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Ian Lamont, author of Google Drive and Docs in 30 Minutes, discusses office compatibility mode for Google Docs, allowing users to edit Microsoft Word documents without needing Word installed. To use this feature, a special extension called "office editing for Docs sheets and slides" must be installed on Google Chrome. This extension acts as a plugin for Chrome, enhancing its capabilities. To access and install extensions, navigate to the Chrome menu, go to window, and choose extensions. Office compatibility mode offers valuable utility for editing Word documents in Google Docs, despite some limitations.