Based on a year’s intensive study of Google and other firms, this compact book focused on managing firms provides a review of important writings and vignettes of company histories. Silicon Valley model companies have eight major elements: compelling visions, entrepreneurial founders, the right people, a strong culture, leaders that coach and facilitate, an organization that simultaneously focuses on efficient operations and innovation, coordination through shared vision, and automated information processes. Much of the book is about reacting to change and showing that the Silicon Valley model reacts more effectively to change than bureaucratic management structures.

The first chapter discusses change. Forces of change include technology, demography, globalization, and environmental concerns. The six “case companies” used--Google, Apigee, Facebook, LinkedIn, Tesla Motors, and Twitter--not only each brought a new product to market, but, more importantly, have been able to overcome the challenges of change.

Chapter 2 presents the six principles for dealing with change: dynamic capabilities (sensing opportunities and threats and acting); changeable organization (taking a proactive approach to change); a people-centric approach; ambidextrous organization (it can do both daily production and innovate); networking with surroundings; and a systems approach.

The major contribution of Silicon Valley companies, as pointed out in the next chapter, may have been managerial rather than technological. Two reasons why managerial innovation developed in Silicon Valley were the nature of the products and the highly entrepreneurial norms, dating from the mid-19th century, of the region.

Chapter 4 deals with entrepreneurship, “recognizing and seizing new business opportunities.” Again, managing entrepreneurship is compared to traditional management.

Chapter 5 describes the qualities of the “special breed” of people making up the six case companies: entrepreneurial, adaptable, passionate, constantly questioning, and collaborative. These people are attracted to a company and retained by meaningful work.

Culture and belief systems are considered next. One core belief common to all six case companies is, “We are not an ordinary company.” Other core beliefs listed are consistent with the model just described.

Chapter 7 discusses leading creative people. Leaders provide direction and expectation level and not much else. Leaders must also pay much attention to hiring: one aspect is weeding out candidates who will not be ethical.

Organizational actions that lead to entrepreneurship come next. Much of the chapter discusses working with other organizations: suppliers, the user community, and the “ecosystem.”

The penultimate chapter reviews the qualities of the Silicon Valley model, comparing it to the traditional management model. The discussion makes use of an idea that emerged in the 1970s: “Adhocracy.”

The final chapter argues that the Silicon Valley model can be used in organizations beyond Silicon Valley.

The austere summary presented above does not do the book justice as the writing is lively, with many pertinent anecdotes and remarks from the principals involved. The book brings much information and insights together without the fluff of many books on the same subject nor the academic pretensions of some presentations. I highly recommend it for someone designing her or his own organization or dealing with a company using the model, as well as for someone wanting to understand how at least some organizations are changing.