Use Google’s measuring tape for success
While Google has enjoyed near market dominance, should it be concerned about the long-term viability of its business strategy in light of recent news from Microsoft and their bid for Yahoo, Google’s lead competitor?
Perhaps, but considering that their management approach has also contributed to their success it’s worth taking a moment to think about the foundations of their management practice apart from their business strategy.
One of my favourite sources of free online content is Strategy + Business magazine, published by consulting firm Booz Allen Hamilton. In its most recent enews bulletin by Nicholas G. Carr, the author describes Google’s business model like many others before him. However, he points out that, while Google has been a darling of innovation, their success has been based more on scaling their original insights and practices than a continued stream of compliments to their core search engine. In fact, they have had several duds which is all part of the portfolio game used in many other models of business, e.g. VC.
Here is my key takeaway:
“Above all, Google teaches us, through both its successes and its failures, that smart companies — the ones that are not only consistently innovative but consistently profitable — exhibit three qualities.
- They hire talented people and give them room to excel.
- They measure progress and results rigorously and make course adjustments quickly.
- And they remain disciplined in their work and their spending, curbing the instinct to do too much at once.�
Of all the literature available on managing today, these are some very useful practices to consider and emulate. Care to add any others to the list?
David is Project Leader at the Martin Prosperity Institute and a practicing management consultant. He is a recent MBA grad from the Rotman School of Management and is passionate about developing the thinking and leadership potential of others.
