Thoughts on the New Google

Why major changes to even very successful companies and business models actually make sense.
Aug | 11 | 2015

Aug | 11 | 2015


Even ten years ago, only a middling or sinking organization would consider adopting a fundamentally new management structure. The notion that one of the most successful companies on the planet by any standard would shake things up so dramatically was anathema.

Well, this isn’t 2005.

In case you needed any more proof, consider Google’s Alphabet announcement yesterday. Google as we know it still exists, albeit with new management. A new holding company will own Google and other properties. (At least the company formerly known as Google has kept its sense of humor.)

Was such a dramatic move necessary for Google to survive? Of course not. The company is churning out near-record profits and dominates search and mobile devices. (Don’t call them monopolies, though.)

Simon Says: Even very successful companies need to mix things up.

In The Age of the Platform, complacency is a surefire way to ensure irrelevance or even obsolescence. Just ask Blockbuster, AOL, Yahoo!, RIM, and scores more.

Bold moves are not only advisable today, they’re often necessary.

Bold moves such as massive acquisitions, management shakeups, and new product launches are not just optional today, they’re often wise and even necessary.

More than ever, success today is no guarantee of success tomorrow.


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