I would like to answer it like a layman to bring something new, hope you will like!
Google Page was the head of a joint family, Google. The family was getting bigger with time. New members were added but the oldest son, Google Search and his sibling Google AdSense were the most hardworking lot. They worked like anything and they earned alot.
Now, other siblings became complacent and dependent on the earnings of the two older siblings viz. Google Search and Google AdSense. The head, Google Page was an intelligent man. He realized that there is no accountability of the performance of other members in their joint family like Google car., Google watch, Google R&D, Google Robot, etc. He knew that this would lead to family troubles as some are working hard and others are not picking up with time.
He got an idea. He decided that he will give independent ownership to his children. Thus he will make them responsible and accountable for what they do with the companies they acquire. By doing so, everyone will have their individual balance sheet and all will strive to improve their company. After all, they all have to stand on their foot and perform.
Also, Google Page decided to remodel his role as that of mentor to his children and so he decided to take a new home where he can peacefully control, monitor, mentor and analyze the performance of his children. Now he has spare time to think about adding more members through marriage or alliance.
He named his new home as Alphabet and started to live with his partner in their new home. They can now focus on their weak children who were unable to perform earlier. Also, they want to adopt more children and so they are staying away from their children so that everyone should have their space.
Fast Forward the story to 2020,
The entire turnover of Alphabet ( which controls all the companies run by Page's children) is 20 times of the turnover of Google, the joint family.
Google Page has been awarded with the award for Visionary of the Decade 2010-2020.
PS- I work for a company which has made independent companies within the organisation, which has no legal sanctity but it helps in making the accountability clear. We know the healthy and ill units and corrective measures can be taken easily. This improves overall performance of the company as despite the company is big, it created small units which can work as a startup.
Hats off Google! Brilliant move! A masterstroke
Google Page was the head of a joint family, Google. The family was getting bigger with time. New members were added but the oldest son, Google Search and his sibling Google AdSense were the most hardworking lot. They worked like anything and they earned alot.
Now, other siblings became complacent and dependent on the earnings of the two older siblings viz. Google Search and Google AdSense. The head, Google Page was an intelligent man. He realized that there is no accountability of the performance of other members in their joint family like Google car., Google watch, Google R&D, Google Robot, etc. He knew that this would lead to family troubles as some are working hard and others are not picking up with time.
He got an idea. He decided that he will give independent ownership to his children. Thus he will make them responsible and accountable for what they do with the companies they acquire. By doing so, everyone will have their individual balance sheet and all will strive to improve their company. After all, they all have to stand on their foot and perform.
Also, Google Page decided to remodel his role as that of mentor to his children and so he decided to take a new home where he can peacefully control, monitor, mentor and analyze the performance of his children. Now he has spare time to think about adding more members through marriage or alliance.
He named his new home as Alphabet and started to live with his partner in their new home. They can now focus on their weak children who were unable to perform earlier. Also, they want to adopt more children and so they are staying away from their children so that everyone should have their space.
Fast Forward the story to 2020,
The entire turnover of Alphabet ( which controls all the companies run by Page's children) is 20 times of the turnover of Google, the joint family.
Google Page has been awarded with the award for Visionary of the Decade 2010-2020.
PS- I work for a company which has made independent companies within the organisation, which has no legal sanctity but it helps in making the accountability clear. We know the healthy and ill units and corrective measures can be taken easily. This improves overall performance of the company as despite the company is big, it created small units which can work as a startup.
Hats off Google! Brilliant move! A masterstroke
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