Why Leaders Need a Shakeup: Google Becomes Alphabet

 

google shakeup

On Monday Google formed a new company called Alphabet. Google Inc. will become part of Alphabet Inc.. This arrangement will allow Google co-founders Larry Page and Sergey Brin to continue to work on different projects (like extending human life) without distracting from Google’s search and video goals. Sundar Pichai, Page’s lieutenant, will become the new CEO of Google.

Larry Page defends the shakeup in his blog:

“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.”

The sudden shift gives both Google cofounders the space and the tools to work on new, innovative projects without upsetting investors. They hope that the shift will bring about the following:

“We are excited about…

  • Getting more ambitious things done.
  • Taking the long-term view.
  • Empowering great entrepreneurs and companies to flourish.
  • Investing at the scale of the opportunities and resources we see.
  • Improving the transparency and oversight of what we’re doing.
  • Making Google even better through greater focus.
  • And hopefully…as a result of all this, improving the lives of as many people as we can.”

Sometimes it is important for leaders to turn their business or their routines upside down in order to pursue new goals and innovation. Now Google cofounders can shoot for the moon and engage in Blue Ocean thinking without worrying about derailing their search business.

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BLG Leadership Insights offers advice to leaders, entrepreneurs, and students  

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