The Alphabet Way: G is for Google

"Alphabet is about businesses prospering through strong leaders and independence.”  — Larry Page

This is my brief perspectives on Google becoming a subsidiary of Alphabet.

Intro
For those who haven't heard, co-founders Larry Page and Sergey Brin recently announced their greatest transformation plan for Google, positioning the search advertising giant as a subsidiary along with several Google businesses in a holding company named Alphabet.  At the helm, Larry and Sergey will be the CEO and President, respectively, and longtime Googler Sundar Pichai will become the CEO of Google.  If you want to read more go to https://abc.xyz/.  

Structure
The new organization structure of Alphabet could look like the org chart below. 

The dotted lines represent the relationships between them, and both the accounting and legal independencies.

The Alphabet Way
The new corporate structure allows Alphabet and its subsidiaries to be more nimble and more competitive than in the previous large organization structure of Google.  This way the whole organization and its parts can be more manageable in its startup culture.  The restructuring put subsidiaries into focus and at arms reach, making operations clearer and simpler for management to best monitor and measure performances.  In addition, timely decisions and precision actions can be made to best support growth and profitability.  Alphabet is the financial and leadership entity for its experimental projects and subsidiaries (or portfolio companies) while Google holds its self-sustaining cash cow operations in running Search, Maps, Youtube, Android, Ads and Apps.

It's Done
The change is necessary, and the leaner corporate structure of Alphabet will improve the process of taking highly potential projects toward profitable companies.  Now that it's done I can say it openly, and it's been a few days since Larry made his big public announcement of Alphabet.  I wrote in my previous Linkedin post about an important strategic factor that's been missing and hindering certain business ventures to succeed at Google.  The thought (or proposal) has been brewing for a few years, and when implemented the strategy can solve both ends by saving and generating millions, even billions, of dollars at Google — and now Alphabet. 

Carl
Twitter: @inhite