On Monday, August 10, Google co-founder and CEO Larry Page announced a massive reorganization of the company’s structure. Most notably, Page announced the creation of a brand new umbrella company called Alphabet, Inc. Google’s Alphabet is made up of a collection of organizations, including Google’s existing health science companies, Calico and Life Sciences, and a slimmed down version of Google, amongst others. Under this new structure, Page and his partner Sergey Brin will serve as Alphabet’s CEO and President, respectively. Each individual business will have its own CEO in place, with Page and Brin available for service as needed. Many people have been curious about the motivations behind the change and what it means for the tech giant. From a consumer standpoint, the announcement may initially seem somewhat insignificant. However, from a corporate perspective, the restructuring marks an important step forward for the continued growth and development of Google’s products, services, and employees.
Structured for Success
The unconventional company structure is comparable to that of Berkshire Hathaway, Warren Buffet’s conglomerate made up of companies as diverse as GEICO and Dairy Queen. This structure brings with it numerous advantages that Google may have previously been missing out on:
- The ability for greater specialization within individual roles across Alphabet’s business units.
- With a traditional business structure, it is difficult for specialists to not only showcase their unique talents, but to rise to executive positions within the company.
- When a company has several different business units but only one primary executive in charge, the company will look to its generalists when promoting to its C-Suite positions.
- When each business unit has its own executive in place, like in Alphabet’s structure, it gives specialists the opportunity to showcase their full skill sets without jeopardizing their chances for upward mobility in the company.
- Specialists will be even more sought after, as the business units will need leaders with in depth knowledge of their specific products and/or services.
- By allowing their business units to specialize, the executives that make up Alphabet will gain a better understanding of the key skill sets of their employees and feel more comfortable investing in their continued education to improve these skills.
At Modis, we experienced a similar restructuring when we were acquired by Adecco Group North America in 2009. We maintained our existing corporate leadership while also receiving the resources and benefits of having Adecco’s executives at our disposal for assistance. Likewise, Adecco Group’s executives have benefited from the great support system that has come as a result of appointing leaders for the business units throughout our group. Our Chief Human Resources Officer, Rich Thompson, weighed in on the benefits of this structure, saying that it, “allows for our company’s resources to be allocated appropriately and productively.” He went on to add that it also, “creates communication amongst the leaders across our businesses which helps to strengthen our leadership teams and maintains stability.”
A Unique Structure Brings Unique Results
Being a part of Adecco Group North America allows us to focus on our strengths and skill sets to provide the very best in IT solutions. Modis can help you stay ahead of your competitors and connect your business with top tech talent. Learn more about how we can move your business forward or contact us today!