture is an intangible asset only when it creates actual value for the company, which, in most cases, is determined by the financial outcomes. Tying engineering work closely to business performance and customers’ needs should be part of the culture, helping the business advance in today’s customer-oriented market.
Works Cited
- Class 19: People, Culture and Teams
- Google’s Business Leadership and Organizational Culture
- Why Google Glass Failed
- Google Glass Review
- Image 1 — three keys to organizational success
Apple’s supply chain strategy showcases how outsourcing can fuel innovation and profitability. However, beyond manufacturing, outsourcing can also benefit other key business functions. For instance, outsourcing customer support, IT services, and even creative roles to countries like the Philippines can further optimize costs while maintaining high-quality service. The Philippines offers a skilled, English-speaking workforce, making it an ideal hub for offshore business operations. If Apple expanded its outsourcing strategy to include business process outsourcing (BPO) in the Philippines, it could enhance customer experience while freeing up resources for innovation.