You must reward people for failing, he says. If not, they won't take risks and make breakthroughs. If you don't reward failure, people will hang on to a doomed idea for fear of the consequences. That wastes time and saps an organisation's spirit.
For a large company like Google it's a smart why to encourage innovation, especially since innovation can actually decline after a company goes public.
Finding new transformational ideas is like sending out a team of scouts to explore uncharted terrain for new mountains to climb, he says.
"If you shame them when they come back, if you tell them that they've failed you because they didn't find a mountain, no matter how diligently they looked for or how cleverly they looked for it, those scouts will quit your company."
"If employees try something that was worth trying and fail, and if they are open about it, and if they learn from that failure, that is a good thing."