CEO of Google on Predicting the Future of New Media Markets (2005)

• Report rights infringement
• published: 15 Jan 2016
• views: 33

After Silicon Valley's two most prominent investors, Kleiner Perkins Caufield & Byers and Sequoia Capital, agreed to invest a combined total of $25 million into Google, they applied pressure on Page to step down as CEO so that a more experienced leader could build a "world-class management team." Page eventually became amenable to the idea after meeting with other technology CEOs, including Steve Jobs and Intel’s Andrew Grove. Eric Schmidt, who had been hired as Chairman of Google in March 2001, left his full-time position as the CEO of Novell to take on the same role at Google in August of the same year, and Page moved aside to assume the President of Products role.[4] Under Schmidt's leadership, Google underwent a period of major growth and expansion, which included its initial public offering (IPO) on August 20, 2004. However, he always acted in consultation with Page and Brin when he embarked on initiatives such as the hiring of an executive team, including a newly conceived vice president of product management, Jonathan Rosenberg, and the creation of a sales force management system. Furthermore, Page remained the boss at Google in the eyes of the employees, as he gave final approval on all new hires and it was Page who provided the signature for the IPO, the latter making him a billionaire at the age of thirty.[4] Page led the acquisition of Android for $50 million in 2005 to fulfill his ambition to place handheld computers in the possession of consumers so that they could access Google from anywhere. The purchase was made without Schmidt's knowledge, but the CEO was not perturbed by the relatively small acquisition. Page became passionate about Android, and spent large amounts of time with Android CEO and cofounder Andy Rubin. By September 2008, T-Mobile launched the G1, the first phone using Android software and, by 2010, 17.2 percent of the handset market consisted of Android sales, overtaking Apple for the first time. Android became the world’s most popular mobile operating system shortly afterward. Following a January 2011 announcement,[40] Page officially became the chief executive of Google on April 4, 2011, while Schmidt stepped down to become executive chairman.[41] By this time, Google had over $180 billion market capitalization and more than 24,000 employees.[42] After Schmidt announced the end of his tenure as CEO on January 20, 2011, he jokingly tweeted on Twitter: "Adult-supervision no longer needed." Quartz organizational management reporter, Max Nisen, described the decade prior to Page's second appointment as Google's CEO as his "lost decade." While Page continued to exert a significant influence at Google during this time, overseeing product development and other operations, he became increasingly disconnected and less responsive over time. As Google's new CEO, Page's two key goals were the development of greater autonomy for the executives overseeing the most important divisions, and higher levels of collaboration, communication and unity among the teams. Page also formed what the media called the "L-Team," a group of senior vice-presidents who reported directly to him and worked in close proximity to his office for a portion of the working week.[43] Additionally, he reorganized the company’s senior management, placing a CEO-like manager at the top of Google's most important product divisions, including YouTube, AdWords, and Google Search.[4] In accordance with a more cohesive team environment, Page declared a new "zero tolerance for fighting" policy that contrasted with his approach during the early days of Google, when he would use his harsh and intense arguments with Brin as an exemplar for senior management. Page had changed his thinking during his time away from the CEO role, as he eventually arrived at the conclusion that his greatly ambitious goals required a harmonious team dynamic. As part of Page's collaborative rejuvenation process, Google's products and applications were consolidated and underwent an aesthetic overhaul. https://en.wikipedia.org/wiki/Larry_Page