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Sunday, February 05, 2012 5:53 AM
     

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70/20/10 rule

  
  
What is the right balance between exploiting what you know and exploring new areas? Either extreme could turn out to be bad for companies. On one hand, companies should be able to get the best out of their current business line, while ensuring that they are not blindsided by the next big thing in their industry. Google's CEO has instituted the 70/20/10 rule within his company. This means that seventy percent of the company's money is invested in areas relating to its core business of advertising and search, 20 percent in related but secondary businesses (news, desktop search, Gmail), and 10 percent for comparatively wild, new ideas (Orkut, Keyhole, Picasa). Google employees have 20% time – almost one day a week – in which they are free to pursue projects that are passionate about and think will benefit Google. This policy has resulted in Google News, Google Suggest, and Orkut. Should this strategy be in every company's playbook? .

Posted by Bala Iyer on Fri, Aug 05, 2005 @ 09:52 AM

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