Facebook's Zuckerberg Worries About Lack of Innovation

NEW YORK (TheStreet) - As Facebook preps for a reported $10 billion IPO next year, founder Mark Zuckerberg has one major fear about the world's biggest social network: Lack of innovation.

"Mark worries about lack of change and innovation becoming the innovator's dilemma. Once you get big, you stop moving," said Facebook Chief Operating Officer Sheryl Sandberg on Thursday at Business Insider's Ignition Conference in New York. "We're always thinking about how to keep the team small and making sure when you join Facebook you can continue to build great products."

Facebook COO Sheryl Sandberg

Sandberg also countered critics who have questioned Facebook's commitment to protecting the privacy of its users by calling Zuckerberg "a leader in privacy."

This week, Facebook settled charges with the Federal Trade Commission that it deceived consumers by telling them they could keep personal information on the site private, and then sharing it.

"Facebook was the first player to come up with privacy that you can control," Sandberg said. "Mark deeply understood that if you want to have people share, you need to give them control over data and that's what he has done from the beginning."

She also addressed speculation that Facebook is trying to become the next Google (GOOG) by chasing after buzzy products outside of its core business like daily deals and mobile check-ins.

"Our product strategy is as different from Google's as two companies can get," she said. "We usually make bold bets ... we're very focused on doing just a few things very well."

Sandberg called Google Plus, the search engine's attempt to break into the social space, flattering.

"Imitation is the greatest form of flattery," she said.

While only seven years old, Facebook has the chance to become a lasting brand, Sandberg said.

"There is Procter & Gamble (PG) and Coca- Cola (KO) that have 100 years plus of serving consumers incredibly well," she said. "And we would like to be that as well."

--Written by Olivia Oran in New York.



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