Little understood, organizational DNA is of vast importance. Which is why Eric Schmidt is so intent on delving into its workings. Schmidt has approached the DNA question by becoming an expert on how companies have sex. In biological evolution, the capacity for sexual reproduction developed as a response to harsh and fast-changing environments. The companies Schmidt works with face similarly brutal business environments.
Sex is all about mixing up the DNA from two parents to spawn something new.
By mingling genetic characteristics from two distinct mates, sexual reproduction allows more radical genetic experiments. Not surprisingly, the children varied little from their parents. This strategy worked well, as long as the auto market remained stable. In the new economy of fast companies, a diversity of sexual experiments tends to beat self-fertilization and local intermarriages. Just as your parents' Oldsmobile is unlikely to be appealing today, a knockoff business model is unlikely to succeed.